Dwijorani Senjam - Top trends

Licensing in India - Top trends

Licensing in India is at the beginning of the growth stage where new licensing strategies...

It will not be too farfetched to say that Licensing in India has outgrown its infant stage. It is at the beginning of the growth stage where new licensing strategies are actively experimented upon. Everything seems doable, everything seems achievable. Trying out something new is no longer insurmountable but challenging. We will see different trends emerging but some of the top ones are:

Back to Classics

This phenomenon has been there for sometime in the matured licensing markets. Adults proudly endorse merchandise imprinted with childhood characters they grew up with. The phenomenon is recent in India and probably sparked off by a slew of popular Bollywood actors. Whatever the reason, this trend is likely to stay on. The reasons are many. Consumers love them because it transports them back to their uncomplicated and uncluttered childhood backgrounds. For trade, nothing can be better than banking on a steady and stable performer with proven longevity. Lastly, for the brand owners, it is the proverbial cash cow.

Split Wide Open

There was a time when one property was licensed for the entire territory for one category. Today, we see license splitting across:

Properties - mostly seen in properties with groups of characters. For e.g. Olive Oyl as a separate license from the original Popeye & Friends.

Artworks - license deals are based on exclusivity of artworks, for e.g. a retro style of artwork with one licensee and contemporary artworks with another licensee operating in the same territory.

Distribution channels - the territory is no longer too small for a direct to retail license competing with a national license.

Price points - Brand stretch is probably the most doable in character based properties. The same license is with a fashion house at a high price point and at the same time available at hypermarkets at a value for money price point.

Mble is da wy of lfe (Mobile is the way of life)

Affordability and accessibility is driving the next revolution after the Internet. The most battles will be fought on the mobile space. This space is particularly relevant for India where there are 450 million mobile customers versus 35 million Internet users. The VAS (ex-sms) revenue is Rs 8000 crore which is 5 per cent of the total telecom industry revenue. Mobiles are seen as mini-communication and entertainment devices on the go. Beginning last quarter of last year, we have seen a slew of tie-ups for licensed properties with mobile content providers, telecom operators and even with mobile phone companies. This will be an exciting space to watch out for as customers will demand more and more of their entertainment needs on the go.

What after apparels?

Licensors and licensees are also recognising that there is life beyond the basic categories of licensing. Today, consumers want to express their individuality everywhere and trade is happy to provide with all kinds of customisation. Be it credit cards, desktops, mobile phones, homewares..we are seeing and we will see a lot of licensed products in unusual categories in India. FMCG is the latest industry to be bitten by the licensing bug. Any shopping aisle today is loaded with a bunch of products like jams, toothpastes, toothbrushes, diapers happily sporting licensed properties.

High Street Fashion

An international trend which has hit Indian shores.a lucrative relationship between a property and a high end fashion house. Such tie-ups only show the versatility of the licensed properties and its appeal cutting across all strata of society. It is purely on popular demand that Mango retails Olive Oyl t-shirts or Olive Oly endorsing the skinny jeans of Miss Sixty. A Manish Arora Disney collection on the ramp is not unthinkable in India anymore. More of these tie-ups are in the offing which will only help to increase the areas touched by licensing as the industry matures.

Spare me the flattery

They say Counterfeit is a form of flattery. But the question is whether this form of flattery is not going too far to now hurt the very essence of licensing. Property owners have started taking serious action employing the best of legal counsel against counterfeiters. A consolidated approach needs to be brought in where every stakeholder does their bit. In fact, joining hands with the likes of Nasscom and the Music Industry Association will only help to create awareness of this menace and the most effective way to manage and eliminate such waste as much as possible.

The industry stands at the cusp of a new beginning as the Global and the Indian economy improves. The Licensing industry will see a sharp upward climb as millions of consumers are set to embrace the innovations and trends budding in this industry. International trends as well as trends unique to India are set to change the very face of Licensing Industry in India and will only make it a better market for licensed merchandise.