A topic, which is regarded as a crucial and effective tool for fashion brands, is licensing. The licensing industry has turned out to be a very profitable and high-sales generating business segment. The Licensing Industry Merchandiser’s Association (LIMA) states, that the total licensing industry’s market revenue accounted for more than 5,9 billion dollars in 2007. These figures, however, only include the revenue, which has been created only from licensing fees and royalties, paid as compensation to brand owners.
The present sales figures for licensed products in the fashion and apparel industry underline the presence and effectiveness of this marketing tool. The entire fashion and apparel industry's sales volume for licensed products is more than 80 billion dollars. The totals sales volume of licensed products in German-speaking countries, including Germany, Austria and Switzerland, was approximately 22,4 billion Euro in 2005. This shows that more than a quarter of annual sales in the European fashion industry are generated in those countries. Due to the fact, that most of the sales were generated with products arising from brand licensing agreements, brand owners see the biggest potential for growth in brand licensing agreements. Additionally, growth expectations arise from the increasing number of contracts and market volume. The number of brand licensing contracts, which were signed in Germany, grew from 750 contracts with a market share of more than 6 billion Euro, to a current number of over 1.000 brand licensing agreements with a total market volume of over 8.5 billion Euro in licensing fees.
The objective of this thesis is to analyze how brands develop and act in the fashion industry. In this context it is crucial to provide a clear overview of the fashion industry and the brand operation in this special industry. The main objective of this thesis will be the examination of how and to what extent companies and brands operating in the fashion industry use licensing. Examining the opportunities and threats arising for brands entering licensing agreements, this thesis will provide an explanation about the motivation for brands, especially in the fashion industry, to enter licensing agreements. After reading this thesis, the reader should be able to evaluate the advantages or disadvantages of licensing in the fashion industry and have a broad understanding of the importance of licensing for this industry in the past, present and future.
Table of Contents
- 1 Introduction
- 1.1 Problem Definition and Objectives
- 1.2 Course of Investigation
- 2 Fundamentals and Theoretical Framework
- 2.1 Brand and Branding Components
- 2.1.1 Definition of the Terms Brand and Trademark
- 2.1.2 Definition of Brand Equity
- 2.1.3 Definition of Brand Image
- 2.1.4 Definition of Brand Identity
- 2.2 Brand Stretching
- 2.2.1 Definition of Brand Stretching
- 2.2.2 Types of Brand Stretching
- 2.3 Licensing
- 2.3.1 Definition of License and Licensing
- 2.3.2 Dissociation from Merchandising
- 2.3.3 Industry Overview
- 2.4 Fashion and the Fashion Industry
- 3 The Concept of Licensing
- 3.1 Licensing Agreements
- 3.1.1 Licensees and Licensors
- 3.1.2 Content of a Licensing Contract
- 3.1.3 Compensation
- 3.2 Types of Licensing
- 3.2.1 Personality Licensing
- 3.2.2 Character Licensing
- 3.2.3 Event Licensing
- 3.2.4 Brand Licensing
- 3.2.5 Designer and Fashion Licensing
- 3.3 Licensing Objectives
- 3.3.1 Objectives of Licensors
- 3.3.2 Objectives of Licensees
- 3.4 Licensing as a Strategy to grow Internationally
- 4 Brands and Licensing in the Fashion Industry
- 4.1 Brands and Fashion
- 4.1.1 Fashion Brands
- 4.1.2 The Importance of Fashion Brands
- 4.2 Licensing in the Fashion Industry
- 4.2.1 Brand Licensing Concepts in Fashion
- 4.2.2 Examples of Brand Licensing in the Fashion Industry
- 4.2.3 Opportunities and Threads of Licensing in the Fashion Industry
- 4.2.4 Advantages and Disadvantages of Brand Licensing in the Fashion Industry
Objectives and Key Themes
This thesis aims to critically analyze licensing in the fashion industry, exploring whether it presents opportunities or threats for businesses. It investigates the fundamentals of branding, licensing, and their intersection within the fashion sector.
- The definition and components of branding (brand equity, image, and identity).
- The concept and types of licensing agreements.
- The application of licensing strategies in the fashion industry.
- The advantages and disadvantages of brand licensing in fashion.
- The opportunities and challenges posed by licensing within the fashion industry's international growth.
Chapter Summaries
1 Introduction: This introductory chapter sets the stage for the thesis by defining the research problem and outlining the objectives of the study. It clarifies the scope of the investigation into the opportunities and threats of licensing in the fashion industry, providing a roadmap for the subsequent chapters. The chapter establishes the importance of understanding licensing within the broader context of brand management and international business strategies in fashion.
