By Mark Seavy  

Amid the threat of tariffs and tighter consumer spending, suppliers leaned into licensing last week at the National Hardware Show in Las Vegas. This included new or expanded partnerships within the hardware landscape, as well as agreements with brands to reach other categories.  

Some vendors promoted new additions to long-term licensing deals, while others sought to expand from a base of their own brands. And though suppliers we polled noted the added costs of royalties and minimum guarantees for licensing, many were willing to make the investment after a year in which hardware sales declined 4%. Hardware revenue is forecasted to increase 1% in 2025. 

Caco Group, for example, is launching seven SKUs of WD-40 branded microfiber towels for glass, heavy duty, and other applications. The partnership brings brand owner WD-40 Co. into a new category. My Sales LLC., meanwhile, introduced licensed Scotts 30-gallon multipurpose, 39-gallon lawn and leaf, and 42-gallon contractor bags along with Mircale Gro gardening rain boots under an agreement with Scotts Miracle-Gro Co. My Brands replaced Husqvarna Group’s Orbit brand as the Scotts licensee for garden hoses and tools. And Archipelago is launching a 300-store test at Tractor Supply for its Scotts outdoor lighting products. 

“The speed [of bringing a product to market] is what convinced us, because retailers these days want much faster turnover,” said Kevin Zhang, General Manager at My Sales. “Otherwise, it might take 10 years to get your own brand established. There is also brand recognition, which is why we are paying the royalties and minimum guarantees. Otherwise, [with owned brands] you are just paying for time.” 

Other companies refreshed existing licensing agreements with new twists. Beacon Power, a long-time Kingsford licensee, launched charcoal lighters with a greater 8.2-gram capacity for butane fuel, while PIC Corp. extended its agreement with S.C. Johnson & Son to include Raid brand bug zappers designed to cover one- and two-acre areas as well as roach traps. 

“Consumers seem willing to spend on something with a big brand behind it and one that they trust,” said Albert Tenllado, SVP of Growth and Strategy at PIC. “It is easier for us to approach retailers because you don’t have to explain the brand.” 

Yet while some consumers are loyal to the brands they trust, many are simply seeking lower priced items in the current economy, said Danny Meendering, co-owner of Pointer Ace Hardware in North Carolina. As a result, there is a growing focus on private labels. In fact, many of the vendors at the show also double as private label suppliers. HMS, for example, is a licensee of Reynolds Consumer Products’ Hefty brand for multipurpose and contractor bags as well as plastic storage containers but also provides private label goods to Lowe’s. 

In addition to the hardware staples, many exhibitors at the National Hardware Show were also expanding into other categories.  

For example, there was a selection of toys at the tradeshow, many of which are being sold through lawn and garden centers (including Tractor Supply, which has a dedicated section). Diecast Masters America promoted its licensed Caterpillar vehicles as a means for expanding to mass retailers from its base in hobby stores, while Bruder highlighted plastic Caterpillar and John Deer construction toys. And Schleich—known for its plastic non-licensed animal figures along with those for Harry Potter—is seeking to expand with Tractor Supply, which boosts its offerings during the holidays, Key Account Manager Deanna Frye said. 

“Lawn and garden retailers [like Runnings Farm Store and Blain’s Farm & Fleet] aren’t selling a lot of fertilizer and garden hoses in the winter and they are making very minimal margins on their power tools, whereas with toys they can double up their margins,” said Gabriel Cabrera, Sales and Marketing Specialist at Bruder, which also has licenses for Jeep, Massey Ferguson, New Holland, United Parcel Service (UPS), and other toy vehicles. “They realized there were many families coming into the stores and toys were a natural extension.”