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    Brand Licensing Is Also Facing Many Unknown Risks.

    2012/10/12 11:04:00 14

    Babu BeanShoe MaterialOutdoor Sports Brand

     

    Recently, the report of two "Babu beans" successfully combined with brand authorization and "friends" as "relatives" attracted the attention of the industry.

    For more and more SMEs entering the pition channel, it is becoming a trend to rapidly open the domestic market through authorized brands.

    However, brand authorization is also faced with many unknown risks. The authorized fees, the risk of brand being recalled at any time, and the increase of similar competition caused by excessive authorization test the authorized party.


    Try to buy out the right to operate.


    "For the authorized enterprises, the most worrying problem is to work hard to improve the channels. After the market structure is opened, the brand is suddenly recovered."

    Jinjiang

    Lin Yuqi, chairman of the company, said.

    To this end, when discussing the issue of authorization with Babu China, "we finally signed a strategic agreement for 20 years, and authorized the royalty + sales commission mode."


    It is understood that the signing of a long-term agreement on the licensing period is not just about "gill" and "Babu bean".

    For example, Quanzhou Tai Ya shoe materials Co., Ltd. signed a 30 year business license in the Chinese market when it was co operating with the famous British outdoor sports brand "HI-TEC".


    "If funds permit, domestic enterprises can also use buyout to gain the right to operate international brands."

    Insiders said.

    The success of Kappa, a proxy for China (Ltd.), has provided a sample for Quanzhou enterprises.

    When Kappa first entered the Chinese market, the trend (China) signed only 5 years of licensing contracts.

    "If 5 years later, Italy should take back the brand agency right, which means that the Chinese market that we developed in the early stage is helping our competitors to" get married. "

    In order to avoid such risks becoming a reality, China (Kappa) bought the brand ownership and permanent management rights of the Kappa in China's main market at a cost of $35 million, and solved the problem of brand continuity in one fell swoop.


    Trademark and image "track sharing system"


    In fact, in recent years, apart from

    Shoes and clothing

    Enterprises are paying more and more attention to brand authorization, and some local food enterprises and bags enterprises have begun to open cartoon marketing through brand authorization.

    For example, the good neighbor food has been authorized by the brand of pleasant goat and ash taro, and the cardinal slave of the main student package has also opened the domestic market through the authorization of the cartoon characters such as Dora, SpongeBob SquarePants and Changjiang seven.

    However, these enterprises mostly use cartoon image authorization instead of trademark authorization.

    They apply the corresponding cartoon images to products, but their trademarks and brands are still private brands.


    "From the point of view of agency brand, authorized businesses can usually use licensed brands such as trademarks, personas, and design patterns.

    However, if an enterprise A has been authorized by the "pleasant goat and grey wolf", it is not recommended that the product be directly named "pleasant goat". The best way is to use its pattern, and the product's name is still A, which is equivalent to the use of "double logo".

    This can prevent the future disputes from being hurt and being in a passive position.

    Zhang Lihua, general manager of Tian Luo Xing (Shanghai) Brand Management Co., Ltd.


    "In addition, the use of image authorization is more flexible. Enterprises can adjust the cartoon image according to the market changes.

    In general, the authorized period of cartoon image is three years. If the popularity of the image decreases after the expiration of the license, the enterprise can find a new hot cartoon image without affecting the stability of the brand.

    Zhang Peiming, manager of cardy slave area, said.


    {page_break}


     


    Private brand is still the core


    "If we don't make the brand and lack popularity, the enterprise can't survive at all. If we want to promote the brand, we have to invest a lot of money, but the effect is still hard to predict."

    Su Zhaohui, director of marketing management research center of Huaqiao University, believes that brand licensing has solved the dilemma of SMEs in the early stage of entrepreneurship.


    However, for most enterprises that adopt brand licensing mode, when enterprises develop to a certain scale and accumulate certain channels, resources and experiences, building their own brands is always the core.

    "Considering that the licensing period of agent brand is limited, relatively speaking, it can be further owned by its own brand."

    Zhao Feng, director of the 361 degree brand business center, said.


    Many enterprises in Quanzhou also adopt this approach.

    It is understood that at the end of 2006 signed a cooperation agreement with Disney, with the help of Disney's curve.

    Children's shoes

    XTEP launched its own brand of children's shoes and clothing last year.

    The British outdoor sports brand "HI-TEC", which has been authorized by the Chinese market for 30 years, has invested 30 million yuan in the market after its listing, creating an independent outdoor sports brand "RAX".

    After Chilt's cooperation with Babu, he did not give up the operation of another brand of "small president", but started the strategy of "double brands".

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