NEW TRENDS IN LICENSING Charles M. Riotto President International Licensing Industry Merchandisers’ Association (LIMA)
LIMA 1000 MEMBERS AROUND THE WORLD THE INDUSTRY’S MAIN SOURCE OF EDUCATION INFORMATION AND NETWORKING OPPORTUNITIES
LIMA SPONSOR OF LICENSING 2003 INTERNATIONAL LICENSING LONDON LICENSING ASIA
LICENSING ENTERTAINMENT CORPORATE SPORTS FASHION ART
LICENSING TRENDS <ul><li>ENTERTAINMENT CHARACTERS AS PRODUCT ENDORSERS </li></ul>
LICENSING TRENDS <ul><li>CORPORATIONS: </li></ul><ul><li>STRENGTHEN THEIR TRADEMARK </li></ul><ul><li>PREVENT PIRACY </li>...
LICENSING   TRENDS <ul><li>COLLEGES : </li></ul><ul><li>SUBSIDIZE THEIR EDUCATIONAL  PROGRAMS </li></ul>
LICENSING   TRENDS <ul><li>LICENSING IS A $150 BILLION WORLDWIDE BUSINESS </li></ul>
LICENSING TRENDS <ul><li>LIMA’S STATISTICAL STUDY </li></ul><ul><li>CONDUCTED BY RESEARCHERS AT HARVARD BUSINESS SCHOOL AN...
LICENSING TRENDS <ul><li>$5.5 BILLION IN ROYALTY INCOME IN THE U.S. IN 2001 </li></ul>
LICENSING TRENDS <ul><li>44% OF LICENSING ROYALTIES ARE FOR CHARACTER AND ENTERTAINMENT PROPERTIES </li></ul>
LICENSING TRENDS <ul><li>LICENSING REVENUES : </li></ul><ul><li>CHARACTER/ENTERTAINMENT  $2.5 B </li></ul><ul><li>TRADEMAR...
LICENSING TRENDS <ul><li>LICENSING ROYALTIES BY PRODUCT CATEGORY : </li></ul><ul><li>APPAREL  $976.4 M </li></ul><ul><li>T...
LICENSING TRENDS <ul><li>ENTERTANIMENT LICENSING IN THE U.S.: </li></ul><ul><li>$2.5 BILLION IN ROYALTIES </li></ul><ul><l...
LICENSING TRENDS <ul><li>DISNEY CONSUMER PRODUCTS: </li></ul><ul><li>MICKEY MOUSE </li></ul><ul><li>WINNIE THE POOH </li><...
LICENSING TRENDS <ul><li>WARNER BROS. CONSUMER PRODUCTS: </li></ul><ul><li>LOONEY TUNES: BACK IN ACTION </li></ul><ul><li>...
LICENSING TRENDS <ul><li>NICKELODEON: </li></ul><ul><li>SPONGEBOB SQUAREPANTS </li></ul><ul><li>DORA THE EXPLORER </li></u...
LICENSING TRENDS <ul><li>OTHER POPULAR ENTERTAINMENT LICENSORS: </li></ul><ul><li>HIT ENTERTAINMENT </li></ul><ul><li>4KID...
LICENSING TRENDS <ul><li>RETRO PROPERTIES ARE POPULAR </li></ul>
LICENSING TRENDS <ul><li>STUDIOS ARE USING “FRANCHISE DEVELOPMENT” STRATEGIES </li></ul>
LICENSING TRENDS <ul><li>LICENSING OF MUSICAL PERFORMERS IS GROWING </li></ul>
LICENSING TRENDS <ul><li>CREDIT CARD AFFINITY PROGRAMS FEATURING LICENSED CHARACTERS  </li></ul>
LICENSING TRENDS <ul><li>SALES OF LICENSED TOY PRODUCTS ARE UP </li></ul>
LICENSING TRENDS <ul><li>CORPORATE BRAND LICENSING: </li></ul><ul><li>AUTOMOTIVE BRANDS HAVE MAJOR LICENSING PROGRAMS </li...
