Monday, September 16, 2019

Thailand sets world-beating pace of 26% growth in licensing market THE NATION

Apr 05. 2017
Facebook Twitter

By The Nation

1,101 Viewed

GROWTH IN Thailand's licensing market - 25.9 per cent in 2015 - was the fastest in the world, and at Bt18 billion, it ranked 37th globally, according to the International Licensing Industry Merchandisers' Association (LIMA)

For a brighter future, the country should develop its own unique story for successfully accessing the global licensing market, Lima said.

Charles Riotto, president of LIMA, the trade organisation for the global licensing business with over 1,100 members worldwide, said in a special lecture at the Bangkok International Digital Content Festival that licensing is a powerful tool for marketing and makes people realise more about brands. 

If successful, it will play a significant role in generating more income and strengthening customer's loyalty to the brands.

According to the global licensing market survey completed in 2015, the market reached US$251.7 billion, or more than Bt8 trillion, making it a giant business in the world. 

Copyright owners rejoiced in collecting over $13.9 billion in fee and licensing rental income.

The United States and Canada are the biggest with 58 per cent of the global licensing market, while Southeast Asia including Australia and New Zealand accounts for only 3 per cent. 

However, Southeast Asia's growth rate of 12 per cent is very satisfying, in contrast with other regions that are going to recede with only single-digit growth.

Thailand has Disney Company to thank for the leading growth rate, due to the firm's heavy expansion in the country.

"This is a good opportunity for drawing more attention from the others accessing the Thai market.

"There is big room to play in, judging from the amount of spending for licensing products at only $7.62 per person in Thailand, compared with $120-$180 per person in Singapore and Australia," he said.

There are over 20 types of licensing items, but the biggest is entertainment with 29 per cent of the market. 

Disney is the biggest player in entertainment with an 17-per-cent share of the total market. The other big items are fashion and sports.

Thailand has developed a successful digital content industry, as many companies can licence cartoons and sell copyrights to international markets. 

Bloody Bunny, created by 2 Spot Communications, has extended its business to Line stickers and Bloody Bunny & Friends Ca, while Pang Pond from Vithita Animation has progressed to three-dimension animation and other licensing products.

"The licensing industry is the 21st century business to make it continually grow. Licensed products are everywhere and have already become things for daily life. 

"It also helps increase income to the company and has a big influence on customers' consumption," he said.

Kris Nalamlieng, managing director of 2 Spot Communications, said digital content entrepreneurs have seen the opportunity to reap more income from licensing and many of them have a good capacity to do so.

However, government policies are needed to support and facilitate those companies to gain more market share from the global licensing business. 

Social media is a way to let the world know more about Thai licensing items.

Tags:
Facebook Twitter
More in Business
Editor’s Picks
Top News