Licensing collaborations have been everywhere this summer. And with good reason. Sports collabs (thanks, The Olympics), fashion collabs, film collabs – they all broaden fanbases, build awareness and boost revenues.
But with so many brand partnerships now available (It’s been reported that Warner Bros. Beetlejuice 2 is working with a head-spinning 35 brand partners), it’s crucial that brands choose authentic partners, creating products that add value to the brand while also getting the tills ringing.
For some major retailers – such as Primark and Asda – licensed product sits clearly at the heart of their business. T-shirts emblazoned with the latest hugely popular TV and film franchises sit alongside Love Island lip gloss and NFL tracksuit bottoms, with Minecraft slippers thrown in for good measure.
The strategy works equally well among kids and adult brands, and is particularly brilliant at tapping into the nostalgia zeitgeist; key for brands and retailers targeting the adult market.
It’s true of the preschool kids market as well; if it’s not Bluey on the pyjamas (thanks M&S) then what’s the point?
Licensing is, of course, primarily a revenue driver – with sales of licensed products consistently outperforming general retail – but with consumer products, collaborations and partnerships proving crucial to brand positioning, it also has significant marketing potential.
It’s no real surprise then, that marketers are increasingly dipping their toe into the world of licensing. The agreements allow property owners to maximise the reach and awareness of their brand, extend their customer demographic and enhance their credibility.
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And for retailers, working with a globally-recognisable brand can drive demand and boost product sales like never before.
Retailers love licensed consumer products because they are proven to drive footfall instore and traffic online as well as sales and revenue across the board. Licensing increases margins, profit and customer loyalty, while also allowing retailers to offer differentiation, exclusivity, a broader range offering and the opportunity to reach and acquire new customers or convert existing customers into new product areas.
Brands love it because it allows them to increase reach and awareness, extend their customer demographic, create new profit lines, enhance their credibility through association and much more besides.
Barbie, for example, has collaborated with everyone from luxury brands Balmain, Alessandro Enriquez and Harrods to mass market retail channels, including Primark, River Island and Tesco.
there has been huge growth in celebrity brand partnerships and a big change in the luxury sector with high-end brands collaborating with mass market (Adidas x Gucci, eg) as well as being more open to licensing characters.
It is this scale and variety of demand which makes Brand Licensing Europe 2024 such an interesting show to visit from a marketing perspective.
Bringing together the great and the good of the European licensing industry, BLE the three-day event is a veritable who’s-who of some of the world’s most recognisable brands and licensing agencies.
The sheer range of brands exhibiting at the event, from museums, charities and universities to global commercial powerhouses such as Lego, Playstation and Formula E, lays bare the staggering scale of the licensing industry, which appears to have a finger in every conceivable pie.
Find out more about the value of brand extensions at Brand Licensing Europe, taking place 24 – 26 September 2024 at ExCeL London.