LICENSING TRENDS <ul><li>FOOD & BEVERAGE LICENSING ACCOUNTS FOR 25% OF ALL CORPORATE LICENSING REVENUES </li></ul>
LICENSING TRENDS <ul><li>COCA-COLA LICENSING : </li></ul><ul><li>PROGRAM STARTED IN ORDER TO ENFORCE TRADEMARK RIGHTS </li...
LICENSING TRENDS <ul><li>CORPORATE LICENSING : </li></ul><ul><li>GROWTH IN HEALTH & BEAUTY AIDS CATEGORY </li></ul>
LICENSING TRENDS <ul><li>CORPORATE LICENSING : </li></ul><ul><li>CABLE NETWORKS NOW INTO LICENSING </li></ul>
LICENSING TRENDS <ul><li>CORPORATE LICENSING: </li></ul><ul><li>FOOD & BEVERAGES 31% </li></ul><ul><li>APPAREL 16% </li></...
LICENSING TRENDS <ul><li>CORPORATE LICENSING : </li></ul><ul><li>LOW-RISK WAY TO BUILD BRAND AWARENESS </li></ul><ul><li>P...
LICENSING TRENDS <ul><li>CORPORATE LICENSING TRENDS : </li></ul><ul><li>INTEREST WILL CONTINUE TO GROW </li></ul><ul><li>U...
LICENSING TRENDS <ul><li>SPORTS LICENSING : </li></ul><ul><li>$707 MILLION IN ROYALTY REVENUES </li></ul><ul><li>$14 BILLI...
LICENSING TRENDS <ul><li>SPORTS LICENSING : </li></ul><ul><li>U.S. LEADERS : </li></ul><ul><li>NATIONAL FOOTBALL LEAGUE (N...
LICENSING TRENDS <ul><li>FASHION LICENSING : </li></ul><ul><li>$911 MILLION IN ROYALTIES </li></ul><ul><li>$15.5 BILLION I...
LICENSING TRENDS <ul><li>ART LICENSING : </li></ul><ul><li>$147 MILLION IN ROYALTIES </li></ul><ul><li>$2.5 BILLION IN RET...
LICENSING TRENDS <ul><li>LICENSING AT RETAIL : </li></ul><ul><li>DIFFICULT FOR SMALLER PROPERTIES TO GET NOTICED </li></ul...
LICENSING TRENDS <ul><li>KEYS TO RETAIL RELATIONSHIPS : </li></ul><ul><li>UNDERSTAND THE RETAILER AND HIS CUSTOMERS </li><...
LICENSING TRENDS <ul><li>OTHER TRENDS : </li></ul><ul><li>GUARANTEES GETTING SMALLER </li></ul><ul><li>ROYALTY RATES STABI...
LICENSING TRENDS <ul><li>OTHER TRENDS : </li></ul><ul><li>CROSS LICENSING GAINING POPULARITY </li></ul>
LICENSING TRENDS <ul><li>INTERNATIONAL LICENSING MARKETS : </li></ul><ul><li>U.S./CANADA 65.0% </li></ul><ul><li>WESTERN E...
LICENSING TRENDS <ul><li>SUGGESTIONS : </li></ul><ul><li>ATTEND NEW YORK LICENSING SHOW </li></ul><ul><li>CONSIDER ATTENDI...
