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Brand Licensing News

2009

Polaroid licenses

Polaroid, the iconic photo brand that changed hands after bankruptcy
for US $88 Mill., closed six licensing deals for products like an online
photo-sharing service; lenses, filters, flashes, batteries and accessories;
mobile, computer and gaming peripherals; night-vision units, range finders
and digital camera binoculars; laptop accessories and precision-cut screen
protectors and durable, optically clear protective films for various mobile devices.

It seems, the new owners are successful rejuvenating the brand through smart licensing.

Risk in Licensing Contracts

Some licensing contracts contain a risk, limitations on where the licensee
might sell the licensed goods.

Why do we point out that risk?
Because recently two licensing partners were sued in court by a discount retailer
and the court fined the partners quite heavily.
Apotheke-adhoc reports (translation):

The Swiss bureau for competition set a Million Dollar fine against the manufacturer
of Elmex, Gaba International. The reason was the longstanding prohibition of Elmex imports
into Switzerland, that was part of the licensing contract between Gaba and its Austrian
licensee Gebro Pharma. The fine against the manufacturer located in Basel amounts
to 4.8 Million Franks (or 3.18 Million Euros).
In 1982 Gaba and Gebro signed a licensing contract, which prohibited the licensee
from selling the licensed Elmex products into Switzerland.
This limitation was considered an illegal export prohibition.

The bureau for competition fined the licensee Gebro with 10,000 Franks (6,614 Euros) only,
because the company did not benefit from the illegal clause.
Gaba is part of the US-company Colgate-Palmolive.

So please, check your licensing contracts for illegal selling limitation clauses
and eliminate them where necessary.

When to move from manufacturing to licensing?

Most recently, Christian Lacroix, which went into Chapter 11 earlier this year,
filed a restructuring plan. According to this plan the couture and fashion company
will close all business except for its licensing department.

Of course, Christian Lacroix comes a bit late to the game.
There are already many better known and more successful fashion brands,
which turned into licensing operations.
And a few others sold themselves to manufacturing licensees.

If your profitability goes down and your manufacturing is not one of your
competitive advantages, better check for an alternative early.
You might still have a good negotiation position. And money to get a license placed.
Once your down to the last bone usually it is too late, for you and your brand.

What are the opportunities in the current crisis?

One opportunity is distribution. Your own distribution that is.
The slow but constant death of independent retailers has left many brands
with holes in their distribution. We know of quite a few, who have been considering
their own stores for a while. And now is the time to start.

Why? For two reasons:

1.
During any crisis consumers are looking for safety and reliability.
They favor real value brands and reduce the amounts spend on experiments.
Thus, in a crisis the consumers will welcome the additional availability
of your brand in your own stores.

2.
Never before has retail space been available like now.
And never before at such low prices.
In New York you can get space in every location and category.
You actually have plenty to choose, even on 5th Avenue and West-Broadway.

Thus, experimenting with your own retail stores is less risky now, then ever.
Brands, expanding their retail stores right now, include Apple, Nespresso and Puma.

Cacharel from self-made to brand license

Cacharel until recently manufactured and distributed its women`s ready-to-wear-collection.
It now has switched to a brand licensing model.
The goal is to increase distribution and open new markets.
The licensee will start with Fall 2010, to be presented in the Paris, Milan, New York
and Tokyo showrooms in January.

Pampers expands brand through license

P&G, owner of the Pampers brand, opened up to outside companies
a while ago with a program called "Connect & Develop".
Now, a range of Pampers-branded infant products will be launched.
The Pampers licensee will develop and distribute infant bedding, blankets,
bath goods and slings.
The idea is to develop Pampers from a diaper brand to a parenting brand.

Esprit Socks

Esprit signed a brand license for hosiery.
The licensee will design a spring 2010 collection of Esprit-branded socks
and hosiery for the USA.
The socks and hosiery line will include sizes and styles for women,
kids and infants.
The licensee also holds brand licenses from Fila and Spa.

Triple Jewelry License

On various occasions we reported about the success of Ferrari in licensing.
Now three brands, Ferrari, Maserati and Ducati signed jewelry licenses
with one licensee.
Surly, Ferraristi and other brand fans will by cuff links and maybe other
predominantly male jewelry. The same might be true for Maserati,
I guess to a smaller extend. But Ducati?

I cannot see a Ducati rider wearing Ducati cuff links or tie pins.
Can you?
If these three licenses are in a package, the licensee is up to some up hill battle.

Re-launching Product through licenses

We reported, how Kodak and Xerox re-launched or continued products
through brand licensing.
Now another brand is re-introducing long time classics.

Braun, which became part of P&G through acquisition of Gillette,
signed a license for watches and clocks. Braun has a long tradition
of wonderfully designed products like stereo and TV systems, watches,
alarm clocks and other household products.
Braun received many design awards in past decades.
Now the licensee will re-introduce some of them.

The licensee also holds a brand license from Italian Jeans brand Fiorucci.

Risk Analysis of Direct-to Retail Licensing

"The 10Q Detective" does a great analysis of the Iconix Brand Group.
Iconix business is based on licensing brands, in general a low risk business model.
But Iconix mostly licenses direct-to-retail. And that means putting all your eggs
into one basket. The tremendous risks are explained at The 10Q Detective.

The 10Q Detective rightly asks, what are the brands values, when a license is not renewed?
It is unlikely, that another retailer will pick up the license of what in essence
has become a retail private label brand. And other retailers are not likely to stock
the private label goods from a competitor either.
Thus, it will be almost impossible to find a manufacturer to take on the license.

