Here is a topic that has been on my mind for a while: licensing. Even though this might not concern the majority of my readers (or my actual clients, for that matter), it's an important subject that I deal with daily. Moreover, it's a topic that every fashion brand owner should keep in mind if the goal is truly to expand the business and go worldwide. Why? Because working with licensed products opens doors to an easier market, ensuring sales and visibility. So, let’s explore the strategies and nuances of growing your fashion brand and forming valuable partnerships within the fashion industry, because that's what working with licensed products means: collaborations!
The Power of Licensing:
Licensing allows you to breathe new life into your brand by partnering with established names. Here's why it's an important opportunity to grab on when the chance comes around:
1. Access to Established Audiences
When you collaborate with a licensed brand, you gain access to their loyal customer base. This can provide an immediate boost to your sales and brand recognition.
2. Elevated Brand Credibility
Associating with well-known brands enhances your brand's credibility. It tells the world that you're worthy of standing shoulder-to-shoulder with industry giants.
3. Creative Synergy
Licensed collaborations often lead to fresh, innovative designs that captivate consumers. It's a meeting of creative minds that can result in unique collections.
4. Increased Revenue Potential
The financial benefits of licensing are undeniable. Licensing agreements can provide steady revenue streams through royalties and product sales.
Navigating the Licensing World
If the idea of working with licensed brands sparks your curiosity, here's a roadmap to guide you through the process:
1. Research and Targeting
Identify brands that align with your style and values, ensuring there's synergy between your brand and the licensed partner. However, never forget to keep your mind open.
Collaboration and sales can come from unexpected sources, so it's essential to remain receptive to new opportunities. While you may own a fashion brand, the appeal and branding of your business convey a lot about your products. For instance, if you're a fashion brand focused on slow fashion and exclusively use natural materials, why not consider collaborating with a brand that offers organic teas or organic skincare products? You could even explore the health and wellness sector, which is incredibly popular right now, by partnering with influencers in this field to launch a new product. Possibilities come from everywhere!
2. Legal Matters
Consult with a lawyer experienced in fashion licensing. They can help you navigate contracts, royalties, and intellectual property rights.
Ok ok, saying it like this makes it sound easy, but this is where working with licensed products gets complicated. There are MANY factors involved in signing a license contract and VERY important details that, even with a professional experienced lawyer, you need to learn, understand and pay attention to!
It is very common for brands to require full disclosure of your development and production. What does that mean? It means that, in order to maintain quality control, licensors will require you to work only with manufacturers, materials, colors and designs previously approved by them, the products need to meet safety standards (according to the requirements under each target market), and you need to make sure that you are you are working with colors/designs that you are allowed to use. Need an example? Disney has many different brands under their umbrella, but accessing a license agreement with Disney does not give you access to any of their brands. The opposite! The contract will tell you which Disney characters you have access to, the colors you need to use for that character and the design variations that you can work with.
Contracts are usually long and very dense, but it is extremely important to understand what says on the contract and read it carefully because, by signing a license contract, you are agreeing to all requirements the brand is imposing and, by not complying with these requirements, you will have a lawsuit and be on the risk of closing your business forever.
3. Design and Production
Collaborate closely with your licensed partner on design and production. Communication is key to ensuring the collection meets both brands' standards but, when working with licensed products, production goes beyond communication and designing.
This is another tricky part of working with licenses. When working with a brand that is giving you permission to use their name, colors and patents, you have to follow the standards required by the brand.
In theory, it sounds great to think that you could use your freedom and creativity to design a collection in partnership with another brand you like, but in reality you will work on design and use colors that the brand allows you to use and, every design, needs to be approved by the brand before going into production.
This can be complicated and it is something that, certainly, adds time to the development process, but ensures that the quality you are presenting will meet the brand’s standards.
4. Marketing and Launch
Create a buzz around your collaboration through marketing campaigns and a grand launch event. Leverage social media, email marketing, and influencers to maximize visibility.
5. Sustain the Momentum
After the launch, continue promoting the collection and nurturing the relationship with your licensed partner. A successful collaboration can pave the way for future opportunities.
As I mentioned earlier, working with licensed products involves collaboration. It comes with its highs and lows, but with smart work, you can benefit from collaborating with various brands and tapping into larger market opportunities.
Certainly, whether you're expanding your brand's product line or embarking on a licensed collaboration, every step you take should align with your brand's unique identity. So, embrace change, stay true to your vision, and allow your brand to thrive in this ever-evolving industry.
Always remember: opportunities can arise from anywhere, and those who only see competition do not see opportunities!
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