Coopetition through International Luxury Brand Licensing: Burberry in Japan

Abstract

This chapter identifies the coopetitive aspects of international brand licensing through the relationship between Burberry Group Plc and Sanyo Shokai. The well-documented relationship between the two firms is used to contribute to coopetition literature and brand licensing literature within an international context. This chapter answers how and why this initially mostly coopetitive relationship succeeded and what led to its eventual denouement. Both partners initially prospered, Burberry had its name efficiently spread across Japan, and Sanyo borrowed from the reputation established by Burberry’s brand name. After some time, Sanyo created brand extensions for the Japanese market which were more affordable than Burberry’s products. They were a big success, further popularizing the Burberry brand across Japan and handsomely benefiting both firms. Burberry grew concerned about inconsistent brand image. The ubiquity of the extension was diluting the luxury parent brand. Burberry thus prematurely ended the licensing agreement with Sanyo. The findings of this study offer valuable insights to firms either intending to internationalize through licensing or intending to be a long-term licensee.

Citation

Ohkita, K. (2017), "Coopetition through International Luxury Brand Licensing: Burberry in Japan", Sindakis, S. and Theodorou, P. (Ed.) Global Opportunities for Entrepreneurial Growth: Coopetition and Knowledge Dynamics within and across Firms (Advanced Strategies in Entrepreneurship, Education and Ecology), Emerald Publishing Limited, Leeds, pp. 143-161. https://doi.org/10.1108/978-1-78714-501-620171010