TRENDS I WildBrain CPLG’s Jasen Wright on where the licensing industry is headed in 2022

“There’s a real wave of enthusiasm from across the licensing industry as we emerge (once again) from pandemic restrictions. The impact of the last two consecutive pandemic-driven years has brought many challenges, but it’s also accelerated the evolution of consumer engagement with brands, creating new opportunities. As we emerge from these difficult times, I think it’s an incredibly exciting time to be in licensing.

Two of the biggest sectors to feel the impact have been physical retail and live events, so we look forward to a resurgence of these two pivotal areas of the industry in the coming year.

We’ve explored five key trends for global brand owners, retailers and licensees alike for 2022 and beyond:

Multi-layered approaches to retail:

Physical retail continues to be hugely important – and the holiday shopping scenes in-stores underscored this – but there’s also been a significant boom, in no small part by necessity, of digital retail. Consumers will continue to demand a multi-layered shopping experience and physical and digital retail will evolve in new ways to continue to co-exist together. We’ll see more digital experiences in-store to draw customers in, as well as unique events that offer increased engagement or touchpoints with brands and products that the digital world cannot create. Going forward, we’re likely to see a brand’s overall consumer products and retail strategy embracing both digital initiatives and innovative retail activities that drive consumer experiences over and above a product purchase, such as the impressive Chupa Chups Room in Dubai.

The emerging world of NFTs:

Another interesting component in the consumer relationship with brands is NFTs and, by extension, digital currencies. NFTs (non-fungible tokens) are the buzz word for brands right now, and an increasing number of companies want to be in this space to drive brand relevancy and be at the forefront of something that will eventually be regulated and part of our everyday life. It’ll be interesting to see how this develops – it could move very quickly, and we could see digital currency and NFTs become mainstream in only a few years. Another attraction of NFTs is how they play into the collectibles trend, which has been a key part of consumer products for many years. As brands look to enhance their consumer engagement strategy through digital platforms, NFTs have become a new commercial avenue.

Innovation in location-based entertainment:

An area of the business that I believe will also emerge transformed post-pandemic is location-based entertainment, which is also the theme for Licensing Expo 2022. We were seeing the start of consumers wanting to experience brands differently before COVID-19 hit, but I think we’ll now see much more innovation in those bigger consumer experiences with brands. Crayola recently announced plans for outbound licensing of its famous Crayola Experience which will see new locations installed around the world starting in 2023. It underlines the importance of the category to a brand as it creates more consumer touchpoints – location-based entertainment provides a brand destination to extend the consumer journey.

The importance of corporate and social responsibility:

A further area that will continue to grow in 2022 is the importance of corporate responsibility and brand values. Consumers, and particularly Gen Zs, are becoming more considered in how they interact with and consume brands – it’s not just about a product’s quality or how it’s marketed, but a company’s social and corporate responsibility. Themes such as wellness and sustainability are much more engrained. Inclusivity, too, is at the forefront and not just at a corporate level, but in terms of representation, ensuring kids and families today can see themselves reflected in content and products. Corporate and social responsibility is an important business pillar, not just a passing trend.

Fresh approaches to corporate brands:

One of the ways this heightened awareness of brand values has played out is that corporate brands are entering the licensing arena in new ways, while established brands are looking for collaborations and extensions into new aisles and channels that align with their businesses. For example, we’re seeing several CPG brands now looking at how they expand from the grocery channel to become present in other places, and this is driving innovative partnerships with other brands.

We’ve recently seen this with the Froot Loops and Sweethearts cereal collaboration as well as Sweethearts and Crocs coming together for a sweet colourful collaboration. At the premium end, Tumi, a corporate brand known for luggage, and McLaren, an automotive brand, have teamed up to offer a co-branded collection inspired by their shared values of meticulous design and durability. Looking to capture new consumers or buzz-worthy headlines, brands will continue to reach across aisles to form unexpected partnerships, leaving plenty of room for creative marketing campaigns and new product innovation.

From the toy aisle to the catwalk:

We’re also seeing a resurgence in creativity, particularly in the relationship between toy and kids’ brands and high-end fashion – encapsulated in the recent Balmain and Barbie collaboration, amongst others. These partnerships reflect and embrace popular culture and add value to offerings for both parties.

