Retail Merchandiser - September/October 2011 - (Page 54)

50 Licensing | Influential Brands In Electrolux We Trust Electrolux’s brand names, with their hundreds of combined years of familiarity, bring a level of trust that money can’t buy and that pay off in higher sales and margins. With brand names like Electrolux, which originated in 1909, or AEG – a global brand that was established in Germany in 1887 – Electrolux Global Brand Licensing has been offering companies brands with centuries of performance since 2007. “To me, the brand name brings trust,” says Matt Young, head of global brand licensing for AB Electrolux. “People are going to buy things that they trust in. When you have a brand name that consumers associate with high quality, trust is the key element that gives you the extra margin.” Retailers can obtain more sales and bigger margins with brand names, Young declares. “You go in with a house brand or an unknown brand with no history behind it and no story to tell – without those things, people aren’t will- ing to pay the extra $2 to $3 for a product,” he asserts. “If you go in with Frigidaire, you have a story. You don’t have to worry about building a brand. You can get more money for it, and obviously, with what’s happening with the world economy, trying to create your own brand in a retail environment is not necessarily cost-effective.” For manufacturers and marketers, a well-known licensed brand can open the door to new retail channels. “It offers the opportunity to go into different price points, and in some cases, it offers opportunities to give a partner of theirs exclusivity,” Young points out. “Everybody is looking for something different to put traffic into their stores. By being able to offer a wide range of brands and something exclusive to you, it gives the retail- Matt Young, head of global brand licensing Headquarters: Stockholm, Sweden Projected 2011 retail revenue:: $2.8 billion Year Established: 1909 ers an advantage. So the angle we look for and that offers opportunities is to offer a brand that gives our partners a chance to maximize their abilities to grow sales and increase their profits.” INCLUDING THE KITCHEN SINK So far, that strategy has worked well for Electrolux Global Brand Licensing. Licensing fees for its stable of 50 brands are up 20 percent in 2011, which Young attributes to the success of the company’s partners, new contracts and new 1877 1887 1908 The predecessor to AEG is founded in Berlin Frank Gibson becomes Gibson is founded by by Emil Rathenau, who, sole owner and soon the Danish immigrants with patents from company is making ice inventor Thomas Edison, manufacturing electric refrigerators with produces electric refrigerators. wood cabinets. light bulbs. 54 September/October 2011 1909 Electrolux is founded in Sweden producing lighting products. 1925 Axel Wenner-Gren, a Swedish businessman, introduces the first vacuum cleaner (model V) and the absorption refrigerator.

Table of Contents for the Digital Edition of Retail Merchandiser - September/October 2011

Retail Merchandiser - September/October 2011
Will mCommerce Make Black Friday Green?
Ho, Ho, Ho!
The Look
Category Insight
Back to Business
PGA Tour
Kathy Ireland Worldwide
Ludorum - Chuggington
Monopoly - Hasbro
Coast Guard Exchange System
University Book Store Inc.
U.S. Cavalry Store
National Cattlemen’s Beef Association
Chino Valley Ranchers
Freeman Beauty Labs
New & Noteable

Retail Merchandiser - September/October 2011