New Trends in Licensing 1223879002231891 8

NEW TRENDS IN
LICENSING
Charles M. Riotto
President
International Licensing Industry
Merchandisers Association (LIMA)
LIMA
1000 MEMBERS AROUND THE
WORLD
THE INDUSTRYS MAIN
SOURCE OF EDUCATION
INFORMATION AND
NETWORKING
OPPORTUNITIES
LIMA
SPONSOR OF
LICENSING 2003 INTERNATIONAL
LICENSING LONDON
LICENSING ASIA
LICENSING
ENTERTAINMENT
CORPORATE
SPORTS
FASHION
ART
LICENSING TRENDS
ENTERTAINMENT CHARACTERS
AS PRODUCT ENDORSERS
LICENSING TRENDS
CORPORATIONS:
STRENGTHEN THEIR
TRADEMARK
PREVENT PIRACY
ADD REVENUES
MORE EXPOSURE
LICENSING TRENDS
COLLEGES:
SUBSIDIZE THEIR
EDUCATIONAL PROGRAMS
LICENSING TRENDS
LICENSING IS A $150 BILLION

WORLDWIDE BUSINESS
LICENSING TRENDS
LIMAS STATISTICAL STUDY
CONDUCTED BY RESEARCHERS AT
HARVARD BUSINESS SCHOOL AND
YALE SCHOOL OF MANAGEMENT
LICENSING IS A $95 BILLION BUSINESS

IN THE U.S.
LICENSING TRENDS
$5.5 BILLION IN ROYALTY

INCOME IN THE U.S. IN 2001
LICENSING TRENDS
44% OF LICENSING ROYALTIES

ARE FOR CHARACTER AND
ENTERTAINMENT PROPERTIES
LICENSING TRENDS
LICENSING REVENUES:
CHARACTER/ENTERTAINMENT $2.5 B
TRADEMARK/BRANDS $963 M
FASHION $911 M
SPORTS $707 M
COLLEGIATE $175 M
ART $147 M
MUSIC $117 M
LICENSING TRENDS
LICENSING ROYALTIES BY PRODUCT
CATEGORY:
APPAREL $976.4 M
TOYS & GAMES $958.3 M
SOFTWARE/VIDEOGAMES $536.8 M
ACCESSORIES $450.0 M
GIFTS & NOVELTIES $506.4 M
FOOD & BEVERAGES $418.3 M
LICENSING TRENDS
ENTERTANIMENT LICENSING IN THE
U.S.:
$2.5 BILLION IN ROYALTIES
$42.5 BILLION AT RETAIL
44% OF ALL LICENSING
REVENUES
LICENSING TRENDS
DISNEY CONSUMER PRODUCTS:
MICKEY MOUSE
WINNIE THE POOH
DISNEY PRINCESS
POWER RANGERS
LIZZIE McGUIRE
LICENSING TRENDS
WARNER BROS. CONSUMER
PRODUCTS:
LOONEY TUNES: BACK IN ACTION

HARRY POTTER
SCOOBY-DOO
LICENSING TRENDS
NICKELODEON:
SPONGEBOB SQUAREPANTS
DORA THE EXPLORER
BLUES CLUES
JIMMY NEUTRON
RUGRATS
LICENSING TRENDS
OTHER POPULAR ENTERTAINMENT
LICENSORS:
HIT ENTERTAINMENT
4KIDS ENTERTAINMENT
MARVEL
MATTEL
UNITED MEDIA
LICENSING TRENDS
RETRO PROPERTIES ARE

POPULAR
LICENSING TRENDS
STUDIOS ARE USING

FRANCHISE
DEVELOPMENT
STRATEGIES
LICENSING TRENDS
LICENSING OF MUSICAL
PERFORMERS IS GROWING
LICENSING TRENDS
CREDIT CARD AFFINITY

PROGRAMS FEATURING
LICENSED CHARACTERS
LICENSING TRENDS
SALES OF LICENSED TOY

PRODUCTS ARE UP
LICENSING TRENDS
CORPORATE BRAND LICENSING:
AUTOMOTIVE BRANDS HAVE

MAJOR LICENSING
PROGRAMS
LICENSING TRENDS
FOOD & BEVERAGE LICENSING
ACCOUNTS FOR 25% OF ALL
CORPORATE LICENSING
REVENUES
LICENSING TRENDS
COCA-COLA LICENSING:
PROGRAM STARTED IN ORDER TO

