Licensing – Innovation in Diversifying Revenue Streams

Reg&Co Ltd, sponsorship, brand partnership and fundraising consultancy, helping organisations realise commercial value. If you’d like to hear more about how organisations that are under revenue pressure are focusing on new revenue streams register to attend our event in London on 03rd October 2019, from 8am – 10am. 

Email; to register your interest.

Guest Speakers:

  • Rob Jewell, Business Development Director, Landsec
  • John Pizzamiglio, Lead for Advertising Strategy at TfL


“Licensing in the UK alone is an £11.3bn industry, growing at 4.5% per year: It’s a game-changer” Will Stewart, Point 1888

If you have a valuable brand or loyal audience it could be extended to create a branded product to realise new revenue. Successful brand extensions allow companies to diversify their offer, increase market share, and boost profits.  The existing brand serves as an effective and inexpensive marketing tool for the new product.

Approximately 90% of Calvin Klein’s revenue comes from the designer’s name being used under license on underwear, jeans, and perfume, the only merchandise they make is women’s apparel. 

This is a sustainable revenue stream, as, assuming it does well there are repeat revenues without having to sell ‘assets’ or inventory. Once introduced to market through physical retail or online or at events it requires relatively low account management.

Some great examples of brand extension include Nivea and CRUK sun cream, Oliver Bonas Innocent and Age UK and TfL and Adidas. Nivea is now the UK’s number 1 selling Sun Cream having worked with Cancer Research UK for many years, the partnership gives the product stand out and ‘approval’ and CRUK also enjoy the funding but also a marketing campaign around skin cancer that looks to educate about safe behaviour in the sun. 

‘Not all brand extensions are about driving revenue – they can also drive brand love and engagement.  Innocent partnered with Oliver Bonas to create a range of full size hats to drive awareness of their big knit campaign to a younger audience and raise an additional £26k for Age UK’. Will Stewart, Point 1888

Moving to generate new revenues to help combat the reduction of around £700m per year in Government Grant, TfL has focused on licensing among many other income-generating strategies.  Since March 2018, TfL has become one of the only transport authorities in the world not to receive a direct Government operational grant for day-to-day running costs.

One of the most high profile is the partnership with Adidas under license to create a series of 14 London Underground inspired trainers.  There was a launch for the shoes at the disused Charing Cross station and a Pop-up store in Shoreditch. The campaign created huge demand for a limited edition range, hundreds of millions of impressions and 350,000 pairs sold.

Disney and Primark, have also worked together on a range of merchandise under a license which has helped Primark increase revenues, even enjoying growth in a challenging retail market. They have created film-themed clothing, bedding, and whimsical homeware which give the retailer PR coverage and editorial and increased appeal.