| The attraction of licensing trademarks for business | | | | multi¬billion dollar systematic business and has |
| intentions appears to be at an all-time high, mostly in | | | | increased its scope to sporting events like WWE, the |
| the fashion arena where consumers are buying more | | | | Olympics, EURO, Cricket and Soccer World Cups. It is |
| licensed products and brand names than ever before. | | | | estimated that one fifth of the WWE's $ 300 million |
| For retailers, licensing opportunities provide them with | | | | per annum profit is achieved by licensing. Moreover, |
| a point of difference from their competitors. | | | | Weekender - Gokaldas Images Ltd. markets the |
| Licensing is leasing a legally protected property (like | | | | Enamour lingerie as well. |
| trademarked or copyrighted name, logo, likeness, | | | | Character and entertainment licensing too has |
| character, phrase or design) to another party in | | | | benefited in last few decades, making billions of |
| combination with a product, service or promotion. It | | | | dollars of profits each year. |
| is a process which lays stress on consumer | | | | S. Kumars is planning to introduce six new |
| management, development of brand equity in line | | | | international brands into the country and it is looking |
| with international imagery, providing right shopping | | | | towards a long-term partnership with these |
| ambience and perhaps is less about manufacturing. | | | | international textile brands. |
| Licensing is a way of growing with an already | | | | Recently, Indus Clothing Ltd signed a licensing |
| established brand. It provides the brand recall | | | | agreement with Disney cConsumer Products (DCP) |
| benefits, which are not achievable in case one comes | | | | to produce its kids' wear brand Disney cJeans in India. |
| out with a brand new image. | | | | This deal will permit Indus Clothing Ltd to venture into |
| There are many types of licensing business like art | | | | standalone retail stores for the complete product line |
| & design, corporate brands, events, fashion | | | | covering the Disney brand. The company intends to |
| brands, food & drink, institutional, magazine | | | | invest about Rs. 21 crore to establish 20 standalone |
| brands, music, personalities, sports and television | | | | Disney jeans outlets by the end of 2007 and 50 |
| licensing to name a few. | | | | outlets the following year. Their main focus is to put |
| The advantages of licensing for licensors | | | | up a strong retail network for the brand and |
| The main advantage for a licensor is the facility to | | | | subsequently plan to develop and maintain a |
| use and develop its brand or property. | | | | consistent brand image. Indus Clothing Ltd is also the |
| Licensing can achieve this by: | | | | licensee for Lee Cooper apparel to market their |
| . Improving its brand existence at a retail or | | | | products in India. |
| distribution outlet. | | | | Madura Garments possesses the world license for |
| . Making further brand perception to support its core | | | | three brands namely, Louis Philippe, Allen Solly and |
| products or services. | | | | Peter England. It has now also come into a strategic |
| . Providing and increasing its core values through | | | | tie-up with the fast-growing brand Esprit, with an |
| various links with the licensed products/service or | | | | objective of strengthening its brand portfolio in key |
| category. | | | | segments like women's segment, premium relaxed |
| . Coming into new markets (consumer or | | | | clothes segment and accessories. An Italian brand |
| geographical) which were unfeasible with its own | | | | that is synonymous with MTV, UMM (Underground |
| strengths. | | | | Music Movement) has joined Pantaloon, one of India's |
| . Making new revenue flows, often with little | | | | largest retail chain stores. |
| involvement or additional financial resources | | | | American innerwear brand Jockey entered the Indian |
| The advantage of licensing for licensees | | | | market in 1998 through a marketing arrangement |
| The main advantage for a licensee (particularly | | | | with Bangalore based Page Apparels. Besides the |
| manufacturer or retailer) is the capability to | | | | normal production and distribution rights in India, the |
| considerably upsurge consumer interest in and sales | | | | brand also has a buyback arrangement with the |
| of its products or services. | | | | parent company. |
| Licensing can achieve this by: | | | | The Shirt Company (TSC) has been granted the |
| . Shifting the values and consumer favour towards | | | | license by the owner of the Barbie brand - Mattel, to |
| the licensed product or service. | | | | make and retail Barbie apparel in India. For this it |
| . Providing added value and differentiation in the | | | | works closely with Smith & Brooks, the official |
| competitive market. | | | | licensee for Barbie clothing in the European market. |
| . Offering additional marketing support or speed from | | | | Moreover, the apparel division of the Forbes Gokak |
