In the commercial sense, licensing is the use of a name or concept for a consideration with resulting profits to the licensor and the licensee. As to the licensor, in many many situations, the benefits are primarily the extension of the awareness and appreciation of the name and, secondarily, the consideration of profit potential.
A dynamic growth company and a successful brand name that conspicuously contributes to the retailers' profits should consider licensing. From this background a family of licensed products can be born and nurtured.
Partnering with an established designer or brand name enables a manufacturer to grow and gain competitive advantage. The license enriches the company.
Strength, Awareness & Recognition - Licensing Perspectives
- Ease of product introduction and market penetration
- Licensor presence and input
- Ability to launch products without significant financial investments
- Opportunities to build strategic alliances with major retailers
- Sales synergies among various licensed products in different chanels
of distribution
- Significant profit potential