By: Allan Feldman, Founder & CEO of LMCA
1. Adjust yourself for slower growth
With 2,500+ licensed brands now competing for qualified licensees, for distribution and for consumer attention and narrowing retail channels, the growth prospects for any single brand will be more limited than before.
2. Greater Commitment required
With this increased competition, just dabbling at licensing … may have been OK before … but won’t work any more. Instead, licensing will require more dedicated and qualified staff, greater financial investment and a longer time horizon.
3. More creativity
More creativity, more analysis and more thought will be needed to differentiate yourself, help you stand out from the pack and justify your existence.
4. More globalization
Asia, the Middle East, Africa, Eastern Europe and other parts of the world are increasingly important. This translates to the need for more local expertise and boots-on-the-ground in navigating these countries.
5. One size does not fit all
More on #4 above … programs must be customized to individual markets while staying true to the brand and the brand’s core equity.
6. More involvement from top management
See #2 above, among other things, companies will need to approve the larger financial and staff investment and achieve organizational alignment to ensure the success of the program.
7. Strategic foundations
Programs will have more strategic foundations and goals beyond simply monetizing the brand. Why? Because you need good reasons to pursue initiatives that will cost more and return less … see #1 and #2, above. Think of this as a strategic approach to increasing brand value.
8. Future oriented
More strategic goals will be forthcoming. More likely than not, your competitors are using licensing to defend and increase their awareness, relevancy and importance in the market. The danger of falling backwards, losing touch and disappearing is real.
9. Career Growth
Licensing professionals will be in more demand than ever before … and operate at higher levels within the corporation.
10. Continued Rewards
A licensing career remains attractive. In spite of the challenges, the cross-discipline nature of the work (creativity, business, legal, sales, psychologist, marketer, deal maker) and the direct link to seeing actual results will continue to make this a dynamic, fun and extremely rewarding career path.
LMCA is a market founder and leader in making connections between growth companies and strong brands for licensing. We represent over $6.5B in annual licensed product sales. Let’s continue the conversation. Learn more about how brand extension licensing can expand your reach, your customer base and your bottom line. Contact Us Here
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