In conclusion, if a direct-to-retail license fails, the brand owner has neither manufacturing,
nor distribution. The brand is dead. And as such, has almost no value anymore.

Jimmy Choo Perfume

The shoe and accessories brand Jimmy Choo has signed a brand license for fragrances.
The worldwide agreement runs 12 years and starts January 1, 2010.
The licensee already holds licenses from Quiksilver, Roxy, van Cleef & Arpels and
S.T. Dupont and recently added Burberry and Lanvin.

Puma cellphones

In 2008 we announced, that cellphones will replace sunglasses as No. 1 image product.
After several car brands and even more fashion brands, now Puma signed a brand license
for cellphones.

Product will be available in 2010 and distribution is planed through Puma stores
and cellphone service providers.
The licensee already holds a license from Porsche Design for cellphones
and from Agfaphoto for photo printers.

How will Puma cellphones perform at Mobile phone throwing?

Controlling brand reputation online

Many brand owners are bombarded with offers to manage the reputation of their brands online.
A recent attempt by Set Godin to enter this business backfired.

For some brands Seth`s company Squidoo had setup a webpage, where automatically collected
user generated content mentioning the brand was displayed.
Then, for US$400 a month brand owners were offered to edit a column of the webpage
about their brand and publish their PR or advertising.
Of course, many brand owners were not amused.
First Seth used their brand and then sort of blackmailed the owner into advertising.
So, Seth took the pages offline.

But in general, Seth`s idea is good.
Because you cannot control, what you are not monitoring.
So here are some - free - tools, for you to monitor the online reputation of your brand.

Earlier we mentioned two services to check who is using your brand in subdomains,
http://namechk.com and www.usernamecheck.com.

An easy tool to monitor news and blogs are Google News Alerts.
Be sure to set them up for all relevant languages.

A tool to monitor the ever growing Twitter is http://tweetbeep.com.
It works like Google Alerts for Twitter.

And then there are search engines with a focus upon social media like
http://collecta.com, http://boardreader.com and http://socialmention.com.

Who pays us?

Lately, this question comes up more often, when we talk to prospective clients.
It is a result of bad business behavior in some areas.

Banks are known to charge both sides of deals that they broker.
Old media companies are charging advertisers for the attention
of their readers or viewers, while at the same time charging
those same readers for subscriptions.

Whether we are representing a brand owner in licensing a brand or
whether we are consulting a licensee looking for a new brand:
We only collect from one side, from our client.
Because we work and negotiate on his behalf.

Everything else we consider unethical.

Jack Daniel - good enough to eat

After bringing barbecue sauces with Jack Daniels inside to market a while ago,
the parent company now launches a line of refrigerated ready to eat meat dishes
at grocery and club stores. And again, this comes via brand license.

The line includes among others baby back ribs, roasted beef brisket, pork loin,
barbecue pulled pork, barbecue pulled chicken. All varieties are made with Jack Daniel`s.

After a test phase in California the products will now roll out nationwide in selected stores.

John Galliano Womenswear

As reported earlier, Ittierre SpA, the former womenswear licensee of John Galliano
is in trouble. The company is in receivership and many of its assets are up for sale.
Now John Galliano signed with Gibo for womenswear. Gibo is a licensee of brands like
Marc Jacobs, Chloe and Roberto Cavalli and like Jil Sander is owned by Japanese Onward Holdings Co.

Unilever buys Sara Lee Brands

Many news sites reported, that Unilever buys the bodycare business from Sara Lee.
Unilever already owns brands like Axe, Dove, Lux, Pond`s, Rexona and Vaseline.

The Sara Lee Bodycare division owns famous German brands like duschdas and Badedas,
classic brands like Satina and Pitralon, and some German kids licenses.

A few months ago Unilever had announced to focus upon Billion Dollar brands,
just like its rival P&G. But none of the Sara Lee brands fits that profile.
Actually, the whole division has sales of €750 Mill only.

Either Unilever dropped the billion brand strategy or has other reasons for the acquisition.

Licensing - Part of Business Development

Seth Godin has a wonderful piece about Understanding Business Development.
I would sign it immediately.
Since brand licensing is part of business development, I highly recommend
Seth`s article to everyone interested in brand licensing,
whether you are an agent, in-house licensor or licensee.

Confusing hip or fashionable with luxurious

BrandlandUSA has an excellent piece about how Hennessy damages its luxurious Cognac brand
by associating it with a Rap musician.
The reason for the connection is obvious: attracting young, urban consumers.
Courvosier reached for the same crowd when working with Busta Rhymes.

The liquor, that started this, was Grey Goose.
Grey Goose equipped luxurious stretch limousines, the preferred transportation
of music stars, with its vodka. The passengers immediately connected Grey Goose
with high prices and when leaving the car for a club, they asked for Grey Goose vodka there as well.

Through this smart move Grey Goose won club distribution, became notorious and a success story
of how to enter the liquor market at a high price level.
But did it turn Grey Goose into a luxury brand?

Associating your already luxurious brand with a rowdy rapper, who appears drunk at events
watched by millions, hurts your image. It might increase brand awareness.
But you are loosing a lot.

Ferrari Licensing Success

For years, Ferrari has been a prime example of successful brand licensing.
As we reported, in 2005 Ferrari pulled in roughly US$ 700 Million through
licensing and retail.
Now Ferrari published numbers for the first half of 2009.
While car sales and revenues dropped by 8%, income from licensing and retail
grew by 22.7%!
Thanks to its magnificent licensing business, Ferrari is weathering the
current crisis much better then many companies, especially in the Automobile
industry.

