BPL ESSENTIAL GUIDE

WHY BRAND LICENSING?

LICENSING A BRAND is the legal process that grants you as the Licensee the rights to ‘LEASE’ a TRADEMARK or COPYRIGHT protected entity which is a Brand Property or Talent Intellectual Property (IP) with the plan to use it on third-party Products, Promotions, Media Campaigns or Location Based Experiences (LBE).  Licensing a brand and the association link between it and your products or services helps to increase sales and drive incremental revenue growth.

 

The LICENSING INDUSTRY is big business and extremely valuable to the global economy, in 2019 retail sales of licensed goods hit £292.8 billion which is a 4.5% increase YoY (Licensing International, Global Annual Report 2020).

Licensing is a marketing and brand extension model widely used by companies and organisations all over the world.  The Licensing Industry covers Entertainment & Character brands, Sports/eSports, Gaming, Fashion, Corporate, Music & Talent IP to deliver incremental revenue opportunities &/or increased brand extensions and consumer awareness.  Licensing extends a brand into new sectors and Categories for consumers to discover and interact with a cherished brand in new ways.   

THE BENEFITS OF LICENSING

There are multiple touch-points and benefits to licensing a brand and of licensing your brand(s) including but not limited to; increased product sales and revenue, increased brand awareness, uplift in retail revenues, allowing end-point consumers to interact with their favourite brands and IP in new and innovative ways on an experiential level. Brand licensing is a way for the brand owners to enhance the way their fans and consumers interact with their IP (properties) and move into new business sectors without investment in the production and distribution processes.

Licensing a brand gives your product a point of difference versus your competitors and an instant connection and recognition with your consumers. This can be a license to literally print money if you license the rights for the next ‘Hot Property’ at the right time for your products to hit retail and ride a wave of consumer demand. 

 

Think about if you had been offered the global Master-Toy license for the (as then unknown) Star Wars brand rights in 1976 before the theatrical opening in cinemas in 1977, and had the Toys in retail that Xmas holiday season (as Mego Corporation were offered - but they said no!).  Well, Kenner did say yes (1 year later) and launched their now iconic Star Wars Toy lines from 1978-1985 and sold over 300 million units worldwide.  This is the sweet-spot of right brand, right products, right price, right time = $$$ 

POWERFUL BRANDS

Think about how powerful a brand or character can actually be, how they can be instantly recognisable in all ways to the consumer…

The UK is the second-largest licensing market in the world, behind only the US, with retail sales here surpassing US$14billion in 2018. Other significant markets include Germany, France, Italy, Brazil, the Netherlands and the fast-growing Emerging Markets including APAC, Russia/CIS, MENA.  The stardust shine & appeal of products licensed to smash-hit Films, TV shows, Sports teams, Celebrities, and Fashion brands make them perfect products for high-profile retail displays, POS and promotional in-store layouts and medium/long-term retail range planning across key Retail Channels.  

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