The Ketchum Innovation Center (KIC) was excited to bring in expertise from Boise to add to the increasingly vibrant entrepreneurial ecosystem in the Wood River Valley. On Tuesday, October 24, KIC was thrilled to host Lynette Bushman, president of LJ Sourcing Agency for a presentation on Product Development & Sourcing.
Have you ever wondered how products get on the “shelves” of big brand stores like Nike and Disney? It comes down to licensing, defined by Entrepreneur.com as, “a business arrangement in which one company gives another company permission to manufacture its product for a specified payment.”
Lynette’s presentation, in a packed KIC conference room, provided insights on multiple phases in the product lifecycle, including licensing. Some of the local startups present were were Heathen Assaulter Bipod, Violent Little Machine Shop and Shootessa.
In the video clip below:
Lynette describes licensing as having three options. A company can:
- buy your product then manufacture/build and sell it as theirs
- license your product for use under their brand name
- co-label it, meaning that the finished product has your brand and the company’s brand on it.
Lynette cites the SolReya Wrap luxury spa towel wrap for your head as an example of a company that has very effectively co-labeled its product. SolReya has its own name on the inside of every wrap and when Disney or others sell it, their brand name is embroidered on the outer part of the wrap. That way, every single SolReya wrap has an authentic SolReya brand label.
The Product Development & Sourcing presentation covered prototyping, sourcing, manufacturing and logistics, and marketing. For more information, please view Lynette’s presentation slides here: LJ Sourcing Presentation 2017. Here is a link to the article she referenced, 45% China Sourcing Corruption. Hmm, About That Much.