| the core property's activity given by the licensor. | | | | Group is the licensee for brands like Daks, Trussardi |
| . Attracting new target markets who have not been | | | | and Savile Row. |
| paid attention in a licensee's product or service. | | | | Tommy Hilfiger entered the Indian market through a |
| . Providing credibility for shifting into new market | | | | joint venture between the Murjani Group and the |
| sectors through product extension. | | | | Arvind Mills. Called the Arvind Murjani Brands Private |
| . Attaining additional retail space and favor. | | | | Limited, AMB has the licensing agreement for |
| Licensing: The increasing scenario worldwide | | | | marketing and distributing Tommy Hilfiger apparel in |
| Reviewing the year-after-year worldwide retail sales | | | | India. The Murjani Group, located in New York, was |
| from 2000 to 2004, the licensing business this year | | | | established in 1930 by B K Murjani. By 1958, with a |
| has shown an increase. In general, 2004 anticipated | | | | production of over 10 million units per annum, |
| worldwide retail sales of licensed business increased | | | | Murjani's became one of the biggest apparel |
| 1.5 per cent to $175.3 billion against 2003 $172.7 billion, | | | | producers in the world. |
| with the USA making nearly $110 billion (nearly $5.805 | | | | It was in the early 1970s, when Murjani initiated brand |
| billion in royalties) and Europe $34 billion. In UK, the | | | | name development and marketing. Over the years, |
| brand licensing industry is worth approximately | | | | the group has widened and introduced a range of |
| £7billion in retail and £368million in | | | | major global brands, such as Gloria Vanderbilt, |
| royalties. | | | | Coca-Cola Clothes and Tommy Hilfiger. Fashion retailer |
| Recently many international textile-garment-apparel | | | | French Connection UK has firmed its plans to launch |
| manufacturing companies are in news due to their | | | | the brand in India. The company is assumed to be in |
| licensing agreement with many other companies. | | | | talks for the licensee deal with Vijay Murjani, Murjani |
| Everlast Worldwide Inc, which is a men's and | | | | Group. |
| women's apparel and accessories seller, recently | | | | Many companies prefer licensing in order to reinforce |
| announced signing a new four-year license agreement | | | | brand image, create recognition and build brand |
| with Jacques Moret Inc of New York City. As of | | | | equity. Licensing is the business arrangement in which |
| January 1, 2006, this new agreement grants Moret, a | | | | the proprietor of the 'product', 'trade mark' or 'brand' |
| major supplier to the US apparel market, a license for | | | | allows some other group to use its brand name in |
| Everlast men's activewear, sportswear, outerwear | | | | return for specified royalties or payment. |
| and swimwear in the United States. Moret will partner | | | | Recently, the government of India has approved the |
| with M. Hidary and Company Inc for design, | | | | UK-based kids' care retail chain Mothercare Plc's offer |
| development and sales of the activewear portion of | | | | to set up a 100 per cent subsidiary in India with an |
| the license. M. Hidary has achieved great success with | | | | investment of Rs 32.25 crore. The Indian division will |
| its vast experience in the men's branded activewear | | | | find and purchase textile and garments from local |
| business. They will purchase certain men's apparel | | | | traders and would promote the same in India through |
| inventory owned by Everlast and assume other | | | | franchise operation with third party business |
| transitional costs associated with the men's business. | | | | associates. |
| Additionally, certain key sales, merchandising and | | | | Mothercare has already provided a license to |
| operational personnel will join the new group. | | | | Shopper's Stop to use its trade mark and brand |
| Burnaby, B.C.-based ID Wear, a group of Pimlico | | | | name on the products to be supplied by its Indian |
| Apparel, has recently received the sole license for the | | | | subsidiary to the retail major for sale and distribution |
| manufacture, design and sale of the Playboy brand of | | | | in India. |
| high-end denims for the North American market. | | | | Indian players have used the licensing practice after |
| Pimlico produces denim products for its own brands, | | | | the huge success of the strategy in the international |
| ID Wear and private labels such as Nordstrom's and | | | | market. The inclination for making business through |
| Harley-Davidson. Moreover, ID Wear is the first North | | | | licensing has assisted many companies to post some |
| American company to provide laser logoing on its | | | | big alternations of the otherwise 'own brand |
| garments. | | | | extension' concept. Oxford Industries, Inc. is an |
| Marvel Enterprises, Inc., a global character-based | | | | illustration of how a company can get bigger with |
| entertainment licensing company, recently declared | | | | licensing. The company is a diversified international |
