Brand licensing can create five benefits for the gift market:

First, it can successfully use the brand and can quickly enter the new gift market;

Secondly, for gift companies, through specialized brand licensing channels, without the need to invest in brand promotion and advertising investment, they can fully rely on the influence of excellent brands for their products.

Third, consumers are very easy to accept authorized brands, bring more consumer choices to consumers, and consumers can buy high-quality brand products at reasonable prices;

Fourth, it benefits directly from the giant promotional activities of brand licensees. In order to maintain the brand's status and popularity, brand licensors must continue to nurture brand roles and remind consumers of the existence of these brands. These brand promotions will directly bring better sales performance to licensees.

Fifth, obtain immediate interest and acceptance from retailers. Well-known brands are more likely to enter distribution channels than unknown brands. Authorized dealers can use the power of authorized brands to quickly access dense channels and reach consumers more extensively.

For brand licensors to maintain brand awareness, they will often hold some large-scale promotion activities and professional sales support. These measures will directly bring better performance to gift companies. Moreover, authorized brands all have rich management experience and marketing model. After obtaining the brand authorization, gift companies can also learn from the good operating methods of well-known brands, so as to improve themselves and drive the company's transportation model. For most gift companies lacking brand experience, it is undoubtedly a powerful opportunity to enhance their own strength, and it can promote the development of the company's own brand by accumulating rich experience from Chuangxin brand and can most effectively learn the business model of well-known brands.

Analysis: Disadvantages of Brand Authorization Brand authorization should be considered a successful shortcut for SMEs, but brand licensing is still in its infancy in the gift industry, and all aspects are still in the immature stage. From the perspective of the market, the concept of brand authorization is not very high in the gift industry. Many people do not understand this emerging industry. There are many counterfeits and cottage gifts on the market, which brings about certain development of brand authorization. Obstruction. Therefore, efforts to crack down on counterfeit and shoddy products and strengthen the legislation on intellectual property are used to protect the development of the gift industry in brand licensing and create a good environment.

From the point of view of the gift company, there are positive and negative aspects of everything. The management of authorized brand management has many advantages for SMEs, but there are still certain risks. The financial strength and operating capabilities of small and medium-sized gift companies are weak, and the licensing fees involved in the licensing of the brand, the later product development costs and the product stocking costs will become the “first cut” of development. In addition, brand licensing also requires a professional team to support this point that many SMEs can not achieve. Therefore, authorized brands are just a shortcut for rapid development of enterprises. If they really want to become stronger gift companies, they still need to create their own brands.

June 05, 2019