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Furniture and Home Furnishings

Royalty Profile for Licensed Furniture/Home Furnishings

 

Sector value, U.S. & Canada, 2017: $3.40 billion

Proportion of retail sales of licensed merchandise, U.S. & Canada, 2017: 3.1%

Average royalty, U.S. & Canada, 2018: 7.57%

Royalty range, U.S. & Canada, 2018: 3%–14%

Average royalty, U.S. & Canada, (10 years) 2009–2018: 7.54%

Analysis

Celebrity licensing has become a factor in the furniture business—with examples including Kathy Ireland, Paula Deen, Lauren Conrad, and Jessica Simpson—as manufacturers work to set themselves apart from each other in an area where there is relatively little brand identity.

Royalty rates for designer and fashion- branded furniture and home furnishings also can vary widely—anywhere from
3% to 8%—depending on whether the agreement includes design input from the licensor.

Recently, art and design brands have also made inroads in this area, for the same reasons as fashion brands—plus, they tend to command lower rates.


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