Licensing: Help to grow existing product lines

Licensing: Help to grow existing product lines
The attraction of licensing trademarks for business intentions appears to be at an all-time high, mostly in the fashion arena where consumers are buying more licensed products and brand names than ever before. For retailers, licensing opportunities provide them with a point of difference from their competitors.

Licensing is leasing a legally protected property (like trademarked or copyrighted name, logo, likeness, character, phrase or design) to another party in combination with a product, service or promotion. It is a process which lays stress on consumer management, development of brand equity in line with international imagery, providing right shopping ambience and perhaps is less about manufacturing. Licensing is a way of growing with an already established brand. It provides the brand recall benefits, which are not achievable in case one comes out with a brand new image.

There are many types of licensing business like art & design, corporate brands, events, fashion brands, food & drink, institutional, magazine brands, music, personalities, sports and television licensing to name a few.

The advantages of licensing for licensors
The main advantage for a licensor is the facility to use and develop its brand or property.
Licensing can achieve this by:
.Improving its brand existence at a retail or distribution outlet.
.Making further brand perception to support its core products or services.
.Providing and increasing its core values through various links with the licensed products/service or category.
.Coming into new markets (consumer or geographical) which were unfeasible with its own strengths.
.Making new revenue flows, often with little involvement or additional financial resources

The advantage of licensing for licensees
The main advantage for a licensee (particularly manufacturer or retailer) is the capability to considerably upsurge consumer interest in and sales of its products or services.
Licensing can achieve this by:
.Shifting the values and consumer favour towards the licensed product or service.
.Providing added value and differentiation in the competitive market.
.Offering additional marketing support or speed from the core property's activity given by the licensor.
.Attracting new target markets who have not been paid attention in a licensee's product or service.
.Providing credibility for shifting into new market sectors through product extension.
.Attaining additional retail space and favor.

activewear, sportswear, outerwear and swimwear in the United States. Moret will partner with M. Hidary and Company Inc for design, development and sales of the activewear portion of the license. M. Hidary has achieved great success with its vast experience in the men's branded activewear business. They will purchase certain men's apparel inventory owned by Everlast and assume other transitional costs associated with the men's business. Additionally, certain key sales, merchandising and operational personnel will join the new group.

Burnaby, B.C.-based ID Wear, a group of Pimlico Apparel, has recently received the sole license for the manufacture, design and sale of the Playboy brand of high-end denims for the North American market. Pimlico produces denim products for its own brands, ID Wear and private labels such as Nordstrom's and Harley-Davidson. Moreover, ID Wear is the first North American company to provide laser logoing on its garments.

Marvel Enterprises, Inc., a global character-based entertainment licensing company, recently declared that it is strengthening its important apparel licensing business with leading partners Kids Headquarters (as master apparel licensee) and Mad Engine (which will spearhead t-shirts and tops). This statement means a brand new partnership with Kids Headquarters and an expanded relationship with Mad Engine.

Juicy Couture has partnered with S�filo Group for a full eyewear collection that it will introduce in spring 2006. A budget-priced set of sunglasses and ophthalmic eyewear for men will also be introduced via an agreement between fashion brand Haggar Clothing Co. and The Feldman Corporation's I-dealoptics division.

Aviation and military-inspired leather outerwear and sportswear brand Avirex signed a multi-year license agreement with Kids Headquarters for sportswear and outerwear for boys.

Outerwear and Sportswear Company G-III Apparel Group obtained privately held outerwear companies Marvin Richards and Winlit Group Ltd. G-III now possesses licenses for Calvin Klein and Guess men's and women's outerwear, Tommy Hilfiger leather outerwear, London Fog and Pacific Trail.

Top 5 Children's Apparel Character Licenses: 2004

1. Winnie the Pooh & Friends
2. Disney Princess
3. Spider-Man
4. Mickey Mouse & Friends
5. SpongeBob SquarePants

Sesame Workshop and Pearl Izumi, an athletic-wear producer, have tied up to launch Sesame Street cycling jerseys and socks. Through a licensing agreement with plus-size apparel manufacturer Bodywaves, Inc., Champion has set up Champion Plus, a full line of women's activewear that covers both performance fitness and "ath-leisure" styles. Warner Bros. Consumer Products and Tunk Limited., a CINQ Group brand, have partnered to make tops, jackets and headwear.

Licensing practice in India on a rise
Nowadays, many Indian textiles companies are entering into licensing agreements with international brands, leading to the growth of the concept of business through licensing.

Gokaldas Images Ltd, which owns and markets the apparel brand Weekender, has signed an agreement with the World Wrestling Entertainment (WWE) for licensing and marketing the apparels with the WWE logos in the domestic market. A successful form of licensing - sports licensing, has developed into a multi�billion dollar systematic business and has increased its scope to sporting events like WWE, the Olympics, EURO, Cricket and Soccer World Cups. It is estimated that one fifth of the WWE's $ 300 million per annum profit is achieved by licensing. Moreover, Weekender - Gokaldas Images Ltd. markets the Enamour lingerie as well.

