When consumers buy products online or in a retail store, they generally assume that the products are the ideas of their manufacturers or distributors. This is often not the case. Instead, manufacturers license inventors’ products and market them in their established target markets. Product licensing benefits manufacturers in a number of ways, including reducing research and development costs, utilizing excess manufacturing capacity and staff capacity, and allowing the manufacturer to introduce more new products. in a shorter period of time. Licensed products surround us; Here are some examples of product licenses you may have come across recently.
Toys
Licensing is very popular in the toy industry as it allows toy manufacturers to introduce many new toys each year. Even toys based on popular movies and TV shows are licensed by their inventors. You may see licensed Batman Begins, Star Wars, Harry Potter, Spongebob Squarepants, and Shrek toys at your favorite department or toy store.
Table games
Board games from popular companies like Hasbro are often licensed from their creators. This has several advantages for board game companies. They can bring new games to market more quickly than their competitors and can also reduce research and development costs, as board game creators generally do their own testing and prototyping. Board game creators benefit from licenses because they are not required to deal with the marketing and distribution of the games they have created. This leaves more time to create and test new games that can be licensed to other manufacturers in the future. Most likely, many of the board games in your home or local recreation center are licensed.
Action figures
Action figures are generally based on movie and television characters. Good examples are Superman, Spiderman, Batman, He-Man, and GI Joe. Most of these action figures are licensed and distributed by manufacturing companies with broad market reach and excellent manufacturing capabilities. This gives product creators the time to create new products rather than spending time figuring out how to market and distribute products that they have already created. Product licenses also benefit action figure manufacturers. These manufacturers can capitalize on the popularity of movies and television shows to generate more sales. The licenses also allow manufacturers to introduce these action figures without spending a lot of money to test and develop the products in-house.
Video game
Video game makers also take advantage of licenses when creating video games for the adult and child game markets. Video games are much easier to sell when they contain recognizable characters from movies, TV shows, comics, and cartoons, which is why video game makers often license popular characters and use them in new video game offerings. This gives the manufacturer an advantage in marketing and selling its new video games to both children and adults. Licensed products surround us in the marketplace and provide excellent forms of education and entertainment. The best part about these licensed products is that everyone involved wins. Creators are compensated for their products, manufacturers can cut costs and remain competitive, and end users can continue to buy new products for educational and entertainment purposes.