Question

Please choose a fashion brand that has licensed its name (a licensor) and trace its history and evolution in terms of what led up to licensing. Is it successful? Will its success continue? You may cut and past the word document, but you must have a minimum of 300 words (not including bibliography). Be sure to APA cite your sources. All written / HW assignments in this course must refer to, apply, and cite the required assigned textbook in order to earn full credit.

Answer 1

Arvind Lifestyle Brands Ltd has been a pioneer in bringing international brands to India. The company has licensing relationships with many international Brands including U.S. POLO ASSN., Gant, Arrow, Izod, Nautica, Elle, Ed Hardy, Hanes, Cherokee, Sephora, Aeropostale, Nautica, GAP, The Children’s Place. Arvind also has a portfolio of 12 of its own brands across Value and premium segments. Arvind Brands has a JV with Calvin Klein to run its Indian operations.
The company has one of the strongest distribution networks in the Indian apparel sector with over 1.3 million sq.ft. of retail space available pan-India, across 1100 retail stores spread over 192 towns. Additionally ALBL has international presence in the Middle East and South Africa.

So, what is licensing exactly? Licensing is the practice of contracting with another party to obtain and use rights intellectual property ("IP") rights, in our case) in exchange for an agreed payment (a fee or royalty). A licensing relationship typically involves an agreement between a trademark owner (the “licensor”) and another party (the “licensee”) in which the licensor permits the licensee to use its trademark in commerce. Simply put, a license grants the licensee rights in property without transferring ownership of the property.

Licensing is also a powerful way for a brand to grow by tapping into new geographic market and new market categories they simply are not equipped to cater to. Licensing out can help a company to commercialize its IP or expand its current operations into new markets more effectively and with greater ease than on its own. By granting the licensee the right to market and distribute the product, the licensor can penetrate markets it could not otherwise hope to serve. The licensee may agree to make all the adaptations required for entering a foreign market, such as translation of labels and instructions; modification of goods so as to conform to local laws and regulations; and adjustments in marketing. Normally, the licensee will be fully responsible for local manufacture, localization, logistics and distribution.

Tom Ford may be an even more interesting case. In April 2005, on the heels of his departure from Gucci, he (with the help former CEO of the Gucci Group, Domenico de Sole) launched Ford's eponymous label based solely on two licensing deals: one with Estée Lauder for perfume and cosmetics, another with Marcolin Group for eyewear. These licensing partners have allowed Ford to build a bigger business, more quickly, with a smaller investment than if he tried to do everything on his own. Whereas most luxury fashion businesses start off with very expensive in-house ready-to-wear collections, which require significant upfront investment, the Tom Ford brand would launch with products at more accessible price points, run by trusted partners and requiring little to no cash investment from Ford himself.

Deals like these come with multi-million dollar budgetary commitments by the licensee to advertise the product lines. These global campaigns, which Ford directed and oversaw himself, would give further visibility to the Tom Ford brand and help to reach a vast consumer base from day one. “I realized that [the licensing deals] would keep my name very public, [so] that if I chose to go back into fashion it would even make my name bigger,” Ford has said of the move.

Regardless of the downsides, though, licensing is one trend in the fashion industry that isn't going anywhere any time soon.

Sources: http://www.thefashionlaw.com/home/licensing-is-one-fashion-trend-that-isnt-going-away

http://www.thefashionlaw.com/home/licensing-is-one-fashion-trend-that-isnt-going-away