In this Modern Era, where everything is changing so rapidly, licensing is now a very popular concept being used by companies all over the world.
Sometimes, Companies manufacture all items themselves , other times, They may choose to allow a manufacturer to produce and sell the product under their brand name or give the right to use its Technology, Copyright and patent in lieu of a fee. This process is known as Brand Licensing, which enables the manufacturer (Licensor) to have a greater reach in short span of time with low investment and financial risk as Licensee has adequate knowledge of the local market.
According to a survey, Indian Appliances & Consumer Electronics (ACE) market reached ₹76,400 crores [US $10.93 Billion] in 2019. Appliances and Consumer Electronic Industry is expected to get double to reach ₹1.48 lakh chores [US $21.8 Billion] by 2025. This shows a greater scope for brand licensing in electronic appliances for the coming years.
Sale of Licensed consumer electronics has grown significantly worldwide and Manufacturers of consumer electronic products (Sony, Samsung, LG, Bajaj, etc.) including TVs , Headphones & smart watches can get a unique competitive advantage in market through brand licensing and helps Firm to identify opportunities and getting first mover advantage in this ever changing business environment and enables them to tap the untouched market by gaining access into new regions through additional distribution channels.
Brand Licensing allows licensors to explore new consumers & builds brand awareness across new retail touch base.