Automotive Special Report: How Global Automotive Businesses are Taking Their Brands Off-Road

From the early days of model car kits to capsule collections, lifestyle accessories, video game appearances and collector’s items, automotive brand strategy has evolved over decades to adopt numerous touchpoints. One of the first corporate sectors to adopt brand licensing, automotive brands discovered a way to increase accessibility to aspirational, high-price products, showcase performance on a broader scale, nurture brand loyalty and increase consumer engagement outside their core business.

“Automotive brands were one of the first movers in adopting an always-on approach to consumer engagement,” says Ciarán Coyle, president, chief executive officer, LMCA (representing Castrol and Cummins in brand licensing). “They realized that the sale of the vehicle was just the start of the relationship and that, in addition to wanting you to buy your next car or motorcycle from them, there was a potential stream of commercial activity that could exist in-between – from selling accessories, service, parts, insurance, loans and credit cards to recommending other preferred partners in their ecosystem, including travel, hotels, restaurants and gas stations.”

By embracing strategic partnerships to enhance the lives of their customers, the automotive business began evolving that strategy to extend brands across countless consumer categories. Delving into the key consumer categories driving the brand licensing sector forward year over year we explore how the automotive market provides year-round engagement, from engineering solutions to video games.

Jeep x Vineyard Vines apparel collection, IMG

Brands Built on Trust

Driven by consumer sentiments such as loyalty, experience, trust, aspiration and nostalgia, the automotive brand licensing formula builds brand authority through licensed consumer products or extended engineering solutions.

LMCA developed a range of apparel products for Castrol, a leading global lubricants brand, and also executed brand licensing on a tactical scale, creating high-level automotive care products. Already recognized as a leader in high-performance lubricants with high levels of brand awareness and trust, Castrol consumers began embracing innovative products designed to extend the lives of their vehicles. Castrol met the needs of consumers worldwide through a hybrid of in-house development and external licensing partnerships focused on car maintenance, care and accessory offerings. Most recently, Castrol developed a global filters program that extends across four continents and five countries, creating a seamless, consistent brand presence for consumers worldwide in a program – due for launch in North America, Europe, LATAM and China in late 2024 – built through regional partnerships that tailor the products’ specifications and distribution channels to each market.

“In addition to the obvious extensions into lifestyle categories – including apparel, footwear and accessories – the most promising extensions are core categories where the brand may not have existing capability,” says Coyle. “Because these are core categories, the extensions feel intuitive to the consumer, making it easier for the brand to enter a particular market or channel. Thus, the Castrol brand may produce oil, air and cabin filters in-house in some markets and license the category in other markets to provide a seamless, global offering to the consumer and fans of the brand.”

Cummins, a primarily business-to-business brand built on world-class engineering, holds a strong consumer link through brand trust, which has led to consumer and workplace apparel from hats and work gloves to phone cables and car mounts. A 100-year-old U.S. brand well-regarded as offering the best engines and power solutions in the industry, Cummins’ North American licensing program is a B2C offering for the core consumer of Cummins-equipped vehicle operators. The program features lifestyle accessories, apparel and power solutions that enhance the in-vehicle experience. These products are strategically sold in channels frequented by Cummins owners, such as truck stops, travel centers and home improvement stores. LMCA developed a licensing program that addresses the lifestyle of Cummins core consumers, allowing for increased consumer touchpoints, market penetration and brand loyalty. By leveraging brand trust and understanding consumer lifestyles, automotive brands can take a lateral approach to brand licensing and create genuine solutions for customers that complement their core market position.

BMW 3.0 CSL 1975 Art Car and PUMA apparel capsule

Shifting Gears on Play

Now seen as a proven and established method of brand licensing in the automotive market, licensing automotive brands in toys and video games has remarkably impacted the sector – especially with aspiring owners and younger markets.

