BRAND LICENSING MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Market Concentration and Competitive Landscape

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Key Developments:

• In January 2024, Authentic Brands Group (ABG) Acquired Sperry, ABG purchased the iconic footwear brand Sperry from Wolverine World Wide. Subsequently, ABG licensed Sperry's North American operations to the Aldo Group, aiming to leverage Aldo's retail expertise to expand Sperry's market presence.
• In June 2024, Hanesbrands revealed plans to sell the Champion brand to ABG for USD 1.2 billion. This strategic move is intended to streamline Hanesbrands' portfolio and allow ABG to further develop Champion's global reach through targeted licensing agreements.
• In August 2024, Versace introduced its Mercury sneakers using augmented reality (AR) and gaming platforms like Fortnite and Snapchat. This innovative approach aimed to engage digital-first consumers and expand brand reach through virtual activations.
• In September 2024, Gucci retained its position as a leader in luxury brand innovation, closely followed by Hugo Boss and Versace. The brand's continuous investment in digital experiences and virtual activations has reinforced its market position.

Top Strategies Followed by Brand Licensing Market Players

Established Players: Leading companies significantly invest in research and development to launch innovative products. Nike spends over USD one billion annually on R&D to develop advanced athletic shoes and apparels. Adidas also dedicates significant resources to labs focused on developing cutting-edge fabrics and designs. This extensive R&D allows them to maintain industry leadership. Large players often partner with other major brands to augment their product lines.

• For example, Disney has licensing deals with many toy and clothing brands to promote its movies and characters. Marvel similarly collaborates with various manufacturers to bring its superheroes to different merchandise categories. Such strategic alliances help maximize revenue streams.

Mid-Level Players:  Medium players focus on affordable pricing to attract cost-conscious buyers.

• For example, In India, mid-level apparel brands replicate the styles of global luxury brands like Gucci, Zara, or Sabyasachi. These brands use lower-cost materials but maintain reasonable quality, allowing cost-conscious buyers to access fashionable designs. Affordable pricing enables these brands to cater to a larger demographic.
• Mid-sized players leverage tie-ups to bolster manufacturing. Sport-O-Rama works with small factories to outsource production of its low-cost soccer gear. It has grown to over 50 outlets in 5 years with this scalable model. Kingdom Apparel also partners with tribal artisans, helping both parties expand.

Emerging Startups – Brand Licensing Industry Ecosystem

• Innovative Technologies: Tech startups like Nanotronics are developing smart fabrics integrated with sensors and computers. SenseIt applies AI to enable appliances and home security systems with touch interfaces.
• Sustainable Solutions: Better Pack uses recycled cardboard and corn starch for eco-friendly lunch boxes. Ethical Ocean applies blockchain to track sustainable fishing practices and combat illegal activities. Such startups can revolutionize the industry through novel sustainable solutions.
• Market Contribution: Startups often collaborate to broaden their expertise and market reach. SenseIt partners with Smart Home Inc. to launch a virtual assistant product powered by its AI-enabled fabrics.

• The Walt Disney Company
• Meredith Corporation
• PVH Corp.
• Iconix Brand Group
• Authentic Brands Group
• Universal Brand Development
• Nickelodeon (ViacomCBS)
• Major League Baseball
• Learfield IMG College
• Sanrio