New Opportunities

With more than $15 million in retail sales every hour (according to the International Licensing Industry Merchandisers' Association) licensing is huge business. And in the gift and stationery industries, the art licensing segment has a large role. Of course, art licensing is nothing new in this market. After all, artists such as Mary Engelbreit and Warren Kimble have been mainstays for a decade or more, with their artwork gracing everything from calendars and cards to pillows and purses.

But artists like Engelbreit and Kimble are primarily illustrators and painters. In today's marketplace, where the focus has shifted to an emphasis on lifestyle, their product mix is not resonating with customers as strongly as it once did.

“Five to ten years ago, artists like Thomas Kinkade, Mary Engelbreit and Warren Kimble dominated the marketplace,” notes Mark Timm, president of Grace Licensing. “They're still out there, but at a fraction of what it was. There's a big transition going on.”

New licensed art brands are emerging to fill the void. And these new brands are coming — not so surprisingly — from within the gift and stationery industries. Companies known for high design are expanding their lines with licensed art, and designers with established lines are capitalizing on licensing to grow their brand identity.

Licensing allows designers to spread their wings, stretch their creativity and translate an established vision into product categories where they don't currently manufacture. For their licensees, there's also added value.

“[Licensors] have tremendous credibility in their own right as designers and manufacturers. That lends credibility to the people they partner with,” says Timm. Experienced licensors know what it takes to make a design work and bring a product to market.

These licensors are beginning to make their mark on the gift and stationery industries. Who hasn't noticed the growing presence Anna Griffin's name associated with C.R. Gibson and Lenox? Or Vera Bradley teaming with Lifeguard Press and Sadek? And, of course, April Cornell with Crazy Mountain and Silvestri? On a more modest level (for the moment), D.L Rhein, Lotta Jansdotter and even Royal Doulton are growing into the licensing business.

Dennis O'Brien, director of product development for C.R. Gibson, Nashville, TN, explains, “Today, art licensing is really two different things. One is the 'art,' and the other is a 'brand.' Art is just designs and patterns. The brand — whether it's Anna Griffin or Waverly — tends to be more recognizable. And the more recognizable, the more it pulls at retail.”

In today's highly competitive marketplace, specialty retailers need all the help they can get to pull in sales. Licenses of established brands come with a built-in buying audience that is primed to snap up new products featuring the designs they love. And by expanding into new product categories, designers can draw new customers for their established merchandise.

“Working with a known brand, there's more awareness with the consumer, and that awareness works to the advantage of the retailer. It's all about giving the retailer a way to make a statement,” remarks O'Brien.

Being able to cross-merchandise different licensees of a licensed art brand also makes a statement — and makes for a winning situation for everyone involved.

Even without design/brand recognition, art licensing opens new avenues for retailers, allowing for the creation of specialized products that reflect current color and design trends. Such designs help retailers tap into a consumer's sense of style. Today's successful artists are not just licensors; they are collaborators and partners with their licensees.

“The goal is to create 'retail opportunity',” notes O'Brien. “It used to be that an artist sold the art to a company. But that's changed. Now, [the artists] are more likely to license the design. That gives us as the licensee more flexibility. With licensing, the artist is in the loop, and there can be more back and forth in adjusting the art to make it work with the product. There are more possibilities. For example, if the artist has drawn a tulip and we need an iris, they can make it work for us.”

For licensors, there is another goal as well: to bring something fresh and special to the marketplace. “I know that there are many more things in me that I can create [beyond my own line of belts],” remarks Deborah Rhein of D.L. Rhein, Los Angeles. When it comes to working with licensing partners, Rhein says, “I look at each company and think about what I can create for them. I create what to me is beautiful, what people will buy, and what I love.”

With an outlook like that, there's a lot more room for growth in art licensing, especially in stationery and gifts. As Dennis O'Brien so aptly puts it, “We all know in this business, it is the never ending search for 'What's new?'”