Validation for Luxury Sports branded Merchandise

[Tweeve11]

Hey all,

I have an idea to start an eCommerce shop that sells sports merchandise marketed to the wealthy. Usually sports merchandise is rarely over $100. Obviously the wealthy still enjoy sports, and so I think there is certainly a market for high end products branded with sports teams logos...

The first obvious speed bump is licensing. I don't believe obtaining the licenses would ever be possible, so I'm still looking for a way around this.

Any and all advice/criticism is greatly needed/wanted!!

Thanks guys

Marshall

P.S This was thought of at the dinner table while i was stuffing my face with Thanksgiving turkey so I'll admit it's not something i've put a great deal of thought into just yet. But I had to get something down so i wouldn't forget and I figured the forum was a hell of a lot better then a notepad...

 

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[Aaron W]

Cool idea and totally possible. Something I recently learn't to question regarding business is: 'what is the value you are offering?'. In no way am I shooting this idea down but for example:

Why would these wealthy customers purchase your gear over Nike, which is quite expensive in certain aspects already.

 

[Tweeve11]

So I guess I was more talking about items and trinkets more so then apparel...

A good example of a product would be like luxury cuff links, high end electronic accessories, travel accessories, etc...

I guess what I'm saying is someone that drives a Ferrari doesn't want to put a $10 dollar sticker on his window. They also probably don't want to buy a cheap plastic phone case with their favorite teams logo. But that doesn't mean they don't want to support their favorite team.

They still want to be able to use branded merchandise, but if it was tailored more to his/her "high end" taste, I think they would be more motivated to buy. 'So the key is to find those higher end products (or create them, which is difficult because the licensing is so hard to procure) and retail them on my site.

Does that make more sense?

 

[Aaron W]

So I guess I was more talking about items and trinkets more so then apparel...

A good example of a product would be like luxury cuff links, high end electronic accessories, travel accessories, etc...

I guess what I'm saying is someone that drives a Ferrari doesn't want to put a $10 dollar sticker on his window. They also probably don't want to buy a cheap plastic phone case with their favorite teams logo. But that doesn't mean they don't want to support their favorite team.

They still want to be able to use branded merchandise, but if it was tailored more to his/her "high end" taste, I think they would be more motivated to buy. 'So the key is to find those higher end products (or create them, which is difficult because the licensing is so hard to procure) and retail them on my site.

Does that make more sense?

So I guess I was more talking about items and trinkets more so then apparel...

A good example of a product would be like luxury cuff links, high end electronic accessories, travel accessories, etc...

I guess what I'm saying is someone that drives a Ferrari doesn't want to put a $10 dollar sticker on his window. They also probably don't want to buy a cheap plastic phone case with their favorite teams logo. But that doesn't mean they don't want to support their favorite team.

They still want to be able to use branded merchandise, but if it was tailored more to his/her "high end" taste, I think they would be more motivated to buy. 'So the key is to find those higher end products (or create them, which is difficult because the licensing is so hard to procure) and retail them on my site.

Does that make more sense?

Makes a lot more sense. I guess it would just be finding out if these people have the issue of finding high quality products and you hear them complaining about it. Fake example on twitter: 'I wish they had decently looking iPhone cases for the Rangers'

Test the market, see if its possible.

Unfortunately, I have no experience gaining licensing but I'm sure its possible if there are over companies doing it. I guess you just need to get involved and talk to who ever holds the brands rights or your be unique and make cool illustrations related to the sports team (wink wink). Expect them to want commission most likely if you want to use the brands logo etc...

 

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[Tweeve11]

So ive done a little surface research and for the NFL you have to be a manufacturer, in business for three years and have a minimum 100,000 to pay fees.

Just because i cant get the licenses to make my own products doesnt mean i cant aggregate high end items into a "luxury store" that are already being produced by manufacturers that have these licenses already...

 

[PatricianCat]

So ive done a little surface research and for the NFL you have to be a manufacturer, in business for three years and have a minimum 100,000 to pay fees.

Just because i cant get the licenses to make my own products doesnt mean i cant aggregate high end items into a "luxury store" that are already being produced by manufacturers that have these licenses already...

I am sure if you specialized in making luxury phone cases that are unique in some way and sold really well those companies would be looking at you very differently due to the high selling price.

More importantly, is there a need? And people really going to spend luxury money on a luxury cosmetic item for their phone?

Are you willing to sacrifice control of the product. If you sign a 1 year contract with the NHL or with the Rangers to be able to use their logo and the next year they don't renew the contract, then what? I do like that this creates a barrier to entry.

It will be interesting to see how this plays out. You should start digging into iphone and android forums to see if there is something the market is looking for.

 

[Tweeve11]

Im not exactly specifically targeting phone cases. I wouldn't really think that would clasify as a luxury item.

And licenses are definitely out of the question. After more research I have found that I am not going to be able to secure them myself.

I would think the next reasonable play would be to buy licensed wholesale products that fit my description (high end/luxury) and resell them at retail.

I don't think my products would be 'needs". They fall more into the line of wants. But that doesn't mean there isn't a huge market for these wants. No one "needs" a Ferrari, but they still make a boat load of money....

 

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[Phillipbro]

"I want to become a sports product licensee - How can I learn more about licensing sports products?"(http://licensedsports.blogspot.ca/)

TL:dr; Sports licensing is very hard and capital is required. Instead build a relationship with a distributor that already has a license and ask them if they dropship.

How to find distributors? Scott Sillcox has provided an amazing guide on how to find them here:
http://licensedsports.blogspot.ca/2012/04/how-online-ecommerce-stores-retailers.html

 

[Tweeve11]

THANK YOU SO MUCH!!!

Definitely appreciate it man...