L icensee Guide for Manufacturers and Reta i ler s

Hong Kong Licensing Show 2015

Lisa Reiner, Managing Director Europe & Asia Pacific

• An Introduction to Beanstalk

• How Does Brand Licensing Work?

• Why License?

• Roles and Responsibilities

• What Makes a Great Licensee?

• Case Studies

Discussion

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BEANSTALK: O n e o f t h e Wo r l d ’s L e a d i n g B r a n d E x t e n s i o n A g e n c i e s

• Part of the Omnicom Group (NYSE:OMC)

• Licensed more than 5,000 products across every major category

• Generated nearly $5B in retail sales on behalf of clients in 2013

Beanstalk offices Affiliate offices

Los

Angeles

Miami

New York

Cincinnati London

Clients by Region Global

Europe/Asia

North America

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*

How Does Brand Licensing Work?

A licensor (brand owner) grants rights to use its brand (logo and/or likeness of

products) to a licensee

AGENCY

The licensee manufactures uniquely designed products

All products and packaging are subject to licensor’s approval

Product is sold to distributors and retailers

The licensee pays the licensor a percentage royalty

LICENSOR PRODUCT RETAILERS LICENSEE

Models for L icensing

Direct-to-Retail

Retailer or

nominated

supplier takes

the license

exclusively

Wholesale

Manufacturer

takes a license to

distribute

broadly confined

by contractual

conditions

Vertical

Manufacturer

takes a license

which includes

the right to open

freestanding

branded stores

Licensor

(Brand)

Enter businesses which have

strategic value, but fall outside of

the company’s capabilities

Build brand awareness and reinforce brand

values

Reach new consumers and educate them

about the brand

Extend into new channels of distribution

Generate revenue from royalties and

guarantees with minimal licensor

investment

Protect the trademark

Why Brands License

Why Manufacturers Take Licenses

Licensee

(Manufacturer) Generate incremental sales

Differentiate and/or segment

their product offering Increase their market share

Reach new consumer

demographics

Enter new channels of

distribution or new markets

Roles and Responsibi l i t ies

• Approve strategy and

categories

• Register trademarks

• Develop style guides

• Approve Heads of Terms

• Execute license agreements

• Conduct brand immersion

sessions

• Review and approve product,

packaging and marketing

collateral

• Develop product concepts for

brand approval

• Create packaging/ marketing

collateral

• Present approved licensed

products to retailers

• Launch products at retail and

support ongoing business

Licensor: Licensee:

Brand Empathy

Design Capabilities

Manufacturing Capabilities

Distribution Capabilities

Marketing Capabilities

What Makes a Great L icensee?

Licensing programme leverages the appeal of the world’s

most famous trendsetter into aspirational and glamorous

lifestyle products

* Executed prior to Beanstalk representation

17 product lines including fragrance*, footwear, handbags* and beauty

products including false nails & lashes

Nominated for LIMA Licensing Awards 2012

Paris Hilton Eyewear in Asia:

Exclusive line of optical frames, sunglasses and coloured contact lenses for the Asian market

Major launch event in Shanghai February 2012 with personal appearance

by Paris Hilton, catwalk show and extensive media coverage

Sold in department stores and specialty jewellery stores across Asia, including China, Hong Kong,

Japan, Malaysia, Singapore, Taiwan and Australasia

Eyewear has launched across 12 countries in Asia

Three day launch event in Shanghai including fashion show,

and official launch at the Shanghai Optical Fair

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Paul Frank owner, Saban Brands, entered a partnership with

Shanghai Romma, a subsidiary of Jun Yao Corp., in 2011,

launching the brand into China under a licensing agreement

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There are now over 100 stores in the region and the brand has also introduced

new concepts, including Paul Frank Kids and Paul Frank Accessories stores

Home concept store to include home décor, bedding, and related products

Visit us at stand #GH - H06