2 Fundamentals and Theoretical Framework: This chapter lays the groundwork for the thesis by defining key concepts related to branding and licensing. It provides a thorough explanation of brands, trademarks, brand equity, brand image, and brand identity, differentiating these crucial elements. Further, it defines brand stretching and delves into the concept of licensing, including its various forms and the differences between licensing and merchandising. It also provides a broad overview of the fashion industry itself, setting the context for the subsequent analysis.
3 The Concept of Licensing: This chapter dives deep into the mechanics and implications of licensing agreements. It details the roles of licensors and licensees, the structure and contents of licensing contracts, including compensation models. The chapter meticulously categorizes the various types of licensing—personality, character, event, and brand licensing—analyzing the nuances of each. Importantly, it examines the strategic objectives of both licensors and licensees, shedding light on the motivations behind entering licensing agreements. The chapter also highlights how licensing is leveraged as an international growth strategy, showcasing its significance in expanding market reach.
4 Brands and Licensing in the Fashion Industry: This chapter applies the theoretical framework established in earlier chapters to the specific context of the fashion industry. It analyzes the importance of fashion brands, exploring how brand licensing strategies are employed in this particular sector. The chapter provides concrete examples of brand licensing in fashion, showcasing successful (and potentially unsuccessful) implementations. Crucially, it identifies the opportunities and threats associated with brand licensing in fashion, weighing the advantages and disadvantages of this strategy. This comprehensive analysis sets the stage for concluding remarks (found in the skipped summary chapter).
Keywords
Brand licensing, fashion industry, brand management, brand equity, licensing agreements, intellectual property, international business, market expansion, opportunities, threats, licensor, licensee, brand stretching.
Frequently Asked Questions: A Comprehensive Language Preview on Licensing in the Fashion Industry
What is the purpose of this document?
This document provides a comprehensive preview of a thesis analyzing brand licensing in the fashion industry. It includes a table of contents, objectives and key themes, chapter summaries, and keywords. The information is intended for academic use, allowing for a structured and professional analysis of the themes.
What topics are covered in the thesis?
The thesis critically analyzes brand licensing in the fashion industry, exploring its opportunities and threats for businesses. It investigates the fundamentals of branding and licensing, their intersection within the fashion sector, and the application of licensing strategies for international growth.
What are the key concepts defined in the thesis?
Key concepts include: brand and branding components (brand equity, image, and identity), brand stretching, licensing agreements (including types and the roles of licensors and licensees), and the application and implications of licensing strategies within the fashion industry's international context.
What are the main chapters and their content?
Chapter 1 (Introduction): Introduces the research problem and objectives, outlining the scope of the investigation into licensing opportunities and threats in the fashion industry. Chapter 2 (Fundamentals and Theoretical Framework): Defines key concepts related to branding and licensing, including brand equity, brand image, brand identity, brand stretching, and licensing itself. It also provides an overview of the fashion industry. Chapter 3 (The Concept of Licensing): Delves into licensing agreements, the roles of licensors and licensees, types of licensing (personality, character, event, and brand licensing), and licensing objectives. It also explores licensing as an international growth strategy. Chapter 4 (Brands and Licensing in the Fashion Industry): Applies the theoretical framework to the fashion industry, analyzing the importance of fashion brands, providing examples of brand licensing, and identifying opportunities and threats associated with this strategy.
What are the key advantages and disadvantages of brand licensing in the fashion industry explored in the thesis?
The thesis explores both the advantages (such as market expansion, increased brand awareness, and revenue generation) and disadvantages (potential brand dilution, loss of control, and the risks associated with licensee performance) of brand licensing in the fashion industry. Specific examples and case studies are likely included to illustrate these points.
What are the keywords associated with this thesis?
The keywords include: Brand licensing, fashion industry, brand management, brand equity, licensing agreements, intellectual property, international business, market expansion, opportunities, threats, licensor, licensee, and brand stretching.
Who is the intended audience for this document?
This document is intended for academic use, particularly researchers and students interested in brand licensing, the fashion industry, and international business strategies.
Where can I find the full thesis?
The full thesis is not included in this preview. Further details on accessing the complete work would need to be provided by the publishing company or the author.
- Quote paper
- Maximilian Bogner (Author), 2017, Licensing in the Fashion Industry. Opportunity or Threat?, Munich, GRIN Verlag, https://www.grin.com/document/500544
