Making It with Jon Davids 167 - $800M From Bankrupt Brands | Authentic Brands Group
Jan 28, 2025
Discover how a company is raking in $800M annually by breathing new life into distressed brands like Forever 21 and Juicy Couture. Explore the risks of owning brands without control over manufacturing, likening it to real estate investment. Delve into innovative licensing strategies, leveraging the legacies of icons like Marilyn Monroe and Elvis Presley. Learn how partnerships with contemporary celebrities boost revenue streams and build brand equity in today's competitive market.
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ABG's Business Model
- Authentic Brands Group (ABG) revitalizes struggling brands like Forever 21 and Juicy Couture.
- They license everything, avoiding manufacturing and retail, earning 5% royalty on sales.
Strategic Partnerships
- ABG partners with companies like JD Group for Reebok distribution and Simon Properties Group for JCPenney stores.
- Strategic partners provide operational expertise and retail relationships which ABG lacks.
Celebrity Brand Management
- ABG manages celebrity estates like those of David Beckham, Muhammad Ali, and deceased icons like Marilyn Monroe and Elvis.
- This includes endorsements, merchandise, and even NFTs, representing and monetizing their brands.