Maidenform Sleepwear & Swimwear

Maidenform signed a brand license for a couple of its brands
for sleepwear and swimwear.
The licensee also holds licenses from DKNY, Liz Claiborne and Ellen Tracy.

M&M`s confuses brand licensing with Merchandising

In the USA M&M`s, which is part of Mars, signed a license for consumer electronic
products like radios, alarm clocks and lamps.

But the new products are merely promotion articles featuring the M&M characters
you know from the TV commercials.
This has nothing to do with brand licensing and brand extension.
The new products will only survive in the market as fan articles or gimmicks, if at all.
They will not gain a position or the shelf space within the product category
similar to what M&M`s are and have in sweets.
Of course, you may license your merchandising products. But do not expect
those promotion articles to add to your brand value or to survive for long.

Burger King fries for in-home use

For years now, you can buy McDonald`s ketchup in German supermarkets and food stores.
This makes perfect sense for McDonald`s since this:

opened new distribution
adds thousands of PoS
adds points of contact for consumers
raises brand and product usage
adds in-home use
increases brand awareness and relevance

Not to mention the additional sales and profits.

Now McDonald`s rival, Burger King, is following suit with a brand license
for microwave fries. As French fries are the most global food,
this might be the better choice then ketchup.

What is Intellectual Property worth?

Some years ago, David Bowie took his music rights catalog and future licensing revenues public.
He was the very first artist to do so and it was a real innovation then.
David Bowie collected roughly US$ 30 Million.

Recently, Annie Leibovitz got into financial trouble. She has given her catalog
and its royalty income as collateral to one of her creditors.
The creditor now is offering Annie Leibovitz`s catalog and wants to collect US$ 50 Million.
But the offers from photo licensing agencies are more like US$ 10 - 15 Million.

The reason for this discrepancy is in the licensing potential.
The agencies know better, what to expect and value accordingly.

To all brand owners, considering to sell their brand one day,
this should be an alarming signal.
And a reason to consider a brand licensing business model.

Philips switching more products to license

In 2008, Philips switched from manufacturing and selling TVs in North America
to a brand licensing model. We wrote about it here.

Continuing this strategy, Philips now announced a brand license for its digital
photo camera and digital picture frame business in the USA and Canada.
The licensee will have access to Philips` brand, technology and engineering.
Production, sales and marketing will be the responsibility of the licensee.
Of course, Philips maintains control by executing its right of final approval.

This is the business model of the future. We call it:
"Doing only, what one does best."

This approach was chosen by P&G a while ago, it is called "connect and develop".
It led to increased profitability even during the current recession.

Puma underwear

The former Puma underwear licensee Schiesser went into Chapter 11.
We had predicted earlier, that a couple of brand owners were looking
to replace Schiesser.
Now in the US Puma signed with United Legwear Co,
which also holds the True Religion license.

Panem or Circensis?

Do you as a brand owner have to twitter?
Do you need a blog, a social network, a youtube channel?
The Romans coined the phrase: panem et circensis.
Your brand and its offering are part of entertainment?
Then you should actively participate in web 2.0.

Actually, you should aim to take a leading role.

Your brand and its offerings are closer to the bread category?
You will survive without.

The vast majority of people will continue to be influenced by classic media
when buying the very basic products and services.
They will not follow the blog or tweet of their baker, butcher, supermarket,
hairdresser or auto repair shop. The menus from all the delivery services
under my door are a pain already, do I want emails from them on top?
Certainly not!
And if you are good at your job - offering a better value -, your existing customers
will blog, twitter and post for you.

Land Rover Cellphone

In the UK, Land Rover is joining a broad range of automobile brands
to license a cellphone.
So far there are cell phones from Ferrari, Aston Martin, Lamborghini,
Porsche Design and Hummer. And Hummer is competing with a similar positioning.

We noted earlier that cellphones will displace eyewear as image product No. 1.
Our database lists over 60 eyewear licenses presently and less then 10 for cell phones.
Watch out for more to come.

Steigenberger sold

Only a short while after the Hilton family sold its Hotel business,
now the German Steigenberger family sold its hotel and service business.
The Steigenberger Group runs 50 hotels and resorts all with four and five stars,
plus 30+ lover priced Intercity hotels.
For years, the owners could not agree upon the future and direction of the group.
Accordingly, top management changed often.
The new owner, according to Handelsblatt, is the Egyptian travel company Travco.
Travco is a big partner of the German TUI in Egypt and the Middle East,
acting as TUI`s incoming agency for German tourists in Egypt.

Would you be wearing Harvard?

Wearwolf Group announced that it licensed Harvard University`s trademarked phrase
"Harvard Yard" for a clothing line.
The license runs for 10 years.
The clothes will not be marked with the university logo or crest.
Instead, they will feature a crimson trim and the "Harvard Yard" brand name.
The "preppy" clothes will feature menswear, with shirts for $160 and sport coats
for up to $495. Womenswear and childrenswear are supposed to be launched later.

During the 70ies sweaters and sweats with a UCLA label were very fashionable
among preppy teens. But certainly not at those price points.

Escada Chapter 11

Escada in the USA filed for chapter 11, only days after the parent, Escada AG,
did so in Germany.
For a while, Escada AG was the biggest manufacturer of womenswear in Europe
and its brand a huge success.

There are plenty of reasons for the failure, one of them was:
Escada tried to do everything on its own.

