Licensing Industry Sales Rise for Third Consecutive Year - 8NEWS - WRIC | News Where You Live

Licensing Industry Sales Rise for Third Consecutive Year

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SOURCE International Licensing Industry Merchandisers’ Association’s (LIMA)

Character, Corporate Trademarks, Sports, Fashion and Collegiate Brands Help Drive Up Royalty Revenue 3.3% to $5.63 Billion; Retail Sales Rise to $115.75 Billion

NEW YORK, June 17, 2014 /PRNewswire/ -- Sales of licensed products (items bearing the trademarked names and likenesses of cartoon characters, corporate logos and brands, major sports teams and more) continued their upward trajectory in 2013 for the third straight year -- resulting in an estimated $5.655 billion in royalty revenue in the U.S. and Canada, translating to $115.75 billion in retail sales, an increase of 3.3% and 3.25%, respectively, above 2012 levels, according to the International Licensing Industry Merchandisers' Association's (LIMA) Annual Licensing Industry Survey. Leading the advance are the industry's five largest categories: Character, Corporate Trademarks, Sports, Fashion, and Collegiate. Together, they represented 94% of the overall licensing revenues in 2013.

The latest annual report from LIMA, the leading trade organization for the worldwide licensing industry, points to consumers' continuing confidence and trust in established brands and licensors' quest for long-term revenue streams. The report, which was researched and assembled by a team from the Yale School of Management, is now available free to LIMA members in advance of Licensing Expo 2014, the industry's largest yearly event that kicks off on June 17 at the Mandalay Bay Convention Center in Las Vegas.

"Licensing activity enjoyed strong growth in 2013, reflecting the importance of licensing as a business and marketing tool," said LIMA President Charles Riotto. "Our industry and our members continue to strategically leverage the equity of their brands, characters, and intellectual property with even more creative and robust licensing programs that successfully connected with consumers and drove healthy sales."

Following are just a few highlights from the new report:

  • Character-related merchandise (encompassing Entertainment/TV/Movie and Celebrities – The largest classification, accounting for $2.66 billion in royalty revenues and an estimated $51.44 billion in retail sales, up 4.3% from 2012. Royalty rates are generally higher in this category compared with others, accounting for 47.2% of total industry revenues.
    • Key Findings: Digital technology continues to adversely impact the appeal of traditional toys, and the world of digital apps has created new brands that have expanded to both digital and physical retail channels.
  • Corporate and Brand Name – Licensing royalties in the second largest category were estimated at $965 million, representing about 17.1% of industry revenues, and an estimated $22.5 billion in retail sales, or 19.4% of the overall licensed retail business.
    • Key Findings: Strong growth in home improvement and home decor are expected this year and in the future.
  • Fashion  The third largest category in licensing, Fashion royalties rose to an estimated $770 million, accounting for 13.7% of total revenues, up 2.0% from the prior year. Based on these royalty rates, retail sales of licensed fashions translated to $16.9 billion in 2013.
    • Key Findings: The changes in the industry are being driven by greater use of exclusives for mid-tier and mass merchandising segments. Category growth is linked to beauty (i.e., fragrances/perfumes) as well as strong performance in the apparel and the accessories segments.
  • Sports (Leagues, Individuals)  Consisting of major sports leagues, which account for a majority of the licensing revenue generated, royalty revenue rose 1.9% to $698 million over the previous year, translating into retail sales of about $12.8 billion.
    • Key Findings: Longer strategic partnerships, continued reorganization at retail, growth opportunity in retailers' own label products, and direct-to-consumer sales through digital and specialty physical channels show strength. An important long-term opportunity is the extension of sports properties in healthier food and beverage segments, travel and the women's market.

In addition to these categories, the annual survey presented royalty revenues and retail sales results for Collegiate, Music, Publishing, Non-Profit, and Art.

LIMA's 2013 Licensing Industry Report is available free to LIMA members and $295 for non-members. It can be ordered at www.licensing.org.  

About LIMA
LIMA – the International Licensing Industry Merchandisers' Association – is the leading trade organization for the global licensing industry. LIMA's mission is to foster the growth and expansion of licensing around the world, raise the level of professionalism for licensing practitioners, and create greater awareness of the benefits of licensing to the business community at large. Founded in 1985, LIMA maintains offices in New York, London, Munich, Tokyo, Hong Kong, and Melbourne, with representatives in India, Italy, Korea, Spain, Turkey and the Middle East.  Members in over 35 countries enjoy access to an array of benefits, including LIMANET – licensing's interactive, global directory – extensive educational programming, and worldwide networking events.  LIMA is the exclusive sponsor of Licensing Expo, the industry's largest trade event, in addition to shows in London, Hong Kong and Shanghai. Visit www.licensing.org for more information and to utilize licensing's definitive online resource. 

LIMA is a proud supporter of the Children's Brain Tumor Foundation. To learn more about how to join LIMA in finding a cure, visit www.licensing.org/get-involved/lima-cares and "like" LIMA Cares on Facebook.  

©2012 PR Newswire. All Rights Reserved.

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