[News Terms] Do You Know What a 'License Brand' Is?

CNN, Kodak Enter Fashion Industry Based on High Brand Awareness
Attracting Consumers with Unique Images and Stories

[Asia Economy Reporter Seunggon Han] Recently, it has become common to see people wearing clothes with the CNN logo on the streets. Not only CNN, but there are also garments featuring the BBC logo. Additionally, there are brands like Kodak, Discovery, National Geographic, and Tottenham Hotspur, where football player Son Heung-min plays. Although these are industries unrelated to fashion, such as news channels, they have entered the apparel industry through licensing agreements.

This is called licensed apparel or licensed brands. It is a strategy of paying royalty fees to borrow the name of an already successful brand. The advantage is that you can use a highly recognized name as it is. Since the story and content associated with the brand can be directly reflected in fashion, it is sometimes said that you wear a story, not just clothes.

For example, the 'Kodak 35mm' and 'Kodak Brownie,' famous for their lightweight reputation, were directly referenced in creating lightweight jackets. Discovery and National Geographic, which explore remote areas, have infused the spirit of adventure into fashion. They can be seen as urban explorers of sorts. Sports brands like MLB or NBA can give the wearer a sense of freedom through the clothes.

Photo by CNN Apparel

Consumer response has not been bad either. Kodak has steadily grown since its launch in February 2020. Currently, Kodak Apparel operates 99 stores nationwide. CNN Apparel was launched in August 2021 and now operates 29 offline stores nationwide along with an official online store.

On the other hand, some companies have expanded their traditional business areas into licensed apparel. Cowell Fashion, which distributes famous global sports brands like Adidas and Puma domestically, secured the license from the International Federation of Association Football (FIFA) and has been expanding its business by opening offline stores since July last year. They have also signed export contracts with seven Middle Eastern countries including the United Arab Emirates (UAE), Saudi Arabia, Kuwait, Qatar, and Egypt, planning to expand FIFA business globally.

The Samsung Fashion Institute analyzed, "Licensed brands enter the market with already well-known and familiar brand names and logo play. The advantage is that they quickly establish themselves in the market based on the brand’s high recognition."