Brand Licensing in China: From Marketing Tool to Entry Strategy

Abstract

The primary purpose of this thesis is to analyze brand licensing as an entry strategy in a new market, specifically in relation to the economic context of the People's Republic of China. The first part of this study examines in a broad perspective the pros and cons of licensing as compared to other entry strategies, illustrates the different types of licensing available to a firm and the different products or services that can be licensed; it then describes the formal structure of licensing agreements and how the value of a license may be established. The second part of this study looks into the case of brand licensing, from analyzing the key concepts of brand and brand equity in marketing studies to reviewing the history of brands and brand licensing as marketing tools; this section also describes the many types of brand licensing and the different forms brand licensing may take depending on the industry. Finally, the third part of this thesis analyzes brand licensing in the Chinese context and the peculiarities of the Chinese legal framework in which licensing and specifically brand licensing occur. It also examines the correlation between brand licensing and IP protection in the People's Republic of China and provides a perspective on how brand licensing in China is changing and its future outlook.