Indian brands tap the $187 billion licensing market
10 Nov 2008
The concept of licensing in India is fast gaining acceptability with every international brand catering to India through licensing and will reach to its maximum level in the coming years.
Today, Indian brands are using the licensing practice after the huge success of the strategy in the international market. The inclination for making business through licensing has assisted many companies to post some big alternations of the otherwise 'own brand'.
Licensing industry worldwide is estimated at $187 billion. Retail sales of licensed merchandise in the US and Canada in 2007 reached $71.25 billion and the licensed product market in Western Europe has been estimated to be worth in excess of $26 billion.
The potential for India to be benefited from the Licensing industry is huge. The emergence of modern and more organized retail in India, estimated at US$ 200 billion, has been projected to grow at 5 percent per annum and has set the pace for new collaborations between International Licensing companies and Indian business houses.
The attraction of licensing trademarks for business intentions appears to be at an all-time high, mostly in the fashion arena where consumers are buying more licensed products and brand names than ever before. A host of licensed brands are now retailing in the India fashion scene, the modern retail infrastructure houses possibly every major label in the world, yet there is room for so much more as the Indian consumer has never been more demanding and fashionable.
Many fashion designers in India have also started licensing their products to business houses who independently produce and sell on a large scale and give royalties to designers. For retailers, licensing opportunities provide them with a point of difference from their competitors.
Character and entertainment licensing has witnessed terrific activity in the last five to seven years. Children's entertainment market is steadily gaining pace and apart from TV and cinema; kid's broadcasters are concentrating in licensing and merchandising space.
It has been estimated that market size for character and non-character licensed products in organized retail would be in the region of $ 3.5 billion and there is a general consensus that the industry is likely to grow by 15 per cent-20 per cent annually.
Licensing in sports, on the other hand, has more recently developed into a multibillion dollar systematic business in India with formation of BCCI backed India Premiere League (IPL) in cricket.
