Today on the International Trade Resources Podcast, Kim Kirkendall is joined by Axel Kruse from Griffin Business Consulting to discuss licensing brands overseas, emphasizing the importance of quality control, understanding market nuances, and fostering a win-win relationship between licensors and licensees. Axel shares valuable advice on finding the right licensee, key elements in licensing agreements, and best practices for success in international brand licensing.
To begin the podcast, Axel and Kim explore the process of licensing, specifically in the context of international trade. Licensing Out involves allowing another company to use your intellectual property, such as logos or product designs, for which a license fee is paid. They focus on licensing brands overseas, particularly in the apparel and footwear sectors Axel works with.
Next they pivot into several key factors for successful brand licensing, including the need for licensors to maintain tight control over product quality. Axel highlights the importance of understanding and adapting to the unique characteristics of different markets, such as consumer preferences, cultural differences, and seasonal variations. Additionally, Kim and Axel stress the significance of finding experienced licensees with strong distribution networks.
What about best practices? Axel encourages licensors to visit the market regularly and understand the local consumer base. Additionally, he and Kim advise licensors to be flexible with initial licensing fees, and explain why that is important. They also discuss how to prevent inventory issues and avoid damaging the brand's perceived value in the market.
Lastly, Kim and Axel break down the crucial elements of licensing agreements that are often overlooked. The discussion also touches on the significance of the details, such as; specifying product approval, understanding the licensee, and being vigilant in other areas to avoid damaging the brand's image. Listen for more detail!
The importance of a collaborative and mutually beneficial relationship between licensors and licensees is key for sustained success in international brand licensing. Find all this and more in today’s information-packed episode!
Things you’ll learn:
Episode Sponsors:
Acclime China:
https://china.acclime.com/
Corporate Services and full Accounting/CPA/Tax for China.
Website: www.intltraderesources.com
Email: intltradepodcast@gmail.com
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