In part, this has to do with nostalgia – tapping into the original consumer demographic who grew up with a now iconic toy brand. Some major children’s brands have been around for many decades and there’s an intersection where the parents, who now consume premium brands, see their children playing with a toy they themselves loved. This offers opportunities across both the luxury and toy markets in playful and surprising ways, positioning the younger brand as aspirational, which then has a halo effect to the rest of the brand and licensing programme. From our own stable of IP, we see many examples of this: Peanuts, especially, has signed many diverse but brand-relevant fashion collaborations; LEGO has collaborated with YSL fashion; and Teletubbies has expanded from its core preschool audience to reach an older Gen Z fanbase through activations such as appearances at New York Fashion Week.

I feel we’re at the start of a new phase in licensing, where there’s a willingness and openness from brands to explore new and creative paths augmented by retail and technological evolution. Lockdown may have been a time of introspection, but it has also driven innovation, and as a result I believe there are many reasons to be optimistic about 2022 and beyond.”

Jasen Wright, VP North America for WildBrain CPLG, has developed consumer product and licensing programmes for some of the world’s leading brands across food & beverage, home improvement, automotive, art, sports, lifestyle and entertainment. Wright leads a team responsible for growing WildBrain CPLG’s North American portfolio of entertainment and lifestyle brands, as well as growing licensing business for WildBrain’s proprietary properties, including Strawberry Shortcake, Caillou, Teletubbies and Chip & Potato.

 

 

Opinion I Can brand merch have the best of both worlds – in-store and online?

In-real-life and online shopping are both important retail strategies, but for brands in particular, they throw up different problems. Is embracing a ‘clicks and mortar’ approach the way forward, wonders Spread Group’s Head of Licensing Sven Burscher

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The last two years have seen a huge shift in consumer behaviour. Some colleagues in the industry argue that the move to online shopping is complete. Those consumers who were reluctant to buy online made the move during 2020-21. According to Salesforce’s Shopping Index, European e-commerce grew by 47% in 2020. That said, other colleagues see that the hunger for an in-real-life shopping experience remains strong.

There’s nothing like the brand store of course. The excitement of having merchandise in one place, all the on-trend products, the brand ambassadors, maybe a pop-up experience too. The consumer-interest can be countered by risk for the brand however. There’s the investment risk of having a wide range of sizes and colours, which might not sell. Whilst for the fan there’s a lack of customisation options. An opportunity to engender further loyalty is lost.

Personal human contact in store is key to the engaged customer experience, and often missing online. One industry trend is the idea that pure-play online retailers will need to embrace ‘clicks and mortar’ to truly engage with the consumer.

So how can brands have the best of both worlds? Can brands integrate online licensing sales with an in-store offering, or are they separate strategies? The way forward is to take the choice, control, and sustainability of online and use it to support the experience of in-real-life.

Choice

Online the customer has access to the full range of styles, sizes, products, accessories. There’s no risk for the brand in over-ordering XXS and the XXS customer has a greater choice of styles and colours than in-store.

This level of style customisation can be particularly important for women. Too often the styles in-store don’t include a variety of flattering necklines and different fits but are just a smaller version of a men’s t-shirt. Giving consumers this choice of fit can make the difference between a loved and a worn-once piece of clothing.

Control

Online brands can maintain some control by offering limited customisation. This doesn’t have to be completely free reign, or brand inappropriate. A grown-up TV series can still keep its mysterious look and feel with dark colours. A children’s brand can make sure they only allow products that are relevant to young people and offer them in colours to match the age-range. Within these limitations, there is still scope for fans to choose a t-shirt style, fit or colour that suits them.

This usually works through our Spreadshop or Spreadshirt brand. It allows brands and entrepreneurs to run their own online shop or offer merchandise on our marketplace. Partners can focus on their brands while we handle the technology, inventory, production and customer service.

With an online offering supplementing the in-store range, brands retain control of their image, but customers get something they want too. Even small brands can now offer their followers a little personalisation, giving their devotees something special and receiving valuable feedback on what they like.

Sustainability

A print-on-demand online service can help brands with their sustainability goals. Nothing is printed until it’s ordered which means there is no over-ordering and very little waste. This helps to manage the brand’s exposure to the difficult-to-manage sizes.

