Analysis of the full process of brand authorization for commercial display cabinets

Driven by the dual forces of consumption upgrading and the transformation of the retail format, the commercial display cabinet industry is undergoing a profound transformation. The market size of China's commercial display cabinet industry has exceeded the 100-billion level. Among them, the brand licensing model, with its resource integration advantages, has become the core path for enterprises to expand the market and enhance brand value. This article, combined with industry practice cases, systematically analyzes the operation process and key nodes of brand licensing.

I. The Core Value of Brand Authorization and Its Industry Adaptability

The essence of brand licensing is the commercial operation of intellectual property. In the field of commercial display cabinets, brand owners can achieve three strategic goals through licensing: quickly penetrate the sinking market by leveraging the channel network of the licensee; share the R & D costs through licensing fees; and achieve asset - light operation by leveraging the production capacity of the licensee. An internationally renowned brand has enabled its display cabinet products to enter more than 3,000 terminal stores nationwide through the licensing model, increasing the market coverage by 40%. 

Ⅱ.Full Process Operation Guide

1.Brand Asset Valuation and Licensing Planning

• Conduct a brand value audit to clarify core assets such as trademarks, patents, and design copyrights. 
• Develop a differentiated licensing strategy: adopt regional exclusive licensing for high - end brands and implement hierarchical licensing for mass - market brands.
• Case: A German brand designed a three - level licensing system for the Chinese market. It adopted a combination of direct operation and licensing in first - tier cities, and opened production licensing in second - and third - tier cities.

2.Potential Partner Screening Mechanism

Establish a five - dimensional evaluation model: production qualifications, channel coverage, quality control, financial strength, brand fit
 • Utilize big data tools: Check the credit records of the authorized party through the enterprise credit investigation platform 
• Key points of on - site due diligence: the intelligent level of the production workshop, supply chain management capabilities, and past authorized cooperation cases

3.Business Negotiation and Agreement Signing

（1）Key Clause Design:

• Scope of Authorization: Clearly define product categories, sales regions, and usage scenarios. 
• Quality Control: Establish raw material testing standards and production process specifications. 
• Anti-dilution Clause: Stipulate that the authorized party shall not register similar trademarks without permission. 
• Exit Mechanism: Agree on the handling of inventory after the termination of authorization and the transition period for trademark use. 

（2）Key Points of Legal Texts:

• The trademark license contract needs to be filed with the National Intellectual Property Administration. 
• Agree on the place of dispute resolution, and give priority to the court where the brand owner is located.

4.Production operation monitoring system

Establish a three - level quality inspection system:

Incoming inspection: 100% inspection of key components
Process sampling inspection: Adopt SPC statistical process control
Final factory inspection: Simulate transportation vibration test and load-bearing durability test

Digital management tools: Deploy MES production execution system to collect process parameters in real time

5.Market order maintenance mechanism

Price Control: Develop a national unified retail price system and set a price floating range.
Channel Supervision: Use blockchain technology to achieve product traceability, and each display cabinet is equipped with a unique digital ID.
Violation Penalty: Establish a credit score system, and terminate the cooperation immediately if there are three violations.

Ⅲ.Practical Strategies for Risk Prevention and Control

1. Intellectual Property Risk Response

Trademark Defensive Registration: Register in all 45 commodity categories to build a trademark moat.
Patent Layout: Apply for utility model patents for core structural designs and design patents for innovative appearances.
Case: A company failed to register the relevant patents for "intelligent temperature - controlled display cabinets" in a timely manner, resulting in a lawsuit caused by the authorized party producing counterfeits.

2. Quality Crisis Handling Plan

Set up a Quality Guarantee Fund: Extract 10% of the licensing fee for compensation for quality problems.
Establish a 48 - hour Response Mechanism: Start an investigation within 2 hours after a quality problem occurs and issue a solution within 48 hours.
Case: A brand's display cabinets malfunctioned due to the authorized party using inferior compressors. The brand quickly completed customer compensation through the quality guarantee fund, avoiding damage to the brand's reputation.

3. Contract Dispute Prevention

Agree on an Arbitration Clause: Select the China International Economic and Trade Arbitration Commission as the dispute - resolution institution.
Regularly Conduct Compliance Reviews: Entrust a third - party institution to conduct contract performance audits annually.
Case: A company's licensing contract did not stipulate the ownership clause of intellectual property, resulting in a dispute over the ownership of research and development results.

Brand authorization is essential. As a high - level business model in the commercial display cabinet industry, it is necessary to build a systematic operation and management system, establish a strategic - level authorization management institution, allocate legal, technical, and market - savvy composite talents, and continuously optimize digital control tools. Only in this way can the exponential growth of brand value be achieved in the fierce market competition.