Trademark Licensing Business Up 2.5% In '12; Pro Leagues Fueling Sports Growth

Licensors generated an estimated $5.5B in royalty revenue in the U.S. and Canada last year, a 2.5% increase from ’11, with the five largest sectors being entertainment/character, corporate trademarks, sports, fashion and collegiate, according to an analysis of data from the Int’l Licensing Industry Merchandisers’ Association (LIMA). This is the second consecutive year-over-year increase in the trademark licensing business after four years of declines, as consumer spending continues to rebound in the aftermath of the economic downturn. However, revenue has not returned to pre-recession levels yet. LIMA Senior VP/Industry Relations & Information Marty Brochstein said, "When people are reaching for their wallets, a certain amount of purchases of licensed goods are in the 'want to have' category rather than the 'gotta have,' category. So when times are tight, someone might go for the replica jersey rather than the authentic. Or instead of buying three pieces of apparel, they might just buy two." Major U.S. leagues accounted for a majority of the licensing revenue generated in the sports segment, in which total revenues increased by 2.2% to $685M. That translated into an estimated $12.6B at retail. Direct to consumer sports sales through the Internet showed strength, while an important long-term opportunity is the extension into growth segments such as healthier food and beverages, travel and women’s apparel and accessories. Despite winning the Stanley Cup last season, Kings merchandise did not move the NHL merchandise sales needle (THE DAILY).