Currently, the business area Brand Management is managed from the parent company. For LBM, the concept Brand Management means that LBM, as the licensee for international brands, develops strategic brand concepts with the purpose to commercialize them, together with partners under so called sub-licensing. One way to describe this is that LBM proposes the owner of an established brand that he should clarify the value of his brand by licensing the brand to LBM that will take on the responsibility, within certain product ranges and geographical areas, to create additional revenues for the licensor. LBM then, with the permission of the licensor, contracts partners and sub-license the brand and its defined use. Like the other two business areas in LBM, the business is mainly focused on moving consumer goods within the lifestyle segment. The business risk of the commercialization of the products is always carried by the partners that are contracted by LBM. The partners are, for instance, manufacturers, distributors and sales agents. In certain cases, the partners handle the complete chain from manufacturing to sales to retail. In comparison to the business area Brand Licensing where LBM carries the business risk for commercialization of the products, the operations in this business area are associated with lower risk and lower financing. On the international market, the structure is established for this type of sub-licensing. There are a large number of manufacturers and distributors that, through licensing and sub-licensing, commercialize other’s brands within certain product ranges and geographical areas. Provided that LBM succeeds in contracting reputable brands, their business risk is in identify and contract reputable, and financially strong, licensees that can find circulation for the selected product ranges in the global retail market.

For LBM’s work in Brand Management consists in developing comprehensive programs for brand strategies, and implement them; developing communication programs and providing services that are offered in the business area Brand Communication, which is described further down. Unlike the business areas Brand Licensing and Brand Communication, this business area is recently started. However, LBM sees big opportunities in identifying owners of reputable brands and to, in dialog with them and LBM’s partners, develop and commercialize new product ranges to create additional revenues and profitability for the owners of the brands. This is especially valid for the Nordic market where the international companies, in a global comparison, have been bad at seizing these opportunities. One example is that LBM would contact a successful company in technology or telecommunications, and propose that they should license their brand for manufacturing and marketing of a collection of watches. Another example is that an industrial company would decide to license their brand for sales of certain clothes of a design that reminds of work wear directed to young people that are attracted by the, so called, street fashion lifestyle. The opportunities are many.