Licensing: A changing landscape

I responded last week to a fellow Retail Wire panelist’s request for opinions about the traditional “triangle” between retailers, license-holders and licensees. I find the business model is changing fast:

The Iconix model is a good example of how the traditional “licensing triangle” is changing. There are fewer national retailers, and they are interested in margin growth as well as development of exclusive brands. So it makes sense for these stores to go straight to the master licensee to lock up distribution rights and to do their own product development and sourcing. The result: One of the three sides of the traditional “triangle” is cut out of the picture, unless the retailer decides to source product from a prior license-holder.

All the more important, therefore, for licensees to reexamine their business model, to make sure they are relevant to the new breed of mega-retailer.

Advertisements

0 Responses to “Licensing: A changing landscape”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s





%d bloggers like this: