TOTAL LICENSING
BRAND OWNERS ARE STEPPING
UP LICENSING EFFORTS
By Charles M. Riotto,
There was a time not long ago when reap fabulous benefits in the way con- it provides the product with a strong
President
owners of corporate brands avoided sumers perceive the brand. identity and instant credibility. These
International Licensing
licensing entirely, claiming that they For example, many successful licensors same benefits hold vast appeal for li-
Industry Merchandisers’
were unwilling to put the equity that note that brand licensing and exten- censees and retailers as well. Studies
Association (LIMA)
www.licensing.org
had been built up in their brands at sions have been key factors in helping show that the growing online retail-
risk. How times have changed! Today, them communicate the vision and core ing sector particularly benefits from
most forward-thinking brand owners values of their brand to an expanded the confidence and good will built into
recognize that the bigger risk is in sit- audience. branded merchandise, since buyers are
ting back and doing nothing as their There are already many examples of making decisions without the benefit
competitors develop and extend into brands that were known for a particu- of being able to touch and handle the
new markets. lar attribute – high quality, ruggedness, product.
Corporate brand licensing in the Unit- great taste, etc. – that have positioned Of course, licensed brand merchandise
ed States currently accounts for about themselves in a much stronger way by and brand extensions aren’t automatic
$19.5 billion in retail sales annually. If successes just because they leverage
you add in fashion brand licensing, that
total rises to approximately $34.3 bil-
Corporate brand
the “parent brand’s’ strength. The
products must have relevance to the
lion. The number of brand licensors at
licensing in the
core brand in the new category and
the annual Licensing International Show consumers must understand the logic
in New York has risen steadily for the
United States
for the extension. This requires ex-
past several years, and signs indicate
currently accounts
tensive research with manufacturers,
Licensing,
that it will jump up again this year. retailers and consumers, then analyzing
Previously we would see mainly well-
for about
that research to determine which cat-
when done known corporate giants displaying at
the show, but in recent years we have
$19.5 billion in
egories provide the best fit and make
properly, can
the most sense. The brand extension
seen a significant uptick in niche prop- should always appear seamless to the
be a very
retail sales annually.
erties and even some that are often consumer. As in any business, the brand
effective way
referred to as counterculture such as
If you add in
owner must choose his partners wise-
to inject new
tattoo art and imagery. And brand li-
fashion brand
ly, selecting those who share an under-
censing and extension deals have now standing of the core brand as well as a
life into a moved way beyond the traditional licensing, that total vision for continued future growth.
brand and
apparel and toy product categories.
LIMA’s research shows that the Food
rises to
Brand owners need to keep their as-
sets relevant and fresh. Communicating
enhance its
& Beverage category now accounts for
approximately
an exciting brand vision is increasingly
connection
21% of all corporate brand licensed difficult, especially if the brand remains
merchandise in the United States, and
$34.3 billion.
with a
static.
that the Health & Beauty segment has Licensing, when done properly, can be
broader shown the highest percentage growth a very effective way to inject new life
licensing appropriate products that
consumer
in recent years. into a brand and enhance its connec-
further establish these attributes in the
Brand licensing has evolved to the tion with a broader consumer base.
base.
minds of consumers.
point where the perceived risks that You can learn more about the latest
But corporate brand licensing goes
previously kept some wary brand own- trends and developments in brand li-
much further than that. It is a proven
ers away can be mitigated to a great censing at the Licensing University
fact that consumers develop an emo-
extend. License agreements have be- conference program held during the
tional connection with a desired brand,
come significantly more sophisticated, Licensing International 2007 Show,
and savvy marketers have now learned
allowing licensors the ability to keep a June 19-21 in New York.
to take advantage of that connection in
tight rein on the design and quality of
the selling process.
the licensed products, as well as retail
A trusted brand name can be a pow- For more information, please visit
price points, channels of distribution
erful way – and sometimes the only the show website, www.licensing-
and other key marketing strategies.
way – to differentiate a product from show.com or the LIMA website,
While not totally without risk, the po-
others on the store shelf. In addition, www.licensing.org.
tential upside of brand licensing can
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