Early, Escada offered shoes and bags to go with its dresses, robes and sportswear.
Product was designed in-house, manufactured by third parties and sold by Escada sales people.
But Escada never broke into the classic distribution channels for shoes and accessories.
Thus, volume was limited, product too expensive and the business never grew beyond an add-on.

Escada tried the same with beauty products and fragrances. Until they finally gave up
and signed a license a few years ago.

Accessories, shoes and beauty, for a while combined as a division called Escada Development,
have cost Escada millions.

Could management have foreseen this? Yes.

Because Donna Karan made the same mistake and went down,
until it became part of LVMH.
At the same time the competing fashion brands grew their business through licenses
and passed the once great brand Escada.

Guess fragrance license continuous

In 2003 Guess USA signed a brand license for fragrances.
The original license ran through 2009 and now it is being continued
with Coty as licensee.
Guess already has licenses for accessories, shoes, jewelry,
eyewear and others.

Brand Game release

In October 2009 the brand game Eye-Dentity will be launched.
Players in the game have to identify brands while seeing a part of the logo.
The game has brand licenses from the various logos and has been created
by brand and CI designers.
The game is supposed to increase consumer awareness.

The main question for me is:
Will parents, the purchasers, support it and buy?

TNS Study proofs our point

In December 2008 we said here, that brand managers should not reduce prices
during the recession. Our recommendation was to communicate value.

Now the recent TNS study Building Brands in Troubled Times proofs our point.
Consumers are looking for value.
They want re-assurance, that the money spent on the brand is spent well.

Please, no BMW Ketchup

The Time has a good and interesting article with some new scientific research
about extending luxury brands.
In essence, it proofs the concept of f.e. Chanel moving into cosmetics decades ago:
Making a luxurious brand available to a wider audience with brand extensions
into product categories, where less money per purchase is needed.

But there are traps along this way. Among many, if your brand extension
does not support your luxurious brand positioning by being too cheap or
packaged poorly, your doing more damage then good.

Laura Ashley carries on

Right after the brand license for infant bedding, Laura Ashley announced
another sensible license. It granted the rights to produce and sell
womens luggage under its famous brand to one of the leading manufacturers
globally.
Product is scheduled for spring 2010.
The target distribution is department stores, independent retailers and
mass merchants. Laura Ashley was a wonderful female brand. If the new product supports
the original position, it would seem to be right back on track.

Lucky Brand 2nd license for underwear

In March 2008 Lucky Brand signed a brand license with Wonderbrand LLC for underwear.
Wonderbrand was run by the founder of famous Joe Boxer brand.
WWD now reports, that Lucky Brand granted a license for underwear,
lounge wear and sleep wear to Delta Galil of Israel.

Laura Ashley infant bedding license

Laura Ashley signed a brand license for infant bedding in the USA and Canada.
The British brand is best known for its floral designs and for decades
very successfully owned "romantic". Laura Ashley was popular with teenage girls
and soon to be and young mothers. They loved Laura Ashley for romantic clothing,
home textiles, accessories and stationary.
The many Laura Ashley stores offered well priced merchandise for adults and
carried goods for teenagers with pocket money.
Thus, the brand always attracted new young fans.

After years of mismanagement, when the brand tried to leave the romantic spot,
fiddled with pricing and lost its excellent position, it now goes back to the roots.

We are sure this will work well.

Godiva Coffee

Godiva announced signing a license for flavored coffee.
Distribution is planned for supermarkets, mass merchandisers
and related channels, where coffee is purchased for in-home use.

Rodenstock re-entering brand licensing arena

Until its sale to financial investors Rodenstock through a subsidiary
was a force as an eyewear licensee, among others for Reebok.
Then the subsidiary was sold and Rodenstock wanted to grow its own brand.
The only license it kept was Porsche Design.

With way over 70 brands and brand licenses the eyewear market is more then crowded.

Now Rodenstock took on three licenses, from Baldessarini, Uvex and a label for kids.
Against the global market leaders with their extensive portfolio of brands
and brand licenses Rodenstock is not competitive with new licenses from Baldessarini
and Uvex. Even smaller competitors have stronger and better portfolios.
If Rodenstock wants to grow with licenses, it could take over established licenses.

Levi`s brings shoe and accessories license in-house, but not quite

Levi Strauss & Co, owner of the famous Levi`s brand, bought its licensee
for shoes and accessories in Europe, Middle East and Africa (EMEA).

All though it is now under the same umbrella,
the licensee will remain a separate company.

Swarovski Eyewear

Swarovski announced a licensing agreement for production and worldwide distribution
of sunglasses and prescription frames.

The brand license runs five years with an additional 5-year option.

Sunglasses will be launched in Spring/Summer 2011,
prescription glasses shortly thereafter.

The positioning will be high end and distribution accordingly at opticians,
department stores, sunglass retailers and selected Swarovsky boutiques.

The licensee also holds brand licenses from among others Ferrari, Hogan,
Kenneth Cole, Miss Sixty, Montblanc, Tom Ford, Replay, Roberto Cavalli,
Timberland and Tod`s.

Swarovski licensed fragrances and beauty in 2008, to be launched in 2010.

Re-Naming, expect ROI after Generations

The Sears Tower is now the Willis Tower.
At least for the tenant, who is the new owner of the naming rights.

36 years after its completion, what was the tallest building of the world
until the late 1990ies and still is the tallest building of the USA,
it was re-branded.

Brands are to a large extent what the people think and make of it.
Maybe future generations will stop calling it Sears Tower.
But the internet makes that less likely today.
The global memory searched through Google has some 2,190,000 hits for "Sears Tower".

