#Five Tips For Entrepreneurs Who Are Keen To Start A Licensing Business
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India has everything that is required for brand licensing to prosper in India – a great manufacturing base, love for brands and growing wallets. And yet India's contribution to the global USD 250b industry is merely USD 600m as the domestic market is not inching up as it needs to be. Why? maybe, lack of entrepreneurs!
For every business to sustain, you need to get take your first few steps in the right direction. And so, Entrepreneur India spoke to few industry experts from both international and domestic market experts to help entrepreneurs make their first move.
#The Brand and its mind
Do research about the brands before deciding what fits you. It is not necessary how popular the brand is. It's a marriage, says Jiggy George, Head of LIMA India and Founder of Dream Theatre, so make sure the Licensor is a long-term player.
Understand what is motivates the brand. Are they really interested in getting into licensing business and most importantly in your category? You need to to understand the mindset of the brand owners.
"It is important to put an emotion in the consumer's mind in what the does his name stands for. It could be inspired by a celebrity and his value which is where people who have the same values connect with the brand," added HRX's co-founder Kamal Punwani.
#Know Your Product
Once you are able to understand your brand, know how you can include the brand’s attribute in your product. “Do you have the capabilities to meet the manufacturing standards of the brand’s parent company? – are the questions an entrepreneur should him or herself,” said Pete Cancalichio, Managing Partner, Licensing Brand Inc.
# Market Dynamics
As a licensee, identify your market, adds Cancalichio and the problem you are looking to solve with the product or service.
Then find the brand which is a perfect match to the problem it is looking to solve. Plus, know your competitors and have a strategy in place.Once you have understood the market dynamics and have negotiated with a brand, putting down everything on a legal contract. “Seek exclusivity to guard your back against internal competition,” says concludes Vishal Sinha, Business Head, SK Brands.
Expand the knowledge of your contract in the market, this lead towards the creation of an environment for success.
#Innovations is the key
Innovation doesn’t just mean inventing a new product or service. “One can innovate with their business strategy or use technology to improvise their product category,” suggested Maura Regan, Executive Vice President, LIMA. There is also a great scope for innovation in ‘experience creation’ space, a category appreciated by millennial.
A licensee should know how to stop a consumer. Every customer, no matter in which part of the world you are, is always looking at price and value. This is what determines the brand discussions.
"Retail, walk-in stores or online stores, is going to a tremendous change as an industry. Most of the time when you see a customer go out without a transaction, it is largely unavailability of the product. So it's really important for the licensee to work along with its retailers and develop a strategy for customer engagement," Regan points out.