Topic: General Posts

Subject: Brand licensing into wholesale
Andy Daymond
Member: 2014
Posts:1
Submitted on 04-05-18 9:42 am
Message:

Hi


I have an interview on 10th at a company that licenses brands to use in the clothing wholesale industry.   Does anyone have any expertise & insight into this sector?   I have experience in music royalties and artist merchandise ecommerce which is some ovelap.  Any help would be appreciated.


Thanks


Andy Daymond, London

 
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Replies
Rose Roser
Member: 2018
Posts: 1

Subject: Re:Brand licensing into wholesale

Submitted on 04-12-18 10:53 am.
Message:

I do have some experience with this in the area of sport licensing of apparel. I am not sure what you are looking for. There are intermediaries in this space that are commonly used in Europe to assist US based companies with licensed product abroad. Not knowing your sitution I would think you will want to understand the manufacturing supply chain into the wholesale market that you'd be involved with and then how that feeds to the retail market. You'll be concerned with possible exclusivity, how broad or limited any apparel license may be, the significance of obsolence risk and risk of the brand itself and then lead times to get the underlying product approvals that will likely be needed. Within each apparel license there are then nned to be individual products that will need to be approved and that happens through out the term of the license. Be mindful of how minimum guarantees are structured and the timing of those payments compared to your revenue cash flows. Many licensors will want to be in a cash advanced position with the licensee and will want high minimum guarantees that assure the licensor that the licensee will be fully utilized.There may be additional rights that are important in apparel brand licensing such as marketing and promotional support that the licensor might assist with and product exposure that could be given by the licensor. Those features, however, carry a price tag.

 
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