Another prominent re-named building is proof.
Ask a New Yorker for the PanAm Building. They will direct you correctly.
All though, for 28 years already its official name is MetLife Building.
And here too the internet keeps the memory alive.
Google has about 52,400 hits for "MetLife Building", and still 11,000 hits
for "PanAm building".
PanAm is out of business since 1991 and there is little communication about this brand.
Sears on the other hand is supporting its brand with multi-million Dollar budgets
every year. This brand is not likely to go away like PanAm did.

If the new tenant of the Sears Tower stays in business long enough and
sees the naming rights as a real long term investment, it was a good decision.
Some decades from now, perhaps people will call it Willis Tower.

Less then perfect Brand Extensions, less then perfect reporting

The Wall Street Journal Online has a piece here about what the author,
Mario Marsicano, calls Bizarre Brand Extensions. It is from July 15.
The original article, a bit longer, can be found on Mental Floss
and was published there a month ago on June 16.

The bizarre extension Gerber singles, food for adults,
is not that bizarre.
In quite some numbers adults turn to baby food, when their teeth
are gone or when they want to have an easy to prepare meal
with nutritional value.

Of course, they do not need a special product,
much less want packaging that screams:
I have problems chewing.

What is the benefit of your own Top Level Domain (TLD)?

Maybe I am stupid. Because I do not understand the current hype
about brands applying for their own TLD.

Let`s say you apply for and get the following TLD:
.YourBrand

To create an internet address, you have to put something in front
of the TLD. So maybe you stick to countries or languages and create
www.USA.YourBrand or you create www.EN.YourBrand.

How is that better then www.YourBrand.com, which you already own?
And which you will not give up.

Of course, you could also create things like www.Sales.Yourbrand or
maybe www.Service.Yourbrand. But is that better to memorize?

How ill your email addresses improve?
From my point of view, something like JonDoe@Sales.YourBrand
is not better then JonDoe@YourBrand.com.

If you have reasons for brands to invest a couple of hundred thousand
Dollars in a TLD and essentially becoming a registry, please write!

When not to expand your brand?

The pros and cons of brand extensions are arguable.
There is neither a scientific answer, nor an empirical one.

Thus, the following is a statement, up for discussion.

If your brand:

- started your category like Xerox copiers,

- was not setup as an umbrella brand from the beginning

- and has no real brand competing like Red Bull in energy drinks,

then there is a big chance, that brand extensions will fail.

Your customers do not distinguish between brand and product.
It is unlikely, that they will follow your brand into other
categories.

It is interesting to see, whether Polaroid will be successfull.

eBay starts initiative against restriction

For some years now eBay is tied up in litigation with
manufacturers of branded products in Europe.
Two issues caused law suits in among other countries France,
Germany and Austria:

1.
marketers of premium products want to control online
distribution of their products and

2.
eBay refuses responsibility for trading of counterfeit
products on its platform.

Now ebay calls its clients and users to participate in an
online petition, see here:

http://secure.ebaycampaigns.com/en/

to change European legislation.

Energizer brand license for solar

According to business wire, a developer, manufacturer and
marketer of solar panels and products, today announced
that it has signed a global licensing agreement with Energizer.

Energizer, one of the largest manufacturers of batteries,
will grant the licensee the global rights to its trade name
for solar-powered chargers and related products.

The agreement is supposed to run three years.

Again Asians buy parts of a Brand

Reportedly, Pierre Cardin is selling parts of his
Chinese business as licenses.
Two companies from mainland China are buying licenses
for ready-to-wear and accessories for 200 Mill. Euros.

Jil Sander Jewelry

After signing a brand license for shoes in May,
Jil Sander now announced the launch of jewelry.
Jil Sander had tested successfully its brand fit for
the new category with a small offering. Now it signed
with an Italian company a global brand license
for a full collection of high end jewelry.

The licensee is active in Europe, Asia and North-America
with subsidiaries.

Lacoste Cellphone License

Lacoste is following in the footsteps of Levi`s,
Giorgio Armani, Prada, Mandarina Duck and others
by entering the market for cellphones.

We had predicted a while ago, that cellphones
will be in this decade, what sunglasses were in the 90ies.
Lacoste signed a license and products are expected
to be on shelfs by 2010.

The licensee also holds a brand license of Hummer,
the brand recently sold by General Motors.

Calvin Klein fabric license

Calvin Klein, Inc. has entered into a licensing program
to manufacture and distribute a line of designer
decorative fabrics including multi-purpose and upholstery wovens,
window fabrics and decorative trimmings under the Calvin Klein
Home brand.

The collection will launch in summer with up to 200 SKUs
for distribution to the interior design community.

Calvin Klein Home also has licensed collections for bedding,
table linens, rugs and tabletop.

Joint Venture or Licensing?

Seth Godin, a well-known marketing book author, speaker,
marketeer and blogger, has a good piece about why
joint ventures fail often and why licensing is better.

You can find it here:

http://sethgodin.typepad.com/seths_blog/2009/06/why-joint-ventures-fail-so-often.html
Joint ventures might work well in plain B2B environments.
When you are marketing products or services to consumers,
it gets difficult. Like for SonyEricsson, Fujitsu Siemens,
Sony BMG, etc.
A joint venture that seems to work in the consumer area is
BSH Bosch Siemens Hausgeräte (home appliances).

Hummer to Asia

General Motors has found a buyer for the civil business arm
of Hummer.
According to a joined press release, the division is sold
to the Chinese Sichuan Tengzhong Heavy Industrial Machinery.

