Bucking the trend from previous years, hope does not spring eternal. According to The Licensing Letter’s Annual Licensing Business Survey, over 70% of licensing companies experienced growth in retail sales in 2017. In contrast, 21% of respondents reported declining sales, and 7% had flat growth. This trend has been observed over the last couple of years, where the number of … [Read more...] about Coming off a Strong 2017, Licensing Execs Cautious Going into 2018
TLL's Annual Licensing Business Survey
Mass & Ecommerce Grow Licensed Distribution
Retail sales of licensed merchandise surged through online/ecommerce channels in 2017, according to TLL's Annual Licensing Business Survey. The channel moved by 0.3 percentage points to make up 12% of all licensed sales—outpacing department, off-price, and convenience stores. Discount/mass led with 32.3% share, followed by specialty stores (19%) and grocery and drug (12.1%). … [Read more...] about Mass & Ecommerce Grow Licensed Distribution
Contracts Steady With 2- and 3-year Terms Dominating
According to TLL's Annual Licensing Business Survey, contract lengths remain steady. Two-year terms were the most common (40% of respondents), followed by three-year (27%) as well as four- and five-year (13% each) terms. Approximately 80% of respondents reported that their average contract length was unchanged from the previous year. Of the remaining 20%, a significant … [Read more...] about Contracts Steady With 2- and 3-year Terms Dominating
Top Countries in the $165.7 Billion Market for Licensed Retail Sales Worldwide
2016 was a great year for licensing worldwide, with retail sales topping $165.7 billion, according to TLL's Annual Licensing Business Survey. That figure represents a jump of 1.6% from 2015 and 4.3% from 2014. See the top 49 countries ranked by retail sales of licensed merchandise below. The top four players (the U.S., Japan, Canada, and the U.K.) kept their spots, but China … [Read more...] about Top Countries in the $165.7 Billion Market for Licensed Retail Sales Worldwide
Royalty Rates Flat; Average Up to 8.75%
We're now in the second decade of long-term stability in royalty rates, with the average up 0.2% to reach 8.75% in 2016 for the U.S./Canada. In comparison, the average royalty was 8.73% in 2015 and 8.68% in 2014. Since 2005, the average royalty rate across property types and product categories has remained in the 8.6–8.8% range. Over three-fourths of respondants to TLL’s … [Read more...] about Royalty Rates Flat; Average Up to 8.75%
Toys, Food & Apparel Lead Growth on Product Side
On the product category side of the $106.5 billion equation of 2016 licensed retail sales in the U.S./Canada, only three categories outperformed the average sector growth of 3.2%—toys/games (7.0%), food/beverages (6.0%), and apparel (5.8%). While most categories, including the top three, are down in growth from last year, overall upticks across the board indicate that the … [Read more...] about Toys, Food & Apparel Lead Growth on Product Side
At $106.5 Billion, 2016 the Best Year Yet for Licensed Sales in the U.S./Canada
Retail sales of licensed merchandise reached $106.5 billion in the U.S. and Canada in 2016, growing 3.2% from 2015, according to TLL's Annual Licensing Business Survey. At last, the industry has surpassed the 2008 pre-recession high of $104.5 billion. This last year marks the sixth year of positive growth for the region; 2015's $103.3 billion figure was only the second time … [Read more...] about At $106.5 Billion, 2016 the Best Year Yet for Licensed Sales in the U.S./Canada
Discounters & Ecommerce Grow Licensed Distribution
Ecommerce is on the mind for this year's batch of respondants to TLL’s Annual Licensing Business Survey. The distribution channel siezed its biggest share of the licensing pie yet, growing to 11.7% market share in 2016 in the U.S. and Canada. Ecommerce growth was the highest amongst all retail categories for sales of licensed merchandise at a modest 2.6%—most categories … [Read more...] about Discounters & Ecommerce Grow Licensed Distribution
Contract Lengths Steadier Than Ever At 3 Years
Respondants to TLL's Annual Licensing Business Survey report extreme stability in the length of the average licensing contract. Over 89% of licensing executives report that their contract lengths are flat from last year, with those experiencing lenghtened or shorter contracts evenly split (5%). This number is up from last year, when more than four-fifths (88%) of respondents … [Read more...] about Contract Lengths Steadier Than Ever At 3 Years
What’s a Licensing Exec Worth?
What is a licensing executive worth? Combining our research from TLL’s Annual Licensing Business Survey, TLL’s 2016 Salary Survey and demographic data from the Licensing Source Book, we’ve come up with an interesting answer to that question. On average, TLL estimates that top executives are responsible for $19.6 million in retail sales while pulling less than one percent of … [Read more...] about What’s a Licensing Exec Worth?