| The retailer is highly influential and instrumental to the whole licensing process and can be the key to its success or failure. Without retail no product will reach the consumer.
The appeal of licensing to a retailer is likely to be the popularity of the licensed property and product and the target market it attracts. A retailer can use licensing activity to:
- increase stock turnover in a particular sector
- attract a new user base who might not normally use its retail outlet
- aid repeat purchase - for instance through collecting different characters/editions of a licensed range
- justify a price premium
- maximise sales per square centimetre
- use the licensed product theme to promote complimentary product ranges
- aid their reputation for delivering unique/new/popular goods and services
The retailer can also significantly benefit from increased awareness from additional advertising and promotion that the licensor or licensee may use to support the property or product range and which indicates retail availability.
In planning any licensing activity it is vital that both licensors and licensees carefully consider retailer needs and motivations, to help justify and sell-in their proposed activity to them. Buyers in retail will know what sort of things appeal to their consumers and can be a good source of information and direction. However, they often have hundreds of lines to take care of - the majority of which may not involve licensing. Therefore some may often rely on licensees and licensors to inform them of what is happening in the licensing world.
TIP: Build up close relationships with retailers and use them as a source of direction. This will be mutually beneficial. Become more involved in the retail environment in Retail Connection.
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