It also means products can also be tested without incurring high costs. A design can be added to new products, launched online and the data analysed to see what actually sells. There won’t be a warehouse full of unwanted sizes or images, gathering dust and not earning revenue.

In the 20 years since the rise of ecommerce, we haven’t shaken off the in-store experience. Two years of more intense online shopping may only have increased the desire for shopping as entertainment. For brands, a clever combination of both elements of commerce can build loyalty with fans, offer a wider range, build their sustainability credentials and test new ideas. It’s time for clicks and mortar 2.0!

This article appears in the Jan/Feb issue of ToyNews. Read it here.

www.spreadgroup.com

Spread Group launches Game of Thrones print-on-demand collection

 

 

 

When Geek Culture went Pop! | Kids Industries on how we’ve all adopted the geek market (without even realising)

Aleksandra Szczerba, researcher at Kids Industries, explores the ubiquity of geek culture today, and the very real chance that if you’re reading this, you’ve long since become one.

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No longer constrained by the four walls of a dimly-lit basement or the stacks of a comic book store. No longer only openly revered by social outcasts (and covertly by everyone else in fear of being shunned). So-called “geek culture” is – in many ways – no more. Or at least it has evolved to be something vastly different than it has been in the past. The cornerstones of geek culture of decades gone by, from sci-fi to comic books, from video games to anime, don’t just have their footholds in the mainstream. They have become the mainstream, permeating today’s biggest children’s and adult media trends alike. So how have we all become geeks, how did this happen, and what does it mean for the future?

The most obvious way in which geek culture has become a staple in pop culture is of course through screen adaptations of comic books, both feature film and television. Although one would think that DC had the head start, having the rights to iconic characters such as Superman and Batman, it is Marvel that took the movie industry by storm in the past decade. The Marvel Cinematic Universe, comprising more than 20 films and dozens of characters, became a set of interwoven narratives and franchises, brought together in a grand finale in the form of the highest-grossing movie spectacular of all time (at the time at least). “Avengers: Endgame” earned $2.798B at the global box office, and is now the second highest grossing movie of all time, after being narrowly dethroned by the re-release of James Cameron’s “Avatar”. Notably, it is not the only Marvel film people around the world saw in droves: “Avengers: Infinity War” is fifth in terms of box office earnings, and the first “The Avengers” movie ranks 8th. The dollar signs speak for themselves – it’s not just geeks who are all over superheroes today.

Although “Endgame” brought a sense of finality to the MCU, Marvel is not slowing down – it was only the end of Phase 3, and we are already well into Phase 4 with the release of “Black Widow” and the many streaming titles being released on Disney+. Each series is dedicated to developing fan-favourite side characters, and these have been a hit for the platform, both in drawing in subscribers – and in drawing critical acclaim. The June release of “Loki” coincided with Disney+’s biggest increase in mobile app downloads among major streamers, with a 39% increase in the week ending 27th June, and an 11% increase in streaming sessions, according to Bloomberg’s Apptopia data, and in general Disney+ is currently chipping away at Netflix’s dominance in the streaming space. It definitely takes a bit of a geek to want to watch a multi-episode series about a villain or a supporting character who didn’t get their own feature length movie, and clearly there is no shortage of those out there. They also come in all shapes and sizes – at KI we have interviewed children as young as 6 who report enjoying watching Marvel series with their parents.

To put it simply: superheroes are cool now. And it’s not just the MCU. The “DC Extended Universe” may not have taken off in the same way, but television’s “Arrowverse” definitely has its own very loyal following. Superhero movies and TV shows, like “Logan” or HBO’s “Watchmen”, have received prestigious accolades. Comic book brands are no longer “for kids” or “for geeks” – everyone knows these stories and characters, including their mother, father and brother. Once upon a time everyone knew that Superman was the super strong guy, now everyone has an opinion on where they stand in the Captain America vs Iron Man conflict in “Civil War”. There is something for everyone in comic book stories, from a bit of good old fashioned fisticuffs, in-depth character conflict, to comedy and teenage high school hijinks. Many of today’s superhero stories are also more diverse and more relatable; everyone is bound to find a type of superhero they can enjoy.