The global advancement of innovation
The global market for products which include smart fabric and interactive textile (SFIT) technologies is estimated to be about US$ 385 million, showing a growth rate of nearly 28 per cent since 2002 when the market was projected to be US$ 300 million. Though, growth rates differed highly from one application segment to another and from one vertical to another. While adoption rates will stay comparatively low in most markets, there is a strong indication that many applications will create hundreds of million dollars as profits to the traders of enabling technology. Rules governing the way we dress are a thing of the past, apart from the ones we select to make for ourselves. Once we set our mind, intelligence and imagination free everything becomes achievable with technology.

At one time, the only products with high-tech fabrics were for those who required performance clothing in their profession. But nowadays, consumers are realizing that fabric technologies such as stain-protection are making their every day clothing much better.

The world fashion business is booming because of the carefree attitude of the youth of today, and to fulfill their requirements the Cool Carefree style collection proves to be the best with an easy and functional mix of the best textile value addition components in the world. Lycra, Teflon and Coolmax are such components that are further adding a trendier look and are providing breathability and comfort. This combination also provides the fabric softness, easy iron, wrinkle and stain-resistance characteristics and an excellent fit without limiting movement. Nearly 25 per cent of apparel is made of easycare fabrics worldwide, and the figure is expected to increase to 50 per cent in the next few years.

Scientists are using their science to solve real life problems and it appears that they are one step ahead of designers when it comes to designing garments, not only in terms of aesthetics but also comfort. Around the world, there are many developments taking place in research labs.

Without innovation it is impossible to be efficient in the twenty-first-century. Keeping this in mind, many global players have used innovation as a foundation of their business strategy and provide customized offerings for generating value amongst the customers. Some of the major global players are as follows:

Invista has a global existence
The company has a global presence in the manufacturing or marketing industry. Today it covers five businesses: Apparel, Performance and Textile Fibers, Interiors, Intermediates and Polymer and Resins.

Some apparel specific brands
Lycra is a registered trademark for the Invista brand of textile products that are specified by many top designers and garment producers to make fabrics and garments with better fit, comfort and incredible freedom of movement. Lycra itself represents a portfolio of premium fibers. Lycra stretch fibers have the outstanding ability to be combined with or applied to virtually every other fiber � covering cotton, wool, silk, leather, nylon and polyester � improving how a fabric looks, feels and moves.
Lycra can be worn by everyone - from men, women and teens to even infants. The brand, Lycra, has made its presence felt virtually in every garment category and is facilitating to push the huge potential for elastification in ready-to-wear. The advantages Lycra carries, in exclusive combinations, to comfort, fit, freedom of motion, shape maintenance and easy care is the main reason behind its wide acknowledgement across the industry.

Coolmax
Based on the principle that when the body generates too much perspiration, it means it is utilizing energy to try and keep cool. This energy can be utilized to perform. If the sweat doesn�t evaporate rapidly the body core temperature heats up, making more sweat. Coolmax makes sweat a non-issue. The especially crafted Invista fibers used in high performance Coolmax fabrics take perspiration away from the body to the surface of the garment, where it can evaporate rapidly.

Supplex performance fabric is the registered trademark for the Invista brand of cotton-soft fibers and fabrics. Scientists at Invista have built up Supplex, a type of fabric that combines the traditional appeal of cotton and the performance benefits of modern fiber technology.

Fashion licensing is largely divided into two categories: apparel brands and designer names. The priority of fashion licensing is brand extension, which is mainly obtained by designers through licensing products other than their main apparel lines. Calvin Klein remains one of the premier examples for this type of licensing agreement, as its income tripled after adopting such a marketing strategy.

In 1997, licensing, which is responsible for more than 90 per cent of the label's sales, has now made the brand's global retail volume of about $ 5 billion from $ 2.1 billion in 1994. Many international brands catering to Indian players for licensing is a clear signal that a market which was premature a couple of years back, has now been accepted by the entire business community and will reach to its maximum level in the coming years. Licensing prospects now exist in all spheres. Leading international names that offer huge opportunities to harness the power of their name are Warner Bros, You and Me Baby, Nickelodeon, Barcode Kitties and BBC Worldwide, that is famous for operating brand names like Teletubbies, Tweenies and Fimbles.

Conclusion

In year 2004 licensing business shown tremendous growth, with notably 5.6 percent increment in entertainment, 3.8 percent in brands & trademarks and also showed good growth in other categories compared to 2003. So as character and entertainment licensing business showed a healthy growth in last few decades, and making billions of dollars of profits each year, the prospects of over all business, particularly fashion, textile and garment retailing will definitely have a bright future.