Their Stardom to Sell Products How Talent Can Capitalize On
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How talent can capitalize on celebrity their stardom to sell products licensing PRESENTED BY P.1 PRESENTED BY SPECIAL REPORT | FIRST EDITION Learn From the Stars Perfecting the Art of Merchandise Monetization here may be no greater sign of the power chandising options. It’s a trend that’s been fueled by of stardom than celebrities’ ability to the rise of social media, which enables talent to con- extend the love their fans have for them nect with their fans in a way that just wasn’t possible to products far beyond the content they 10 years ago. T produce. It’s all the more remarkable But there’s another, less appreciated trend powering considering this business remains a potent revenue the licensing boom: software to help manage the com- stream for icons of all kinds long after they die. plexities of licensing, like RoyaltyZone, a product from Celebrity licensing is certainly not a new enterprise, this report’s sponsor, City National Bank (though the but as we delve into the three case studies featured in company had no hand in shaping its editorial content). this report, it’s become something of an art form. Thanks for enjoying this latest VIP report. There’s There’s no one tried-and-true path, either. The a lot more coming ... relevant to your own business. three well-known personalities featured in this report were chosen because they exemplify distinctly dif- ferent stages of the entertainment continuum: Steve McQueen hails from cinema’s storied past; Bethenny Frankel is a present-day TV icon; and Lauren Riihimaki represents a digital future still taking shape. No talent Andrew Wallenstein worth his or her salt nowadays isn’t exploring mer- Co-Editor-In-Chief, Variety P.2 PRESENTED BY In This Report CASE STUDY #1 CASE STUDY #2 CASE STUDY #3 ABOUT BETHENNY FRANKEL STEVE MCQUEEN LAUREN RIIHIMAKI THE AUTHOR P.6 P.9 P.12 RANDEE DAWN is n “Real Housewives of New n Graced the silver screen as n Started out as a teen a veteran journalist, York” breakout star the embodiment of blue- posting YouTube crafting fiction writer and a n Created Skinnygirl eyed swagger videos as LaurDIY co-author of The Law Cocktails with the motto n After his passing, a new n Now lovingly dubbed the & Order: SVU Unofficial “Drink like a lady” law made his image Millennial Martha Stewart Companion. More at: n Runs her own licensing, marketable, and the likes n Branched out from DIY RandeeDawn.com. show despite a plethora of Absolut, Triumph and accessories to dog toys, of agency offers Barbour came calling. athleisure and PJs n Steered the Skinnygirl n Estate’s continued success n Landed a kids craft show brand into the zeitgeist proves legacy is timeless on HBO Max P.3 PRESENTED BY Stars With Skill Are Licensed to Shill or as long as there have been products to sell, there have been celebrities to stand behind them. Mark Twain was one of the earliest American endorsers, affixing his F brand to everything from communications technology (think fountain pens) to tobacco (think corncob pipes), noting that “many a small thing has been made large by the right kind of advertisement.” So it goes in 2020. Licensing is big business — $293 billion big last year, according to global trade organiza- tion Licensing International — and while the celebrity corner is just a tiny percentage of the whole (2%, or $4.79 billion), the numbers are rising, up 2.67% just from 2018. Increasingly, stars look beyond their day jobs to a 360-degree view of their future, and for the right personalities, that thinking can lead to a bevy of branding deals. Done well, there are benefits on all sides. Celebrities veer into new fields, while consum- ers, thirsty to connect with the folks they follow, look FRANKEL: JAMIE CODY FRANKEL: JAMIE to those products and services as social lubricants. P.4 PRESENTED BY Nowadays, both sides of the coin are savvier than units (SKUs). In part that’s thanks to social media, a ever. The populace, well acquainted with the nature of relatively new metric that can yield demographics and being bombarded by marketing, has turned away from “Consumers have ways steer partnerships. Of course, COVID-19 has upended traditional spot advertising, with a 2017 AdReaction it all, from manufacturing to marquee value to where survey by market research leader Kantar Millward to see into celebs’ lives, consumers shop (online rather than brick-and-mortar Brown, finding some 69 percent of global Gen Z con- whether real or imagined ... stores). To Brochstein, the pandemic has “ratcheted sumers actively avoid ads. Meanwhile, many celeb- up the need for authenticity or transparency.” rities have learned the hard way that a