Why Licensing Is the Secret Ingredient in Pet Product Growth
Are pet owners at risk of becoming less stylish… than their pets? From gourmet treats to luxury accessories, pet products are receiving a makeover, and brand licensing is behind it all. The benefits of licensing strategies for pet products are clear: licensees can expand their reach with a reputable brand on their product, and licensors receive a larger brand presence. However, a pet product with licensed content isn’t as simple as it looks. Behind a Star Wars collar, for example, lies a complex network of licensing agreements. From expired content to territory restrictions, it is easy to forget brand compliance.
Why Pet Products are Booming
In the wake of the pandemic, anxiety and economic uncertainty skyrocketed – and with that, so did pet adoption. According to the Washington Post, “more than 23 million American households” adopted dogs. Now, more than half the world is estimated to have a pet at home. Pets carry a large emotional attachment from their owners – they are part of the family. And when people spend on family, they spend big. Along with an increase in E-commerce shopping, a more accessible way of getting pet care information, and an expanding middle class, the pet product market is more appealing than ever.
Fetch for Licensors: Catch a Pet Licensing Deal
Brand licensing for pet products allows companies to expand their brands, characters, and other Intellectual Property into a high-loyalty, high-emotion, and booming market. Customers are loyal to the characters they grew up watching, and licensors are aware! Including fan favorite symbols, like Disney characters, onto pet products creates a nostalgic product that customers want in their home and on their pets. Licensees see the opportunity as a differentiated product to stand out in a crowded market and even attract new customers. Licensees view this as an opportunity for a differentiated product, allowing them to stand out in a competitive market and attract new customers. Wild Ones, for example, collaborated with Sweetgreen to create “Plants for Pups”, and Bark Box collaborated with Crocs to create their famous comfortable shoes for dogs.
Let’s look at an example: Disney x Phelps Pet Products is a unique licensing deal. Their partnership resulted in Disney Table Scraps, a collection of “upcycled” dog treats, branded with beloved Disney characters. The licensor, namely Disney, expanded its reach by tapping into the pet products market, enhanced its customer engagement, and increased its revenue from licensing fees. On the other hand, Phelps Pet Products boosted its product visibility by collaborating with a well-known brand and gained access to Disney’s loyal customer base.
The success stories of these collaborations come from a blend of emotional and cultural attachment that people feel towards the pet industry, but with every success story, of course, comes the legal and business side of things.
Licensing is Powerful – But Can Also Come With Risk
In the chaos of negotiating and brainstorming ideas, it’s important to remember the complexities of licensing agreements. Contracts contain information regarding where, when, how often, and under what format intellectual property can be used. A simple mistake of misusing the terms of the agreement doesn’t just affect the partnership, but can have long-term effects on both the brands’ reputations and financial repercussions.
When licensing gets messy, creativity also suffers. Imagine spending hours creating the perfect licensed pet product line, and later realizing you didn’t have the rights to use the mark, certain character, or image, or maybe sell the product in an unapproved location. All of a sudden, your dream collaboration can turn into a financial and legal nightmare.
Software, like FADEL’s IPM Suite and LicenSee, was made to help with these complex agreements, allowing licensing teams to create, distribute, and sell with peace of mind. For businesses looking to scale their brand collaborations, maintaining accuracy and compliance can be a significant challenge. Even with the best intentions, it’s easy to mix up terms, overlook critical details, or misinterpret agreements, especially when dealing with a high volume of partnerships. This complexity is compounded by the lack of a centralized repository for all collaboration agreements and the absence of robust technological solutions to flag potential misuses of terms or non-compliance issues. Your licensing software can be the source of truth, especially for licensees dealing with the all-forboding audit.
Ready to step up your licensing game? Speak to us and see how we can help your licensing business grow.
Take the Complexity Out of Royalty Management With FADEL
Managing royalties and licensing shouldn’t hold you back.
With FADEL’s IPM Suite and LicenSee Royalty Management, you gain end-to-end visibility and control, whether you’re licensing your IP or managing payments as a licensee.
Automate royalty calculations, ensure contract compliance, track usage rights, and generate accurate, audit-ready reports.
These powerful solutions are designed for both licensors and licensees, helping strengthen partnerships while reducing risk and revenue leakage.
Our other services include:
- Brand Vision: A brand protection tool that ensures licensing compliance by providing end-to-end visibility into rights ownership, talent contracts, and usage permissions. It safeguards brand integrity while optimizing workflows for marketing and product development teams.
- PictureDesk: A centralized media asset management solution tailored for image licensing and rights enforcement. It oversees image usage across teams, maintaining consistency, compliance, and alignment with brand guidelines.
When rights and royalties management becomes complex and high-stakes, count on FADEL to streamline operations, ensure compliance, and unlock your full revenue potential.