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A Look at Licensing in 2014

In last month’s column we discussed how to connect with licensors and addressed the questions that should be asked before signing a licensing deal. This month, we’ll take a look at the growth of the licensing industry as a whole, and highlight the trends that have shaped its development as they impact the categories to watch for in your own store.

Growing and Growing

According to License! Global’s annual Top 150 Global Licensors report, the top licensors accounted for more than $250 billion in global retail sales in 2013, showing a significant increase from the $230 billion seen in 2012 retail sales. Year-after-year growth is attributed to the success of both several evergreen licensors and emerging brand owners’ increase in retail sales. Licensed products are in high demand across the board, as over 59 global licensors reported retail sales of $1 billion or more.

Products of Entertainment

Number one on the list, Disney Consumer Products (DCP), leads the industry, by continuing to innovate products and experiences that connect consumers to their franchise. Demonstrating the continued strength of entertainment and character licensing, Frozen became the break-out movie of 2013 and its product line, inspired by the movie’s storytelling and music, included apparel, role-play, plush toys, dolls, books and more. Throughout 2014, Frozen will expand product categories and retail placement to meet the high consumer demand. Disney’s “Avengers: Age of Ultron,” “Star Wars Episode 7” and “The Good Dinosaur” from Pixar, also anticipate high consumer demand.

With help from “Man of Steel” and “Justice League,” Warner Brothers Consumer Products – another Top 10 Global Licensor, soared through 2013 with prominent retail and licensing partners. Warner Brothers found great success in their creative partnership with Walmart, when they established the Walmart Premiere Night – an innovative, cross-divisional Man of Steel retail program. to promote their summer block-buster, Man of Steel.

Opportunity for Everyone

Beyond the entertainment industry, the growth of licensed products comes from a wide range of market segments. With new companies on this year’s top list of licensors like Ford, National Football League Players Inc., Dr. Seuss, A+E Networks, Ironman, Wolfgang Puck Worldwide and Crocs, there are plenty of opportunities to find the right products for your customers. Good licensing programs don’t just come from the large entertainment studios, celebrities, and big brands either. Emerging brands and properties can become consumer product sensations through licensing too. As an example, by leveraging new YouTube stars like Bethany Mota and Austin Mahone, are able to make a big splash with licensing.

Household Products You Refuse to Hide in the Cupboard

As consumers no longer settle for an unbranded set of knives or generic household products, the houseware industry proves to be an important sector for the licensing industry. Food Network continues to delight fans and business partners with their branded products sold exclusively at over 1,150 Kohl’s stores, as well as new products being launched in a diverse range of market segments. Food Network found great success early on expanding into different markets, for example: their launch of the Food Network Magazine, a partnership with Hearst that continues to top charts. In 2011, they partnered with Wente Vineyards for Entwine, a line of accessible, food-friendly wines with an attractive price point. As a result of the partnership, year-to-year case sales are growing a double-digit rate.

 

To learn more, visit www.licensingexpo.com. Licensing Expo 2014, taking place June 17 to 19 in Las Vegas, is the world’s largest and most influential trade show dedicated to licensing and brand extension. Registration for Licensing Expo is free and retailers will have access to the Retailer Lounge – where they can network and hear brand strategy directly from brand owners. Visit Here to Register Now! 

 

Don’t Miss More Information on Licensing!  

How to Find a Winning Property on Licensing – Learn More Here! 

What Every Retailer Should Know About Licensing – Learn More Here! 

 

 


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