In the past month, three long-established, designer-led fashion and lifestyle labels whose founders are still active have come under new ownership. These types of deals can help solidify the designers’ future legacy and allow for additional near-term expansion, while allowing the founders to continue doing what they love and maintain a say in how the […]
Archive | Business models
Fashion Acquisitions Highlight Brand-Management Model
A raft of fashion brands were acquired by one of the major licensing-forward brand management companies in 2024, and the trend already seems to be continuing into 2025. The sheer number of such purchases is an indicator of the power of this long-important business model to rescue and right the operations of struggling fashion brands […]
Happy Returns For Former Retail Brands
Several formerly defunct retailers have announced relaunches, or expanded on recent relaunches, this year. Through a variety of strategies, their well-known IPs are coming back, both online and as shop-in-shops and/or standalone retail locations: Bed Bath & Beyond returned to bricks-and-mortar retail through partnerships with The Container Store and Kirkland’s, both announced in October. The […]
Hoping for Happily Ever After
Earlier this year, two licensors reworked their deals with important licensees, granting them perpetual licenses within their categories. This is a relatively uncommon deal structure where a significant upfront payment, typically in lieu of an ongoing royalty, gives the licensee ownership of their category indefinitely, with the IP owner retaining rights to the underlying brand. […]
A Potential Path to Prosperity
The luxury space has experienced a steady drumbeat of M&A activity this year. The sector has been troubled since the second half of 2023, when many players started to report declining sales and stock prices. While things have turned around a bit for some players in the first half of this year, growth overall has […]
Toy Trend Takeaways from Q2
By Karen Raugust on August 12, 2024 in Business models, Character/Entertainment, Licensing, Toys/Games
Second quarter financial results, released in July and August, of five of the major publicly traded toy and collectibles companies—Mattel, Hasbro, Spin Master, Jakks Pacific, and Funko—all showed declines (of varying degrees) in topline revenues and net sales during the period, compared to the same timeframe in 2023. The lone exception was Funko, which saw […]
Solidifying the Future Through Licensing
Transitioning to an all-licensing model has become a go-to option for fashion (and other) labels facing financial hardship. Most often this move comes after the challenged brand is purchased by one of the leading management groups, whose business model is to buy up struggling IPs and turn them around through a licensing-only approach. But it […]
Former Executives Flying Solo
Almost a half dozen new licensing agencies have formed in the last few months, many headed by big names in the licensing business who have recently left corporate positions with major property owners. Each claims a distinct positioning within the market: Last week, Robert Marick, most recently head of consumer products at MGM Studios, a […]
Strange Bedfellows No More
Toy companies are increasingly working with their direct competitors to refresh, extend, or strengthen their own brands. This would have been almost inconceivable in the past and shows how much the toy industry has changed over the past decade or more as players in this sector face numerous challenges: competition from video games, social media, […]
M&A À La Mode
This year has seen significant numbers of mergers and acquisitions in the global fashion industry, with much of the action centered in the luxury and/or direct-to-consumer spaces. Some of the reasons given for the high level of activity include consolidation in the digital-first DTC space; the need to strengthen omnichannel distribution capabilities; a wish to […]