What an Omnichannel World Means for Brand Licensing

Stephen Reily

January 2, 2014

If you want to develop great products that actually sell at retail, you are probably already thinking about how to succeed in an omnichannel world.  Thanks to e-commerce and digital/social media, consumers no longer pay much attention to the boundaries between buying products in stores or online, and marketers who segregate channel strategies will not be winners in the years ahead.  Retailers understand this, but we don’t yet see many people in the world of brand licensing talking about it themselves.

RSR Research, the only research company run by retailers for the retail industry, has been issuing important research reports on best practices in an omnichannel world for several years.  Rereading their 2012 and 2013 reports (which you can download free)  gave me some thoughts on what an omnichannel world means – or should mean – for the companies we work with, and the kinds of partners and best practices that could help them succeed in this omnichannel world. 

The Old (Uni-Channel) World

When I began negotiating and drafting license agreements 15 years ago, both product development and retail distribution were much simpler.  We narrowly defined the product categories that a licensee could manufacture, and even more narrowly defined the channel(s) of distribution where the licensee could sell its product.  Social media didn’t even exist.  E-commerce was just beginning, and our clients all thought it was something they could ignore.

As retailers consolidated, and as consumers moved much of their lives online, it became impossible to succeed with such a narrow focus.  A successful licensing program isn’t just about the brand and licensor; it isn’t even limited to a licensor and its licensees.  In this way, licensing isn’t any different from marketing the consumer products that our companies make themselves.  You have to treat retailers and consumers as partners.

That means working in the omnichannel world where consumers and retailers now live themselves.

The New Omnichannel World

Follow the customer.  Success in an omnichannel world means focusing on more than just a product and how it moves through individual channels.  It means focusing on consumers and their demand to learn about and interact with products in every way possible, including social media and blogs, online reviews and price-comparisons, mobile promotions, and in-store presentations.  The consumers you need to reach shop don’t limit themselves to channel only, and your licensees can’t, either.

Encourage all-channel sales.  An outlook that dates back to the uni-channel world often creates unnecessary competition within one company or brand for salespeople and category managers whose incentives should be aligned.  Product managers need to recognize that consumer interaction with their brands is a good thing wherever it happens, not just in the places where they think it won’t interfere with their own work.  When you look at distribution in this broad context, licensees and other brand partners can be the key to giving consumers what they want, where they want it.

Few companies can satisfy the consumer’s need to find your brand and its equities in every possible place where they learn about products, and shop.   Make sure you are incentivizing your brand managers and salespeople to support these results, and not just in the one category or channel where they may be assigned.  If a licensee can get your brand into direct-marketing channels like HSN or QVC, or if a licensee’s products can give influencers something new to talk about online, they may be doing more to ensure your brand’s survival than you can do yourself.

Delivering success in this new omnichannel world is the reason why our work at IMC now involves retail development and influencer marketing.  As RSR pointed out in the visual above, commerce is intimately related to both community and content, which is why we’ve also been building online communities and content-marketing operations for the last five years.  We just don’t think you can launch great new products without them.

And it’s also the reason we think that brand licensing has entered its own new world…

The Omni-Product Brand

The biggest consumer product brands created their initial value with a single product, delivered consistently through a familiar channel, over and over again.

Because retailers and consumers now control a brand as much as brand managers do, and because both retailers and consumers now operate in an omnichannel world, your brand needs to meet their needs in new ways, too.  In many cases, that means delivering more products in more places than you ever imagined.  When you are excited rather than threatened by that prospect, your brand may reach its ultimate potential.  I’ll be writing more about this trend – and the brands that are riding it most successfully – soon.

If your brand is interested in discovering how licensing can help its omnichannel strategy, IMC can help. We’ve been a top brand and product licensing agent since 1997. Reach out today and schedule a quick introductory call.

IMC Licensing Logo Mark

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    Wherever industry regulars gather, they’re sure to discuss the world’s largest licensor; the world’s citizenry buys more than $23 billion…

    Stephen Reily

    July 27, 2012

  • Working With Licensing Agents and Consultants

    Brand licensing agencies and consultants can play a central role in the development of an effective licensing program. Whether your…

    IMC Licensing

    November 22, 2010

  • Why Use a Brand Licensing Agency?