The military arm of the business is not part of the sale.

Licensing Royalties Declined in 2008

According to the LIMA survey, in 2008 brand owners collected
$5.7 billion in royalties.
That is 5.6% less than they collected in 2007.
This marks the 2nd year of declining royalties in a row.
Royalties declined in eight of the nine categories of
licenses tracked in the LIMA survey.
The only exception was the collegiate market, where royalties
collected by schools and affiliated organizations rose 3.5% to
$208 million in 2008.
The total of royalties from fashion declined by 4.3%,
from corprate brands and trademarks by 8%.

Jil Sander Shoes

Jil Sander signed a shoe license with sister company Iris SpA.
Iris also manufactures shoes for Michael Kors, John Galliano
and Victor & Rolf.
Both, Jil Sander and Iris, are controlled by the Japanese
Onward Group.

Thursday, May 14, 2009

Quiksilver Home Textiles

Quiksilver has entered into a license for home decor for its
Quiksilver and Roxy brands.
The licensee is a manufacturer of window curtains, fashion bedding
and accessories, and decorative bathroom products in North and
South America.
It also holds licenses from Donna Karan, DKNY and Hemingway.

Thursday, April 23, 2009

Real Brand Value - Polaroid

According to many sources, Polaroid, pioneer of instant photography,
that went into bankruptcy for the the 2nd time, was sold to a
partnership for mere $88 Million.
The brand Polaroid was considered the most valuable asset.
The partnership will develop a global licensing business for Polaroid.
The partners also have acquired The Sharper Image, Linens ’n Things
and Bombay Co. One of the buyers also bought Ellen Tracy a while ago.

Less then $88 Million for a truly global brand.
That puts fancy brand value ratings into perspective.

Monday, April 20, 2009

AdWords - Trademark use in commerce?

According to Mediapost.com here, a federal appellate court
decided against Google in a trademark lawsuit regarding AdWords.
The 2nd Circuit ruled that allowing a trademark to trigger
a search ad is a "use in commerce."
The case was handed back to the lower court.
As we mentioned, the European Court of Justice (EuGH)
will decide about the same issue soon.

Monday, April 06, 2009

Brand- and Advertising Archives

To research or browse the history of - often German - brands
one could go to the "Markenmuseum".
Now at "ADSandBRANDS" you can find an archive of over
20.000 advertising campaigns of famous brands.

Friday, April 03, 2009

Skechers Eyewear

The sneaker and casual shoe maker said Tuesday
that it had signed a worldwide licensing agreement
to create Skechers-branded sunglasses and
prescription eyewear for men, women and kids.

The collection is set to launch next spring.

The licensee already has developed eyewear for
Candies, Guess? and Tommy Hilfiger.

Wednesday, April 01, 2009

Energizer Charges

UPG entered into a licensing agreement with
Eveready Battery Company, Inc., a division of
Energizer Holdings, Inc., to develop a line
of consumer products under the Energizer brand.

The agreement runs four years, with a two-year
automatic renewal.

The line will include Energizer-branded
automotive battery chargers and maintainers,
as well as automotive jump starters.

The products will be distributed through mass,
specialty and automotive stores.

In addition, UPG will have non-exclusive rights
to develop, market and sell Energizer-branded
power inverters used primarily in the automotive
market.

Thursday, March 26, 2009

Levi`s Slippers and Sandals

Levi Strauss & Co. signed a brand license for
a new line of slippers and sandals.

The financial terms were not disclosed.

A line of Levi`s slippers shall be in stores
for the fall season, and a sandal line
should follow in the spring of 2010.

The products will include footwear for men,
women and children.

The company also holds a brand license from
Nautica of VF Corp.

Thursday, March 26, 2009

Product-Integration the 2nd

In 2006 a start-up called StarStyles tried
to sell products, one could see on TV immediately.

According to CNET, Google now bought into Pixazza,
a start-up linking photos on the Web with sites
where people can buy the products in the images.

Quote:
The company is now launching the technology
for general use by advertisers, Web publishers,
and the network of self-appointed but screened
specialists who identify the products in the photos,
said Chief Executive Bob Lisbonne.
The company is starting with the apparel industry
but plans to expand to home design and furnishings,
travel, electronics, and sports starting later
this year, he said.
End Quote

StarStyles does not exist anymore.
All though many Top brands joined early and
plenty of big retailers collaborated.

Maybe TV consumers were not interactive enough?

If Pixazza works, product placement will get a push
and will be more meassurable.

Thursday, March 26, 2009

More Brand Licenses in Limbo?

According to WWD, Selective Beauty entered
administration in France.

After underwear licensee Schiesser and
eyewear licensee Safilo got into trouble
earlier this year, this now puts a big
question mark to many top brand licenses
for fragrances.

Selective Beauty holds brand licenses from
Bulgari, Ferragamo, Fendi, Burberry, Elizabeth
Arden and Bennetton. In addition they own Lanvin,
which they acquired not too long ago.

Monday, March 23, 2009

Calvin Klein moves Golf License to former distributor

Premium Golf Brands, Europe`s largest supplier
of golf apparel and formerly known as Eurostyle,
announced that it has signed an exclusive global
agreement with Calvin Klein, Inc., to produce and
distribute the Calvin Klein Golf line of apparel
and accessories.

The men`s and women`s Calvin Klein Golf range is
available now at golf resorts in the UK, Ireland,
Spain, Portugal, Germany, Finland, Turkey, and Sweden.

