Strong brands provide a powerful competitive advantage in many industries and business segments. Since brand owners don't always have the expertise or resources to enter new markets, they turn to brand extension licensing to expand their business.
Research shows that most successful new consumer products are line or brand extensions. It should be no surprise that companies are turning to brand extension licensing as part of the new product development program.
The use of brand extension licensing has grown steadily over the past decade. We believe that there are six trends or drivers that will have a significant impact on the future of brand extension licensed products.
- Increasing number of licensors.
- Retailer consolidation.
- Retailer direct licensing.
- Manufacturer consolidation
- Foreign product sourcing.
- Demographics (e.g. aging population, growth of minorities).
See articles to learn more about brand extension licensing.