Licensing: An Industry-Wide Opportunity
Trimark President Will Andrew's Key Point
Becoming a licensee for a retail brand, a university or for a major event isn't just an opportunity for suppliers, but it presents a real chance for distributors to add to their sales as well. That was a key point made by Will Andrew, president of Trimark Sportswear (asi/92122), in one of the opening sessions of the ASI Power Summit Canada.
"Most of those products have some royalties built in, so you're probably also getting your customer to go up in price," said Andrew. "While your gross margin might be the same percentage, your true profit dollars could be bigger on the sale."
In a one-on-one Q&A with Counselor senior editor Dave Vagnoni, Andrew also explained how Trimark was able to secure an apparel license for the 2010 Winter Olympic Games in Vancouver. "We figured out that what the Olympics wanted to do was build their brand," Andrew said. "We had a great time doing it. It also resonated back to what we're doing as a company, which is to make other brands predominant and not necessarily promote our own."
Counselor caught up with Andrew after the session to learn more about licensing strategies. Click here to watch.