Brand Extension
TELEFUNKEN: European Brand Clout

By Ted Curtin, Chief Marketing Officer, LMCA

As seen in Total Brand Licensing

While the largest market for licensed merchandise and services continues to be North America, which accounts for nearly 58% of the global total, licens­ing in European territories is growing at an increasing rate. The region is now responsible for over 35% of the world’s licensed merchandise sold at retail and European brands are taking notice.

Over the past decade, we’ve seen li­censing go from an intriguing business opportunity to a must-have business tool for brands to remain competitive, increase consumer touch points, ex­pand distribution channels and reach global markets.  Global companies at the forefront of brand extension licensing in Europe include brands like Caterpillar, West­inghouse, Electrolux, Ferrari and Volk­ swagen. Even fashion/lifestyle brands from Ralph Lauren, Dior, Kenneth Cole, Spyder, Frye and others have all realized how lucrative licensing op­portunities in Europe can be. With the European economy growing at the fastest pace in over two years, brands, manufacturers and retailers alike are taking notice.

A recent FocusEconomics panel up­graded its outlook for the Eurozone for the third month in a row. (refer­ence: http://www.focus -economics. com/regions/euro-area) Based on one report, the flash eurozone PMI (pur­chasing managers’ index) survey from IHS Market, growth was at a six-year high in May. The rising number of licensing deals in Europe and the steady increase in European brands turning to licensing as a strategic and profitable business tool underscores the substantial value Europe will be playing as a region for the future of brand licensing. 

One European brand at the forefront of this burgeoning sector in brand li­censing is the German-based company Telefunken. Established in 1903, the Telefunken brand has stood for the fundamental principles of German en­gineering, high quality and innovation in consumer electronics, telecom­munication, domestic appliances and innovative products in various other industries. Today the Telefunken licens­ing program comprises more than 30 licensees across 4 continents.

In addi­tion to expanding its licensing program in its home market of Europe in 2017, Telefunken is also pursuing growth in Asia and the Americas, as well as ex­panding in product categories such as smartphones and domestic appliances. The company currently ranks at #74 in the Top 150 Global Licensors ranking with retail sales of $ 471 M. 

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