Wednesday, July 24, 2013

Licensed Products


 
Mickey Mouse doll from 20s or 30s, most were not licensed by Walt Disney
 

Licensing means the renting or leasing of an intangible asset. This intangible asset could be anything from a cartoon character to a song or a logo. Think Mickey Mouse dolls, popular songs used in car commercials or products manufactured using sports or sports team logos. Licensing is big business as it allows the licensors the ability to market their product without sharing ownership.

 

Authorized retailers sell David Yurman
 
 
Probably one of the most common licensing arrangements in the jewelry industry is authorized dealers. This is where a licensee or owner of a particular brand allows retailers to sell their brand. Popular and noteworthy brands include David Yurman, Rolex watches and Pandora. While there are probably thousands of brands for sale in a jewelry store, having a big name brand adds prestige to the retailer.

 

Only buy a Rolex from an authorized dealer
 
 
This prestige can mean sales for the retailer and instill a sense of quality that will be associated with the jewelry store. Generally licensed brands come with strict rules and marketing restrictions. Authorized retailers must meet certain requirements, purchase a minimum quantity and maintain particular standards outlined in the agreement. Some are easy to meet, some are very difficult but the main reason is to maintain a quality standard associated with the brand.

 

A very copied brand, Pandora
 
 
This is where unauthorized retailers or outright counterfeiters can destroy a brand’s business and their reputation. Since unauthorized individuals do not have to pay a licensing fee or meet standard they usually sell their products for less. This dilutes the market and makes it difficult for authorized dealers to compete. So in order to maintain fairness always check to see if the product you buy is authorized. If the price seems too good to be true it’s probably not the real deal and may have unseen flaws that can cost you money in the long run. Remember authorized retailers meet high standards which translate to a quality product for you and a warranty.
 
Vintage is sometimes a safe bet, although know your product

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