ENFORCE TRADEMARK RIGHTS
NOW GENERATES ABOUT $1 BILLION IN

RETAIL SALES
LICENSING TRENDS
CORPORATE LICENSING:
GROWTH IN HEALTH & BEAUTY

AIDS CATEGORY
LICENSING TRENDS
CABLE NETWORKS NOW INTO

LICENSING
LICENSING TRENDS
FOOD & BEVERAGES 31%

APPAREL 16%
ACCESSORIES 7%
GIFTS & NOVELTIES 6%
HOUSEWARES 6%
TOYS & GAMES 5%
LICENSING TRENDS
LOW-RISK WAY TO BUILD BRAND

AWARENESS
PROMOTES THE CORE PRODUCT
INCREASE APPEAL TO DIFFERENT
GROUPS
STRENGTHENS TRADEMARK RIGHTS
LICENSING TRENDS
CORPORATE LICENSING TRENDS:
INTEREST WILL CONTINUE TO GROW

USED AS A MEANS TO ACCOMPLISH
DIFFERENT GOALS
GROWTH WILL SLOW DOWN
ROYALTY RATES WILL RISE SLOWLY
DEALS ARE GETTING BIGGER
LICENSING TRENDS
SPORTS LICENSING:
$707 MILLION IN ROYALTY

REVENUES
$14 BILLION IN RETAIL SALES
LICENSING TRENDS
SPORTS LICENSING:
U.S. LEADERS:
NATIONAL FOOTBALL LEAGUE (NFL)
MAJOR LEAGUE BASEBALL (MLB)
COLLEGIATE LICENSING CO. (CLC)
NATIONAL BASKETBALL ASSN (NBA)
NASCAR
NATIONAL HOCKEY LEAGUE (NHL)
LICENSING TRENDS
FASHION LICENSING:
$911 MILLION IN ROYALTIES

$15.5 BILLION IN RETAIL SALES
LICENSING TRENDS
ART LICENSING:
$147 MILLION IN ROYALTIES

$2.5 BILLION IN RETAIL SALES
LICENSING TRENDS
LICENSING AT RETAIL:
DIFFICULT FOR SMALLER

PROPERTIES TO GET NOTICED
LICENSORS NOW WORKING
DIRECTLY WITH RETAILERS
LICENSING TRENDS
KEYS TO RETAIL RELATIONSHIPS:
UNDERSTAND THE RETAILER AND HIS
CUSTOMERS
UNDERSTAND WHERE YOUR PROPERTY
FITS
HOW WILL IT DRIVE TRAFFIC?
WILL IT BRING NEW CUSTOMERS?
WILL IT SELL MORE PRODUCT?
LICENSING TRENDS
OTHER TRENDS:
GUARANTEES GETTING
SMALLER
ROYALTY RATES STABILIZING
LICENSING TRENDS
OTHER TRENDS:
CROSS LICENSING GAINING

POPULARITY
LICENSING TRENDS
INTERNATIONAL LICENSING MARKETS:
U.S./CANADA 65.0%
WESTERN EUROPE 22.0%
JAPAN 9.8%
AUSTRALIA/N. ZEALAND 1.3%
SOUTH/CENTRAL AMERICA 0.7%
SOUTHEAST ASIA 0.5%
OTHER 0.7%
LICENSING TRENDS
SUGGESTIONS:
ATTEND NEW YORK LICENSING

SHOW
CONSIDER ATTENDING LICENSING
SHOWS IN LONDON AND TOKYO
LICENSING TRENDS
SUGGESTIONS:
JOIN AND SUPPORT ABRAL
JOIN LIMA
LICENSING TRENDS
THANK YOU!

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New Trends in Licensing 1223879002231891 8

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NEW TRENDS IN

LICENSING IS A $150 BILLION

LICENSING IS A $95 BILLION BUSINESS

$5.5 BILLION IN ROYALTY

44% OF LICENSING ROYALTIES

LOONEY TUNES: BACK IN ACTION

RETRO PROPERTIES ARE

STUDIOS ARE USING

CREDIT CARD AFFINITY

SALES OF LICENSED TOY

AUTOMOTIVE BRANDS HAVE

PROGRAM STARTED IN ORDER TO

NOW GENERATES ABOUT $1 BILLION IN

GROWTH IN HEALTH & BEAUTY

CABLE NETWORKS NOW INTO

FOOD & BEVERAGES 31%

LOW-RISK WAY TO BUILD BRAND

INTEREST WILL CONTINUE TO GROW

$707 MILLION IN ROYALTY

$911 MILLION IN ROYALTIES

$147 MILLION IN ROYALTIES

DIFFICULT FOR SMALLER

CROSS LICENSING GAINING

ATTEND NEW YORK LICENSING

JOIN AND SUPPORT ABRAL

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