“Consumer engagement with automotive brands often begins at a young age with discovering their favorite vehicle in a movie, video game, toy car set or on the track,” says Andy Topkins, partner, Brandgenuity – brand licensing representatives of Nissan and BMW. “This brand admiration can grow over time to actually owning that iconic vehicle as an adult or accessing the brand via consumer touchpoints like event activations and races, consumer products or experiences via social media engagement and dealership engagements. Being part of a ‘club’ or ‘brand family’ is something that automotive brands can offer fans locally and globally with constant opportunities to engage via new vehicle launches, collaborations into new categories, events, news and anniversary milestones to celebrate.”

Early racing games introduced players to simplified versions of their favorite cars, giving them a taste of what it might feel like to drive these machines. Today, leading video game franchises like Gran Turismo, Need for Speed and Forza Motorsport offer high-octane simulations that allow players to experience various high-performance vehicles virtually with exacting detail. The Gran Turismo franchise has been particularly impactful, showcasing various brands, from Porsche and Ferrari to MINI and Toyota. By featuring licensed vehicles in a hyper-realistic light, Gran Turismo turned gameplay into an authentic experience, allowing millions of gamers worldwide to test drive and race hundreds of realistic iterations of rare, vintage, hyper, super and everyday car models.

“Need for Speed: Unbound” Nissan Skyline GT-R “Fast & Furious” edition

Similarly, Forza Motorsport and Need for Speed have formed collaborations with numerous car manufacturers, providing a platform where players can drive cars from brands such as BMW, Audi and Lamborghini. These partnerships have helped cement automotive brand status within gaming communities, making them a household name among younger audiences and aspiring owners.

“Electronic Arts features Nissan vehicles in the Need for Speed franchise, with the most recent title being ‘Need for Speed Unbound,’ released in 2022,” says Teri Niadna, managing director, Europe, Brandgenuity. “This game features multiple Nissan vehicles, including the world-famous 1999 Nissan Skyline GT-R V Spec in the original ‘Fast & Furious’ movie.”

Video game licensing significantly increases brand visibility and engagement, reaching millions of players globally. Gaming is particularly effective for targeting younger demographics, fostering brand loyalty from an early age. Moreover, integrating into digital platforms helps automotive brands stay relevant in an increasingly digital world, aligning them with contemporary consumer habits and preferences.

The toy industry has been another effective playground for automotive brands. These brands have found enduring appeal in miniature form, from die-cast models to interactive remote-controlled cars and building sets.

Mattel’s Hot Wheels and Matchbox have become household names, featuring detailed replicas of real-life cars that captivate children and adult collectors alike, working with leading automotive brands to achieve the most authentic product possible, from vintage lines to supercars.

BMW’s approach to engaging consumers from a young age is a testament to the power of toys in brand loyalty. BMW takes a long-term view of the consumer, hoping to reach kids and reinforce BMW’s positioning as the “Ultimate Driving Machine” to build a pipeline of future users for when they can afford their own BMW.

Collector and toy collaborations allow even the youngest fans to engage with their favorite car brands, building a connection that often lasts a lifetime. LEGO Technic has collaborated with automotive giants such as Bugatti and Lamborghini, allowing enthusiasts to construct detailed replicas of their favorite supercars and LEGO Speed Champions Nissan set is currently enjoying an extended run in the consumer market.

Put simply, the ability to race a BMW M3 or Aston Martin Valkyrie in “Gran Turismo 7,” customize an iconic Nissan in “Need for Speed: Unbound,” operate a meticulously engineered John Deere tractor in “Farming Simulator 22” or building a true-to-life LEGO set of iconic cars appeals to young enthusiasts and kidults alike, nurturing the aspiration, engagement and reach of the brand worldwide.

Cummins workwear and hat

Open Road Lifestyle

Automotive brands have also made significant strides in the fashion and lifestyle markets. Branded apparel and accessories allow enthusiasts to express their passion for their favorite car brands in their everyday lives. This strategy helps automotive companies transcend their traditional role, positioning themselves as lifestyle brands that resonate with a broad audience by leaning on brand elements such as heritage – such as Volkswagen or BMW’s iconic vintage range – or cutting-edge design that links seamlessly with product design.

