Total Licensing Winter 2007 - (Page 90)

Warning : session_start : The session id contains invalid characters, valid characters are only a-z, A-Z and 0-9 in /mnt/data/www.nxtbook.com/fx/config_1.3/global.php on line 9 Warning : session_start : Cannot send session cache limiter - headers already sent output started at /mnt/data/www.nxtbook.com/fx/config_1.3/global.php:9 in /mnt/data/www.nxtbook.com/fx/config_1.3/global.php on line 9 Warning : Cannot modify header information - headers already sent by output started at /mnt/data/www.nxtbook.com/fx/config_1.3/global.php:9 in /mnt/data/www.nxtbook.com/fx/config_1.3/global.php on line 10 TOTAL LICENSING By Charles M. Riotto, President International Licensing Industry Merchandisers’ Association LIMA www.licensing.org STILL UNDER DEVELOPMENT The second annual Shanghai International Licensing Show was held in November with exhibitors reporting mixed results. While many of the domestic agents and licensors remain enthusiastic about the future of the licensing business in China, it is clear that the concept of licensing is still finding its place as a business and marketing strategy on the mainland. Attendance at the three-day event was less than robust, but most of the exhibitors expressed satisfaction with the overall quality and decision-making capabilities of the attendees. It remains clear that there is still an ongoing need for education and information in the mainland China licensing marketplace, as well as relationshipbuilding with appropriate government organizations which still have a major say in the way business is conducted and the rate of expediency in which important decisions will be made. Accordingly, LIMA will be stepping up efforts in those areas in 2007 and beyond, including fostering working relationships with complementary organiExpo 2010 Shanghai China will be the first registered World Exposition in a developing country, a spectacular international gathering, attracting approximately 200 nations and international organizations , as well as 70 million visitors from home and abroad. zations and licensing-related events in the months and years ahead. One step in that direction was a networking event held on the evening prior to the opening of the show, sponsored by LIMA and the Bureau of Shanghai World Expo Coordination. Over 100 companies were in attendance, including significant exhibitors of the Shanghai Licensing Show and major Chinese manufacturers and licensees, as well as members of the media. Guest speakers, in addition to yours truly, included Mr. Zhang XinSheng,Vice Director of the Shanghai Economic Commission, and Mr. Chen XianJin, President of the Shanghai World Expo Group. Each of the speakers emphasized the fact that the 2010 Shanghai World Expo contained enormous brand value and business opportunities. Expo 2010 Shanghai China will be the first registered World Exposition in a developing country, a spectacular international gathering, attracting approximately 200 nations and international organizations, as well as 70 million visitors from home and abroad. This could potentially account for the widest participation in the history of the World Expositions. It was further noted that licensing would play an important role in enhancing the tremendous branding and business opportunities Expo 2010 provides. According to industry studies, retail sales of licensed merchandise on mainland China reached US$1.1 billion at the end of 2005, an impressive growth rate of 66.7% from 2001. As the rising star in the business of licensing, mainland China is now ranked as the second largest licensing market in Asia and one of the greatest potential retail markets. Still, an informal tour of retail venues in Shanghai showed a strong market for luxury branded merchandise, much of it licensed apparently conspicuous consumption is now the “in” thing among affluent Chinese , a few successful retail outlets dedicated to specific western entertainment characters, and not a whole lot more in the way of licensed merchandise. Clearly, as the middle class continues to expand its purchasing potential and becomes more aware of, and open to, western culture, the business of licensing will burst out in China. The question though is “when?” Unfortunately, I don’t have a crystal ball or a reliable ouija board to answer that question, but all economic, political and social factors seem to indicate that that day is close at hand. As such, LIMA will continue its efforts to provide information and education to Chinese companies with the foresight to seek out licensing opportunities, and to western companies seeking information and potential partners in this emerging market. Our plans for 2007 include: • a fact-finding delegation to Hong Kong in conjunction with the HK Toy Fair, to learn more about business conditions and opportunities • an increase in the number of educational seminars offered through our Shanghai office • the creation of a licensing certificate program specific to the China market • translation of licensing books and manuals into Chinese • and successful local business events as potential affiliates for future licensing trade events Our ultimate goal is to help our members get more licensed merchandise in front of Chinese consumers. I believe that the mature licensing business model in the western world could be greatly developed in China as well. We are not quite there yet, but surely we are moving, slowly but steadily, toward a greater understanding of the licensing business concept as a whole and the overall development of the industry in China. 90  Warning : Unknown : The session id contains invalid characters, valid characters are only a-z, A-Z and 0-9 in Unknown on line 0 Warning : Unknown : Failed to write session data files . Please verify that the current setting of session.save_path is correct /var/lib/php/session in Unknown on line 0 http://www.licensing.org

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Total Licensing Winter 2007

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