Completing its evolution away from retailing, The Sharper Image signed a five-year, $540-million licensing agreement with Homedics Inc., manufacturer of personal health, wellness and relaxation products. The agreement covers the use of The Sharper Image brand and intellectual property across a range of product categories.
Homedics is a “primary strategic licensee” for The Sharper Image brand as the former multi-channel retailer transforms its business model to a global lifestyle brand licensor. Under the agreement, Homedics will offer products branded as Shaper Image in such categories as home environment, electronics, men’s personal care and gifts, health and wellness, weather, and concierge.
The licensing strategy follows the purchase of Sharper Image brand and intellectual property by a group of private investors. The new business model aims to address global licensing for wholesale, e-commerce, catalog and direct-to-retail businesses.
The new strategy means Sharper Image no longer will hold inventory. But its name will live on through other retailers, beginning with Homedics, Sharper Image’s vice president of licensing Federico de Bellegarde tells Internet Retailer.
As part of the licensing agreement, Sharper Image will approve the final products chosen and Homedics will distribute them into new markets. “We will be able to hit a much broader audience,” de Bellegarde says. “In the past we were limited to 192 stores.” Homedics products are carried in about 50,000 retail outlets in more than 60 countries and on its e-commerce site, Homedics.com. The company manufactures and markets more than 250 personal health care and wellness products.
The agreement with Homedics gives Sharper Image products greater market penetration, de Bellegarde says, while removing the high cost of real estate, staff and other expenses. “It’s a benefit to work with many licensees vs. trying to develop all products on our own,” he says.
Homedics will introduce the first Sharper Image licensed products at the Consumer Electronics Show in Las Vegas in January 2009 and the International Housewares Show in Chicago in March 2009. Shoppers can expect to see the new line of products on store shelves by the third quarter of 2009, de Bellegarde says.
“The Sharper Image is an iconic brand with tremendous positive consumer awareness, and we’re extremely excited about how Homedics can further boost our leadership in personal health, wellness and relaxation products while remaining true to The Sharper Image brand legacy,” says Ron Ferber, president of Homedics. “The agreement will allow us to enter into new categories that will complement our core business and will allow Homedics to introduce new product innovations with a wider range of price points.”
Sharper Image, No. 176 in the Internet Retailer Top 500 Guide, plans to start a laboratory in the next six months, staffed with product developers seeking products in emerging technologies. “We want to be thoroughly involved in the product process, not on the sidelines,” de Bellegarde says.
Future initiatives likely will include selling Sharper Image products through other retailers, he adds.
Sharper Image filed for Chapter 11 bankruptcy protection in February. In June a U.S. bankruptcy court agreed to sell the retailer’s remaining assets for a reduced price of $49 million--$2.25 million lower than the $51.25 million buyers Gordon Brothers Retail Partners LLC, GB Brands LLC, Hilco Merchant Resources LLC and Hilco Consumer Capital LLC had said they would pay in May.
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