To an extent the appeal of comic book movies also translates to other expressions of fandom. Parts of the “geek” industry have seen growth, from collectable merchandise like Funko POP! action figures (Funko reports growth every year and quarter, with the POP! line specifically most recently seeing growth of 33% in US and Europe in the first quarter of 2021), to events (the San Diego Comic Con attracts upwards of 130 thousand attendees every year). Similarly, one would expect this to translate to comic books – and many in the industry do cite MCU’s success as the reason for the U-turn in the decline in comic sales post-1993 (i.e. when the comic book bubble burst – but that’s a story for another day). In the 2010s, comic book sales in the US alone crossed the $1 billion mark in 2015, and grew to a $1.2 billion peak in 2019. However according to retailers the ‘movie-lover-to-comic-reader’ conversion is difficult, and hasn’t been all that successful. Yes, more people come into stores and give comics a try, but they also stick to content that is as close to the adaptation as possible. The industry has seen boosts and has seen increased sales related directly to trending storylines or characters – but the bottom line is this: we might collectively be comic book movie geeks, but we’re not quite comic book geeks (yet).

Similarly to superheroes, once upon a time interest in anime and manga may have been limited to people known as “otakus” or “weebs”, but in the year 2021 things could not be more different once again. The anime industry is worth over $20 billion today, with overseas markets accounting for half of the Japanese animation industry’s profits according to the Association of Japanese Animations. In 2019 the industry reached an all time high of $24 billion, with the overseas market valued at around $11 billion – a 19% increase on 2018, and almost a fivefold increase from 2009. These numbers include everything from animation itself (TV and film), to music, and merchandise, with the latter alone being worth over $5.2 billion globally. The dollar signs don’t lie – they’re all pointing East. Not only are we geeks, we’re also otakus.

Data from various streaming services further backs up the data on anime’s growth. According to the specialist anime streamer Crunchyroll’s data, a whopping 8 in 10 people today watch anime, and the platform has felt this. During last year’s Festival of Licensing the platform boasted of nine consecutive years of record sales (the site doesn’t just offer anime, but also manga and merchandise), and in February 2021 the site had hit 4 million paying subscribers, alongside over 100 million registered users, having grown its paid memberships by 33% in the space of just six months. In December 2020 news emerged regarding a possible monumental merger worth almost $1.2 billion in which Crunchyroll would be acquired by another anime giant: Sony’s Funimation. The deal is still up in the air, but if the deal goes through, it will lead to the creation of a veritable anime giant.

Anime isn’t just something found on niche platforms however; regular mainstream players recognise the power of anime too. In 2020 Netflix reported that more than 100 million households across the globe had watched at least one anime title on the platform between January and September, an increase by 50% from the year before, and that anime titles had appeared in top 10 lists in nearly 100 countries. The company has a Tokyo-based team dedicated to anime production and is regularly producing new content as well as acquiring new titles. Just as an example, earlier this year they released a well-received two-part Sailor Moon movie “Pretty Guardian Sailor Moon Eternal”, and August will see the release of “The Witcher: Nightmare of the Wolf”, an anime prequel to the live-action fantasy “The Witcher” series based on the Polish hit-books-turned-hit-video-games (now how’s that for layers of geekiness?)

Of course, the best known titles today are still the likes of Pokémon, Naruto, Studio Ghibli movies, but people are broadening their horizons. This exploration does not end with animation – manga sales were at an all time record high in 2020. Based on NPD’s BookScan data, across the 20 top selling adult graphic novels in the US in October 2020, 17 were manga titles. One of the biggest hits of today took the top three spots: My Hero Academia, a shōnen superhero-themed series popular with teenagers. This year an ever hotter commodity is the supernatural series Jujutsu Kaisen, particularly following the release of its anime adaptation; as of May this year it has 50 million copies in circulation, it has had successful brand collaborations including Uniqlo, and has topped the list of Japan’s most lucrative franchises of 2021 so far.

Anime and manga are popular enough in the English-speaking world that an element of fandom never previously accessible to these audiences is finally being opened up to them as well. This summer, for the first time ever, stage adaptations of popular anime will be streamed online with English subtitles for non-Japanese speaking audiences. These musical stage productions, also known as “2.5 dimensional musicals”, are a big part of manga, anime and video game fandom in Japan, but overseas audiences haven’t been able to engage with them officially until now. In August musical adaptations of Naruto, Sailor Moon and My Hero Academia will be streaming as part of a special online theatre event.

