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Worldwide retail sales of licensed merchandise based on fashion properties grew 3.0% to reach $41,584 million in 2017, per TLL’s Annual Licensing Business Survey.
While the U.S/Canada makes up the largest share of worldwide licensed sales at 52.4% share, the fastest-growing territories are the Middle East & Africa (12% growth in 2017) and Asia (8%). In fact, every other territory TLL tracks outpaced the tepid 1.5% growth observed in the U.S./Canada. Europe grew 3%, Latin American sales grew 2.4%, and Australia/New Zealand 2.1% in 2017.
On the global scale, the only property type whose growth outpaced that of fashion brands was entertainment/character at 3.2%. Fashion is the largest property type by retail sales worldwide with $41.6 billion, or 24.1% share. It is followed by corporate trademarks/brands ($36.8 billion) and entertainment/character ($31.1 billion).
Within the U.S./Canada, apparel brands make up 84.9% of all fashion-based sales. In 2017, retail sales based on apparel grew 1.2% or $218 million. The smaller home sub-category, in comparison, grew 6.4% and footwear brands grew 2.5% compared to the previous year.
Note: Numbers may not add up exactly due to rounding. | |||||
(Figures in millions) | |||||
---|---|---|---|---|---|
Product Category | Retail Sales, 2016 | Retail Sales, 2017 | Change, 2016–2017 | Share, 2017 | |
Apparel | $18,204 | $18,423 | 1.2% | 84.9% | |
Footwear | $2,557 | $2,621 | 2.5% | 11.9% | |
Home | $688 | $732 | 6.4% | 3.2% | |
Total | $21,449 | $21,776 | 1.5% | 100.0% |
The biggest driver of fashion brand-based growth domestically is licensed apparel. The product category grew 2.6% in 2017, adding $188 million in retail sales. The second-largest contributor was accessories, which overall grew 1.3%, or by $103 million in sales.
Within the broader accessories category, the fastest-growing consumer goods were luggage and travel accessories (3.0% growth), followed by handbags, backpacks, and messenger bags (2.6%). This growth is largely a sign that the sub-categories have stabalized—in 2015, retail sales declined by double-digits.
The only one of two product categories to contract was toys/games at -4.5% growth. The broader toys/games category shrunk -4.4% in 2017—compared to a -8.0% loss for entertainment/character brands, this dip in sales was more or less acceptable. Fashion-based toy/game sales have either remained flat or declined since 2009.
The other category to see a dip in sales was health & beauty aids (HBA) at -0.7%, thanks to a dip in licensed fragrance sales (-1.5%). This decline is attributable in large part to formerly licesed brands taking their programs in-house, rather than a decline in sales for fragrance generally. Sales are expected to jump for year 2018.
Gifts/novelties jumped 5.0% in 2017, after declining -4.7% in 2016 and -4.0% in 2015. Category sales have declined or remained flat every year since 2009.
Note: Numbers may not add up exactly due to rounding. | |||||
(Figures in millions) | |||||
---|---|---|---|---|---|
Product Category | Retail Sales, 2016 | Retail Sales, 2017 | Change, 2016–2017 | Share, 2017 | |
Accessories | $7,961 | $8,064 | 1.3% | 37.0% | |
Eyewear | $2,445 | $2,475 | 1.2% | 11.4% | |
Jewelry and Watches | $1,142 | $1,150 | 0.7% | 5.3% | |
Handbags, Backpacks, Messenger Bags | $718 | $738 | 2.7% | 3.4% | |
Luggage and Travel Accessories | $325 | $335 | 3.0% | 1.5% | |
Headwear | $1,831 | $1,837 | 0.3% | 8.4% | |
Hosiery | $754 | $772 | 2.3% | 3.5% | |
Scarves and Ties | $98 | $99 | 0.7% | 0.5% | |
Other | $647 | $659 | 2.0% | 3.0% | |
Apparel | $7,239 | $7,428 | 2.6% | 34.1% | |
Domestics | $419 | $429 | 2.3% | 2.0% | |
Footwear | $1,532 | $1,556 | 1.6% | 7.1% | |
Furniture/Home Furnishings | $835 | $846 | 1.3% | 3.9% | |
Gifts/Novelties | $46 | $48 | 5.0% | 0.2% | |
HBA | $2,549 | $2,530 | -0.7% | 11.6% | |
Fragrance | $2,112 | $2,080 | -1.5% | 9.6% | |
Cosmetics/Nail Polish/Other | $437 | $450 | 3.0% | 2.1% | |
Housewares | $324 | $328 | 1.4% | 1.5% | |
Infant Products | $334 | $336 | 0.5% | 1.5% | |
Publishing | $48 | $49 | 1.6% | 0.2% | |
Stationery/Paper | $53 | $54 | 1.8% | 0.2% | |
Toys/Games | $49 | $46 | -4.5% | 0.2% | |
Other | $60 | $61 | 1.6% | 0.3% | |
Total | $21,449 | $21,776 | 1.5% | 100.0% |