Licensor feedback: growth opportunities

Growth Below: Necessity has driven the industry closer to the consumer, says Richard. Below right: The opportunity for growth in 2022 is vast, believes Vickie. opportunity

LSB asks some key licensors and licensing agents for what they think will be some of the biggest opportunities for the UK industry in 2022.

Richard Pink, md, Pink Key Licensing Vickie O’Malley, md, Rockpool Licensing

“I think necessity has

driven the industry closer to the

consumer. Although there will always be a large place for many years to come for bricks and mortar retailers, the consequences of the pandemic and people’s inability and unwillingness to mingle socially has accelerated the trend to online shopping (and its cousin, print on demand) much quicker than would otherwise have been the case and I don’t see that receding, in fact quite the reverse. I think going forward all high street retailers will have a need to have an online offering alongside their main business. I also think that there will be opportunities for manufacturers to get closer to the consumer themselves, but it will need an increasing in-depth knowledge in this area to be able to cut through the ’noise’ to be successful at this. The other big area I see becoming more and more important is the need to drive business in a sustainable way, the younger generation will not tolerate a company that cuts corners with its environmental credentials.” “Being relentlessly optimistic (often in the face of significant evidence to the contrary), it’s easy to see opportunities for the licensing industry in 22. There’s enormous pent-up demand for experiences of all kinds – of course this bodes well for licensed live events and attractions but also for many product categories. Take clothing; finally there’s the chance to be seen from more than the shoulders up! There is also money burning a hole in many of the nation’s pockets. It’s grossly unfair of course as we’ve seen these last two years further widen wealth inequality; our poorest families feeling the impact acutely and the most wealthy extending their fortunes exponentially. When we look at average households though, savings have hit record highs during lockdown periods. This heady combination of the ability and the ‘itch’ to get spending, represents enormous bounce back potential. Won’t help with inflation of course but simplistically, this means the opportunity for growth in 2022 is vast.”

Helen Genia, head of UK licensing and hardlines EMEA, Mattel Consumer Products

“The future is bright as we head into 2022. We will be taking the challenges that we have faced in 2021 and turning them into opportunities for 2022. With many shippings arriving late - some even after Christmas - it gives us the opportunity for a fast start and to manage stock and plan for bigger Easter activations.

We have some fantastic partnerships across multiple categories and brands that will launch throughout 2022. We know our consumers are hungry to connect with freshness and newness with the brands they love.”

Gemma Witts, European md, Retail Monster

“Over the past six months, we have felt an increased sense of positive

feeling and robust determination

from brands, retailers and licensees alike, that 2022 will be a strong year. Retailers specifically seem more assertive in their approach to licensing, and there is an enthusiasm to not only range licensed products, but to really drive these products through innovative marketing campaigns and promotions. We have also seen retailers move to a more diverse licensing portfolio for 2022, with many actively seeking new properties and looking to support these as much as established brands. Retailers have also made it clear that they are looking to support brands that are representative of their key focuses around diversity and inclusion, that are purpose driven and deliver against these key objectives for consumers.”

Above: Retailers have moved to a more diverse licensing portfolio for 2022, says Gemma.

Dan Frugtniet, md and founder, Big Picture Licensing

“I believe there are always opportunities in business that grow out of challenging times, and in licensing we all know that there are always new and exciting ways to connect Above: Dan believes there are some big opportunities brands with innovative product in the LBE space this year. and rights. I feel that there are some big opportunities in the LBE space with shopping mall operators around the world, as they will need to attract consumers back to indoor venues. I believe we will see many new licensed IP across the retail, food and beverage, experiential and interactive sectors. Space will be created and vacated by retail groups reducing their footprint and store count. This frees up the opportunity for shopping mall operators to think different and target all demographics using brands as the hook for consumers; this may be driven by VR or digital experiences or more traditional LBE. I also believe there is a strong opportunity to link physical product and digital rights together in a coherent retail proposition for consumers of all ages. Lastly, I feel there will be a continued increase in the opportunity for brands to work on DTC models and sell direct to their fans via a multitude of platforms outside of traditional bricks and mortar.”

