Social Licensing in Brazil -The FLAMENGO case
Would you license your main brand to a group whose financial situation you have no knowledge of?
If so, would you waive receiving sales reports for that licensed product?
Well, in a historic first in terms of social licensing that´s exactly what FLAMENGO has done.
But the soccer club with the biggest fan following in Brazil went a step further: it also waived the payment of royalties for the use of its most important brand in the identification of face masks to protect against COVID 19.
In the current unfavorable scenario caused by the pandemic, FLAMENGO decided that the production and sale of its branded face masks would not be operated by companies already established in the market, as occurs with the entire product range of the club, but by anyone who wishes to make a living out of them.
Based on this decision, the club announced that anyone could produce and sell FLAMENGO´s branded masks and that no royalties will be paid for this operation.
In other words: each micro producer can keep all proceeds arising from the mask sales for him/herself.
And to make sure that the initiative succeeds, FLAMENGO has also placed commercial information of each producer on its own website (visited by millions of fans weekly), thus making use of free marketing to boost sales.
Finally, FLAMENGO decided that samples of the branded mask were not to be offered free of charge to the club by the producers and pledged to pay them the same price paid by third parties.
That is to say that all masks worn by FLAMENGO´s employees and players were purchased from micro producers licensed by the club itself to use its brand for a social purpose.
This three-month-old initiative has already proven its worth and is considered not only a great success for all parties involved, but it is also ready to be replicated by other soccer teams across the country.