The $1.5 trillion wellness market is growing. Thanks to the pandemic market, consumers are now prioritizing their health and well-being.
McKinsey’s consumer research indicates a massive shift toward personalization in the wellness industry. Consumers are willing to share personal data for more customized services, recommendations, and treatments. Wearables and fitness trackers are enabling fitness regimens to be better customized.
About 10 percent of the US population set up home gyms or accessed online fitness resources during the COVID-19 pandemic.
Lockdowns, stay-at-home orders, and social distancing forced even the most dedicated gym-goers to change their routines. Investors poured a record-breaking $2 billion into developing fitness-tech apps in 2020. And according to the McKinsey research, more than a third of global consumers will likely spend more on nutrition apps, diet programs, juice cleanses, and subscription food services over the next year.
Companies of all sizes are scrambling for new wellness innovations to meet customer demand. Whether your IP is content, apps, brands, devices, or coaching, you can use licensing to capitalize on this fast-growing market opportunity. And this presents a great licensing opportunity for IP owners in the wellness market.
Licensing is often thought of as a different strategy—either we use licensing to generate revenues or sell our products directly. But that’s the wrong way to think about licensing. On the contrary, licensing is one of many marketing strategies.
The most common strategy is direct licensing to generate revenues. But that’s not the only way. Another approach is licensing to deliver more customers (and revenues) for your core products, services, or technologies. Depending on your IP, you can modify or adapt it for the market.
For professional know-how providers such as consultants or training companies, licensing rights to your brand and consulting “process” or “content” lets you expand your business into new markets. One famous example is Dale Carnegie. He used this strategy to build a global training company.
If your IP is a technology, such as an app or website platform, customizing your IP through white-label licensing is a great strategy to open up more revenue streams with your IP. One example is a startup that developed a mobile app for auto body repair estimates. Their strategy focused on licensing the app to insurance companies and “branding” it for the company.
Brand extension licensing is a great way to expand your product line into this market without the overhead risk. Many companies license their brand or technology to add complementary products to their core product line. For example, they find partners with products that are a bit higher-end than their own. If they are a mass-market brand, they license products that move them into an upper-level niche or specialty market. With this strategy, you license your brand to companies with non-competitive products and generate revenue from their product (or service) sales.
Capitalizing on the fast-growing wellness market is one of the best ways to use licensing. Depending on your IP, you can adapt, change, or modify it to meet the customer’s needs. Instead of spending your time and money trying to enter the market, licensing shifts your market risks to your licensing partners. More importantly, it’s one of the fastest ways to get IP into the fast-growing wellness market and take advantage of new revenue opportunities.
Are you wondering how you can use your IP to capitalize on new market opportunities? If so, contact us today for a short call to discuss your licensing options. Click the “Schedule Time” link below to confirm a day and time.
Rand Brenner is an IP professional whose passion is helping inventors, startups, and businesses of all sizes use licensing to turn their IP into income-producing products, services, and technologies. His decades of experience run the gamut from medical devices to food technology to consumer products. He’s licensed some of the biggest Hollywood entertainment blockbusters including the Batman Movies (1 and 2), and the number one kid’s action TV show, the Mighty Morphin Power Rangers. Rand speaks about licensing and is a featured speaker at investment conferences, trade shows, colleges, and startup events. His first book, Hidden Wealth: The Money Making Power of Licensing was released in 2019 and is available on Amazon.com. He’s also a published writer with articles appearing in several prestigious trade magazine including The Licensing Journal, Intellectual Property Magazine, and License India. Rand also mentors at the Cal State Fullerton School of Business and Economics and is a judge for their startup business plan competitions.