Consumers love buying everything from T-shirts and sweatshirts to Apple ( AAPL) iPhone cases to home decor with their favorite college team's brand. TheStreet took the opportunity to speak with The International Licensing Merchandiser's Association's senior vice president Marty Brochstein about what it takes for a small retailer to get in on this profitable market. (Full disclosure: This reporter is a Wildcat. I went to graduate school at Northwestern University.) Why is collegiate licensing so hot and how has it been essentially "recession-proof"? Brochstein: I guess I should start with a rather basic statement which is whether you're licensing, whether you're a manufacturer that is licensing in a brand or if you're a brand owner and you're licensing it to somebody else, whatever size the brand is it's built on emotion. The essence of any brand is that it evokes something. If you're looking at a brand potentially to license in, if you're a manufacturer and you make widgets and you're looking to license in a particular brand, you have to evaluate what that brand brings to the party. A customer who is a Northwestern alum, I'll presume that they have some warm feelings toward it, so they are going to perhaps be open to buying a piece of apparel or having a pillow, or replica of a football helmet or something of that sort in their home or on their body that broadcasts to people, 'Hey, I went to Northwestern. I'm proud of it.' Now when you take it into the realm of athletics where let's say that Northwestern actually made the tournament
So that's what's behind the merchandise sale. Do you need another purple shirt? Possibly not, but if you're excited about what Northwestern is doing and you're going to a bar with all the other Wildcat fans, then that's what we're building on here, and that's the essence of collegiate licensing, whether it's for the home or apparel or any other product category.
How long does it take to agree on a licensing deal? Brochstein: It can take anywhere from a couple of months to up to a year. You shouldn't expect to get it done in a week. Collegiate licensing goes on year round. The hook right now is the Final Four and March Madness and all that, but there is collegiate licensing that goes on year round, and it's not all tied to sports. Some of it is just school pride. Walk through the NYU bookstore or the Northwestern bookstores, there's a lot of merchandise on sale there and that goes on, it's a 12-month business. Obviously it spikes, but it is a year-round business.
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