1. DIGITAL TRANFORMATION OF LICENSING
Charles M. Riotto, President
International Licensing Industry Merchandisers’ Assn. (LIMA)

2. DIGITAL TRANSFORMATION OF LICENSING
LIMA IS THE WORLD’S PRIMARY LICENSING TRADE ORGANIZATION
THE INDUSTRY’S MAIN SOURCE OF EDUCATION INFORMATION AND NETWORKING OPPORTUNITIES
OVER 1,100 MEMBERS IN 32 COUNTRIES
OFFICES IN CHINA, TOKYO, MELBOURNE, LONDON, MUNICH, MEXICO CITY AND NEW YORK

3. BRAND LICENSING IN THE DIGITAL ERA
LIMA’s website is the primary portal for global licensing industry news and information.
Tani Wong, Managing Director,
LIMA China

4. BRAND LICENSING IN THE DIGITAL ERA
WORLDWIDE RETAIL SALES OF LICENSED PRODUCTS IN 2015
US$251.7 BILLION
+4.2%
WORLDWIDE ROYALTIES FROM LICENSED MERCHANDISE SALES IN 2015
US$13.9 BILLION
+7.8%

5. THE GLOBAL LICENSING INDUSTRY
Estimated Retail Sales of Licensed Merchandise in 2015 (in U.S. dollars)
1. UNITED STATES
$138.0 BILLION
2. UNITED KINGDOM
$13.1 BILLION
3. JAPAN
$ 12.0 BILLION
4. GERMANY
$ 10.2 BILLION
5. CHINA/HK
$ 7.6 BILLION

6. THE NORTH ASIA LICENSING MARKET
Retail Sales of Licensed Products in Major North Asian Countries 2014 v. 2015
World Rank
Country
2015 Retail Sales in US$
2014 Retail Sales in US$
% Change #3
Japan
$11.95 Billion
$12.20 Billion
-2% #5
China & HK
$7.61 Billion
$6.14 Billion
+24%
# 17
South Korea
$1.72 Billion
$1.49 Billion
+15%
#34
Taiwan
$0.56 Billion
$0.45 Billion
+26%

7. THE NORTH ASIA LICENSING MARKET
Royalties from Licensed Merchandise in Major North Asian Countries
World Rank
Country
2015 Royalties in US$
2014 Royalties in US$
% Change #3
Japan
$694 Million
$704 Million
-1.4% #5
China & HK
$443 Million
$348 Million
+21.4%
#17
South Korea
$100 Million
$ 86 Million
+14%

8. THE NORTH ASIA LICENSING MARKET
PER CAPITA SPEND ON LICENSED PRODUCTS IN KEY NORTH ASIAN COUNTRIES (in 2015)
Country
Population
Per Capital Spend in US$
Japan
126 Million
$ 94.14
China
1,384 Million
$ 5.42
Hong Kong
7 Million
$54.32
South Korea
51 Million
$34.40
Taiwan
24 Million
$24.35

9. THE GLOBAL LICENSING INDUSTRY
Year over Year Regional Retail Revenues
(Millions USD)
Region
2015 Retail Sales
2014 Retail Sales
YoY Change
US and Canada
$ ,362
$ ,107 4%
Western Europe
$ ,560
$ ,760 8%
Eastern Europe
$ ,479
$ ,621
-1%
LATAM
$ ,597
$ ,414
-8%
N Asia
$ ,482
$ ,951 7%
SEA/PAC
$ ,415
$ ,649
12%
ME/Africa
$ ,000
$ ,132
-3%
ROW $ $
-10%
TOTAL WW
$ ,713
$ ,538
4.2%

10. 2015 North Asia Retail Revenue by Property Type
Property Retail Revenues (Millions USD)
Country
Total
Art
Celebrity
Ent/Char
Fashion
Music
Sports
Corp/Brand
Publishing
All Properties
Japan
$ 11,949 $
$ 137
$ 7,769
$ 1,305 $ $
$ 1,513 $
$ ,949
HK/China
$ 7,609 $
$ 188
$4,454
$ 1,552 $ $ $ $
$ ,609
S. Korea
$ 1,715 $
$ 43
$1,020 $ $ $ $ $
$ ,715
Taiwan $ $
$ 17
$ 324 $ $ $ $ $
$ 21,836 $
$ 385
$13,566
$ 3,150 $
$ 1,096
$ 2,795 $
$ ,836
Percent of Region
55%
58%
36%
57%
41%
77%
66%
54%
43%
35%
33%
49%
15%
18% 8% 6%
11% 7% 5%
12% 9% 2% 3% 4% 1%
100%

11. Split by Sales Outlet – Brick and Mortar vs On-line
Country
B&M
On-Line
China
70%
30% US
71%
29%
Germany
76%
24%
Spain
78%
22% UK
82%
18%
France
84%
16%
Canada
88%
12%
Japan
Mexico
92% 9%
Australia
95% 5%
Global

12. DIGITAL TRANSFORMATION OF LICENSING
Notes from Respondents to the LIMA Annual Global Licensing Industry Survey 2016 Report: There is an increased focus on licensing Digital Properties and the personalities emerging out of apps and other platforms. There is an eagerness to find brands that will reach the Millennial target. Many respondents referenced gaming as a growth area, both in the online and as casino sectors as buildouts continue in the U.S. and accelerated abroad.

13. DIGITAL TRANSFORMATION OF LICENSING
“Digital has clearly emerged as a licensing trend, changing the way in which entertainment is consumed globally. Video Games/Software/Apps, Publishing and Music/Video categories, taken together, now account for 13% of retail sales revenue, or US$32.7 billion.”
Source: LIMA Annual Global Licensing Industry Survey 2016 Report

14. DIGITAL TRANSFORMATION OF LICENSING
Retail Sales of Licensed Merchandise in China/HK
(in Millions of US$)
Category
2014
2015
% Change
Software/Video Games/Apps
$184
$213
+15.8%
Music/Video
$ 83
$103
+24.1%

15. DIGITAL TRANSFORMATION OF LICENSING
Our Panel of Experts Mr. Ron Johnson, Executive Vice President, Consumer Products, Promotion and Recreation, Viacom International Media Networks Ms. Leigh Anne Brodsky, Executive Vice President Discovery Global Enterprises Mr. Daniel Amos, Associate Vice President, Brand Development Beanstalk

16. THE GLOBAL LICENSING INDUSTRY谢谢