In simple words to understand what sports licensing is a legitimate contract through which any sports organization or team grants a particular company a license to utilize its trademark, name or logo on its products. The sports body is known as the licensor and the company leasing the rights is known as licensee. Due to humongous sports lovers in India there are many global licensing where sports licensing has set up a benchmark as these fan following support their favorite sports personalities or the sports team. It is reported that brand licensing in India has elevated to $450 million in retail where in sports licensing assure remarkable growth over the years. For fourth consecutive year with about 698 USD Million in royalty revenue the sports classifications grew on retail sales of $12.8 billion as per International Licensing Industry Merchandiser’s Association (LIMA).
With global retail sales of sports merchandise it has been estimated at $17.51 billion in 2009, sports licensing could offer a major boost to the entity’s small businesses. Licensing sports commodities caters your businesses options to attain a market of sports fans that could be anywhere local, national to global based on the sports body. Licensing sports products caters your business prospects to stretch a sports fans market that could be from local to national or to global based on the sports body. LIMA determines that the essential long-term favourable for the sports category is the expansion of sports assets in wholesome food and beverage sections.
LIMA SVP Marty Brochstein quotes that “The sports market is built in large part on a solid base of core fans. The emotion that keeps fans attached to a team is a powerful sales driver. There are variations year to year based on ‘wins and losses’ – obviously, success draws more purchases from the core, and attracts more casual fans – but the basic appeal of sports-licensed merchandise is continual. Some of the growth drivers include the major leagues in the U.S. paying more attention to the growth potential of the children’s market, and the women’s apparel sector, where they’ve gotten increasingly attuned to applying current fashion trends to the sports category.”
Hence any segment in the business of licensing in sports generally depends on the licensor and licensee’s capability to harness and influence the emotion generate rapport and loyalty to a team, a lifestyle or a sport.
No comments:
Post a Comment