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Retail Pricing of Licensed Vs. Non-licensed Merchandise
EPM Communications Inc, Aug 2009, Pages: 8
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.
Retail Pricing of Licensed Vs. Non-licensed Merchandise analyzes the price differentials for 338 pairs of comparable licensed and non-licensed items. The study includes merchandise offered at more than 30 retailers including Walmart, Target, Macy's, Hallmark, Walgreens, and Toys “R” Us.
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.
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