JD Institute of Fashion Technology
Do You Require any License in Fashion Designing

There is more to the fashion industry than classic runway shows, celebrity trends, and new season fashion rollouts. Anyone who is looking to build their career in fashion may have to find themselves working on one side or the other of a licensed product agreement. Candidates should specifically understand the role licensing plays. It’s one of the major aspects to be kept in mind while pursuing a career in Fashion. 

How Licensing Works: 

One of the established designers or a company brand is defined as the licensor that offers its trademark to other firms that are making different types of products. The license, or second corporation, offers not only to produce but also to sell the new product lines.

Designers also explore licensing their brand names into similar product categories outside of fashion to extend their business prospects. This may include a wide range of shoes, as well as fitness, home, and beauty products. The original brand may be licensed to a third party that will manufacture, market, and distributes the products and goods under the brand name.

The more traditional approach to do this for the original brand is by retaining all the aspects of apparel designs and production, while also extending the licensee rights to manufacture and market even the non-apparel categories. Whatever may the business arrangements be, the consumers should always perceive the brand as one entity. This should be done with no distinction in quality and appeal between the licensed products and core brand they may purchase. 

Success in fashion licensing is only built by the perfect amalgamation of a successful original brand and a well-run licensing arrangement that are aware of their clear definition. It is very essential to have tight control over the design and quality of the products to preserve the brand image.

Benefits of Licensing: 

• Most of the fashion companies realize that properly done licensing offers a powerful way to grow brand awareness and build an image of their brand in the market. 

• This is not only applicable to the original core products but also for the expanded offerings in other segments. 

• The investments in the initial major products have already been made by saving on the cost of outlays for new licensed product lines. 

• Offering licensing to a third-party manufacturer gives the original brand access to another entity’s expertise and their various channels of distribution. 

• Certain product categories demonstrate the extended strength in product licensing sales, reflecting on the essential general market trends and guiding other designers to follow certain steps while considering their licensing options. 

• Major fashion brands extend their licenses to the manufacturers of unrelated products to ask them to serve as the extenders of the brand name into unattainable markets.

• License holders gain from associating their products with a well-known and influential brand, as well as the advantages that come with it.

Risks and Cautions Involved in Licensing: 

Designers who get themselves involved in these licensing ventures should be extremely aware that they are giving someone else a little control over part of their brand for any specific services and products involved. They should be mindful of developing an agreement with another entity based on careful consideration of every aspect that can impact the original brand and its business. It is very important to specify certain things in the agreement. This includes: 

• Information about specific products that are included.

• What kind of market distribution will take place? Will it be only domestic, only international, or a combination of both. 

• The details about the stores that will carry the products, be it online stores or retail stores. 

• What is the term of the agreement and whether it can be renewed from time to time? 

How Quality Control of the Products will be Maintained

The licensor has to perform extensive research while finding a partner company. This research is done to determine if they can make and sell the products of the original brand. The prospective partner is expected to demonstrate a good rate of success in their industry segment, delivering work on time and maintaining excellent relations with the customers.

Licensing in a Fashion Business is a Two-way Street: 

The ultimate success of any fashion business agreement depends on the degree to which it is mutually benefitting, workable, and rewarding for both parties. Naturally, each party will look for advantages in this agreement. It is very smart to draw an agreement that specifically works on the respective strengths of each company and look forward to protecting each of them from any harm. This is done to avoid any mismanaged condition that may arrive during the agreement. 

During times of disagreement, misunderstanding, or change of business status, even the best working relationships tend to become unmanageable. That time the license may simply want to terminate the agreement. Therefore, during situations like these a perfectly manageable fashion business agreement comes into play. 

Licensing apparel industry relationships are challenging business arrangements with a lot of outside pressures and considerations that can impact the businesses’ success. Despite their best efforts, one or both partners may prove unequal in their tasks or fail to perform their duties. That’s why a successful deal will contain an out clause or an escape mechanism depending on such incidents.

Career Opportunity as a Fashion Licensing Advisor:

Taking into consideration the risks and potential liabilities of a fashion business licensing agreement, a successful brand has to rely on a professional licensing advisor or agent. A professional adviser will be someone who has worked in the fashion industry for a long time and knows the value of terms like net profits, royalty payments, and fixed minimums.

Licensing does more than just building sales for a fashion brand. It generates new and expanded economic strength as well. It even opens various job opportunities for candidates who have done a fashion business management course from a renowned institute. We at JD institute offer our students a deeper understanding of the importance of fashion licensing in their fashion business management course. This opens up various career opportunities for any individual.