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MODA In Mexico

Sept 2010: Mexico/Yucatan/Akumal: A visit to the Riviera Maya Beach Villas….This was not a business trip, au contraire, but any travel provides another perspective on consumers and spending. Wearing MODA’s hat (and a hat was required at all daylight hours) as licensing agency it was clear that “experience” is trumping product purchases.


One flies to Cancun airport to get to Akumal. Considering the economic times, or perhaps because of it, the airport seemed quite busy during a time that is considered ‘off season’. Ages ranged from college age to seniors…and all chose to spend their money on the travel experience.

The town of Akumal, originally a sleepy fishing village known only to scuba divers, now nestled between hotel resorts manages to keep its small town flavor. It also offers a great example of the best mobile and remote working can offer. I had great internet connection throughout my stay.

Despite the media news, I found the locations safe, with much to see and do; interacting with the Mayan people who are deservedly proud of their culinary and cultural heritage and eager to share it with visitors to this region that is now called Riviera Maya.

I have to admit I didn’t spend much time in stores (though I did purchase a most amazing handbag from Hacienda Monte Cristo’s designer). Instead I did what most others were doing and that was having “experiences” visiting Mayan ruins, snorkeling in caves called Cenotes and tasting local food at different restaurants.

The REAL experience however was the luxurious time spent at the Riviera Maya Beach Villas. Each Villa was meticulously designed and built by Udi Saly to take full advantage of the ocean views; his requisite exquisitely placed lap pools for each villa adds to the seamless integration of indoor and outdoor spaces; a perfect flow from floor to floor including a signature roof space that serves a myriad of functions from pure escape to after dinner drinks and star gazing. Each Villa offers privacy and is executed to a scale that is both generous and intimate.

The villas are decorated by Liz Conover in an elegant style that marries luxury with humor and pragmatism but make no mistake…a perfectionist’s attention to detail from colorful silk throws, exquisite use and choice of tiles, marble and wood, unexpected chandeliers setting the stage for a long soak in a Jacuzzi, comfortable furniture to the elegant bed linens and towels.

To get a glimpse of this wonderfully appointed, located, relaxing place and the luxurious time I had at Villa Zen del Mar on private Jade Beach (swimming everyday in a gorgeous lap pool, yoga every morning, one hour massages in the spa palapa adjacent to the pool and delicious nouveau Mexican cuisine prepared each evening) please go to www.AkumalBeachVillas.com.

In addition to “experience” being a consumer driver, another observation during my short stay was meeting a growing international group of innovative, adventurous, creative types investing in real estate and living in places like Akumal, Vallodolid and Merida in the Yucatan.

Observations from this trip: consumers are seeking experiences such as travel and I strongly believe they will also gravitate towards products and retailers that are “experiential”; luxury spending is linked to travel, real estate and home décor. Mobile working is ‘working’!

Next On the Road: Interbike in Las Vegas; Brand Licensing Europe – London.

The Power of Licensing

The Power of Licensing.  When we changed our name from MODA International Marketing to MODA Licensing, it wasn’t because we suddenly became cheerleaders for licensing, we always have been! We explained in our press release (see In The News, March 29, 2010) why we switched out “international” and “marketing” with “licensing” in our name. At the core of the change is highlighting our expertise, which is licensing; and elevating the perception of licensing as a very attractive model for business growth.

Too often licensing is viewed as a short lived opportunistic venture with a sole focus on marketing benefits. It is not always understood as a powerful and innovative means of leveraging an existing intangible asset (e.g. trademark, brand, patent) to develop new and enduring businesses.  And yet, many long-term and profitable businesses operate under a brand license agreement.  According to The Licensing Letter (April 19, 2010), retail sales of licensed trademark/brand based merchandise was $24.37 billion in 2009. 

Licensing should be considered as an option for business growth in the same way organic, JV, merger, acquisition, or divestiture are evaluated as strategic approaches.  Licensing allows the door to remain open to transition to another model if and when appropriate.  Of course the option to continue a mutually profitable licensing partnership may be the most attractive long term solution.   Additionally, licensing allows the IP owner to maintain control of the IP which is often not possible in other business models.  For the licensee, the cost of creating and developing a new brand business can be prohibitively expensive and risky.  Leveraging the licensor’s intangible assets and brand equity fast tracks and reduces overall risks to the licensee.

IP owners may have developed and built value for their IP over 25, 50 or 100 years or they may have recently acquired valuable IP as part of an acquisition.  In both cases, the IP owner already has made an investment in the brand.  If the desire is to monetize the IP, then why not go the route of licensing?  Why not partner with an expert in the industry, territory, and market to develop, build and grow a new business rather than make another financial investment in a JV or merger?  Statistics show that 70% of JV’s fail.  This may be due to a myriad of reasons including poor planning, undercapitalization, cultural differences, and poor management. Licensing on the other hand allows the parties to work together, test synergies, profitability and economies of scale to determine if a merger or acquisition is a logical next step, without making a premature irrevocable commitment to one another.

