What is Brand Licensing, and why is it beneficial for fashion

When you think of brand licensing, what do you think of? Chances are you think of children's cartoons, like Paw Patrol, Star Wars, or Minions, lending their image to different types of toys, notebooks or lunch boxes. But brand licensing goes much further than this and is gaining traction. In fact, revenue generated by the global licensing industry surpassed $300 billion for the first time ever in 2021, reaching $315.5 billion despite the pandemic, according to the trade association Licensing International.

Demand for licensed products continues to grow, with several leading retailers from M&S to H&M working together with brands to create high-demand consumer products. Data shows that brand licensing can drive revenue, increase traffic, and boost consumer loyalty. Yet many fashion retailers are unaware of how to tap into the potential benefits of branded products. Here we delve into brand licensing, how it can benefit your business and why you should visit Europe's leading event for licensing and brand extension.

What is brand licensing?

To put it into simple terms, brand licensing is when a retailer or a manufacturer rents, or leases, a brand's image to create consumer products. This is usually licensed within a particular product category and territory.

Brand Licensing allows retailers to differentiate themselves from competitors while expanding into new product categories that are deemed exclusive due to the licensing deal. At the same time, brand licensing also allows retailers to attract new customers through different product offerings.

How does brand licensing work?

Brand licensed products offer consumers a direct emotional connection. While the most apparent examples are from children's toys - just think how excited children are when they get a Star Wars LEGO set, it has the same effect across all ages. Many adults feel compelled by a sense of nostalgia to purchase those Hello Kitty socks if they enjoyed the cartoon show as a child, as it reminds them of their childhood.

Brand licensing within the fashion industry has only gained traction over the years, with everyone from fast-fashion retailers to luxury fashion houses collaborating to bring consumers exciting new branded products. Recently there has been a trend which sees designer brands collaborating with mass market retailers, such as Gucci x the North Face, Adidas x Prada, Manolo Blahnik x Birkenstock and Burberry x Supreme. These collaborations also generate positive PR and consumer interactions by opening both parties up to new consumer demographics, encouraging retailers to engage with brand licensing more. Many fashion retailers have also been more open to licensing brand characters, resulting in famous characters from Barbie to Snoopy and Thumper lending their faces to all types of apparel.

Brand Licensing and the theme of Fashion at BLE

"From Primark x Greggs and Natural History Museum x Fat Face, to Selfridges opening as a fully-functioning online retailer in the Metaverse and amazing in-store experiences popping up all over the world, fashion is an incredibly exciting space to be in right now," says Anna Knight, SVP of Licensing at Informa Markets. "The impact it can have on brands, and brands can have on it, is endless."

Fashion, the main theme of the upcoming Brand Licensing Europe (BLE) trade fair in London, the event is set to bring together the broadest range of brands available for license across Europe. The hottest meeting place for the European licensing industry, BLE brings together

thousands of the world's most-known brands across entertainment, sports, FMCG, art, heritage and more under one roof for three days of mingling, networking and trendspotting.

"It’s a bonus for us that this year’s main theme is fashion – a particularly strong sector for us. We’ve long had a reputation for trailblazing within the category," says Julian Moon, Senior Vice President Warner Bros. Consumer Products EMEA. "We were at the forefront of the nostalgia trend, the “mini-me” fashion movement, and the popularity of high-end fashion collaborations, including some ground-breaking retail executions over the years. This year’s show is a chance for us to showcase our brands' versatility and expertise in applying them to current and future trends, for every age group from Gen Alpha to adults.

This year's fashion theme will be reflected in several areas of focus, from product displays to live catwalk shows and a keynote speech on Barbie x Fashion delivered by Mattel President and COO Richard Dickson. Each catwalk show will be choreographed, staged and individually themed to serve as a reliable source of inspiration for branded fashion. “The Catwalk at BLE is a great idea and an ideal way for us to demonstrate just how adaptable our brands are," says Richard Pink, Managing Director at exhibitor Pink Key Licensing. "There is always a danger with food-based brands that it’s hard to understand how they can be adapted into designs that belong on a catwalk."

"Our experience is that the depth and breadth of available artwork for all of our brands, as well as the flexibility in the way it can be used, means that - as demonstrated by our ongoing Anya Hindmarch collaboration with Kellogg’s - our brands not only work on the catwalk - they work extremely well!” Attracting the full licensing chains, from brand owners to licensing agents, retailers and licensees, BLE is the event to connect with peers and learn more about licensing trends in different categories.

"The licensing world is continually evolving, and it’s important that we take learnings from our partners to continue being one of the leading global licensing agents in the industry," says John Taylor, VP of Northern Europe at WildBrain CPLG. For fashion retailers ready to step into the world of brand licensing and learn more, attendees can register for free Brand Licensing Europe this September at: www.brandlicensing.eu.