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