Joel Warady

BrainTrust Query: The Torrid Truth about Licensing's Love Triangle

March 10, 2010

FROM RETAILWIRE:
Licensors are just as aware of rationalization as licensees are and they are appropriately freaked out about it ... but sometimes for the wrong reasons. How has ongoing rationalization affected licensing? Is the traditional model less attractive than in the past?      [more...]

Carol raises some excellent points in her article, and her triangle is a great illustration of the challenges that can exist, or the beautiful relationship that can develop.

Here is the way that I look at the relationship. The owner of a hot property (licensor), a popular brand is like an owner of a beautiful mansion. The licensee is similar to a family that rents the mansion from the owner. It is in the best interest of the property owner to stop by once a month and make sure the house is being kept up, the grounds are neat, and the condition of the home remains at the highest level of quality. It is in the best interest of the licensee to maintain the home so they have a great place in which to live, and the better they maintain the home, the longer they can remain tenants.

The minute the property owners take their eye off the ball, and become less engaged is when the property starts to devalue.

Great subject, Carol.