| that it is strengthening its important apparel licensing | | | | producer, licensee and wholesale marketer of |
| business with leading partners Kids Headquarters (as | | | | branded and private label apparel for men, women |
| master apparel licensee) and Mad Engine (which will | | | | and children. |
| spearhead t-shirts and tops). This statement means a | | | | Oxford offers retailers and consumers with a huge |
| brand new partnership with Kids Headquarters and an | | | | variety of apparel products and services to suit their |
| expanded relationship with Mad Engine. | | | | individual requirements. Its major brands cover |
| Juicy Couture has partnered with Sàfilo Group | | | | Tommy Bahama, Indigo Palms, Island Soft, Ben |
| for a full eyewear collection that it will introduce in | | | | Sherman, Ely and Walker and Oxford Golf. These |
| spring 2006. A budget-priced set of sunglasses and | | | | brands are offered in national chains, specialty |
| ophthalmic eyewear for men will also be introduced | | | | catalogues, mass merchants, department stores, |
| via an agreement between fashion brand Haggar | | | | specialty stores and Internet retailers. The company |
| Clothing Co. and The Feldman Corporation's | | | | also has exclusive licenses to make and sell several |
| I-dealoptics division. | | | | product categories under the Tommy Hilfiger, |
| Aviation and military-inspired leather outerwear and | | | | Nautica, Geoffrey Beene, Slates, Dockers and Oscar |
| sportswear brand Avirex signed a multi-year license | | | | de la Renta labels. |
| agreement with Kids Headquarters for sportswear | | | | Fashion licensing is largely divided into two categories: |
| and outerwear for boys. | | | | apparel brands and designer names. The priority of |
| Outerwear and Sportswear Company G-III Apparel | | | | fashion licensing is brand extension, which is mainly |
| Group obtained privately held outerwear companies | | | | obtained by designers through licensing products |
| Marvin Richards and Winlit Group Ltd. G-III now | | | | other than their main apparel lines. Calvin Klein remains |
| possesses licenses for Calvin Klein and Guess men's | | | | one of the premier examples for this type of |
| and women's outerwear, Tommy Hilfiger leather | | | | licensing agreement, as its income tripled after |
| outerwear, London Fog and Pacific Trail. | | | | adopting such a marketing strategy. |
| Top 5 Children's Apparel Character Licenses: 2004 | | | | In 1997, licensing, which is responsible for more than |
| 1. Winnie the Pooh & Friends | | | | 90 per cent of the label's sales, has now made the |
| 2. Disney Princess | | | | brand's global retail volume of about $ 5 billion from $ |
| 3. Spider-Man | | | | 2.1 billion in 1994. Many international brands catering to |
| 4. Mickey Mouse & Friends | | | | Indian players for licensing is a clear signal that a |
| 5. SpongeBob SquarePants | | | | market which was premature a couple of years |
| Sesame Workshop and Pearl Izumi, an athletic-wear | | | | back, has now been accepted by the entire business |
| producer, have tied up to launch Sesame Street | | | | community and will reach to its maximum level in the |
| cycling jerseys and socks. Through a licensing | | | | coming years. Licensing prospects now exist in all |
| agreement with plus-size apparel manufacturer | | | | spheres. Leading international names that offer huge |
| Bodywaves, Inc., Champion has set up Champion | | | | opportunities to harness the power of their name are |
| Plus, a full line of women's activewear that covers | | | | Warner Bros, You and Me Baby, Nickelodeon, |
| both performance fitness and "ath-leisure" styles. | | | | Barcode Kitties and BBC Worldwide, that is famous |
| Warner Bros. Consumer Products and Tunk Limited., | | | | for operating brand names like Teletubbies, Tweenies |
| a CINQ Group brand, have partnered to make tops, | | | | and Fimbles. |
| jackets and headwear. | | | | Conclusion |
| Licensing practice in India on a rise. | | | | In year 2004 licensing business shown tremendous |
| Nowadays, many Indian textiles companies are | | | | growth, with notably 5.6 percent increment in |
| entering into licensing agreements with international | | | | entertainment, 3.8 percent in brands & |
| brands, leading to the growth of the concept of | | | | trademarks and also showed good growth in other |
| business through licensing. | | | | categories compared to 2003. So as character and |
| Gokaldas Images Ltd, which owns and markets the | | | | entertainment licensing business showed a healthy |
| apparel brand Weekender, has signed an agreement | | | | growth in last few decades, and making billions of |
| with the World Wrestling Entertainment (WWE) for | | | | dollars of profits each year, the prospects of over all |
| licensing and marketing the apparels with the WWE | | | | business, particularly fashion, textile and garment |
| logos in the domestic market. A successful form of | | | | retailing will definitely have a bright future. |
| licensing - sports licensing, has developed into a | | | | |