Licensing offers $19b opportunity for home décor brands | Opinion

By Leigh Ann Schwarzkopf

It may be simple to dismiss licensing as a distraction, and unworthy of the sources required to have interaction with it, or to imagine that licensing is just for huge firms. In actuality, nothing could possibly be farther from the reality.

Licensing has a confirmed observe document of enhanced gross sales efficiency, income, and notion for model house owners, producers, and retailers within the dwelling décor class and at each value level. When wielded accurately, licensing may also act as a catalyst to achieve market share.

Within the US/Canada area final 12 months, for instance, retail gross sales of licensed dwelling décor gadgets rang as much as $19 billion. That is in line with the newest 2025 World Licensing Trade Examine produced by Licensing Worldwide. $19 billion is a formidable quantity, on par with the revenue earnings made by Visa or Walmart or Wells Fargo in 2024.

World gross sales of licensed merchandise and providers hit $369.6B in 2024. In the identical 12 months, the portion of licensed dwelling décor merchandise within the US/Canada area rose three share factors, a $200 million acquire from prior 12 months.

Trending Licenses

In keeping with the Licensing Worldwide annual research (now in its 10^th 12 months), total incremental progress is the norm. What does ebb and movement is the style of main licensors, propelled by market preferences and developments.

Globally, character and leisure mental properties prepared the ground. Nevertheless, in the case of dwelling décor within the US/Canada, publishing titles – assume shelter magazines – have lengthy dominated. In 2024, the style of company logos, particularly beloved meals manufacturers, was so profitable that it was within the prime three classes, together with characters and leisure.

In 2024, progress is burgeoning from a number of forms of properties, together with the rising non-profit realm. A number of museums are utilizing licensing to enter dwelling décor classes comparable to tabletop, mattress linens, textiles, and furnishings. Almost $279M globally and $257M within the US/Canada of non-profit licensed merchandise was bought in 2024. As well as, celeb and vogue manufacturers account for $3.8B globally and $2.6B within the US/Canada.

Analysts and syndicated knowledge recommend the subsequent wave of home-sprucing season is upon us. That’s as a result of shoppers are tiring of the seems to be and developments they enthusiastically welcomed into their dwelling 5 years in the past. Current Circana analysis signifies shoppers are searching for methods to refresh their properties. On the identical time, trendologists and shopper knowledge corporations are noticing a spike of curiosity in licensed products.

Interact with Licensing

For the unfamiliar, to grasp how licensing can profit every sort of stakeholder, begin with the fundamentals of who’s who.

The proprietor of a trademark or model is named the licensor. A licensor could want to broaden their model right into a class outdoors its experience. One method to sort out an unfamiliar class is to hunt a well-regarded manufacturing accomplice within the desired class. The producer accomplice is named a licensee.

In keeping with the licensing settlement, the trademark proprietor (licensor) provides a producer (licensee) permission to make use of the licensor’s trademark on product the licensee makes. The licensor receives a royalty, or a share of wholesale {dollars}, from the licensee.

 In the event you establish with both of those titles (licensor or licensee), then licensing is already in your radar or in your device equipment – congratulations! Commit your vitality to figuring out the proper product combine and figuring out how you can finest maximize the chance. You’ll be able to leverage inside or exterior experience to reduce threat.

If licensing just isn’t already a part of your technique, it’s not too late to learn from it.

Start by conducting a market audit of your class and adjoining areas. Study what appeals to your stakeholders and clients. Speak to folks within the business inside your community and discover an knowledgeable that may assist you determine if licensing is for you, how you can mitigate threat and how you can leverage it to realize your targets.

You’ll be able to have interaction a licensing marketing consultant to information your journey and help you thru every thing from figuring out the perfect properties for your enterprise to negotiating contracts (full transparency: Undertaking Companions Community has specialised in licensing help for over 20 years). An excellent marketing consultant will be discovered by way of networking, at commerce exhibits and thru contact with the business commerce affiliation, Licensing Worldwide.

Whatever the methodology you choose, do not forget that your targets for licensing can embody buzz/relevance, in addition to monetary acquire.

Advantages

 In easy phrases, licensing can profit all components of the retail continuum. A licensor will get elevated model consciousness (for instance, publicity in one other retailer aisle) with out spending the time and expense to construct the infrastructure required to provide items outdoors its bailiwick. A licensee will get entry to “hire” a longtime model or character that has a built-in fanbase.

 Executed accurately, the proper licensing partnership helps two firms acquire gross sales and buyer attain sooner and with much less threat than working alone. Moreover, as we’ve all seen by way of so many great collaborations throughout all classes and genres, persons are in search of pleasure and enjoyable all through their days, and plenty of licensed collaborations present buzz and relevance whereas serving to in that quest.

After all, there are numerous methods to develop your enterprise and strengthen your relationships with buying and selling companions and buyers. However do all of them have $19B in gross sales potential, as licensing has already proven it might probably ship? The numbers recommend you can’t afford to exclude licensing out of your subsequent strategic plan.

Leigh Ann Schwarzkopf is principal of Project Partners Network.