Licensing helped our company to get an early entry into stores!

Mr. Prateek Maheshwari

Brand Concepts Pvt Ltd, a part of IFF Group is a brand management company aimed at developing a portfolio of licensed brands in bags, travel wear and accessories for the Indian market. Mr Prateek Maheshwari, Director, Brand Concepts Pvt Ltd, in conversation with Vrinda Oberai of License India, shares his hands-on experience with licensing.

Vrinda Oberai (VO): Give us an overview of your company.
Prateek Maheshwari (PM): Brand Concepts is engaged in designing, manufacturing & marketing licensed products in category of travel gear, small leather goods and hand bags.

VO: How in your opinion has licensing helped your company grow?
PM: Licensing, compared to an in-house brand, gives the manufacturer an edge due to one element that is ‘Time’. A new brand takes its own time to nurture and eventually mature as compared to an already existing brand in the market. Licensing helped our company to get an early entry into stores that were keen on having products of those brands that we got the licensing rights for.

VO: You recently sealed a licensing deal with Tommy Hilfiger. Why did you particularly choose this brand? What are the product categories and the target audience for these product offerings?
PM: Tommy Hilfiger, an inspirational brand is one of the few premium brands in the country today. It is a potential brand, which could do justice to our premium product line and vice versa. The fan following of this brand can be measured by its growth and acceptability in the recent years. We are launching small leather goods mainly belts and wallets as well as travel gear under Tommy Hilfiger. These products will mainly target metro's young professionals who want to see fashion elements in their daily wear products like bags, belts and wallets.

VO: Since how long has your company been into licensing and merchandising?
PM: This is our third year in operations.

VO: Share more information with regard to your recent deal for acquiring licensing rights for Ninja Hattori, Dora and Sponge Bob?
PM: Back to school is our fastest growing segment in terms of both, revenues as well as brands. We have had some wonderful characters like Ben 10 & Powerpuff girls from Cartoon Network, Spiderman from Spacetoon and few others from Mattel etc. This is the first time we have tied up with Nickelodeon for their famous characters. Sponge Bob and Dora are already a rage in the US and Europe and we know that kids will be happy to see the products adorned by these lovely characters.

VO: What are the criteria that a licensee keeps in mind while choosing a licensor for its product offerings?
PM: Licensee usually emphasises on three points before signing a deal. Firstly, the awareness of the brand in the target market forms potential point followed by the lifecycle of the brand. For instance, a kid's character's life cycle is generally from one to three years whereas an apparel brand may have a longer life. Hence, the costs involved are prorated accordingly. Thirdly, the pint of consideration remains the justification to the brand in terms of the product quality. The questions remain to be like – ‘Can I deliver the quality that the brand desires or expects’ or ‘Can I maintain the standards throughout’ etc are the points a licensee considers.

VO: Also, what are the points that a licensor (for instance, Tommy Hilfiger) keeps in mind to decide upon a prospective licensee?
PM: It is one of the most difficult exercises for a brand to choose a right partner for the extension of brand to a new category. The licensor has to make sure that the partner sees the brand in the same light as the brand owner. Apart from this, the licensor explores the following capabilities in choosing the licensee: designing capabilities, distribution strength, investment capacity and last but not the least, the experience of the partner.