The Q&A and sidebar discussions after my presentation at last month’s LIMA Retail & Brand conference in New York showed that the future of DTR (direct-to-retail) brand deals is a burning issue in the licensing community just as it has been for national brands – and for good reason. “DTRs” not only diminish or, in some cases, eliminate the role of licensees, they often favor pure brand marketing firms over traditional licensors.
But as threatening as DTRs may seem, retailer-to-retailer deals (which I call “RTRs”) have the potential to become a far greater menace, as retailers become more determined than ever to see their private brands proliferate and their owned brand investments pay off. RTRs allow retailers to expand and control distribution of their private brands, which actually monetizes their brands’ equity while building it at the same time. What’s not to like?
Are you a supplier, brand, licensor, agency, or retail consultancy? Want to learn what these and other retail and brand dynamics mean to your retail positioning? Contact Carol Spieckerman directly.