Local companies see benefit from brand licensing

Hong Kong- Local companies will experience a transition from manufacturing to brand licensing after last month's International Licensing Show in Hong Kong, which attracted 300 brands, according to Hong Kong Trade Development Council (HKTDC).

Ciaran Coyle (pictured), managing director of the Beanstalk Group (a brand licensing consultancy), said the key to brand licensing is to understand the consumer base and what the opportunity is in the market for them to want to buy the brand extension products in this market.

He believes Hong Kong's ties to the toy manufacturing business make it (HK) an ideal location to develop brand licensing.

But some experts who spoke at the fair pointed out that multimedia technology has transformed the licensing business in the last few years.

Online advertising, movie trailers and MP3 downloads are now considered as major licensing commodities and sources of revenue, according to FremantleMedia Enterprises.

Local Chinese products such as Tsingtao Beer, Haier and Lenovo have seized the opportunities provided by brand licensing to promote their products beyond showrooms and retail shelves.

HKTDC recorded 10,000 licensors, licensing agents, manufacturers and franchisers globally. Visitors from the Chinese mainland rose 28.6% compared to last year, while international visitors accounted for 40% of the total attendance.