Brand News

Why Direct-To-Retail (DTR) Licenses are wrong

For obvious reasons many not so famous brands have problems finding licensees. Often driven by greed the owner or agency turns to retailers and signs a DTR license.

Why is it wrong?

1.
By nature, distribution is almost completely limited to the retailer/licensee. That goes directly against the brand rule of availability.

2. The consumer will receive the brand extension as a private label offering. At least in their mind, the brand changed hands.

3.
If something bad happens to the license or licensee, the brand looses both, manufacturing AND distribution. The product disappears. And it is very unlikely that any manufacturer or retailer will pick up the license.

Putting all your eggs into one basket may bring short term success. In the long term, and that is what sensitive brand owners focus upon, DTR licenses are most likely to fail.

Nicole Miller Hosiery

Nicole Miller has signed a licensing deal to manufacture and distribute hosiery, tights, leggings and socks under the Nicole Miller Collection and the better-priced Nicole Miller New York label.

Dr. Martens Sportswear

Hartmarx Corporation announced that it has reached agreement with the holders of the worldwide license for Dr. Martens to manufacture, market and sell a wide range of men’s and women’s casual apparel under the Dr. Martens brand.
The Dr. Martens sportswear will be manufactured, marketed and sold by HMX Sportswear, Inc., a New York based subsidiary of Hartmarx.

The launch collection will feature menswear for Fall, 2009 with women’s to follow in 2010. The collection will reflect cutting edge fashion trends for both men and women ranging from sportswear staples such as denim jeans and cotton shirts to sweatshirts and outerwear.

Funai und Philips in USA TV Markenlizenz

Funai Electric Co. und Royal Philips Electronics schließen eine Markenlizenz ab, die der Japanischen Firma die Nutzung der Philips Marken für Fernseher in Nord Amerika erlaubt.

Beginnend am 1. September zahlt Funai Lizenzgebühren an Philips für die exklusiven Nutzungsrechte an den Marken Philips und Magnavox. Der Vertrag kann alle fünf Jahre erneuert werden.

Zurzeit verkauft Funai TVs unter drei Marken in den USA und Canada.

Funai erwartet einen Absatz an TV Geräten in Nord Amerila von 3.3 Millionen Stück in 2008, doppelt so viele wie in 2007.

Funai and Philips enter US TV Brand Licensing Deal

Funai Electric Co. and Royal Philips Electronics will sign a licensing pact allowing the Japanese firm to use Philips’ television brand names in North America.

Under the pact, set to take effect Sept. 1, Funai will pay licensing fees to Philips in exchange for the exclusive right to use the Dutch firm’s Philips and Magnavox brand names. The pact can be renewed every five years.

Currently, Funai sells liquid crystal display TV sets with screen sizes of 15-37 inches under three brands in the United States and Canada.

Following the licensing deal, Funai expects its TV sales in North America to reach 3.3 million units in 2008, double the level in the previous year.