Vendors focusing on extending existing licensed brands
By Kara Cox -- Home Accents Today, 5/1/2006
This spring in High Point, licensed collections seemed to play a smaller role than in markets past. The trend in the home accents market seems to be more expansion of existing licensed collections to new companies and product categories than introduction of new licensed brands.
Jerry Epperson, an industry analyst with Richmond, Va.-based Mann, Armistead & Epperson, saw fewer big-name licensed collections introduced at the April market than he has since the mid-1990s.
"There were a couple of designer lines here and there, but none of the big name TV, movie, celebrity types that we've seen in the past — certainly no Martha Stewarts or Oscar de la Rentas," Epperson said. "I was disappointed because I think business is weak enough that the stores are looking for ammunition; they're looking for something to gain attention."
Kathy Ireland, the woman behind the successful Kathy Ireland Home brand agrees.
"For a while High Point and Las Vegas were starting to look a lot like Hollywood," Ireland said. "Celebrity and brand building are different. They can cross over, but there are many wonderful brands with people whose faces you would not recognize. Brands are much more than an autograph and a picture; they require an infrastructure, a vision, a design and powerful sales and distribution. It's logical that manufacturers today will expand those brands that are winning."
Vendors look for what a licensed brand can bring to their business. Frederick Cooper CEO Christopher Mumford has licensed lines with designers Larry Laslo and Alexander Julian that make up about 20% to 30% of the total number of product introductions each year.
"We feel we have a very strong design team, so we have partnered with external designers in areas we're not as strong in," Mumford said. When looking for partners, he said Frederick Cooper looks for "collaboratists" — designers who can work well with in-house designers to create looks that sell.
Historic Williamsburg, the oldest licensed program in the country with more than 60 manufacturers, believes success lies in innovation. In recent years, Williamsburg has launched a new design initiative with the mission of being "fresh from the 18th century." These designs reinterpret historic patterns and designs into products for modern living, expanding into product categories like bedding, kitchen, outdoor and pet products.
Sally McConnell, director of products for Historic Williamsburg, sees a sound distribution system and the ability to sense the opportunity at Williamsburg as the most important requirements for a licensing partner. In turn, Williamsburg offers manufacturers support through trade advertising, showroom merchandising and even retail merchandising for key accounts.
"We measure the success of our business by the number of licensees that are interested in partnering with us," McConnell said. "Many people approach us to become a licensee and we don't always think it's the right fit. I think good business is about good relationships and our manufacturing partners really understand the opportunities our brand gives them."
Ireland said she believes her success is rooted in strong relationships with her customer at the consumer level.
"Our brand and our customers were never interested or dependent on any celebrity I might have had a long time ago," she said. "Our mission, 'finding solutions for families, especially by moms,' is the guiding force in marketing, product design and unique relationships that we enjoy with the women who join our brand." Ireland said the customer also determines product expansions for the brand. "That busy mom is the greatest boss we could ever have."
While building a consumer recognizable name would take a retailer 20 years or more, such an identity can be acquired quickly through licensing. Which is why Epperson sees the lack of licensed lines in home accents as compared to furniture as a mystery.
"I'm surprised more of these celebrity-licensed collections don't do more with the coordinated accessories," Epperson said. "That's the jewelry that makes the room."
Despite the dearth of major license introductions at the April market, Epperson thinks licensing is still a growing category.
"I think maybe we're in a lull and I suspect we will see some major new licenses," he said. "We're all sitting around waiting for the next Oprah, Barbara Bush collection or somebody huge. Something's going to come out soon, and we hope it won't be another Elvis or Norman Rockwell."
| Acknowledgements | ||
| Cinde W. Ingram and Jenny Heinzen York contributed to this article. | ||
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