Benefits of Licensing to the Licensee

  1. Offers opportunity for incremental sales:

    • By using well known and well-loved Intellectual Property rights

    • By using Intellectual Property to differentiate offer from ‘own brand’ enabling entry into new channels of distribution or new retailers

    • Utilising the goodwill surrounding a brand to increase sales of licensee’s products by applying the brand to the Licensee’s range

  2. Use of others Intellectual Property rights means limited costs  (either time spent or direct costs) on artwork development/creation as royalties are only paid on sales achieved.

  3. Licensing gives an opportunity to use artwork from European, American and other designers from around the world increasing the variety of product design and offering an opportunity to sell new and interesting products into the market.

  4. Cross-promotional benefits.  The development of a Licensing Programme which includes several Licensees from different product categories opens opportunities to promote the brand at retail with shop in shop concepts creating more interest for consumers and greater sales for retailers.

  5. Licensing increases negotiation power and builds a company’s reputation. Licensing means that the company was approved by brand owner and is trustworthy.  Licensing strong Intellectual Properties gives Licensees credibility as they have been selected by prestigious Licensors to develop Licensed Products.

  6. Licensing gives an access to the experience of other licensees developing products for other territories. Licensees can learn from Licensee’s success in other territories and incorporate best practices from other markets.

  7. Licensing gives the impetus to improve the internal processes of a company from concept development to sales and marketing. Working with overseas companies gives access to best practice in product management, project management and reporting.

  8. Licensed products sales tend to be less volatile often growing faster than a generic offer. Of course it is important to ensure that the selection of the licence is most appropriate for the product range and that the marketing and sales timing is right to capitalise on the notoriety of the Intellectual Property.

  9. Often Licensed Products offer a Licensee and retailer better margins as consumers are willing to pay a higher retail prices for a product that connects to them on an emotional level.

  10. Licensing Intellectual Properties enable the marketing team to focus on connecting the brand to the consumer.

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