Licensed Sports Merchandise Market: Focus on North America – 2013 Edition - Koncept Analytics

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Licensed Sports Merchandise Market – Focus on North America -------------------------------2013


View Report Details Executive Summary Sports licensing forms a significant portion of overall licensed merchandise market in North America. Sports licensing covers licensing of logos, symbols, names of varied sports organizations and team players. These items are owned by sports institutions which are known as licensors and they lease the rights to use their property to licensees in return of royalty. The growth in retail sales of licensed sports merchandise in 2012 was on account of two of its sub segments namely apparel and accessories. The two largest major leagues, NFL and MLB together represented almost half of share in North American sports licensing market. Sales of collegiate merchandise were driven by popularity of university/college level sport teams and also small & medium sized colleges entering into licensing. Preferred distribution channels for licensed sports merchandise include discounters, specialty stores and department stores. E-commerce is also coming up as a distribution channel for licensed products despite having a small share. BRIC nations (Brazil, Russia, India and China) are considered as a source of tremendous growth due to rapid increase in disposable income and increase in discretionary spending. Key issues of the market include consolidation of power among licensors, declining retail shelf space, high entry barriers and intense competition. Some of the major retailers for licensed sports merchandise include G III Apparel Group Ltd, VF Imagewear, Knights Apparel Inc, Reebok and Nike. The present report offers an analysis of the global licensed merchandise market with focus on the US and Canada. It also discusses key growth market trends, drivers and major challenges faced by the licensed merchandise industry. Apart from providing competitive landscape, the report also profiles the major players in the market.


North America is the largest market for licensed merchandise though demand from BRIC is also emerging……. Global Retail Sales of Licensed Merchandise Market

 The global licensed merchandise market increased by …% y-oy and reached US$.... billion in 2012.  Regions like North America witnessed a slower growth in 2012 compared to other parts like Middle East and Africa, Asia and Latin America. In particular, the BRIC nations (Brazil, Russia, India and China) ranked among the top 10 as measured by their growth rates in retail sales of licensed merchandise.  Collectively, the 4 countries accounted for an increase of about ….% in retail sales between 2011 and 2012, far above the global average of ….%.  The US and Canada accounted for …..% of retail sales in overall licensed merchandize market in 2012. Europe has a market share of …….% followed by Asia (……%), Latin America (…….%), Australia/New Zealand (…….%) and MEA & Others (………%).

Licensed Merchandise Retail Sales by Product Category

Licensed Merchandise Worldwide by Geography (2012)

US & Canada

Europe

Asia

Latin America

Australia/NZ

MEA & Others


Almost all licensed merchandise categories witnessed a growth in 2012 except entertainment/character and non-profit…. Licensed Merchandise Market in the US & Canada (2008-2012)

 Retail sales of licensed merchandise in the US and Canada grew by …….% in 2012 to US$....... billion.  This is the second consecutive year wherein the sales had increased. The retail sales of licensed merchandise increased by …..% in 2011 and by ……% in 2012.  The decline in growth rate was account of decreasing consumer confidence and lower-than-expected retail sales levels overall, especially for the holiday period.  By product category, brands had the highest market share of …..% followed by sports (………%), entertainment/characters (………%), art (……..%), celebrities (………..%), publishing (………%), collegiate (……….%), music (…………%) and estates (………%).  Interactive gaming led the way with growth of ….% in 2012 with angry birds being the highest-profile and most-licensed interactiveorigin property.

Licensed Merchandise Categorization in the US & Canada (2012)

 Fashion also witnessed a strong growth of …..% in 2012 compared to previous year.  Many diverse fashion licensors expanded their programs, from designer labels such as Isaac Mizrahi to workwear brands such as Dickies, while leading licensors such as Ralph Lauren and PVH (including Calvin Klein and Tommy Hilfiger) saw strong results from their inbound and outbound licensing operations.  Corporate licensing continued to outpace the licensing business overall, expanding ………% in 2012. Publishing-based products were up by …..%, but that was driven exclusively by magazine and newspaper brands (up ……%), which continued to look for licensing opportunities a means of replacing falling revenues from publishing operations.

Brands Art Collegiate Non-Profit

Sports Celebrities Music Toys/games

Enter/Charac Publishing Estates Videogames/Online


Sports licensed merchandise market in the US is dominated by sports leagues- MLB, NFL, NBA, NHL. Collegiate merchandise also forms a significant share…. Retail Sales of Licensed Sports Merchandise in the US & Canada

 Sports is a key driver of collegiate merchandise sales. Retail sales of collegiate sports merchandise in the US and Canada increased from US$..... billion in 2011 to US$...... billion in 2012.  The growth was on account of many small and medium-sized colleges entering licensing and several institutions changing athletic conferences.  The Collegiate Licensing Company (CLC) ranks NIKE USA Inc. the No. 1 collegiate apparel licensee for FY2012-13.  Excluding fiscal years 2009-10 and 2010-11, NIKE held the position of top apparel licensee since 1999.  Top apparel categories for 2012-13 included T-shirts, women’s apparel, fleece, and headwear. Top non-apparel categories included video games, housewares, domestics, and sports equipment.