    Even if your company has an in-house licensing director or staff, there are several reasons to hire a brand licensing…

    IMC Licensing

    May 10, 2010

  • National Brands, Private Label and Licensing

    During a panel discussion about product innovation at the 2009 Grocery Manufacturers Association’s Merchandising, Sales and Marketing Conference, one participant…

    IMC Licensing

    April 15, 2010

  • Brand Licensing 101

    As a brand and product licensing agency that develops and manages licensing programs for our clients’ trademarks and brands, we…

    IMC Licensing

    November 8, 2009

  • Retail Strategies Beyond the Top 10

    Every day the list of victims of the faltering economy grows longer.  Circuit City (#32 on National Retail Federation’s, Top…

    IMC Licensing

    September 25, 2009

  • Beyond Royalty Revenue: Measuring ROI from Licensing

    In recent surveys senior marketing professionals say that accountability for marketing services is more important than ever, and that they…

    Stephen Reily

    September 16, 2009

  • Trends in Inbound Licensing

    In the licensing industry, attention is typically focused on strategies to license a brand “out,” extending a brand into new…

    IMC Licensing

    August 19, 2008

  • The Brand Licensing Professional – Not One Size Fits All

    I cannot count the number of times I have heard companies talk about whether they should hire a “licensing professional”…

    Stephen Reily

    February 19, 2008

  • Licensing Agency Compensation: The Inside Story

    One of the needless mysteries of the licensing industry is the topic of agency compensation.  Although talented professionals neither gain…

    Stephen Reily

    February 19, 2007

  • The Bankruptcy Clause in a Licensing Agreement: Comforting but Useless

    An experienced reader of license agreements would know exactly where to find what I call the “bankruptcy clause” (about three…

    Stephen Reily

    March 1, 2003

  • When Trademark Licensing looks like Franchising: Avoiding Legal Risk

    If anyone doubted that trademark licensing has become an essential part of brand management, the recent Annual Meeting of the International…

    Stephen Reily

    September 8, 2002

  • The Risks a Licensor Poses to a Licensee: How Can They Be Limited?

    Most form license agreements assume that licensees pose greater threats to licensors than the other way around.  Aside from the…

    Stephen Reily

    August 8, 2002

  • Licensing to Preserve Trademark Ownership

    As all IP counsel know, registration of a trademark depends on that trademark’s use.  A trademark cannot be reserved indefinitely…

    Stephen Reily

    July 9, 2002

  • Trademarks Around the Edges

    Many years ago, companies that made a branded consumer product thought they did only one thing: make that product.  Their…

    Stephen Reily

    March 9, 2002

  • Watch What the Licensor Does, Not What it Says

    Hiring the best trademark counsel – and getting them to draft the best possible license agreement – will not alone…

    Stephen Reily

    March 9, 2002

  • How Accountants Will Change the Face of Trademark Licensing

    As the licensing industry frets about whether the biggest event of the year will be the performance of Harry Potter…

    Stephen Reily

    November 9, 2001

  • License Agreements: Partnerships Worth Getting Right

    Whenever you see a licensor and licensee in litigation with each other you should assume that something has gone wrong…

    Stephen Reily

    September 9, 2001

  • How Many People Does it take to Screw in a Trademark Licensing Agreement

    Because so many brand owners fail to appreciate how important licensing can be for their brand, many of those who…

    Stephen Reily

    August 9, 2001

  • Developing Branded Consumer Products like Consumer Products

    Last month I described how companies find themselves distributing or authorizing branded products that either weaken the protection of their…

    Stephen Reily

    July 14, 2001

  • Why Most Companies Have Too Many Licensors

    If you looked to a corporation’s internal licensing department for evidence of trademark usage and enforcement, as well as development…

    Stephen Reily

    May 20, 2001

  • Licensing Corporate Brands and Trademarks: Knowing What it Should Cost

    As someone who runs a licensing agency for the owners of brands and trademarks, I can be expected to argue…

    Stephen Reily

    February 19, 2001

Services

Licensing is a relationship not merely between brands, but among people. At IMC, we build and nurture both of those relationships while delivering top-notch customer care that treats — and protects — your brand as if it were our own.

About Us

We’re committed to fostering dynamic brand alliances. Often those alliances are born from one brand’s need and another’s ability to meet that need. The IMC team are experts at recognizing and creating those opportunities, but our real expertise is people. Standing side by side, as consultants, partners, peers, and as friends, we’re driven by a singular purpose: creating a smart idea.