For many Australian companies, the brand name is the company’s greatest asset.
Intelligent Brand Owners register their brand elements as trademarks. A trademark enables a Brand Owner to achieve exclusivity of the brand identity on the goods and services in the market. It is a competitive advantage.
Possessing a trademark allows a Brand Owner to license their brand to a third party. This party, referred to as a Licensee, leverages the visual assets of your brand and either manufactures products or delivers an experience which looks exactly like your brand and is perceived as a natural brand extension.
Smart Brands license for growth in their corporate strategic plan. They become faster, more innovative and agile.
The rise of Brand Licensing
Current market forces which Australian companies continually face remain ever-present. To pursue competitive and achieve profitable growth, the traditional model expects a company to overcome:
• Internal innovation costs which can be exceptionally costly
• A high chance of failure with an internally developed innovation
• Globalisation increasing the competitor landscape
• Entering a new international market with high launch costs and lack of local knowledge which can erode the parent company cashflow
• Identifying the market saturation point in Australia and the need to diversify (somehow)
A new innovation strategy is required. This is why licensing has become the trending growth initiative for innovative and agile companies.
Why brand licensing is trending
There are many reasons why licensing has grown so rapidly. Experience shows that progressive brands license for growth. For an Australian brand seeking to launch into licensing, there are a number of explanations why strong brands are succeeding in licensing:
- Licensees offer capabilities, resources and technology that a Brand Owner could never acquire internally
- Retailers are consolidating and are using brands to differentiate themselves. Brand alignment is an aggressive competitive strategy to appeal to consumers
- Manufacturers are realising that by licensing a strong brand, they create a sustainable advantage in the market which appeals to retailers
- Consumers are seeking a deeper brand immersion lifestyle. They want to connect with a brand in multiple experiences
- Brand Owners are embracing the reduced risk and financial reward that licensing achieves making this an appealing strategy
- Licensing raises entrance barriers for your competitors if you extend into a new space first
- Brand Owners can test a market or test an idea through a licensee
- Engagement of licensees who are leaders in their technology to deliver a first-to-market experience for consumers from your brand, resulting in new market share growth and new consumers
Brand Licensing in Australia
The brand licensing industry has advanced more quickly internationally, and now Australian companies are stepping into this growth strategy.
For Brand Owners who are concerned about the negative implications of leasing your most precious asset to another entity, a carefully constructed licensing strategic plan and its execution will not only minimise your exposure it also increases the success rate.
Brand Licensing Education
IPTIUM offers the leaders of strong brands an immersion course in Brand Licensing.
This is an intensive one day programme. Practical and knowledge-rich, participants work on their own business throughout the learning to create a case for licensing your brand, or licensing-in (leasing some one else’s brand).
The course covers the law, financial modelling, marketing and sales knowledge for a CEO or Company Leader who wishes to include licensing in the strategic growth plan.
Get educated. Grow faster. License for Growth.