Brand licensing in the fashion apparel space can open up additional revenue streams for suppliers and retailers alike and can be very lucrative for all parties involved. Licensing can, however, be quite daunting as well. Below are four tips to follow for a successful licensing partnership:
1. Always aim for longevity
Sure, there will always be opportunity for quick switch ons with new partners to exploit a certain trend, but in order to ensure long term success, it makes sense to partner with business that have been in the industry for a long time and has the same end goal. Licensing is all about strong relationships!
2. Product first – revenue second
Diluting your brand for a quick win in terms of revenue is never worth it. If the product is unique, of good quality and lives the brand ethos, the revenue will come. Resist the urge to go ahead with the launch of a range if it could damage your reputation as a brand and agency in the long run
3. Don’t be scared to aim for a premium partner
Nothing will build brand equity and create opportunity for a trickle down like partnering with a premium brand – Fisher Price partnering with Coach in 2017 and the iconic Barbie x Moschino range of are good examples of this!
4. Don’t be scared to target the lower end of the market either
More than 80% of South Africans have a living budget of R4 000 a month*. With expendable income decreasing, consumers are increasingly looking for value offerings. Value conscious retailers, like Ackermans, that have outperformed the industry benchmark threefold**, and are very customer focused is likely where growth will come from in 2019. Working with retailers across the price spectrum will give all consumers access to your brand!