Trade mark registration: Jimmy Choo is a name that sells shoes. The secret? An incredible trade mark.
It’s rare that you hear about a successful company putting itself up for sale. But that’s exactly what has happened in the case of luxury retailer, Jimmy Choo. Named after its founder and famed for its shoes – the PLC has fired the starting pistol for would-be buyers. Trade mark registration.
The reason given was “to maximise value for its shareholders”, the Guardian reports. The news resulted in a 10% bump in their share price (up to a £720m value).
But what exactly would prospective buyers receive, upon ponying up all that dough?
A brand that’s about more than good shoes
Founded in 1996 by Malaysian shoemaker Jimmy Choo; the brand is now a fixture of red carpets globally. It has truly become a powerful brand – whose name alone has incredibly powerful pull.
This is especially so for luxury brands like Jimmy Choo. These don’t usually have a large amount of stock holding, or even produce that many items. Instead, products tend to be: bespoke, hand-made, and produced in limited supply.
But how could such a small producer duke it out in valuation, with companies ten times the size?
When you’re a brand that “walks” like Jimmy Choo – your value comes from more than bricks and mortar. It’s your name, your brand and everything that people associate with it.
Simply put, the way that people *feel* about aspirational brands like Jimmy Choo – is worth its weight in gold.
What’s in a name?
Clearly, a pair of shoes with “Jimmy Choo” on them are seen as more prestigious than if they were blank. The name a mark that assures: quality production, discerning taste (and high cost). It also communicates these things to those watching on (enviously).
This assurance is where the true value of the brand lies. The name communicates a reputation that has built over years of good work. It’s a name that no-one else can use; and it’s a name that sells itself.
All this hinges on the effective protection of the “Jimmy Choo” trade mark. Effective trade mark registration and enforcement; makes sure others can’t piggyback off Jimmy’s hard work. (Or if they do, they’ll find themselves hot to trot once the legal letter arrives!)
So for prospective buyers of the company – to make shoes with “Jimmy Choo” on them, is a lucrative prospect, indeed! And worth every single penny!
Trade mark registration: get it right, and you laugh all the way to the bank
This highlights the true value of intellectual property to business. The shoes *are* incredible (or so I’m told). But without the name on them – would they be as sought after? And would the business be as highly-valued and recognisable? I don’t think so.
To luxury brands – a good trade mark equals reputation, aspiration and big bucks. It’s as simple as that.
This does show a broader trend. Business is moving from bricks and mortar to a “brand”-based economy. In that economy, it’s vital for any business to value and nurture its intangible assets.
Because you never know – one day you might sell the company and that trade mark could be the core of its valuation!