Case Study On Q-Textile Enterprise Brand Licensing Against Industry Upgradings

In the year of 2008, no companies from textile industry can excape out of an economic coldness due to a declination of exportation, tight cashflow, yuan appreciation, inflated prices of capital items and financial crisis. A considerated number of companies even encounter with a closing or more worsely bankruptcy. However, those foresight companies are striving for a new round of development-industry upgrading& transformation.This article is an exploration on a case study of local Q textile brand licensed by a world classical cartoon brand for its rapid and successufl industry upgrading, which truly based on my hands-on experiences from my currently served company. It crystally depicted how Q textile company created a competitive blue ocean through a brand licensing tie-in before a tight local home textile industry compepetition and financial crisis. And also it successfully positioned as Health and Green Textile for Kids and family in order to develop a differenciated positioning for a rapd move up from a low value chain to an upper value chain.The article starts from a defination and hisorical development of brand licensing globally, brand licensing scope of works, licensing models and analysis of successful brand licensing case studies in order to approve that brand licensing has been a proven track business model for industry upgrade. And then based on a case study of Q textile company, it explains on its brand licensing background, motivation and objective, and also its successful pratice. And then analysing its brand licensing contents and performance. Finally it works out a conlusion that brand licensing is a best practice for China enterprise and industry upgrading.Through a study of this article, it concluded that brand licensing is an innnovative business model for industry upgrade. For those China trade-oriented manufacturers lacking of brands, brand licensing will greatly helps for gaining a rapid and high brand recognition and competitive strength, which is a shortcut for an industry upgrade success.