“In 2024, BMW M Motorsport joined forces with PUMA for another exclusive collection of lifestyle products inspired by the design of a legendary BMW Art Car,” says Topkins. “The capsule collection celebrates the very first BMW Art Car in 1975, featuring the work of artist and sculptor, Alexander Calder. Calder mimicked an approach he adopted with his sculptures and mobiles, using intense colors and gracefully sweeping surfaces, which were then translated into a crafted lifestyle collection of a shirt, shorts, T-shirts, baseball cap and sneakers. As part of the Alexander Calder Art Car collection launch, PUMA hosted a special event at the PUMA flagship store in New York, featuring a display of the original Art Car.”

Another brand in the automotive market exploring authentic licensing programs is the iconic 83-year-old SUV manufacturer, Jeep (represented by IMG). The latest campaign collaboration with lifestyle apparel brand, Vineyard Vines, has brought forward a capsule collection built for summer adventures, covering hats, sweatshirts, shirts and shorts for men and women.

“In 1998, we followed our dreams and started selling ties out of the back of a Jeep Wrangler on Martha’s Vineyard,” says Shep Murray, co-founder, Vineyard Vines.

“We have been chasing our dream of Vineyard Vines in a Jeep since we could drive,” adds Ian Murray, co-founder, Vineyard Vines. “There’s no better feeling than being behind the wheel of a Jeep vehicle. Be it an old CJ-7 or one of today’s Rubicons, the feeling is the same: boundless opportunity, freedom ahead and the ability to chase your dream.”

The benefits of apparel and lifestyle licensing are multifaceted. They allow brands like Jeep, BMW and Nissan to extend their values into authentic consumer collections and products, moving brands from automotive to lifestyle by appealing to consumers’ aspirations and identities. For this reason, fashion, apparel, footwear and lifestyle accessories are not only one of the most exciting categories for automotive brand extension but also for brands worldwide.

“Traditional product extensions are typically within toys, models and video games,” says Niadna. “However, promising market opportunities are within the lifestyle space considering apparel, soft lines, footwear and hard accessories such as luggage and watches. For Nissan, we look closely at North America and Asia for lifestyle partnership opportunities and new interactive opportunities with studios targeting a younger and influential demographic. Nissan’s vast range of vehicles and legendary nameplates embodies its pioneering spirit of empowering mobility through innovative technologies, advanced design and uncompromising performance. The brand offers a vast selection of licensable IP, including current and vintage vehicles used in some of the best-known movie franchises. NISMO, Nissan’s motorsports division, celebrates its 40th anniversary later this year, a particularly exciting moment as it embodies the company’s rich heritage on the track. Moving the brand into lifestyle categories promises to appeal to existing and aspiring Nissan consumers. Brandgenuity will work with Nissan to develop the brand’s first-ever licensing style guide this year, which will focus on apparel and lifestyle categories.

“For BMW, we have developed an elevated lifestyle collection that features partnerships with market-leading global licensees, including PUMA for BMW M Motorsport apparel, Marcolin for eyewear, Nuna for strollers, Casetify for tech accessories and CPAX for high-end BMW-branded apparel stores in China ” adds Topkins.” We continue to look for these types of global players to round out the collection in luggage, home, watches and fragrances, among others.”

Automotive industry engages consumers worldwide, allowing manufacturers to extend their influence far beyond the sale of vehicles. Through strategic partnerships in lifestyle, gaming, toys and apparel, automotive brands have created multifaceted touchpoints that enhance consumer engagement and loyalty. By leveraging trust and aspiration, these brands have successfully transformed from automotive companies to lifestyle icons, resonating with audiences worldwide and paving the way for future innovation and expansion.

This story was taken from the August 2024 issue of License Global. Read the full issue here ...