Ian Downes, md, Start Licensing

“I think licensing has an

opportunity to position itself in a proactive way

over the next year or so, in the context of helping businesses big and small in their development and in some cases their recovery.

Licensing can add value to

businesses and help create fresh impetus for companies in challenging times. There are lots of positive case studies we can point to where licensing has been used successfully by companies. I think this approach may also bring new companies into the licensing fold and help develop licensing in a range of new categories. More specifically, I think it has been great to see how licensed properties are being used in the live and experiential sectors - I expect to see further developments in this category.”

Above: Licensing can add value to businesses and help create fresh impetus, says Ian.

Ian Wickham, director, Licensing Link Europe

“2022 will be a cracking year for major tournament sports licences, culminating in the FIFA World Cup. Who knows, in 2022 we may even be chanting ‘Football’s Coming Home… for Christmas’. Encouragingly, there are a raft of new ‘lockdown-start ups’ that have researched and embraced the world of delivering truly sustainable products to market to a younger audience via their own online windows, as well as via more traditional retail. They are also keen to look at licences to assist them in growing their roll out strategies and offering points of difference. We are also seeing the advancement of the metaverse, the starting point being more global brands engaging with NFTs. What is really interesting to note though, is that consumers are wanting change. They’ve spent two years effectively dealing with the global pandemic and now want products of all categories that deliver something different - whether for their homes, to wear, to accessorise, etc. What they were into two years ago is very much now not necessarily the case. This delivers licensees and licensors opportunity to broaden the depth of their reach, create newness and hook in these consumers looking for that change. This will be a great opportunity for 2022.”

Above: Ian believes that consumers are wanting change, giving licensing a great opportunity for 2022.

Talia Tester, licensing manager, Carte Blanche

“While there’s no denying 2021 came with endless challenges, we all continued rolling with the punches and, moving into 2022, there are certainly glimmers of hope. One of the ongoing areas of growth that we continue to benefit from is the huge demand we are seeing through the online channels, both personalised products through key print on demand partners as well as via ecommerce sites. We are also seeing an increased demand in occasions and more minor seasons, such as New Baby and Thank You Teacher, indicating that people want to focus on the good and celebrate as much as they can. After the past two years, it’s lovely being able to help spread joy to customers and fans in new ways, and with events (hopefully) starting to resume then long may it continue.”

Mathieu Galante, director of licensing EMEA, The Pokémon Company International

“At Pokémon we are excited by the licensing opportunities that the metaverse - digital worlds

that interact with the real

world - can offer licensees. Creating products that coexist in reality and virtually is a hugely exciting new area in the industry and one that suits Pokémon perfectly. We have already started making inroads into this new area with our recent collaborations with British designer Charli Cohen, where the fashion collection was available physically and digitally at Selfridges, and with Longchamp which created an avatar backpack accessory in Pokémon GO in addition to an exciting line of accessories available in its stores worldwide.”

Above: Further plans around the metaverse are exciting for Mathieu.

Denise Deane, owner, Edutainment Licensing

“Undoubtedly 2021 was another strange year, but following the meetings and exchanges we had during BLE, we are feeling optimistic for the year ahead. Our meetings for the NSPCC were quality over quantity with licensees keen to explore the opportunity to work with a charity partner in a very different way. We believe that the NSPCC are the only UK-based charity to have a character-led traditional licensing programme. This unique positioning, coupled with the very high levels of consumer awareness for both the NSPCC brand and the Buddy and Pantosaurus characters via their schools programmes, has sparked interest with potential partners in number of key categories.”

Above: Denise is feeling optimistic for the year ahead.

Louise French, svp business development and operations, Beanstalk

“We are craving a return to normality and with it a nostalgia for brands, experiences and products that bring us joy and that help us return to life’s simple pleasures. Lifestyle brands that celebrate a life less serious will benefit.

