Licensed goods are able to command a retail price premium in the U.S., despite the fact that licensed merchandise sales have been weak since the mid-2000’s.
The 2012 research used a baseline study conducted in 2009, followed up with ongoing monitoring. The Licensing Letter concludes that the overall average price differential is 32.9%, suggesting overall strong brand value. The study also points out stark differences between product categories, with health and beauty brands the top value generator, and property types, with sports licensing on top.
The study examined 338 pairs of products, comparing licensed items to their closest non-licensed equivalents. This methodology may understate the average difference and may not reflect accurately some product types. For example, as the researchers point out, “it is difficult in the designer apparel sector to compare a licensed designer item to a non-licensed equivalent,” due to unique design elements.
The proprietary research is available from EPM Communications. Click for more information.