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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