Car companies are increasingly leveraging their brands as part of “lifestyle” merchandising, and the results are big profits for Detroit automakers.
According to a recent report from Detroit Free Press, merchandise licensing deals for Ford and Jeep generate an estimated $1 billion annually. Companies are diversifying their revenue streams through an array of licensed products, including clothing, footwear, soap, LEGO sets, and powered vehicles for kids.
As one example, Ford’s collaboration with Dr. Squatch sold 40,000 bars of Bronco Bricc soap in just three days. Jeep and Ram brands under Stellantis have also thrived, such as with Jeep’s Merrell Moab boots or the Ram collection Rebel and Tradesman footwear in the Wolverine work boots lineup. Dodge’s streetwear collaboration with Warren Lotas, which features the Dodge Demon SRT, sold out in less than hour after it initially went on sale.
Ford has expanded its brand through various partnerships as well, such as with Euphoria star Sydney Sweeney’s workwear clothing line with Dickies and collaborations with Forever 21 and Zara. The company is also seeing success with children’s merchandise, such as ride-on vehicles inspired by popular models like the Bronco.
So far, Stellantis has leveraged over 300 licensees in 150 countries, selling merchandise ranging from clothing, to home decor, to remote control toys. The strategy has cultivated a strong brand affinity and generated substantial revenue, with licensing programs growing more than 100 percent since 2017. The trend isn’t unique to the Detroit automakers either, with Toyota getting in on the action with TRD watches and plans to expand its merchandise presence at retailers like Bass Pro Shops.
Meanwhile, General Motors also participates in the Detroit automaker merchandising trend, although details on the revenue generated were not disclosed. GM’s offerings include Cadillac and Chevy apparel and accessories:
“Licensing and merchandising does play a prominent role for GM and our brands, from our race fans at Chevrolet and Cadillac to luxury offerings for our buyers for Corvette and Cadillac,” said GM spokesman Sabin Blake, per Automotive News. “Each brand has a unique strategy and approach. While we do not share publicly revenue or sales information, we are pleased that consumers choose to buy our consumer goods to extend their brand experience.”
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Comments
Depends on the product. Most seldom cover the cost for the legal fees. The intent is yo control the name and image if it makes money it is a bonus.
You get a Lego made you make money. You get a decal made you are lucky to break even.
With out this the folks in China would. steal and make Cheap crap of anything and kill Brandin names and images. Even now they still steal things.
Hopefully that will change soon! That’s been happening even before we opened up trade in the 90’s… new tech makes it easier than ever. Have to include a difficult to make authenticity detail- hologram etc.
Creativity! Something draconian overlords feign and Americans reign!
*Europe too sometimes