Tuesday, 16 June 2009

Licensing Still Has Its Place In The Luxury Industry – 16/6/09

In these testing times, should we expect to see more licensing deals on the table? “Yes,” predicts industry information service Luxury Briefing. In a Financial Times article, they claimed, “The $192bn licensing business is set to grow by 4.7 per cent over the next few years, with a significant proportion of this from the luxury industry.”


But as the Financial Times article, Licensing: Horrors Of Past Are Now Just A Memory, suggests, licensing doesn’t always have to be a bad thing. In the past, brands like Pierre Cardin may have gone over the top, turned mass market, and lost their prestige. But as Gucci and Yves Saint Laurent have proven you can recover from overexposure by employing strong and clear strategic change.


This article goes on to say, “For smaller brands with limited resources, licensing product categories (if handled well) also remains a good way to expand and build presence in the market.”


But luxury brands definitely have to draw the line at certain licensing agreements. Perhaps a prime example of this is Marc Jacobs’ range of condoms. In response to this unusual promotion, another fashion blogger exclaimed, “talk about brand whoring.” Harsh but true?


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Who's behind the MO DOWN

Melinda O’Rourke is the founder and Director of MO Luxury, a dynamic, Sydney-based management firm specialising in luxury brands and services. Melinda and her associates at MO work with local and international brands across prestige retail, fashion, fine jewellery, timepieces and specialised services. Melinda is well-connected, well-read, and well-versed in the demands of the luxury market and its client base. Her advice is firmly based in objectivity and ultimately, accountability. Melinda offers constructive counsel and both strategic and creative thinking and is able to draw upon a strong network of specialised talent to compliment the MO Luxury team as needed. Melinda enjoys excellent industry relationships and is regularly quoted in the business and fashion media. Read more about MO Luxury, www.moluxury.com.au