MODA has always approached licensing with these factors in mind.  Licensing IP is a flexible structure that conforms to specific circumstances and leverages IP in the most appropriate manner to deliver ROI to licensor and licensee.

MODA changed its name to highlight LICENSING and to advocate on behalf of this uniquely attractive model which too often is underleveraged.

Kazachok Licensing Forum

Kazachok Licensing Forum – Paris,  April 2010

We were in Paris for business meetings which fortunately overlapped with Kazachok Licensing Forum.  I therefore planned to attend and to be sure to hear Ira Mayer, Publisher, The Licensing Letter speak. Of course, his office is down the block from ours in NYC but it’s so much more fun to get together in different locales!

Ira presented 3 industry challenges, which were the economy, retail infrastructure and media infrastructure; and 7 growth opportunities which are:  Geographic, sub-agenting, event licensing, on-demand production, DTR and retail exclusives, the e-world, and  Innovation.  I found all of what Ira presented to be worthwhile and relevant. 

I particularly liked what he had to say about Innovation:  “But innovation in licensing isn’t just about new properties and new products.  And this is perhaps the biggest growth opportunity of all, the one that will lead to a healthier, more vigorous, and expansive licensing business:  Innovation is critical in deal-making too.”  Ira emphasized that flexibility is a key component of innovation with respect to how we  approach deals.  In one of my blogs on licensing, I point out ‘ flexibility ‘as an advantage.  MODA adheres to the foundation of licensing which is leveraging an intangible asset but we do not limit ourselves to a rigid structure.  For example, when we represented a patent for a client there were deals in specific countries where a royalty on sales didn’t make as much sense as flat-fee purchase of the technology.  The licensee still had contractual obligations to the licensor including the proper use of the brand.

 Ira closed his remarks citing that innovation in deal-making is a formula for success. We can’t agree more.   

Retimement – June 2010

RETIMEMENT™

Retimement™ spells the end of Retirement and that’s GOOD NEWS!  Retimement is the defining movement led by the boomer generation that marks the end of your parents’ retirement model.  The world has changed and the retirement model is irrelevant in today’s dynamic and fast-paced world. It is time for a new model that reflects the world in which we live, work and play.  It’s time to STOP laboring, anxiously planning for a lifestyle that does not work in the 21st Century.  It’s time for a change – it’s time to re-time your life – why wait?

WHAT IS RETIMEMENT™?  It is living well now. It is re-timing the balance between professional and personal time.  It is a foundational shift in thinking from a traditional work/retire timeframe to integrating a work/retire plan and lifestyle that begins now. It precludes the notion of working until one is 66 (or older) to ”retire” from what?  Life? Work you may actually enjoy? Contributing to the world in meaningful ways?

Retimement means that you are not stuck in a “cubicle nation” working in order to retire at a certain age.  You don’t wait for that magic number in your 401k to step off your self-imposed treadmill. It means that you get to do “retirement” now, albeit, balanced with “work”.

WHY RETIMEMENT™?  The economic meltdown of 2008 was the perfect storm for getting people to adopt Retimement. Years before the recession, I had determined that the traditional notion of retirement was becoming irrelevant. Many friends had “failed” at retirement, finding that golf, cards, fishing, eating-out and travel were not satisfying enough as full-time occupation. People were living longer and frankly, wondering if their finances would hold out and contemplating how to re-enter the workforce in some capacity; friends were mixing up professional and personal time pursuing passions while keeping their “day” job.  People were retiming and Retimement captured the dynamic. The financial crisis kicked the Retimement movement into high gear as boomers realized that their retirement plans were shot to hell.  Their options were to put off retirement (indefinitely) or re-time!

Adapting your life plan to a Retimement approach requires that you integrate work with your ideal life or retirement goals as a lifestyle NOW. You don’t follow (and were you really going to anyway?) the traditional work/save/retire model.

Think DIETING…a short-lived diet never works.  A successful “diet” is really a balanced eating plan for how you should eat most of the time if you want to maintain the weight loss; same for Retimement.   It’s not a short term pursuit.   It’s your life and whether you are Type A and incapable of retirement; have a dominant “slacker gene” and feel that every day on the golf course suits you to a ”tee”; or if you are a little bit of both, Retimement works.  It is each person’s customized balance of integrating one’s professional and personal life. It will evolve.  As with a diet, over time, tastes and schedules may influence what you eat and so will personal finances, families, location, etc. influence your Retimement.

In fact, Retimement factors in technology, mobility, living longer and a myriad of other dynamic factors that have already influenced and changed how people balance their work and personal lives.  Retimement is already happening…it just didn’t have a “name” and now it does!

Retimement takes some thinking, organizing, planning. Retimement.com will be providing information and resources for financial planning, travel, employment, real estate, mentoring, coaching, networking, and other useful solutions and ideas for implementing your Retimement. To begin, we welcome your ideas and thoughts and for those of you who have already re-timed, we welcome your stories.  June 2010.

Please send to: info@retimement.com.

RETIMEMENT™ Providing information, resources and solutions to achieve a lifestyle that integrates ‘retirement’ into everyday living; the on-going balance between work, profession or career and personal pursuits.