Over the past few years, the sports
licensing business has emerged as one of the fastest growing sector in the
overall licensing business globally. Licensing of sports items includes logos,
symbols, names of sports organizations and team players. These items are owned
by sports institutions that act as licensors and lease the rights to use these
properties to licensees on profitable terms. The US and Canada represent the
single largest market for licensed merchandise worldwide.
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Sports licensing is dominated by
MLB, NFL, NBA, NHL, and NASCAR in the US. Furthermore, over 300 colleges and
universities in the US are involved in collegiate licensing, as part of which
they market their rights primarily to the apparel market. After declining in
2009 and 2010 due to economic downturn, retail sales of licensed merchandise
based on sports leagues and events increased by 5.3% in the US and Canada in
2011.
Proliferation of social media such
as Facebook and similar, blogs, YouTube, Twitter online and mobile campaigns,
and other interactive technologies have led to the growth of licensed
sportswear sales. E-commerce is becoming a popular distribution channel for
licensed products. A significant rise has been noticed in the women’s apparel
segment due to rising female sports fans. Licensors and licensees continue to
look for new opportunities in under-developed licensing markets like BRIC
region (Brazil, Russia, India and China). The industry is accompanied by high
entry barriers and high risk of counterfeiting. Some of the major retailers for
licensed sports merchandise include Dreams Inc., GSI Commerce, VF Imagewear,
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 drivers, opportunities and major
challenges faced by the licensed merchandise industry. Apart from providing
competitive landscape, the report also profiles the major players in the
market.
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