Brand Licensing: A Driving Force

One of the primary reasons for the success of brand licensing in automotive and motorsports is the strong emotional connection consumers and race fans have with these brands. Cars and motorcycles represent adventure and status, making them highly desirable symbols. By associating their brands with everyday products, these extensions generate additional revenue and strengthen brand recognition and desirability among consumers.

The automotive industry has witnessed a surge in brand licensing activities. Car manufacturers have realized the potential to extend their brand identities beyond the confines of their vehicles. Luxury brands like BMW, Mercedes-Benz and Audi have successfully ventured into fashion, accessories and home goods. 

Moreover, automotive brands have collaborated with lifestyle brands to create limited-edition vehicles or accessories. This cross-branding strategy leverages the appeal of both brands to attract new customers.

Like music, the automobile transcends every generation. From the legendary movie, “American Graffiti,” with its 1950s muscle cars to the current “Fast & Furious” franchise, the entertainment industry has always featured fast, powerful and exotic vehicles.

As a recent example, the film, “Ford v Ferrari,” is the true story of our client, Carroll Shelby, building a revolutionary race car for Ford to beat Ferrari at the 24 Hours of Le Mans in 1966. Shelby’s victory soon achieved legendary status, and that win, coupled with Shelby’s passion for building some of the best performance vehicles in the world, quickly became an aspirational brand for all. This, of course, led to a very robust brand licensing program that delivers best-in-class licensed products to consumers.

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Motorsports, with its adrenaline-fueled events and passionate fan base, presents a unique opportunity for brand licensing. Formula 1, NASCAR and our client, NHRA, are just a few examples of motorsport-sanctioning bodies that have successfully capitalized on their brand value. By partnering with licensees to create various products, these brands can leverage on the excitement and passion surrounding their events. Fans can purchase licensed merchandise, such as team apparel, collectibles and home décor products, to show their support and connect with their favorite drivers and teams.

Apparel and merchandise are the most common licensing categories in motorsports. Teams and drivers collaborate with apparel brands to create official merchandise, such as T-shirts, hats and jackets. These highly sought-after items serve as a tangible connection to fans’ favorite teams and drivers.

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For many muscle cars from the ’60s and ’70s, there continues to be a demand for using vintage logos, images and artwork. For our clients, NHRA and World of Outlaws racing series, for example, licensees have tapped into an extensive library of images, vintage and contemporary logos and artwork to create and deliver unique products to consumers who have an affinity for motorsports.

Beyond apparel, motorsports brands have ventured into other licensing areas. The gaming industry, for example, has become a major player in motorsport licensing. Official video games allow fans to experience the thrill of racing from the comfort of their own homes. These racing games, such as the “NHRA Speed for All,” featuring iconic tracks and drivers, have become popular among gamers.

Motorsports organizations have also ventured into the experiential market, offering fans exclusive opportunities to meet drivers, attend VIP events and even participate in driving experiences. As race fans continue to seek authentic experiences and personalized products, brands will have increasing opportunities to expand their reach through strategic licensing partnerships.

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While automotive and motorsports brand licensing offers numerous benefits, it also comes with challenges. Brands must carefully manage their licensing partnerships to ensure licensed products are consistent with their brand values and do not dilute their brand equity. The competitive landscape also requires brands to continuously innovate and create new and exciting products to stay relevant.

Despite these challenges, brand licensing has become a powerful tool for automotive and motorsports brands to expand their reach, generate additional revenue and strengthen their connection with consumers. By leveraging their iconic status and partnering with the right licensees, these brands can create a wide range of products that resonate with their target audience. As the global marketplace evolves, brand licensing will likely remain a driving force in the automotive and motorsports industries. 

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