Millennials (~1980s-2000s) make up the largest generation in U.S. history. While the debate continues on whether millennials are lazy and entitled, why they won’t eat at Applebee’s, or why they can’t get off their phones, something much larger is at play that is impacting both a company’s bottom line and investor’s pockets.
– There are roughly 80 million millennials in the United States alone, and each year, they are spending approximately $600 billion.
– Millennials will have the most spending power of any generation by 2018, with some analysts projecting this number to reach trillions in the next few years.
– Millennials are on track to become the most-educated group of young adults in U.S. history, with ⅓ of older millennials having earned at least a four year college degree.
Although only 1 in 3 millennials are actually investing in the stock market, the $600 billion they spend annually is likely to impact the stock market in positive and negative ways. Look at the rise of industry giants that millennial’s spending habits have played a role in: Starbucks success from millennial’s love for $4 coffee, the Walt Disney Company breaking from Netflix to start their own streaming service, and Amazon, who was found to be the most relevant brand among U.S. millennials, saw it’s stock more than quadruple in the last 5 years.
Millennials are just beginning to reach their peak spending years and evidently, their values, earnings and spending habits are shaping expectations for future brand leaders, expectations that companies will have to embrace if they hope to succeed.
One newcomer positioning themselves in the center of it all is hoping to capture the attention of millennials with the next generation of bold, unconventional, and socially responsible brand leaders — and the attention of investors with an interesting business model to go with the approach.
Level Brands is a licensing, marketing, and brand management company who recently launched its IPO and is currently raising $12 million from both institutional and retail investors under Regulation A+ of the JOBS Act. In succession, and subject to exchange requirements, Level Brands plans to list on the NYSE American under ‘LEVB’.
The company operates four distinct operating business units including a professional products division, licensing division, entertainment division, and most recently was granted exclusive licensing rights for their Kathy Ireland® Health & Wellness division.
What makes Level Brands interesting?
– Kathy Ireland is the Chairman Emeritus, Chief Brand Strategist, and a major shareholder of Level Brands.
– Level Brands is led by CEO Martin Sumichrast, a seasoned entrepreneur with 25 years executive experience and run by the same branding team that built what Forbes credits as the billion dollar kathy ireland worldwide® enterprise.
– Level Brands’ licensed brand marketing business model is seemingly profitable – the licensing division, which only just began reporting revenues in the second quarter of fiscal 2017, represented 51.1% of their net sales for the first nine months of fiscal 2017, according to the company’s offering circular.
– Level Brands is maximizing value of their brands through entry into license agreements with partners that are responsible for the design, manufacturing and distribution of their licensed products. This means low overhead costs for Level Brands while the company profits from continual royalty, licensing, and marketing fees.
Why millennials may care has to do more with not what they’re doing, but how they’re doing it. The company has an exclusive partnership with Best Buddies International, and each of the company’s clients must support one or more of their ‘Team Millennium Development Goals’ to improve the conditions of lives around the world. This matters to millennials:
– 81% of millennials expect companies to make a public commitment to good corporate citizenship, according to Horizon Media’s Finger on the Pulse study.
– More than nine-in-10 millennials would switch brands to one associated with a cause.
As companies continue to respond to millennial demands, investors should look to those who are embracing the change, and making forward-thinking steps to stay ahead and attract the generation that will define the next brand leaders.
The offering will be made only by means of an offering circular. An offering statement on Form 1-A relating to these securities has been filed with the U.S. Securities and Exchange Commission and has become qualified. The securities offered by Level Brands, Inc. are highly speculative. Investing in shares of Level Brands, Inc. involves significant risks. The investment is suitable only for persons who can afford to lose their entire investment. Furthermore, investors must understand that such investment could be illiquid for an indefinite period of time. No public market currently exists for the securities, and if a public market develops following the offering, it may not continue. Level Brands, Inc. intends to list its securities on a national exchange and doing so entails significant ongoing corporate obligations including but not limited to disclosure, filing and notification requirements, as well compliance with applicable continued quantitative and qualitative listing standards. For additional information on Level Brands, Inc., the offering and any other related topics, please review the Form 1-A offering circular that can be found at the following location