I was very interested to read this morning about the deal that Costo has struck with Iconix to sell the Charisma line. The Charisma line is bridal-focused, offering 100% Egyptian cotton 
fashion bedding, sheets, blankets and towels.
Costco has done such an amazing job with the Kirkland brand, really establishing it as standing for “trusted quality 
and value” - whether it be clothes or diapers. So the fact that they still see the value of licensing a brand really shows what astute brand strategist the folks at Costco are. The Charisma brand is “additive” to the Kirkland brand – it brings them a set of images that would be hard to build and/or would require greater time and investment than the category deserves or might afford.
And the partner they’ve selected is excellent. If there’s anybody to watch in the licensing 
industry, it’s Iconix. They’re well-known for buying brands and sustaining or revitalizing them through licensing, whether it’s Danskin or Ocean Pacific.
Costco understands that licensed brands are not “instead of” private label brands…they can all be a part of a total portfolio. Here’s a store with a great brand and there’s still room for licensing because it brings with it brand equity that builds the overall Costco shopping experience – while increasing the Costco’s overall share of store brands. Improved profit margins will undoubtedly result.
I applaud both Costco and Iconix for an excellent marriage…completed with great bridal sheets and towels!
Comments