Navigating New Market Dynamics

The Italian Market Navigates the New Market Dynamics

The general situation in the Italian licensing industry seems finally to be settling into a new normal. Last year passed in a continuous re-planning of seasonal launches, which retailers and manufacturers somehow tried to manage through a stop-and-go of emergency closures, and ended with a Christmas season seriously damaged by a last minute shutdown for most non-food categories. According to NPD, the toy market in Italy fell 7%, a decrease which can be largely put down to missed sales in week 50 (just prior to Christmas). Year 2021 started with the general hope of saving at least the last quarter sales period, while manufacturers and retailers are focusing on a spring and summer 2022 as the first “new normal” season. Retailers like Calzedonia Group’s Tezenis, Calzedonia, and Intimissimi, for example, that used to launch six to eight special licensed editions during a standard year, halved their launches for 2020 and the first part of 2021, but are looking at a regular approach for their spring and summer 2022 collections. The same goes for other apparel retailers like Terranova, Piazza Italia, Zuiki. Licensed properties are still strongly present in most kids product categories, whilst marketers have to navigate through new dynamics. BVA Doxa, a major Italian market research firm, has just presented the highlights of Doxa Junior 2020, the annual survey of Italian kids aged 4 to 14. This points out how fantasy properties like Disney Princess, Cars, Minions, 44Cats are still most popular in the 5 to 7 age cluster, whilst 8 to 14 year old kids seem to be most attracted by YouTubers like MeControTe, social media celebrities like Fedez or Chiara Ferragni, or starred chefs from Master Chef like Antonino Cannavacciuolo. This duality between a fantasy and a real world seems to be bridged by Harry Potter, which stands out as the only non-fiction property in each cluster of boys and girls from 8 to 14 years. The new licensed property generators – YouTube, social media and SvOD digital platforms are in the agenda of every Italian licensee. It is not a surprise (no pun intended) that a 2021 Easter Egg licensed campaign focused on LOL Surprise (Dolci Preziosi), Mickey/Minnie (Kinder Ferrero) and, at the same time, by new properties like Chiara Ferragni, or TwoPlayerOneConsole (DolciPreziosi), MeControTe (Dolfin). New properties quickly appearing on the scene in the wake of Baby Shark, like Cocomelon or Love, Diana, got the immediate attention of Italian licensees, although working with these new generations of licensed properties implies a completely different business and time-to-market model. The great success in terms of audience of Fate, the Netflix/Rainbow live action series based on the Winx concept, generated the same immediate interest among the Italian licensee community, and it will be interesting for market specialists to follow the product development and launch of Fate licensed products, whilst the second and future series will be released. Adults, young adults and millennials are becoming more and more interested in licensed products, although with a short term/limited edition model. These new consumers are looking for storytelling collaborations, and can find a more satisfactory and remarkable licensed product offering, not only in the apparel categories, but also in accessories, cosmetics, design objects and gift products. This new version of the short term licensing model is driven mainly by mass market / food brands, like Coca Cola, Pepsi, Kelloggs, Pringles, Chupa Chups, McDonalds, and by Anime-Manga or gaming properties like Pokèmon, Dragonball, Pac Man.

Milano Licensing Day goes live again on 16 September 2021

Milano Licensing Day, one of the two licensing events to have survived in a “live” format around the world during annus horribilis 2020, has just announced the date of 2021 live edition – 16 September. Despite a controlled number of delegates and a complex organization made up of distancing, sanitation, face masks, controlled catering etc, Milano Licensing Day 2020 was the paradigm of effective social networking. The organizer MLD Entertainment are looking to replicate the same success this year, believing that by September the general situation will be beyond emergency mode. “Last year we spent more than eight months involved in the difficult organization of the event, knowing that even the most advanced digital platform cannot deliver the prime need of licensing business: the face-to-face relationship,” declared Paolo Lucci, event founder and organizer. “We are organising this year’s edition backed up by all this experience. Nevertheless we will include some ancillary digital features to enhance the core plug and play, one day only live format.” Digital was already included last year at the event’s Grand Opening, with Mattel Licensing’s Virtual Summit, and this year other similar forms will be studied to maximise content delivery. A new website has been developed to follow the progress of the event, and the Italian industry is responding positively: every licensing professional is saving 16th September as the date for the most effective business networking day. For more information, contact: info@mldentertainment.it https://mldentertainment.it/eventi/milano-licensing-day/

By Paolo Lucci Lucci & Partners paolo.lucci@luccitm.com www.luccitm.com