Art Brand Licensing

June 16, 2008

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WHAT'S GOING TO TAKE OFF? What's going to flop? As with anything in the realm of art, it's hard to predict which art brands will click with consumers. But the most successful ones right now are the ones with retail savvy and broad design perspective. And while art licensing remains a niche business, the limited number of strong art properties in the current marketplace can command royalty rates on par with big entertainment licensors.

            Take that, Hannah Montana!

            "It's a small share, but it's an important one," said Stu Seltzer, a licensing specialist at Marketing on Demand, New York, who works with artists including Debbie Taylor-Kerman. Indeed, the quiet category has grown steadily in recent years, to $182 million in the U.S. in 2006,* or about 3% of total licensing sales.

            "It's relatively easy to launch an art brand at the licensing shows," Seltzer added. "Getting a deal comes down to gaining the attention of the greeting card companies, stationery companies, wrapping paper companies-and of course, the art itself."

            As the demand for art brands has grown, there has been a steady shift in distribution from independent gift stores and specialty chains to mass retailers. Which means that artists today must be able to develop a style that's both uniquely "artistic" and appealing to a wide audience.

       "I'm constantly walking the line between maintaining my look and style while moving forward with current trends," said Taylor-Kerman, whose whimsical characters and colorful designs can be found on Oneida dinnerware, Caspari greeting cards and popcorn tins at The Popcorn Factory. "I think that as an artist you have to stay true to who you are, but you also have to keep things fresh."

            Licensing agents say that artists must also be able to market their work effectively, for example by providing mockup drawings to prospective buyers that illustrate how their art will look in the context of the product being sold.

            "Someone with a total design perspective has a better chance of success than an artist with a finite portfolio. Either way, you have to have a strong book," said Alex Meisel, who runs a licensing agency in Simi Valley, Calif. One of his clients, Dena Designs, has built a $350 million licensing business in categories such as home decor, stationery, baby goods, crafts and apparel.

            Retail savvy is another key driver in this marketplace. Take Bobby Jack, the monkey character created by Han Lim Lee that now appears on a variety of apparel for tween girls. Says Frank Botarro, vp of merchandising and new business development, "Bobby Jack has customized artworks for different retailers to create more exclusivity and even does some retailer-specific print advertising. It tries to build financial and marketing strategies to support the needs of a retailer."

            Those strategies are crucial for art brands to survive in today's struggling economy, which has had a clear impact on certain art brand product categories. The once-hot crafts market, for instance, has cooled off. On the other hand, social expressions-comprised mostly of greeting cards, wrapping paper, gift bags, address books, invitations and stickers-is thriving.

            "The very nature of self-expression makes it a more viable category [during a recession]," said Meisel. "People are looking for cost-effective ways to create gifts. If it's innovative and it's at the right price point, it will drive sales."

For more LIMA coverage:
A note from Charles M. Riotto, LIMA President
2008 LIMA Finalists
Character Brand Licensing
Corporate Brand Licensing
Film, TV and Entertainment Brand Licensing
Sports and Sports-Themed Entertainment Licensing
Licensed Promotions
Art Brand Licensing
Retailer Licensing Programs