LIMA Report Spotlights $241.5 Billion Global Licensing Business

NEW YORK: The International Licensing Industry Merchandisers’ Association’s (LIMA) first annual Global Licensing Industry Survey reveals that the market for products bearing the trademarked names and likenesses of cartoon characters, corporate logos and brands, major sports teams and more generated an estimated $13.4 billion in royalty revenues on $241.5 billion in retail sales in 2014.

Character and entertainment was by far the most dominant category, with more than $107 billion. This accounts for 44 percent in retail sales, and was more than double the next highest category, corporate trademark ($53 billion, 22 percent). Fashion, with $29 billion in estimated retail sales or 12 percent of the total, was third, followed by sports ($26 billion, 11 percent), publishing ($12 billion), collegiate ($4.6 billion), celebrity ($3.3 billion) and music ($2.3 billion).

North America was the most dominant region, with more than $144 billion in retail sales, nearly 60 percent of the worldwide total. Europe, with more than $57 billion in retail sales, accounted for just under one-fourth of the total global market. Asia, with its large and growing population, accounted for nearly 10 percent of total retail sales. A key finding is that, driven by the impact of digital product distribution and overall growth in e-commerce, the industry is becoming increasingly global and much of the new opportunity will come outside the saturated North American market, specifically in the Asia-Pacific Region. The proliferation of broadband connections and the strength of Chinese e-commerce company Alibaba resulted in online sales accounting for 33 percent of retail sales of licensed product in China, the highest in the world.

“LIMA’s first-ever global survey clearly shows that the licensing industry is alive and well, as licensing continues to be a major marketing and retail force around the world,” said LIMA's president Charles Riotto. “We’re pleased to provide LIMA members with our most broad-based and comprehensive report to date, which they can use as an excellent and relevant tool to develop effective marketing plans to help them establish and build their brands in ways that are most advantageous to their business and bottom line.”