PSG to expand the range of licensed products in Brazil
In the near future, a broader range of licensed products from Paris Saint-Germain will be available in the Brazilian market. This is the result of an agreement reached between Fanatics and Destra, made possible by Samba Digital, who intermediated this exciting deal.
In order to understand each player in this negotiation, Fanatics holds the right to global PSG licensing, while Destra is a LaaS (Licensing as a Service) platform for brands and companies operating in the brand licensing market – including contracts with the main clubs from Brazil. Samba Digital, on the other hand, is an American digital marketing agency specialized in the internationalization of brands, with PSG as a client and a strong presence in the Brazilian market.
Destra became the corporation responsible for prospecting the licensing business of the Paris Saint-Germain brand in Brazil as a result of the arrangement, with Destra Conecta being one of the key factors. This tool, in addition to providing an in-depth overview of the Brazilian consumer market, also functions as a B2B marketplace. This allows licensed businesses to communicate directly with the club issuing licensing bids and, as a result, closing new deals.
The Licensing Industry
To give you an indication of the size of the licensing industry in Brazil, according to Licensing International’s “The 2020 Global Licensing Industry Study,” the country ranks eighth in the world in terms of licensed products and service sales in 2019, with a total of $5.29 billion.
The country, according to the same study, showed continuous increases in revenue from the sale of licensed products and services. The growth rate was 1.6% in 2015-2016, 4.9% in both 2016-2017 and 2017-2018, and 3.9% in 2018-2019. This makes Brazil an attractive market not only because of its interest in football but also due to the values that the licensing industry for sports products moves.
All very pleased
“We are very happy to work with Destra to develop our business in Brazil. Destra’s team has all the best qualities for a brand partnership. It is a company focused on results, reliable, and with very good people to develop a great job,” said Younes Layati, Director of Licensing for Fanatics.
Bruno Koerich, CEO of Destra, celebrates the possibility of acting alongside such consolidated global brands.
“It is a source of pride for Destra to stand alongside such powerful brands as Fanatics, the world’s largest licensing company, and PSG, one of the most imposing clubs on the football scene. Our solutions will allow the club to increase the number of products licensed in Brazil, generate greater engagement with its audience, in addition to generating new revenue. We are a technology company that understands the difference lies in the people and the connections they provide. That’s how it was with Samba Digital, for example, where we closed this excellent agreement,” he said.
One of Samba Digital’s business pillars
Linking local companies that add value and potential revenue to international customers is one of the business pillars of Samba Digital and Frédéric Fausser, CEO of Samba Digital, complements his vision of the agreement.
“Brands have broken geographic barriers and, with that, local knowledge has become essential to know how to consume, be it content, official products or any other form of relationship. Samba Digital’s mission here is to work for our customers to have this support when it comes to brand internationalization. This ranges from insight to the production of content respecting local issues as well as a broad knowledge of the market to generate commercial opportunities such as brand licensing and, consequently, the creation of strategic local partners that fit into a global strategy. I feel happy with Samba Digital involved,” he said.
In today’s on-demand, mobile-first culture, Fanatics is establishing the top global digital sports platform and revolutionizing the way fans buy their favourite team apparel, jerseys, hats, and hardgoods through an innovative tech-infused approach to making and selling fan apparel.
Fanatics pioneered a vertical commerce business model that allows the company to better serve its 300-plus partners and the growing real-time expectations of leagues, teams, fans, and retailers worldwide to ensure the broadest assortment is available online, in stadiums, or on-site at major sporting events by combining cutting-edge technology with an agile production and supply chain. Fanatics has the most comprehensive selection, with hundreds of thousands of officially licensed items available under the Fanatics, FansEdge, Kitbag, Majestic, Top of the World, and WinCraft brands, as well as the largest selection of sports collectibles and memorabilia available through Fanatics Authentic.
Since 2014, Destra, formerly License Solutions, works with the main football clubs and other brands, such as visual artists, athletes, characters, and celebrities, offering solutions for contract management and new business in brand licensing. Destra is a Brazilian startup, which has a LaaS (Licensing as a Service or Licensing as a Service) platform and has already received funding from investors such as Darwin and Bossanova.