Share of Licensed Sports Merchandise by Leagues (2012)

MLB

NFL

NBA

NASCAR

NHL

MLS

PGA Tour

Other

Retail Sales of Collegiate Sports Merchandise in the US & Canada


View Report Details Table of Contents

List of Charts

1. Licensing Market – Introduction

Flowchart to Demonstrate the Processes Involved In Licensing

2. Global Licensed Merchandise Market 2.1 Market Size 2.2 Geographical Segmentation 2.3 Product Wise Segmentation 3. The US and Canada Licensed Merchandise Market

Global Retail Sales of Licensed Merchandise Market (2004-2012) Retail Sales of Licensed Merchandise Worldwide by Geography (2012) Share of Retail Sales of Licensed Merchandise, Worldwide, by Product Category (2012) Retail Sales of Licensed Merchandise in the US & Canada (2008-2012) Licensed Merchandise Market Categorization in the US & Canada (2012)

3.1 Retail Sales 3.2 Market Categorization

Retail Sales of Licensed Sports Merchandise in the US & Canada (2004-2012)

4. Licensed Sports Merchandise Market in North America

Supply Chain Diagram – Licensed Sports Merchandise

4.1 Retail Sales 4.2 Product Categorization 4.3 Share by Professional Sports Leagues 4.4 Supply Chain 4.5 Collegiate Sports Licensed Merchandise Market 4.6 Distribution Channels

Retail Sales of Collegiate Sports Merchandise in the US & Canada (2006-2012)

5. Average Royalty Rates

Retail Sales of Licensed Merchandise in BRIC Countries (2011 vs 2012)

6. Market Dynamics

Real GDP Growth in Developing Countries (2009 versus 2015F)

6.1 Market Trends 6.1.1 Decline in Length of Licensing Contract 6.1.2 Alternative Deal Structures 6.1.3 Proliferation of Digital-Origin Properties

Share of Licensed Sports Merchandise by Leagues in North America (2012)

Retail Sales of Licensed Sports Merchandise by Distribution Channels (2012) Average Length of Licensing Contract (2011 vs 2012) GDP at Current Prices in the US (2006-2012) The US Unemployment Rate in % (2005-2012)

Consumer Purchases of Sporting Goods in the US (2006-2012) Net Sales of G III Apparel Group (2009-2013)


View Report Details Table of Contents

List of Charts

6.2 Growth Drivers

VF Corporation- Sales by Segments (2012)

6.2.1 Favorable Economic Growth 6.2.2 Opportunity in BRIC Countries 6.2.3 Demand for Sporting Goods

Total Revenues of the VF’s Imagewear Segment (2008-2012)

6.3 Key Issues

Growth Rates of Licensed Merchandise Retail Sales by Regions (2012)

6.3.1 Consolidation of Retail Business 6.3.2 Counterfeiting/Duplicate Products 6.3.3 High Entry Barriers

Global Retail Sales of Licensed Merchandise by Product Category (2012)

7. Competitive Landscape 8. Company Profiles

List of Tables

Retail Sales of Licensed Sports-Based Merchandize by Product Category (2012) Top Ten Licensees in Apparel and Non-Apparel Categories in the US (FY201213) Average Royalty by Property Type (2012) Entry Barriers for Licensed Sports Merchandise

8.1 G III Apparel Group Ltd

Competitive Positioning of Licensed Merchandise Market Players- The US (2012)

8.1.1 Business Description 8.1.2 Financial Overview 8.1.3 Business Strategies -Expansion through Acquisitions -Add New Product Categories

List of Licensed and Proprietary Brands of G III Apparel

8.2 VF Corporation (Imagewear Coalition) 8.2.1 Business Description 8.2.2 Financial Overview 8.2.3 Business Strategies -Substantial Growth in Asia Pacific Region -Channel Growth through E-Commerce

VF Corporation Business Segments Primary Brands and Products in VF’s Imagewear Segment


View Report Details Table of Contents 8.3 Knights Apparel Inc. 8.3.1 Business Overview 8.3.2 Business Strategies -Expansion through Licensing Agreements 8.4 Fanatics Inc. 8.4.1 Business Description 8.4.2 Business Strategies -Building Relationship with Consumers -Fanatics Affiliate Programme


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