Calvin Klein Successful Licensing

Calvin Klein successful Licensing

Calvin Klein most successful channel is licensing measured with/by performance of yearly sale. According to the annual report 2012, the income from licensing is over 35% of total revenue. It aggregates the results of its Calvin Klein licensing and advertising division into the Calvin Klein Licensing segment. Calvin Klein is acquiring around 60 licensees worldwide which operating by third parties of company's brand name.

First of all, licensing help to improve market share by increasing product categories. Licensees own the trademark for women's and men's casual wear and suit, intimate, jeans, sports wear, golf apparel, accessories, fragrances, home furnishings and so on. Various product lines can attract different kind of target customer. It help to enlarge the market range from casual wear to elegant, from middle class to upper class and the age range is from 14 to 50. Acquiring licensees give Calvin Klein an additional opportunity to grow the business.

Second, it helps to enhance brand image and deliver consistent brand image through licensing. In high-end fashion retailing, the brand image is one of the important element/qu ti reia that valued money. Calvin Klein builds their lifestyle through/by different kind of licensing products, eg: cosmetics, scarves, home items etc.

On the other hand, they make every attempt to protect the brand image through approval rights over design, production quality, merchandising, distribution and promotion, although they are not direct control the license. To consolidate the brand image, they keep a close relationship with their partner for better control., especially the best performance lines which called Calvin Klein Jeans and Calvin Klein Underwear acquired by Warnaco.

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Third, extensive network by licensing agreements and drive the brand reach globally. Warnaco is the largest licensee for Calvin Klein, they handled two largest Calvin Klein apparel categories - jeans and underwear. The licensing not only provide the trade mark for product but also set up retail store. Warnaco acquisition takes advantage of complementary geographic operations. License allows Warnaco to sell right product category in the right channel and expended worldwide. Warnaco's operations in Asia and Latin America enhance Calvin Klein's opportunities