What Makes Merchandise Licensing a Hot Deal During CNY Promotion?

Have you ever wondered how businesses get the rights to reproduce products with famous logos or characters such as Disney? Well, companies were able to use this big name through the process or practice called merchandise licensing.

The term comes to us when we encounter ParknShop’s Tigger inspired ceramic merchandise. Tigger is one of the famous characters owned by The Walt Disney Company. Since CNY 2022 is the year of the tiger, incorporating and tieing in with the popular Tigger character is a clever promotional campaign that any brand can conduct.

 

ParknShop’s Tigger Ceramic Merchandise

Once customers purchase items amounting to more than $168, they may add $29.9 to redeem any of this ceramic merchandise. They can choose any of these Tigger ceramic bowl sets or plates.

 

The product packaging design is very attractive, making it more appealing to customers. Moreover, the red colour used for the boxes symbolizes luck among the Chinese.

 

Furthermore, the right placement of this redemption merchandise helps customers to recognize them and develop a stronger connection with the brand more naturally. Since it is normal for shoppers to head to the cash register to pay for their goods, they are more likely to notice these items while waiting in line.

 

But what really makes this CNY marketing is the licensed promotional merchandise being displayed and promoted. The ceramic kitchenware is indeed a practical item to use whilst the product design used are great to allure and excite customers.

 

What Makes Merchandise Licensing a Hot Deal in Marketing?

Merchandise Licensing or product licensing has a plethora of benefits to brands; thus, it is considered one of the most powerful marketing strategies to use. This involves two parties; the licensor and the licensee. The licensor refers to the owner of certain intellectual property (IP), while the licensee is the manufacturer or a brand that borrows an IP. Companies can borrow the rights from a brand to integrate into their products, but it doesn’t mean that they can share the ownership.

Having access to prominent brands, logos, trademarks, and characters significantly impacts companies or licensees. Listed below are some of its benefits.

1. Instant Recognition

What if this promotion is not associated with Disney? Would you think it would still appeal to shoppers?

Redemption promotion appeals to customers; thus, if this promotional merchandise were designed with simple tiger designs, they would somehow attract shoppers. The idea that customers can get these items for a few bucks will make this promotion effective.

 

But since these ceramic products are licensed by the Disney Company, they receive instant recognition from shoppers. Having a license and access to famous names means immediate and instantaneous global recognition. Companies may not measure licensed merchandise worth now, but the revenue they will generate in the long run can make all the difference.

 

2. Add Value to Business

Receiving the rights from any of the world’s famous brands can add value to an organization. It assures consumers that the business that borrows the trademark of a powerhouse brand shares the same quality, trend-right fashion, durability, or a combination thereof. Therefore, consumers tend to trust the licensee or the brand borrower over the ordinary businesses in the industry.

 

3. Can Get License From Other Brands Easily

When a business received approval or license from a famous brand, it only means that the latter passed the standards set by the powerhouse brand. And that would give the business an advantage when it plans to ask other prominent brands for a license to use its name for promotion.

 

4. Reduce Manufacturing Cost

One of the challenges retailers experience in growing their business is the manufacturing process and its cost. Let’s just say they already invited customers to their store, and as more and more come to their store. At this point, the retailer needs to ramp up the number of products being manufactured to provide the demands of the consumers. If not, consumers will leave the store with nothing.

This scenario would be avoided when working with a licensor who has already established manufacturing facilities. Through merchandise licensing, the brand gains the licensor’s preferred pricing from its suppliers. It includes commodities such as resins, shipping, creative services, and many more. Likewise, it gives access to the powerhouse’s style guide they need in designing their products.

 

More Brand Collaboration and Merchandise Licensing Ideas:

 

In a Nutshell…

While businesses (licensees) get a lot of advantages from using prominent names in marketing, the brand that provides the license (licensor) also get a fair share in the merchandise licensing agreement.

Alternatively, this practice is a powerful marketing strategy to adapt during big holidays, such as Chinese New Year. With its promotional impacts, there’s no reason for brands to reach their marketing goals in a specific season or occasion.

 

How Can ODM Help?

If you are planning to collaborate with big names in the industries and looking for a sourcing company to produce your products, the ODM Group is here to serve you. We can help facilitate the design and manufacturing of the products that your brand needs. Marketing campaigns often require brands to invest in promotional merchandise and services. We dedicate our work to ensuring that your investment yields proper results.

From customized promotional giveaways, branded POS displays units, brand packaging design up to your promotional gift with purchase merchandise, our team would be glad to help you out!

Our years of experience in the sourcing industry help us to master the craft that we have. From product design to production, we always make sure that everything went through meticulous processes. Here at ODM, excellence and quality is our passion.

Want to learn more about our services? Feel free to connect with us today! We would be glad to discuss things with you.

 

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