Under the multi-year agreement it is planned,
that by Spring 2010, the global distribution of
Calvin Klein Golf will expand to reach the Middle East
(Dubai), the Americas, Africa and Asia.
A full European roll out of the brand is expected
by the end of the next quarter.

PGB was the European distributor of the former licensee.

Tuesday, March 17, 2009

Hefty License for "Hardware"

Pactiv Corp., owner of the Hefty brand,
said that it has signed a brand license,
that allows the licensee to develop and market
a line of Hefty branded housewares products.

The first products to be created under the agreement
will be a line of wastebaskets and trash cans.

That seems at first glance like a great brand extension.
But the distribution channels should be almost 100% equal.
And that usually means, Pactiv would be better off
marketing those products as trading goods.

Tuesday, March 17, 2009

Safilo searching capital

Safilo Group is the No. 2 manufacturer of
sunglasses after Luxottica.

It holds many brand licenses like Marc Jacobs,
Gucci, Alexander McQueen, Armani Exchange, Banana
Republic, Boss, Hugo Boss, Carrera, Claiborne,
Diesel, Dior, Christian Dior, Fossil, Emporio Armani,
Giorgio Armani, Gucci, Jimmy Choo, Juicy Couture,
Kate Spade, Liz Claiborne, Max Mara, Nine West,
Valentino and Yves Saint Laurent.

Now the group is looking to raise capital to
avoid bankruptcy.

Tuesday, March 17, 2009

Hugo Boss Kidswear

Several media report, that Hug Boss signed a
brand license for kidswear.
And they all list additional brand licenses hold
by this licensee like Burberry, ESCADA and DKNY.
The homepage of the licensee lists the DKNY license too.

Interestingly, DKNY is also listed as license on the
homepage of another kidswear producer, Parigi.

Thursday, March 12, 2009

True Religion Eyewear

True Religion Apparel announced that it has signed
a new brand licensing agreement to produce and
distribute True Religion branded eyewear.

The True Religion branded eyewear will launch
worldwide in June 2009 in True Religion branded stores,
national department stores such as Neiman Marcus,
Saks Fifth Avenue, Nordstrom, Bloomingdale`s, and
Barneys New York, and in more than 3,000 specialty stores,
including Sunglass Hut.

Additionally, the licensee is planning an international
roll-out to North America, Europe, Asia, Australia and
the Middle East.

The licensee is best known for making "Ed Hardy"
sunglasses.

Tuesday, March 10, 2009

Credit Crunch "Closed"

The fashion brand "Closed" needed growth capital.
In the current climate regular credit was unavailable,
especially since Closed does not own factories or machines
which could be used as collateral.

The solution was Sale-Leaseback of the brand.

How that works, you can see at www.BrandCapital.us

Friday, March 06, 2009

Brands relaunch products through licenses

Similar to Xerox, who recently licensed fax machines,
now Kodak returns to traditional product categories
via licensing.

On March 3 the licensee announced a licensing agreement
to produce KODAK-branded 35mm cameras and accessories.

The products will be released in the 2nd quarter of 2009.

The KODAK-branded line will launch with approximately
a dozen SKUs including 35mm cameras bundled with KODAK film,
SLR cameras, webcams and card readers.

MSRPs will range from $15-$25 (US) for the reloadable
35mm cameras to $200 (US) for the SLR cameras.

The series will also include KODAK-branded computer
peripherals such as computer mice, mouse pads,
multimedia keyboards, and laptop cooling docks.

Peripheral prices will range from U.S. $15 to $80.

The new products will be sold through an extensive
distribution network worldwide.

Thursday, March 05, 2009

Bicycle Licenses

According to www.velobiz.de the licenses for bicycles
under the brands K2, Columbia and Jeep were transferred.

Supposedly, the original licensee got into financial trouble.

Thursday, March 05, 2009

Agency vs. Inhouse Department

Often we are asked, should brand licensing be handled by
an inhouse department?

Our answer is two-fold:

1.
To acquire licenses you are better off with an agency.
2.
For the management of existing licenses an inhouse
department makes perfect sense.

To proof our point here is a story from one of our clients.
We had arranged the first license for his brand.
It took us six months and we are glad to say,
it is very successful still.

Shortly thereafter management changed and the new
general manager took licensing inhouse.

After some failed attempts by himself, he hired
a professional to place additional licenses.
We know from the existing licensee, that this person
did not serve the license, we had arranged.

It took the inhouse person more then three years
to place the second license.
Even at conservative numbers, the general manager
invested well over 150,000 Euros for salary, office,
travel expenses, etc. without any return so far.

It will take more then a while for the inhouse licensing
to break even.

Thursday, March 05, 2009

Diesel Home

Diesel expands its home offerings through licenses for lamps
and furnitures. This is in addition to already licensed eyewear,
fragrance, home textile, watches, etc.

Tuesday, March 03, 2009

Celebrity Licensing

We always have been doubtful about celebrity licensing,
especially when the person is still alive.
That adds the risk of brand damaging behaviour to the
mostly exaggerated cost.

Now even the NY Post and USA Today write about recent difficulties
in celebrity licensing and endorsements respectively.

If you are looking for a license, we recommend a stable,
famous, reliable, premium brand.

Monday, February 23, 2009

Municipal Logo licensing

Brandland USA is a Blog we enjoy reading.
For example, the article about Kraft`s new logo is excellent.

But when he recommends licensing for municipal services,
the author, Garland Pollard, falls into a common trap.
He raises too many and too high hopes.
Because the income potential of such licensing programs is limited.

