Source chats to md EMEA David Williams to find out more about the agency’s ongoing plans.
If there were anyone left who still disputes the power and growing importance of brand and corporate licensing, one look at Global Icons’ eclectic, yet highly successful, portfolio of properties would change their minds.
From Turtle Wax, Kleenex, Sparco and Nokia, through to Vespa and Lamborghini and on to The Big Issue, Magic Chef, Emirates and the United States Postal Service, the agency’s roster is interesting, heavy hitting and, notably, in demand.
“Iconic, high quality brands with a rich history, which have moved with the times are always going to remain attractive to licensees and consumers,” David Williams, md EMEA at Global Icons says. “The top agencies all have areas in which they have perceived advantages over the competition: I don’t think many brands fall into the category of easily licensed, as our clients tend to know the value of their asset. For our part, we focus on areas where we believe we are strong, nurturing the brands over multiple years, avoiding short-term projects.”
Two big signings over the summer which particularly caught the eye were The Big Issue and Sparco, two very different brands but both bringing something extra to the Global Icons’ portfolio, as David explains: “[They bring] differentiation from anything else we have among our client base. Every brand we represent needs to have its own unique proposition, otherwise we would have some disgruntled clients.”
Both are looking to extend their awareness and brand credentials to attract new consumers, David explains, while also supporting the development of their core businesses. “If it makes sense within the context of each brand’s DNA and the agreed client strategy, we would want to develop those opportunities,” David continues. “As an example, Sparco stands for technical excellence in motorsport safety, which has allowed the brand to take its materials innovation credentials into new, growth categories such as high performance car seats, leading into gaming opportunities, where gamer comfort and concentration is important. North America is a big market for Sparco, which complements our strengths, where we have a capable team.”
Another new signing – Nokia – has given Global Icons the chance to target the growing category of the smart/connected home. “Nokia has very high brand awareness globally, which the consumer associates with trust, reliability and premium design quality,” David furthers. “As leaders in 5G technology, we are confident of success in multiple categories, including the rapid development of smart/connect home.”
Global Icons has clearly carved a successful niche, and David believes that the incorporation of genuine innovation into licensed corporate brands has become paramount over the last decade. “Prior to this, few brands placed innovation as their key driver,” he says. “This has driven up price points and reduced the volume opportunities, which means there are fewer licensees willing to make the investment in bespoke product. The market is tougher, as there are fewer distribution points for the higher quality goods being produced.”
David willingly admits, however, that the industry is challenging, with everyone in the business of managing risk and having been so for the last three or four years. However, he doesn’t think it’s entirely accurate to lay all the blame with Brexit: “Most of the retail structural trends were already in place; it’s heightened awareness, which means entrepreneurs aren’t trusting their instincts as much as they were. We are working with fewer, better quality licensees, so consolidation of the universe is a noticeable trend.”
Looking forward, and David is excited to introduce Fred Segal – the LA-based retailer Global Icons acquired earlier this year (see box out) – to the European market. He also has some key aims for the immediate future: “We have signed with some instantly recognisable brands in 2019 so the emphasis is on finding quality solutions across territories to ensure our clients’ faith has not been misplaced and we can deliver the retail solution for 2020.”
And what’s the longer term goal? “To stay relevant to the industry; whatever shape it takes over the next few years!” David concludes.
LA dreaming
Global Icons confirmed its acquisition of LA-based retailer Fred Segal back in March. A prominent purveyor of LA style and culture since 1961, the acquisition of Fred Segal came on the back of two successful years for the retailer.
September 2017 saw it open a flagship store on Sunset Blvd. in West Hollywood, as well as launch new stores globally in Taipei, Kuala Lumpur, Zurich, Basel, Lausanne and Bern, and achieve record sales at the LAX International Terminal store. In addition, a location in Malibu opened in April.
The additional investment and support from the worldwide Global Icons team will see Fred Segal continue its growth in three key areas.
First will be the expansion of the existing Fred Segal collection of apparel and accessories. Second, the opening of additional retail locations in international territories, bringing LA culture to new and loyal fans, with collections curated for the local markets. Finally, Fred Segal will look to grow its licensing across different verticals ranging from home décor to accessories.
From a European perspective, David explains that there are some key opportunities. “While the brand is very well known and respected in the US fashion industry, awareness elsewhere is low,” he admits. “Given the nature of our business and touchpoints in the major global consumer markets, it provides us with an opportunity to do what we tell our clients we are good at. Our objectives have been set and we are currently finalising the strategy to meet those challenges, which includes key European markets.”
This feature originally appeared in the autumn 2019 edition of Licensing Source Book. Click here to read the full publication.
