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Feature - BLE

Feature - BLE

Seizing opportunity

Toy World caught up with leading licensors to ask them what they consider to be the biggest challenges and opportunities for their business currently, and how they feel the pandemic has changed the licensing industry.

Kate Schlomann - EVP Brand Management & Content Marketing, Boat Rocker

We see huge opportunity for Boat Rocker’s ‘pre-Westoric’ pre-school show Dino Ranch, which airs on various Disney platforms around the globe including Disney Jnr. in the US and Disney+ in the UK. Jazwares’ toy line has just launched in the US and is performing strongly, and we have high hopes its success will be replicated in the UK and internationally. Series 2 will also land in 2022. We expect the franchise to grow significantly next year, helping to cement Boat Rocker’s position as a fantastic storyteller and franchise creator.

Our lovable, huggable hero Love Monster will also see increased lines and distribution across toys, apparel and other categories next year in addition to the launch of Series 2. We are also really excited about a soon to be announced high-profile partnership and brand extension that will really help to strengthen and broaden Love Monster’s reach.

I think the pandemic has demonstrated the resilience and strength of the licensing industry. At Boat Rocker, we’re pulling together with our partners to get through 2021 while also strategising ways to navigate 2022, with its continued container shortages and supply chain issues. Everyone in the industry is facing major problems with getting products to the right place at the right time. I think that as a result, we’ll see an increase in print on-demand and of sourcing supplies much closer to home.

Francesca Lisle - Managing director, Lisle Licensing

As an industry, I believe we are all facing similar macro-economic challenges which will carry over into 2022. It’s evident this has been driven by Brexit, followed by the Covid pandemic and the subsequent localised (UK) financial consequences. When this plays out on a global scale as it’s doing right now, for an industry such as ours - which is so reliant on international manufacturing, shipping, partnerships, conferences etc. - the impact is immense. We saw this early in 2021 with the impact of cost increases on raw materials; the situation sadly hasn’t improved. If anything, as we entered Q4, we saw the challenges exacerbated by delays with freight, which has created a major issue for the peak Christmas season.

On the upside, the opportunity to meet in-person with licensees, buyers and our UK clients once again is great. We are looking forward to seeing our international clients at BLE for the first time in nearly two years. Whilst meetings on Teams have been a lifesaver, there’s nothing like a meeting face to face, in which you can properly interact, gauge reactions and make meaningful connections. Without doubt, the return to in-person trade fairs is also an opportunity for us to meet potential new clients, retail partners and licensees. It’s important we approach everything with positivity and do our utmost to make the most of every opportunity.

The pandemic has certainly changed the way we work and how we present our business, be that to potential clients or buyers. In some ways this has been for the better. Less time in the car, on planes and trains. A smaller carbon footprint. That’s better for our general wellbeing but also for getting the job done - and it’s no longer taboo to be seen working at your kitchen worktop.

There are those in our industry who have embraced the opportunity for change and the very obvious shift to online, and who have become quicker to react to retail demand. This can only be a good thing. But, on the flip side, it has made launching new brands slightly more challenging: there are retailers who seem to be more risk averse now. We need a way of meeting in the middle and working through these changes for the good of both our industry and consumers.

Mark Kingston - Senior vice president, International Consumer Products, ViacomCBS

When it comes to this year’s challenges, we must keep in mind that inflation brought about by rising commodity prices, Brexit and logistics challenges will result in an increase of retail prices, and that the amount of disposable income available to consumers will ultimately lead to a reduction in volume sales in various categories. Next year, we’ll face an extremely crowded theatrical landscape. A significant number of movies with consumer products merchandise attached to them have been delayed and are now scheduled to be released throughout spring and summer 2022. We are currently getting ready for the release of Top Gun: Maverick in May 2022 ourselves. Nevertheless, we’re in a strong position and more than able to meet consumers’ needs in 2022. We know, for example, that consumers are looking for the reassurance and familiarity of old favourites. We have well-established and beloved properties in the form of Paw Patrol, Baby Shark, SpongeBob SquarePants and Blue’s Clue’s & You! in our portfolio to respond to this need. In addition, Paramount+ will launch in key markets throughout 2022 and 2023. This will introduce great visibility and drive even greater awareness of our properties, with ViacomCBS content being present in even more homes and on even more devices. Finally, we’ve witnessed the accelerated rise of eCommerce along with mobile commerce. Our brands are well-suited to accommodate this rise across all channels of retail distribution, and we continue to benefit from strong partnerships in the markets we operate in. For the past 18 months, consumers have been bingeing on more content than ever before, opening the door for new entrants into the licensing industry while also providing more scope and opportunity for existing franchises to build even stronger and deeper emotional connections with their audiences, fans and consumers. Less work travel has also led the licensing industry to adopt new digitally savvy ways of working. As we move into a new ‘hybrid’ workspace, it will be those companies that take the efficiencies and new practices learnt during the pandemic, and blend them with in-person meetings, that will thrive.

Pindy O’Brien - Licensing & retail development director for key franchises, UK and Europe, Walker Books

We know from the current economic conditions that all manufacturers will face supply chain disruption and a hike in freight costs. With all the uncertainty that comes with recovering from a global pandemic, ensuring manufacturing is a success has meant changing production from our original factories in China and India into Europe, and even more locally for many businesses. This is bound to result in pressures on margins and profits. We also are aware that other countries are still playing catch-up with their vaccination programmes compared to the UK, which can affect the supply chain.

