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
CORPORATE LICENSING:
CABLE NETWORKS NOW INTO
LICENSING

LICENSING TRENDS
CORPORATE LICENSING:

FOOD & BEVERAGES

APPAREL
ACCESSORIES
GIFTS & NOVELTIES
HOUSEWARES
TOYS & GAMES

31%
16%
7%
6%
6%
5%

LICENSING TRENDS
CORPORATE LICENSING:
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
WESTERN EUROPE
JAPAN
AUSTRALIA/N. ZEALAND
SOUTH/CENTRAL AMERICA
SOUTHEAST ASIA
OTHER

65.0%
22.0%
9.8%
1.3%
0.7%
0.5%
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!