In 2005 NYC Marketing centralized the licensing of NYPD, FDNY and others.
They started a fairly big campaign requesting proposals.

The whole effort failed, mostly because of totally exaggerated
expectations regarding royalty rates and guaranteed advances.

In addition, NYC Marketing has almost no power to enforce the use
of its trademarks. If you ever walked the streets of NY,
you have seen hundreds of street vendors and stores offering
NYPD t-shirts, caps, sweaters and even badges. Who believes,
that they all pay royalties?

And there is another important issue at hand.

If your local police department floods the street with merchandise
and everyone can wear PD-labeled clothes and accessories,
how do you recognize the real cop?

A police logo is supposed to give the wearing person authority.
If everyone can wear it, the authority is gone.

The same is true for FBI, CIA, Army and other agencies,
that enforce the power of state.

Saturday, February 21, 2009

Update Schiesser

A lot has been written about why Schiesser went belly up.
Mostly, the blame went to poor brand management,
a failed license portfolio and problems with logistics.

Only when going deeper, one discovered the most probable reason:
Software.

Because of its software problems, for years Schiesser was unable
to deliver orders on time and in appropriate quantities.

Every professional knows, retailers do not forgive that.
Schiesser must have died in chargebacks, returns, rebates, etc.

It is unlikely that Schiesser had any profit after two years
of poor deliveries.

No brand management or license portfolio could have saved Schiesser.

Tuesday, February 17, 2009

Schiesser insolvency

Schiesser, one of the bigger global manufacturers of underwear,
went into Chapter 11 and is under receivership now.

Since Schiesser was a licensee of brands like Hugo Boss,
Levi`s,Mexx, Polo Ralph Lauren, Puma, Strellson and Tommy Hilfiger,
all those need to rethink their licensing strategy.

Expect to see a lot of new licensing deals for underwear soon.

Tuesday, February 17, 2009

Kangol Apparel License

The 70-year-old British headwear company Kangol will enter
the wholesale apparel business via a license.

Tuesday, February 10, 2009

Entenmann`s licensed candles

Entenmann`s, known for cookies and cakes, has translated
the smell into a line of scented candles.

The collection includes the aromas of Entenmann`s coffee cake,
all-butter loaf cake and raspberry Danish.
Candles are distributed through Rite Aid and Giant Eagle stores
since September.

Seasonal scents, including pumpkin pie and warm gingerbread,
will be developed for the holidays. Chocolate-chip cookie candles
will debut next spring.

This is the first time the company licensed non-food products,
after licensing coffee in 2007.

Tuesday, February 10, 2009

Ellen Tracy Luggage

According to Home Textiles Today, Ellen Tracy signed
a luggage license.

The licensee also holds the license for Jeep.

Friday, January 23, 2009

Are AdWords "brand usage"?

Heise.de reports (in German) about the decision of the
highest German civil court, BGH, or better the lack of a decision.

Because in three court cases decided today the BGH left open,
whether booking a brand as keyword in Google search advertising
qualifies as using the brand or not.

The BGH transferred the case to the European High Court, EuGH,
for that decision.

Thursday, January 22, 2009

Who is using your brand in the social web?

You can check it at http//usernamecheck.com

Tuesday, January 20, 2009

Laura Ashley Bed & Bath license for Latin America

Laura Ashley has signed a license to produce and distribute
a collection of fashion bedding, bath products and table linens
in Latin American countries.

The collection will comprise comforters, duvet covers,
dust ruffles, sheets and decorative cushions as well
as a coordinating line of bath textiles and accessories.
Other product includes tablecloths, napkins and place mats.

The collection will launch in spring 2009 in Argentina,
Brazil, Bolivia, Chile, Columbia, Paraguay, Peru,
Uruguay and Venezuela.

Friday, January 16, 2009

Ellen Tracy underwear license

The owner of the Ellen Tracy brand has signed a brand
licensing agreement to produce intimates bearing the
Ellen Tracy name.

The collection, which will include sleepwear, homewear
and lingerie, will launch fall 2009 at department and
specialty stores, including Nordstrom, Saks Fifth Avenue,
Neiman Marcus, Bloomingdale’s, Lord & Taylor and Dillard’s.

Distribution will be aimed at 250 doors that carry
Ellen Tracy, as well as 18 Ellen Tracy outlets.

Estimated wholesale volume for the first year is $25 million.

Friday, January 16, 2009

Charles Jordan revival

Charles Jourdan North America will return to market.
The collection is aimed at women in their 30s
who might still remember the heyday of the brand.
The debut is planed for November.

The distribution plan is department stores such as
Nordstrom, Macy’s and Dillard’s, as well as
specialty boutiques and online outlets.

Price points for the line have not yet been determined.

Shoes are the first part of a larger goal of
reintroducing the Charles Jourdan name,
with accessories and apparel likely to follow.

A worldwide brand relaunch is unlikely.
In December, Groupe Royer bought the rights
to the brand in France for $3.2 million,
including seven stores, as well as factory equipment.

Wednesday, January 14, 2009

Lego consumer electronics

Lego signed a license for digital cameras, MP3 players,
digital video cameras, speakers, walkie talkies and
accessory cases.

Thursday, January 08, 2009

Skechers signs Kidswear License

The US-American shoe brand Skechers USA signed
a license for kidswear.

The licensee will manufacture and market fashion
collections for boys and girls of age 1 and older.

Product is supposed to hit stores by fall 2009.

Distribution will be limited to department stores,
specialty stores and online shops, that already carry
Skechers shoes.

Thursday, January 08, 2009