LICENSING TRENDS <ul><li>SUGGESTIONS : </li></ul><ul><li>JOIN AND SUPPORT ABRAL </li></ul><ul><li>JOIN LIMA </li></ul>
LICENSING TRENDS <ul><li>THANK YOU! </li></ul>
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New Trends In Licensing

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New Trends In Licensing

  1. 1. NEW TRENDS IN LICENSING Charles M. Riotto President International Licensing Industry Merchandisers’ Association (LIMA)
  2. 2. LIMA 1000 MEMBERS AROUND THE WORLD THE INDUSTRY’S MAIN SOURCE OF EDUCATION INFORMATION AND NETWORKING OPPORTUNITIES
  3. 3. LIMA SPONSOR OF LICENSING 2003 INTERNATIONAL LICENSING LONDON LICENSING ASIA
  4. 4. LICENSING ENTERTAINMENT CORPORATE SPORTS FASHION ART
  5. 5. LICENSING TRENDS <ul><li>ENTERTAINMENT CHARACTERS AS PRODUCT ENDORSERS </li></ul>
  6. 6. LICENSING TRENDS <ul><li>CORPORATIONS: </li></ul><ul><li>STRENGTHEN THEIR TRADEMARK </li></ul><ul><li>PREVENT PIRACY </li></ul><ul><li>ADD REVENUES </li></ul><ul><li>MORE EXPOSURE </li></ul>
  7. 7. LICENSING TRENDS <ul><li>COLLEGES : </li></ul><ul><li>SUBSIDIZE THEIR EDUCATIONAL PROGRAMS </li></ul>
  8. 8. LICENSING TRENDS <ul><li>LICENSING IS A $150 BILLION WORLDWIDE BUSINESS </li></ul>
  9. 9. LICENSING TRENDS <ul><li>LIMA’S STATISTICAL STUDY </li></ul><ul><li>CONDUCTED BY RESEARCHERS AT HARVARD BUSINESS SCHOOL AND YALE SCHOOL OF MANAGEMENT </li></ul><ul><li>LICENSING IS A $95 BILLION BUSINESS IN THE U.S. </li></ul>
  10. 10. LICENSING TRENDS <ul><li>$5.5 BILLION IN ROYALTY INCOME IN THE U.S. IN 2001 </li></ul>
  11. 11. LICENSING TRENDS <ul><li>44% OF LICENSING ROYALTIES ARE FOR CHARACTER AND ENTERTAINMENT PROPERTIES </li></ul>
  12. 12. LICENSING TRENDS <ul><li>LICENSING REVENUES : </li></ul><ul><li>CHARACTER/ENTERTAINMENT $2.5 B </li></ul><ul><li>TRADEMARK/BRANDS $963 M </li></ul><ul><li>FASHION $911 M </li></ul><ul><li>SPORTS $707 M </li></ul><ul><li>COLLEGIATE $175 M </li></ul><ul><li>ART $147 M </li></ul><ul><li>MUSIC $117 M </li></ul>
  13. 13. LICENSING TRENDS <ul><li>LICENSING ROYALTIES BY PRODUCT CATEGORY : </li></ul><ul><li>APPAREL $976.4 M </li></ul><ul><li>TOYS & GAMES $958.3 M </li></ul><ul><li>SOFTWARE/VIDEOGAMES $536.8 M </li></ul><ul><li>ACCESSORIES $450.0 M </li></ul><ul><li>GIFTS & NOVELTIES $506.4 M </li></ul><ul><li>FOOD & BEVERAGES $418.3 M </li></ul>
  14. 14. LICENSING TRENDS <ul><li>ENTERTANIMENT LICENSING IN THE U.S.: </li></ul><ul><li>$2.5 BILLION IN ROYALTIES </li></ul><ul><li>$42.5 BILLION AT RETAIL </li></ul><ul><li>44% OF ALL LICENSING REVENUES </li></ul>
