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Brand Licensing News

Can we afford to buy cheap?

In any downturn, brand managers are tempted
to reduce prices.
Often the sales department asks for discounts,
rebates, etc.

But is that what consumers are looking for?
As a friend says: "We are too poor to buy cheap."
Consumers now concentrate on real value.

The cheap jeans for $15, that lasts one season only,
looses against value brand jeans for $40,
that you will wear for five years.

For brand managers that means, communicate value.
And resist the urge or push for price reductions.
You will not recover the loss through higher volume
during a recession.

Monday, December 15, 2008

Brands - The Next Bubble?

Two Y&R employees published "The Brand Bubble".
It is the 3rd best business book of 2008 at Amazon.
Good PR for the brand evaluation method of Y&R.

We agree, that brand values published by various
companies are mostly bogus.
And companies like NexCen and Iconix are proof,
how Wall Street misinterprets brand value.

We have been very skeptical about the various tools
and methods of brand evaluation.

In our opinion only the income approach holds the water.

Wednesday, December 10, 2008

Are Cellphones the new Sunglasses?

Over the last years sunglasses became the No. 1 image product.
Every reasonably known fashion brand or Automobile brand
has a license for eyewear.
Our database shows way over 30 of them.

In 2007 we have seen plenty of licenses for cellphones
from fashion or lifestyle brands like Prada, Levis,
Giorgio Armani, Mandarina Duck, etc.

Now General Motors has entered into licensing agreements
for custom designed cellular phones for Cadillac
in North America and China, HUMMER in Asia and
Buick in China.

Generally careful with predictions we make an exception
and say:
Cellphones indeed are the new Sunglasses.

Friday, November 21, 2008

Steve Madden Bed & Bath

Steven Madden announced a new license agreement for a
collection of bedding and bath products.

The collection will consist of sheets, comforters,
decorative pillows, window treatments, throws,
beach and bath towels, bath rugs and accessories,
and other bedding and bath products.

It will be distributed through specialty retail
and better department stores beginning spring 2009.

The licensee also holds licenses from Tommy Hilfiger,
Michael Kors, Perry Ellis, Columbia Sportswear
and Laura Ashley.

Wednesday, November 19, 2008

Toilet Duck sold to Licensee

The Swiss newspaper Tagesanzeiger reports,
that the global rights to Toilet Duck were sold
to SC Johnson.

SC Johnson had the brand license in 100+ countries,
in four countries the German Henkel AG holds licenses.

Sunday, November 16, 2008

Three Licenses for Kneipp

Kneipp signed three new licenses, one for Kneipp bread,
one for Kneipp mineral water and one for Kneipp cereal
mixes, called Müsli.

Sunday, November 16, 2008

Predicting the future: Hemline vs. Licensing

There are various attempts to predict the development
of the economy.
Whether todays seer watches hemlines, hair length or
lipstick sales, nothing really seems to work reliably.

After 10 years in licensing we feel, that our industry
is 12 to 18 months ahead of the general economy.

We saw licensing slow down early 2000, well before
the crash of 2001. The recovery came earlier too, in 2002.
This weeks licensing numbers for 2007 show decreases
across the board.
We will see, when this will turn again.

Maybe licensing is a decent indicator.

Monday, October 20, 2008

Tod`s and Hogan Eyewear Licenses

According to WWD, Tod`s has signed five-year license agreements
for the men`s and women`s sunglasses and prescription frames
under the Tod`s and Hogan brands.

The first Tod`s and Hogan eyewear collections are slated
for spring-summer 2010.

Wednesday, September 10, 2008

Jil Sander Beachwear & Innerwear

The Jil Sander Group announced a license for men`s and women`s
underwear and beachwear.
The underwear collection will hit the market in Fall 2009
and the beachwear in spring 2010.

The agreement will give the licensee the exclusive global license
to design, manufacture and distribute both the underwear and
beachwear collections for JIL SANDER.

Both collections will be sold worldwide in Jil Sander stores,
select department stores and specialty stores.

In separate news the owner of Jil Sander, Change Capital Partners,
announced the sale of the company to Onward Holdings Co.

Tuesday, September 02, 2008

Why Direct-To-Retail (DTR) Licenses are wrong

For obvious reasons many not so famous brands have problems
finding licensees.
Often driven by greed, the owner or agency turns to retailers
and signs a DTR license.

Why is it wrong?

1.
By nature, distribution is almost completely limited
to the one retailer/licensee.
That goes directly against the brand rule of availability.

2.
The consumer will see the brand extension as a private label offering.
At least in their mind, the brand changed hands.