poorly paired They can sniff out anything Strand echoes the unique considerations of the licensing deal can not only fail to generate revenue but inauthentic.” day, even for stars with proven bankability. “People damage their overall image. still have needs and wants,” he says. “Today there’s a “Today’s buzzwords are ‘authenticity’ and ‘trans- ROBERT STRAND, Partner at Blake Project lot more fear in our society, and if a celebrity can lend parency,’ ” says Licensing International SVP Marty their voice to dispel fear or inspire someone, it will in- Brochstein. “Consumers have ways to see into celebs’ crease the emotional connection with consumers and lives, whether real or imagined — certainly more than how they see that celebrity in their lives. Then it’s up at any other time — and they can sniff out anything to the manufacturer to bring a physical representation inauthentic.” Robert Strand, partner in brand consul- of that into people’s homes.” tancy the Blake Project, agrees. “Consumers can smell edition capsule collections and collaborations with Regardless of the state of the world, authenticity fake pretty quickly. They need to see a real connection. department stores. Startups may offer equity rather rules. Celebrities and their reps calibrate what they’ll Sometimes, the consumer is smarter than we give than cash to get a personality to support their product. promote, how they’ll promote it and how closely it them credit for.” “Some people see [licensing] as an extension of hews to how they see their public persona. Each cam- There’s no guaranteed right way to get a licensing their career,” says Mike Williams, co-chair of boutique paign is a unique fingerprint of the star attached to it. deal done, though Strand suggests some key steps for law firm Frankfurt Kurnit Klein & Selz’s entertainment Self-made stars à la Bethenny Frankel find a niche the company and the personality: priming (launching group. “So once they stop acting or modeling, they and apply it to wide-ranging products, while burgeon- a discovery phase to gauge programs and strategies), have a brand they can build on. It’s a way they see of ing social media stars such as Lauren Riihimaki — aka finding (targeting the right celebrity or manufacturer), creating value in the work they do.” But determining LaurDIY — create a persona that blends seamlessly binding (honing the contract so the rubber can hit the what works remains elusive. Key performance markers with being a saleswoman. And then there are de- road) and minding (overseeing all the details, from en- are gauged, but sometimes the goal is just to push the ceased celebrities, who are no longer cut out of the suring checks get sent to evolving a product one-shot brand while taking a long-term view on actual dollars. licensing game. Steve McQueen, for instance, has fam- into a partnership). Still, every “activation,” or official Money is never not an object, but an investment in ily and industry experts guiding his estate to continue product launch, comes with its own nuances. a celebrity brand with low payout early can become mining his “eternal cool” status. Not every celebrity is suited to licensing. When the more lucrative in a star’s second or even third act. Arguably, the desire brands have to hitch them- products being hawked are tightly woven into a star’s Still, numbers can be hard to track down. As Broch- selves to a star is as strong as it was in Twain’s time, brand, the hours devoted to making them a success stein notes, there’s a lack of clear financial reporting though the nuances of 2020 licensing are undoubt- can detract from the time needed to do the thing that in the industry overall. “Nobody has to tell anybody edly beyond even his imagining. “Now, celebrities are made a celebrity famous in the first place. This can anything. These are all private deals — and in house.” realizing that with access comes power to cut out a lot lead to “pseudo-licensing” deals that walk the line be- And yet there’s more data than ever available for of the layers and speak directly to their fanbase,” Wil- tween full license and endorsement, such as limited- those in-house accountants tracking the stock keeping liams says. “That’s something we haven’t seen before.” P.5 PRESENTED BY CASE#1: STUDY BETHENNY FRANKEL CASE STUDY #1 Bethenny Frankel // STEVE MCQUEEN LAUREN// RIIHIMAKI // f dictionaries included a photo next to the potential trending opportunities to enhance the com- phrase “force of nature,” they would be well pany’s value. “I’ve learned a lot about this business TIMELINE advised to use Bethenny Frankel’s image. over the years,” she says. “Partners say celebrities slap Whether you know her from her 2005 entrée their names on brands and don’t want to back it up.