Retail Pricing of Licensed Vs. Non-licensed Merchandise

Licensed Goods Command 33% Premium At Retail

New Licensing Letter Report Demonstrates Value Of Licensed Merchandise For Retailers, Manufacturers, And Owners Of Intellectual Property

With the continued downturn in the economy, and increased pressure from retailers to lower prices, do licensed products still command a premium price?

The answer is a resounding “Yes!” even if the pressure is still on.

Overall, 63% of more than 300 licensed products studied for The Licensing Letter’s new report, Retail Pricing of Licensed Vs. Non-Licensed Merchandise, are priced higher than their non-licensed counterparts. Almost 25% of these products sell for a premium of 50% or more.

This report gives manufacturers of licensed products and owners of intellectual property proof of how valuable licensing is. And it demonstrates for retailers how licensed goods give them the added margins they so desperately need in this recession economy.

Among the key findings:

• Specialty and department stores command less of a premium for licensed merchandise than mass merchants or grocery and drug stores.
• Licensed health & beauty aids including celebrity fragrances, along with electronics and domestics, command premiums in excess of 50%.
• Toys/games is the only sector for which licensed merchandise sells below the price of non-licensed counterparts.

This exclusive Licensing Letter research report is available for $295. One free copy is provided to each subscriber to The Licensing Letter; additional copies for internal use by subscriber companies are $50 each. Call Riva Bennett at 212-941-0099 for additional subscriber copies or to start your subscription to The Licensing Letter and get your free copy of Retail Pricing of Licensed Vs. Non-licensed Merchandise.

Published August 2009, 8 pages.