  15. 15. LICENSING TRENDS <ul><li>DISNEY CONSUMER PRODUCTS: </li></ul><ul><li>MICKEY MOUSE </li></ul><ul><li>WINNIE THE POOH </li></ul><ul><li>DISNEY PRINCESS </li></ul><ul><li>POWER RANGERS </li></ul><ul><li>LIZZIE McGUIRE </li></ul>
  16. 16. LICENSING TRENDS <ul><li>WARNER BROS. CONSUMER PRODUCTS: </li></ul><ul><li>LOONEY TUNES: BACK IN ACTION </li></ul><ul><li>HARRY POTTER </li></ul><ul><li>SCOOBY-DOO </li></ul>
  17. 17. LICENSING TRENDS <ul><li>NICKELODEON: </li></ul><ul><li>SPONGEBOB SQUAREPANTS </li></ul><ul><li>DORA THE EXPLORER </li></ul><ul><li>BLUE’S CLUES </li></ul><ul><li>JIMMY NEUTRON </li></ul><ul><li>RUGRATS </li></ul>
  18. 18. LICENSING TRENDS <ul><li>OTHER POPULAR ENTERTAINMENT LICENSORS: </li></ul><ul><li>HIT ENTERTAINMENT </li></ul><ul><li>4KIDS ENTERTAINMENT </li></ul><ul><li>MARVEL </li></ul><ul><li>MATTEL </li></ul><ul><li>UNITED MEDIA </li></ul>
  19. 19. LICENSING TRENDS <ul><li>RETRO PROPERTIES ARE POPULAR </li></ul>
  20. 20. LICENSING TRENDS <ul><li>STUDIOS ARE USING “FRANCHISE DEVELOPMENT” STRATEGIES </li></ul>
  21. 21. LICENSING TRENDS <ul><li>LICENSING OF MUSICAL PERFORMERS IS GROWING </li></ul>
  22. 22. LICENSING TRENDS <ul><li>CREDIT CARD AFFINITY PROGRAMS FEATURING LICENSED CHARACTERS </li></ul>
  23. 23. LICENSING TRENDS <ul><li>SALES OF LICENSED TOY PRODUCTS ARE UP </li></ul>
  24. 24. LICENSING TRENDS <ul><li>CORPORATE BRAND LICENSING: </li></ul><ul><li>AUTOMOTIVE BRANDS HAVE MAJOR LICENSING PROGRAMS </li></ul>
  25. 25. LICENSING TRENDS <ul><li>FOOD & BEVERAGE LICENSING ACCOUNTS FOR 25% OF ALL CORPORATE LICENSING REVENUES </li></ul>
  26. 26. LICENSING TRENDS <ul><li>COCA-COLA LICENSING : </li></ul><ul><li>PROGRAM STARTED IN ORDER TO ENFORCE TRADEMARK RIGHTS </li></ul><ul><li>NOW GENERATES ABOUT $1 BILLION IN RETAIL SALES </li></ul>
  27. 27. LICENSING TRENDS <ul><li>CORPORATE LICENSING : </li></ul><ul><li>GROWTH IN HEALTH & BEAUTY AIDS CATEGORY </li></ul>
  28. 28. LICENSING TRENDS <ul><li>CORPORATE LICENSING : </li></ul><ul><li>CABLE NETWORKS NOW INTO LICENSING </li></ul>
  29. 29. LICENSING TRENDS <ul><li>CORPORATE LICENSING: </li></ul><ul><li>FOOD & BEVERAGES 31% </li></ul><ul><li>APPAREL 16% </li></ul><ul><li>ACCESSORIES 7% </li></ul><ul><li>GIFTS & NOVELTIES 6% </li></ul><ul><li>HOUSEWARES 6% </li></ul><ul><li>TOYS & GAMES 5% </li></ul>
  30. 30. LICENSING TRENDS <ul><li>CORPORATE LICENSING : </li></ul><ul><li>LOW-RISK WAY TO BUILD BRAND AWARENESS </li></ul><ul><li>PROMOTES THE CORE PRODUCT </li></ul><ul><li>INCREASE APPEAL TO DIFFERENT GROUPS </li></ul><ul><li>STRENGTHENS TRADEMARK RIGHTS </li></ul>
