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Domestics

Royalty Profile for Licensed Domestics

 

Sector value, U.S. & Canada, 2017: $3.76 billion

Proportion of retail sales of licensed merchandise, U.S. & Canada, 2017: 3.4%

Average royalty, U.S. & Canada, 2018: 8.95%

Royalty range, U.S. & Canada, 2018: 4%–14%

Average royalty, U.S. & Canada, (10 years) 2009–2018: 8.96%

Analysis

The domestics business is under pressure from the onslaught of retail private label programs, with fewer and fewer slots for licensed lines. That has contributed to reduced margins and royalty rates, particularly in the juvenile bedding area.

Licenses based on franchise films and established juvenile TV shows are generally in the 10%–14% range, while evergreen children’s properties are in the 8%–10% area.

A top designer brand for upstairs distribution can draw higher royalties, as can the growing number of celebrities who are entering the arena.


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