3.
If something bad happens to the license or licensee,
the brand looses both, manufacturing AND distribution.
The product disappears.
And it is very unlikely, that any other manufacturer
or retailer will pick up the license.

Putting all your eggs into one basket may bring short term success.
In the long term, and that is what sensitive brand owners focus upon,
DTR licenses are most likely to fail.

Wednesday, August 06, 2008

Nicole Miller Hosiery

Nicole Miller has signed a licensing deal to manufacture
and distribute hosiery, tights, leggings and socks
under the Nicole Miller Collection and the better-priced
Nicole Miller New York label.

Monday, June 23, 2008

Dr. Martens Apparel

Hartmarx Corporation announced that it has reached agreement
with the holders of the worldwide license for Dr. Martens
to manufacture, market and sell a wide range of men`s and
women`s casual apparel under the Dr. Martens brand.

The Dr. Martens sportswear will be manufactured,
marketed and sold by HMX Sportswear, Inc.,
a New York based subsidiary of Hartmarx.

The launch collection will feature menswear for Fall 2009
with women`s to follow in 2010. The collection will reflect
cutting edge fashion trends for both men and women
ranging from sportswear staples such as denim jeans and
cotton shirts to sweatshirts and outerwear.

Friday, April 18, 2008

Funai and Philips enter US TV Brand Licensing Deal

Funai Electric Co. and Royal Philips Electronics will sign
a licensing pact allowing the Japanese firm to use Philips`
television brand names in North America.

Under the pact, set to take effect Sept. 1, Funai will pay
licensing fees to Philips in exchange for the exclusive right
to use the Dutch firm`s Philips and Magnavox brand names.
The pact can be renewed every five years.

Currently, Funai sells liquid crystal display TV sets
with screen sizes of 15-37 inches under three brands
in the United States and Canada.

Following the licensing deal, Funai expects its TV sales
in North America to reach 3.3 million units in 2008,
double the level in the previous year.

Wednesday, April 09, 2008

Could you license your brand?

Do you wonder, whether you could license your brand?

Then, ask yourself first:

Who would miss my brand,
if it did not exist anymore?

And be honest with yourself.

Friday, April 04, 2008

Hilfiger Women`s Underwear

Tommy Hilfiger Group signed a global licensing agreement
for women`s intimates.
Under the multi-year agreement the licensee will market
Tommy Hilfiger women`s intimate apparel throughout
the United States and key markets around the world.
The Tommy Hilfiger Women`s Intimates collection will be
available at select retail locations and premium
department stores as of August 2008.

Tommy Hilfiger`s Intimate`s Collection for women
complements the brand`s current lifestyle offerings
and features a broad range of styles in luxurious
fabrics and a variety of colors.

Wednesday, February 27, 2008

Oscar de la Renta bags new deal

Oscar de la Renta signed a license for O Oscar handbags
and small leather goods.

The collection will launch in better department stores
and specialty stores in July.

Wholesale prices for the new collection will range
from $100 to $200.

Wednesday, February 27, 2008

Elizabeth Arden & Alberta Ferretti

Elizabeth Arden signed an exclusive, global, long term
licensing agreement with Aeffe SpA for Alberta Ferretti
fragrances, cosmetics and skincare products.

A fragrance is planned to be launched in spring 2009.

Friday, February 01, 2008

Diesel Home Textile

Diesel has signed a five-year license with Italy`s
main home textiles company to produce and distribute
the brand`s first home linens line.
The aim is to bring Diesel`s irony and "cool" factor
to the home and shake up the sector`s traditional take
on design.

The line will be launched in April during Milan`s international
furniture and design exhibition, the Salone Internazionale
del Mobile.

The collection will be in stores in September,
and is expected to be sold worldwide in leading
department stores and home textile specialty shops,
as well as in selected Diesel stores.

The home textiles collection is only the first step
Diesel expects to make it in the world of interior design,
with plans to introduce furniture, lighting and objects
for the home next year.
It is currently talking to potential partners.

The line will be called Successful Living from Diesel -
a pun on the brand`s long-standing
"Diesel for Successful Living" slogan.

The license will include collections for the bedroom,
dining room, living room and bathroom, and will be
designed in-house.

Estimated sales for the Diesel line are 20 million Euro,
or $29.6 million at current exchange, by the fifth year.

The licensee puts out 120 collections a year,
also holds a license with Lacoste and previously
worked with Giorgio Armani.

Wednesday, January 16, 2008

Frerre Underwear & Swimwear

According to WWD, Ferre signed a new 5-year license
for swimwear and underwear.
The licensee is an Italian manufacturer, starting distribution
with spring 2008.
Ferre last had a lingerie license many years ago,
before it was bought by IT Holding SpA.

Wednesday, January 16, 2008