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1. NEW TRENDS IN LICENSING Charles M. Riotto
President
International Licensing Industry Merchandisers’ Association (LIMA)
2. LIMA 1000 MEMBERS AROUND THE WORLD
THE INDUSTRY’S MAIN SOURCE OF EDUCATION INFORMATION AND NETWORKING OPPORTUNITIES
3. LIMA SPONSOR OF
LICENSING 2003 INTERNATIONAL
LICENSING LONDON
LICENSING ASIA
4. LICENSING ENTERTAINMENT
CORPORATE
SPORTS
FASHION
ART
5. LICENSING TRENDS
ENTERTAINMENT CHARACTERS AS PRODUCT ENDORSERS
6. LICENSING TRENDS CORPORATIONS:
STRENGTHEN THEIR TRADEMARK
PREVENT PIRACY
ADD REVENUES
MORE EXPOSURE
7. LICENSING TRENDS COLLEGES:
SUBSIDIZE THEIR EDUCATIONAL PROGRAMS
8. LICENSING TRENDS
LICENSING IS A $150 BILLION WORLDWIDE BUSINESS
9. LICENSING TRENDS LIMA’S STATISTICAL STUDY
CONDUCTED BY RESEARCHERS AT HARVARD BUSINESS SCHOOL AND YALE SCHOOL OF MANAGEMENT
LICENSING IS A $95 BILLION BUSINESS IN THE U.S.
10. LICENSING TRENDS
$5.5 BILLION IN ROYALTY INCOME IN THE U.S. IN 2001
11. LICENSING TRENDS
44% OF LICENSING ROYALTIES ARE FOR CHARACTER AND ENTERTAINMENT PROPERTIES
12. 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
13. 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
14. LICENSING TRENDS ENTERTANIMENT LICENSING IN THE U.S.:
$2.5 BILLION IN ROYALTIES
$42.5 BILLION AT RETAIL
44% OF ALL LICENSING REVENUES
15. LICENSING TRENDS DISNEY CONSUMER PRODUCTS:
MICKEY MOUSE
WINNIE THE POOH
DISNEY PRINCESS
POWER RANGERS
LIZZIE McGUIRE
16. LICENSING TRENDS WARNER BROS. CONSUMER PRODUCTS:
LOONEY TUNES: BACK IN ACTION
HARRY POTTER
SCOOBY-DOO
17. LICENSING TRENDS NICKELODEON:
SPONGEBOB SQUAREPANTS
DORA THE EXPLORER
BLUE’S CLUES
JIMMY NEUTRON
RUGRATS
18. LICENSING TRENDS OTHER POPULAR ENTERTAINMENT LICENSORS:
HIT ENTERTAINMENT
4KIDS ENTERTAINMENT
MARVEL
MATTEL
UNITED MEDIA
19. LICENSING TRENDS
RETRO PROPERTIES ARE POPULAR
20. LICENSING TRENDS
STUDIOS ARE USING “FRANCHISE DEVELOPMENT” STRATEGIES
21. LICENSING TRENDS
LICENSING OF MUSICAL PERFORMERS IS GROWING
22. LICENSING TRENDS
CREDIT CARD AFFINITY PROGRAMS FEATURING LICENSED CHARACTERS
23. LICENSING TRENDS
SALES OF LICENSED TOY PRODUCTS ARE UP
24. LICENSING TRENDS CORPORATE BRAND LICENSING:
AUTOMOTIVE BRANDS HAVE MAJOR LICENSING PROGRAMS
25. LICENSING TRENDS FOOD & BEVERAGE LICENSING ACCOUNTS FOR 25% OF ALL CORPORATE LICENSING REVENUES
26. LICENSING TRENDS COCA-COLA LICENSING:
PROGRAM STARTED IN ORDER TO ENFORCE TRADEMARK RIGHTS
NOW GENERATES ABOUT $1 BILLION IN RETAIL SALES
27. LICENSING TRENDS CORPORATE LICENSING:
GROWTH IN HEALTH & BEAUTY AIDS CATEGORY
28. LICENSING TRENDS CORPORATE LICENSING:
CABLE NETWORKS NOW INTO LICENSING
29. LICENSING TRENDS CORPORATE LICENSING:
FOOD & BEVERAGES 31%
APPAREL 16%
ACCESSORIES 7%
GIFTS & NOVELTIES 6%
HOUSEWARES 6%
TOYS & GAMES 5%
30. LICENSING TRENDS CORPORATE LICENSING:
LOW-RISK WAY TO BUILD BRAND AWARENESS
PROMOTES THE CORE PRODUCT
INCREASE APPEAL TO DIFFERENT GROUPS
STRENGTHENS TRADEMARK RIGHTS
31. 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
32. LICENSING TRENDS SPORTS LICENSING:
$707 MILLION IN ROYALTY REVENUES
$14 BILLION IN RETAIL SALES
33. 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)
34. LICENSING TRENDS FASHION LICENSING:
$911 MILLION IN ROYALTIES
$15.5 BILLION IN RETAIL SALES
35. LICENSING TRENDS ART LICENSING:
$147 MILLION IN ROYALTIES
$2.5 BILLION IN RETAIL SALES
36. LICENSING TRENDS LICENSING AT RETAIL:
DIFFICULT FOR SMALLER PROPERTIES TO GET NOTICED
LICENSORS NOW WORKING DIRECTLY WITH RETAILERS
37. 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?
38. LICENSING TRENDS OTHER TRENDS:
GUARANTEES GETTING SMALLER
ROYALTY RATES STABILIZING
39. LICENSING TRENDS OTHER TRENDS:
CROSS LICENSING GAINING POPULARITY
40. 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%
41. LICENSING TRENDS SUGGESTIONS:
ATTEND NEW YORK LICENSING SHOW
CONSIDER ATTENDING LICENSING SHOWS IN LONDON AND TOKYO
42. LICENSING TRENDS SUGGESTIONS:
JOIN AND SUPPORT ABRAL
JOIN LIMA
43. LICENSING TRENDS
THANK YOU!