The pandemic has had quite an impact on the licensing industry. We all know how our lives changed. Spending more time at home, and limitations on going out, meant creating our own events and entertainment. Board games, video games, cards game and puzzles became popular while digital streaming rocketed globally. This had a direct impact on the traditional licensing avenues our industry depends on. In addition, we had more people exploring social media channels than ever before. TikTok, You Tube Shorts and Instagram Reels saw talented social media individuals and singers, such as Bella Poarch (81m followers) and Charli D’Amelio (123m followers), become overnight celebrities. Demand for associated merchandise will be high.

Cinema closures and delayed movie releases had a massive impact on licensing, with retailers and consumers gravitating towards more classic, evergreen, nostalgia brands. It became impossible for new TV brands to have any chance of growing, as retailers and licensees became more cautious. And with stores closing during the pandemic, online shopping became the norm as did essential shopping channels such as grocers. I think as licensors, we all became more open to where our brands could be sold. The retail environment has become a more level playing field in consumers’ minds.

However, the licensing business at Walker managed to hit its pre-Covid licensing targets in 2020. Having evergreen classic brands such as Guess How Much I Love You and We’re Going on A Bear meant sales across key categories remained steady during this difficult time. Families around the world shared their We’re Going on A Bear Hunt moments, with bears placed in windows for children to spot. We were able to launch apparel based on the brand in November 2020. Next year, we’ll grow our existing classic brands into new categories and markets - international business has been made easier with Zoom meetings and more frequent communication with partners – and we’ll also explore other brands in our portfolio, which benefit from our strong relationships with amazing authors and illustrators.

Rachel Wakley - General manager, Warner Bros.

Next year is brimming with fantastic opportunities for our business, and our 2022 content slate looks phenomenal across all properties. The highlights include five theatricals spanning the DC Universe, starting with The Batman in March. Also out next year is the third instalment in the Fantastic Beasts series, Fantastic Beasts: The Secrets of Dumbledore, and the Hogwarts Legacy console game. This is all underpinned by our ongoing franchise activations, the reopening of experiences and a whole host of new products launching across all areas. We’ll have an incredible year because of all this, and - more importantly - our fans with be able to enjoy an enriching and exciting 12 months too.

I think the pandemic has certainly acted as a catalyst for change, be that in the way fans engage with our franchises, the way they consume content, the type of products they want, or the ways in which they choose to shop.

The way we have all had to work is of course different as well - be that from home, on video calls and so on - but the fundamentals of how we build franchises and develop product remain the same. We will always deliver great stories through our amazing content, and our quest to work with the best-in-class partners, develop high quality product and execute it at retail hasn’t changed. There have been newfound efficiencies, which I’m sure all of us would welcome the continuation of. The efficiency of meeting with retailers and partners has significantly improved due to video calling, decreasing time spent travelling. Of course, I’m sure most of us would agree that we can’t wait to be back out meeting partners in person, but it would be great for the industry to move forward accompanied by the best of our newly formed habits. These can be combined with the face-to-face experiences that offer so many benefits to us all.

Will Stewart - Managing director, The Point.1888

In January 2020 I wrote a piece for a licensing publication in which I said that the roaring twenties were upon us. Everything was going perfectly. In January 2022, I’m hopeful we’ll all be back on track.

We’re entering the last phase of ‘just surviving somehow’. We are only a few weeks away from the second most challenging Christmas in history: a fuel crisis, rising gas prices, CO2 shortages, supply chain nightmares, Brexit red tape, Covid. Jeez, it’s going to be rough - but next year is going to be much more positive.

The collective resilience we have built up in the last 21 months will get us through this Christmas, and with the new year comes a new dawn. It will be impossible to predict what will happen, as literally anything will be possible. Even Abba got back together recently. However, we're excited to continue our growth, with a range of new brands to represent and successful licensing programmes to continue expanding. Next year will be a big 12 months for us.

So just survive somehow for now. Be positive. Be brave. Be Kind and collaborative. We will get through this final stage and then the world is our collective oyster.

Marianne James - Vice president EMEA Consumer Products, Hasbro

Looking ahead to 2022, like many industries, we foresee enduring challenges with container shortages and shipping delays that affect the entire supply chain. We will continue to work closely with all partners into next year to navigate this dynamic situation. We’ll also need to navigate in a smart way through the highly competitive pipeline of delayed theatrical releases and tentpole events, another pandemic-related challenge. We are working closely with our partners to ensure our programmes stand out from the crowded marketplace and provide consumers with the best possible products.

In terms of opportunities, we are excited by our full content slate, which maximises the SVOD and digital platforms focused on where our consumers are. Additionally, as the post-pandemic world slowly reopens, consumers are looking for new experiences they were unable to have during lockdown. This is where our brands really shine. We’re pleased to offer experiences for fans of all ages, including Monopoly Live - currently taking place in London - the world's first stand-alone Peppa Pig Theme Park at Legoland Florida, which opens next year, and the Nerf Action Experience (NerfAX) in Singapore, which will benefit from even more locations opening soon. We’re also happy that we can offer a breadth of brands from our portfolio. From My Little Pony and Transformers to Nerf and Monopoly, we truly have something that appeals to every age.

The pandemic has accelerated the importance of eCommerce, and the industry has shifted to a digital first approach. This goes beyond traditional online stores to include the rise of social commerce – purchasing goods on platforms like Instagram. We’ve also seen strong demand for licensed brands, with nostalgia driving great momentum and strong demand for much-loved franchises such as Transformers and My Little Pony.

Finally, the pandemic has shifted focus to Content Agnostic platforms, meaning there is more appetite for our IP in places people typically wouldn’t expect it. For example, when it comes to Location Based Entertainment for many of our brands, we’re creating promotions that fully extend each franchise into consumers hearts and hands.

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