TOTAL LICENSING
Germany is the fifth largest economy in the world with GDP per capita of over $50,000 and a population of around 83 million. Without doubt, the pandemic has impacted on consumer spending and behaviour and, of course, this has impacted the licensing industry. On the following pages, we take a look at the German market and highlight some of the companies and properties involved..
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GERMANY
As we did last year, Total Licensing spoke to Peter Hollo, who is running Licensing International in Germany and is owner of the TOYS & GAMES Report, a high profiled management consultant and a true insider to the business. Peter gave us some very personal comments… and not only about the industry.
It´s Groundhog Day …again! The easiest way to say something (about licensing) in Germany and beyond, would be to copy and paste my last year‘s comments! 2021 basically was like 2020, only with a shot. And to make myself perfectly clear, I´m neither talking of alcoholic beverages of questionable content, nor of the use of weaponry. It´s the vaccination that makes the difference. In more ways than just the true sense of the word. Unlike in the 1993 movie, mentioned in the headline, we are trapped in a time loop without any hope of catharsis and personal or societal
development, so it seems. Governments, including the old and the new German government, are over and over repeating the same mistakes without any signs of a learning curve. And social groups of questionable political abilities and cognitive resources with special needs dominate the scene. The louder, the more public attention. It seems to me, it´s not only the pandemic, that makes people retreat into the idyllic world of the family and their own four walls. A place where they feel safe and protected from a world outside, that is perceived as being increasingly hostile and obscure. A significant trend, that goes along with rediscovery of old values, like the family or the increase of regressive behavior – everything was better in the past… even us! So it´s no surprise, that exactly these brands, companies or whole sectors, that satisfy these demands, are the winners of 2021. In licensing and in almost any other business field. Board games, puzzles, home-decor, furnishing, garden products and many more. And even if the customers were facing some financial setbacks, there were still free resources. Coming from the travel industry or the automotive sector, that suffered from massive drops in sales. Brands, franchises or properties with a positive heritage in 2021 very often outmatched the rookies. A trend
additionally fuelled by retail buyers, who in times of a crisis concentrated on things they knew, instead of giving novelties a fair chance. Regressive behaviour is no stranger to business decisions too. I wish I could say, I see sunny skies in 2022. Actually I don´t. The pandemic is not over yet, China is demonstrating its will to power and Russia is continuing working on the destabilization of the European idea. But instead of complaining about the darkness, it´s time for our industry and probably for our western model to turn on the light and face what it shows us. With courage and with inventiveness, with perseverance and with a vision. Instead of downheartedness and lament. And with giving up false tolerance towards certain societal and political powers. We can no longer accept, that the smart are discouraged and the stupid determine public perception. Because if there is only one upside in any crisis, it´s the opportunity to shape our future. Licensing is a worldwide multibillion industry. There´s so much we can do – for our business and for a society we want to live in.
TOP 10 RETAILERS IN GERMANY Turnover generated in Million Euros Retailer Turnover Edeka 55,700 Schwarz (Lidl and Kaufland) 39,500 Rewe 34,532 Aldi (Nord & Sud)
29,500
Amazon.de (pick up lockers) 19,850 Media Markt-Saturn Otto Group
10,492 8,622
Dm-Drogeriemarkt 8,370 Rossmann 7,000 Ikea 5,278