Time spent at home has resulted in a boom in demand for interiors products, and we see this continuing with a return to print, pattern and nostalgia. Brands with a strong design handwriting will be launching new licensed ranges to grow their reach and capitalise on this trend. In addition, the trend towards restaurant brands continuing to connect with consumers off-premise will gather further pace offering more opportunities for brands to integrate into our everyday lives. Alongside this we have a growing social conscience that is resulting in consumers of all ages (but particularly the youth), demanding transparency and sustainability from the brands they engage with – whether through core or brand extensions. The uncertainties of the past two years have prompted the growth of ‘Kiddults’ – adults looking to channel their inner child as a form of escapism. This offers unique opportunities for gaming brands to further engage with their growing audiences through new products and extended brand experiences to reward their considerable fan bases. We will also see more streaming services content securing a stronger foothold at retail, as well as an increase in metaverse brand activations as brands look to increase their digital reach. Finally, we will see a return to fun and engaging bricks and mortar brand experiences as we look to engage all our senses in our purchasing.”

Left: Louise highlights the growing social conscience across all age groups.

Sophie Kopaczynski, ceo, The Copyrights Group

“In 2022, we should definitely seek for experiential

opportunities in both

physical and digital spaces. Immersive experiences increase fans’ engagement with the Above: We should brand. These branded experiences definaately seek experiential result in strong brand affinity which opportunities in both tends to accentuate ‘word of mouth’ physical and digital spaces says Sophie. social media coverage and the desire for fans to purchase licensed products. These elements thus improve the brand's notoriety organically, which in turn makes it possible to use the concept as blueprint to develop other experiential partnerships thereafter. Beyond offering a memorable piece of entertainment, experiential offerings allow brand owners to generate a virtuous circle, which is scalable and ensures the longevity of their brands. And it works both in physical and digital: NFTs, metaverse and live streaming shows are and will be of huge potential for brands to bring to life new experiences, and new licensing opportunities.”

Clare Piggott, director, Larkshead Licensing

"There's certainly a ‘Mystic Meg’ element to any predictions for 2022 due to all the challenges we faced as an industry throughout 2021. Being nimble will continue to be very important throughout 2022, but for classic brands this needs to be balanced with longer term strategic planning. So, 2022 may well prove to be a year of re-balancing shorter term needs with longer term gain. Parents are increasingly focused on positive learning outcomes for their children, so I predict that 2022 will see a significant rise in popularity for brands such as Numberblocks and Alphablocks that can provide fun learning in a curated and relevant way. The elevation of online retailers has seen the development of new players in this sector that present exciting opportunities for emerging brands particularly ones with a strong digital fan base."

Right: Clare believes that being nimble will continue to be very important throughout 2022.

Louise Simmonds, head of UK licensing, Acamar Films

“Our ability to be nimble and to engage with consumers in new and interesting ways will continue into 2022. Online shopping was already growing year on year; 2020 saw that grow exponentially and 2021 proved that comfort with and trust for online shopping is here to stay. Looking into 2022 and beyond, this provides exciting opportunities as the online retail environment gives us more shelf space to explore new products and also allows us to connect directly with our consumers, in the same way we would on social media and other digital platforms. Further down the line we will see more integration and innovation between digital technology, digital products and retail. This is across VR and AR and livestreaming, too. It is already happening quite a lot with AR software being used in apparel shopping, and while it is still early days, we are excited to see where that will lead. Finally, the discussions regarding diversity and inclusion and those around sustainability are positively progressing across our industry and we are all prioritising the commitment to take steps to meet the expectations and needs of our consumers.”

Kate Schlomann, evp brand management and content marketing, Boat Rocker

Below There are so many channels through which to connect with consumers, says Kate. “The success of ecommerce has opened up so many opportunities – anywhere, anytime – and its continued rise will bring even more. As direct to consumer opportunities and print on demand become more accessible and commonplace, they will open up the market for licensing to find ways to quickly get products for some categories to market, while also maintaining a more traditional licensing road to retail. There are now so many channels through which to connect with consumers and build brand and product awareness, with influencers becoming increasingly important for this. It’s also great to see online communities independently interacting around our brands – for example, our mum communities have rallied across social media with Dino Ranch to help other parents find product both in the same country and across markets.”