  31. 31. LICENSING TRENDS <ul><li>CORPORATE LICENSING TRENDS : </li></ul><ul><li>INTEREST WILL CONTINUE TO GROW </li></ul><ul><li>USED AS A MEANS TO ACCOMPLISH DIFFERENT GOALS </li></ul><ul><li>GROWTH WILL SLOW DOWN </li></ul><ul><li>ROYALTY RATES WILL RISE SLOWLY </li></ul><ul><li>DEALS ARE GETTING BIGGER </li></ul>
  32. 32. LICENSING TRENDS <ul><li>SPORTS LICENSING : </li></ul><ul><li>$707 MILLION IN ROYALTY REVENUES </li></ul><ul><li>$14 BILLION IN RETAIL SALES </li></ul>
  33. 33. LICENSING TRENDS <ul><li>SPORTS LICENSING : </li></ul><ul><li>U.S. LEADERS : </li></ul><ul><li>NATIONAL FOOTBALL LEAGUE (NFL) </li></ul><ul><li>MAJOR LEAGUE BASEBALL (MLB) </li></ul><ul><li>COLLEGIATE LICENSING CO. (CLC) </li></ul><ul><li>NATIONAL BASKETBALL ASSN (NBA) </li></ul><ul><li>NASCAR </li></ul><ul><li>NATIONAL HOCKEY LEAGUE (NHL) </li></ul>
  34. 34. LICENSING TRENDS <ul><li>FASHION LICENSING : </li></ul><ul><li>$911 MILLION IN ROYALTIES </li></ul><ul><li>$15.5 BILLION IN RETAIL SALES </li></ul>
  35. 35. LICENSING TRENDS <ul><li>ART LICENSING : </li></ul><ul><li>$147 MILLION IN ROYALTIES </li></ul><ul><li>$2.5 BILLION IN RETAIL SALES </li></ul>
  36. 36. LICENSING TRENDS <ul><li>LICENSING AT RETAIL : </li></ul><ul><li>DIFFICULT FOR SMALLER PROPERTIES TO GET NOTICED </li></ul><ul><li>LICENSORS NOW WORKING DIRECTLY WITH RETAILERS </li></ul>
  37. 37. LICENSING TRENDS <ul><li>KEYS TO RETAIL RELATIONSHIPS : </li></ul><ul><li>UNDERSTAND THE RETAILER AND HIS CUSTOMERS </li></ul><ul><li>UNDERSTAND WHERE YOUR PROPERTY FITS </li></ul><ul><li>HOW WILL IT DRIVE TRAFFIC? </li></ul><ul><li>WILL IT BRING NEW CUSTOMERS? </li></ul><ul><li>WILL IT SELL MORE PRODUCT? </li></ul>
  38. 38. LICENSING TRENDS <ul><li>OTHER TRENDS : </li></ul><ul><li>GUARANTEES GETTING SMALLER </li></ul><ul><li>ROYALTY RATES STABILIZING </li></ul>
  39. 39. LICENSING TRENDS <ul><li>OTHER TRENDS : </li></ul><ul><li>CROSS LICENSING GAINING POPULARITY </li></ul>
  40. 40. LICENSING TRENDS <ul><li>INTERNATIONAL LICENSING MARKETS : </li></ul><ul><li>U.S./CANADA 65.0% </li></ul><ul><li>WESTERN EUROPE 22.0% </li></ul><ul><li>JAPAN 9.8% </li></ul><ul><li>AUSTRALIA/N. ZEALAND 1.3% </li></ul><ul><li>SOUTH/CENTRAL AMERICA 0.7% </li></ul><ul><li>SOUTHEAST ASIA 0.5% </li></ul><ul><li>OTHER 0.7% </li></ul>
  41. 41. LICENSING TRENDS <ul><li>SUGGESTIONS : </li></ul><ul><li>ATTEND NEW YORK LICENSING SHOW </li></ul><ul><li>CONSIDER ATTENDING LICENSING SHOWS IN LONDON AND TOKYO </li></ul>
  42. 42. LICENSING TRENDS <ul><li>SUGGESTIONS : </li></ul><ul><li>JOIN AND SUPPORT ABRAL </li></ul><ul><li>JOIN LIMA </li></ul>
  43. 43. LICENSING TRENDS <ul><li>THANK YOU! </li></ul>

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