Geek culture has undoubtedly morphed and evolved over time, and the 21st century has seen it become – for all intents and purposes – pop culture, with previously “geek” franchises and fandoms becoming your standard, everyday, blockbuster fare. How “geek” evolves from this point on, we are yet to see – but it is definitely here to stay. It has made its place in the media landscape and it is seeping into trends everywhere. Geek franchises have bastions of fans, and they’re primed and ready to discover new titles and brands that align with their tastes. It is official: we have all become geeks (probably without even realising it).

Opinion | Foundation of success: What can retailers learn from the LEGO approach?

As global pandemics go, the onset of Coronavirus, while forcing many to navigate a treacherously rocky road to begin with, hasn’t fared too badly for the toy industry; a global business that has provided support and entertainment to families and children worldwide. Among some of the last year’s biggest successes was LEGO, who achieved a 13 per cent growth on sales over the course of 2020.

With an eye for analysis, Utku Tansel LLB, MBA, an industry analyst who has led global research programmes across the entire toys, games, and licensed consumer products spectrum, turns his attention to the Danish toy maker and how shifting focus onto new and emerging audiences has helped the art of LEGO building continue to go from strength to strength.

While the COVID-19 pandemic is forcing some retailers around the world to close, LEGO opened 134 new stores – of which 91 were in China – last year. The company plans to open a further 120 new shops in 2021, including 80 in China alone, expanding its total global store count to almost 800 in 2021.

This is part of LEGO’s business strategy towards – what it calls an ‘omnichannel network’ – operating in tandem with LEGO.com, whose online visits doubled over the last year. This ties with Mintel’s COVID-19 tracker showing that nearly half of British consumers are now doing more shopping online – a double digit increase since mid-April 2020.

LEGO’s sales in 2020 grew by a substantial 13 per cent, while operating profit rose by 19 per cent worldwide. Its retail strategy is definitely working.

Merging online and offline

 

In terms of new product launches, the LEGO Super Mario set from 2020, which uniquely blends physical bricks with online games, has been one of LEGO’s most successful theme launches. The product line featured an interactive LEGO Mario figure that collects coins in real life game levels created with LEGO bricks. The figure has LCD screens in its eyes, mouth and belly to display a wide range of instant reactions to movement, colour and action bricks.

Meanwhile, and collaborating with Universal Music Group, the innovative company continues with this strategy in 2021 with the LEGO Vidiyo release –  which taps into kids’ creativity through music and play. Through LEGO Vidiyo, children can direct, produce, star in, and share their own music videos, using chart-topping tracks from Universal Music’s extensive variety of global artists. Its playful music video maker experience combines physical and digital play as special effect ‘BeatBits’ and music inspired minifigures integrate and come to life through AR in a vibrant new app.

Mintel Trend Extend My Brand investigates how brands are expanding into new categories and demographics to find new business as well as intrigue consumers. Brands are advised to assess the opportunity to use their company’s established image, visibility, and strong brand following to launch new product lines – which LEGO has been utilising very successfully in recent years. They are encouraged to explore new categories and price points that may cater to an extended clientele while still aligning with the brand’s identity.

Brick by brick, LEGO, which dominates the construction category globally, has been expanding its presence in toys targeting beyond its core business. In 2020, the company entered the arts and crafts category with the introduction of LEGO DOTS – a concept which offers kids a creative canvas for self-expression. Based on multiple shapes and colourful tiles, the line featured bracelets and items for home décor.

Targeting stressed-out adults

Aiming at adults, LEGO also released its 2nd 2D tile building theme, LEGO Arts, in 2020 featuring Andy Warhol’s Marilyn Monroe, The Beatles, Marvel Studios Iron Man, and Star Wars The Sith. Mintel Traditional Toys and Games, US, May 2020 report highlights that consumers need toys and games to bring more than just fun and brands can connect with adults by appealing to their need for wellness.

With products for adults that can tout stress relief and relaxation, each LEGO Art design is accompanied by a bespoke soundtrack. These soundtracks dive deep into the inspiration behind each wall art set helping adults unwind and fully immerse themselves in the building experience. Our consumer research (US, March 2020) confirms that there is a large market for toys and games for adults, since half of consumers who have purchased toys and games in the previous 12 months have done so for an adult.

 

Providing a unique retail theatre experience             

LEGO stores are a great example of retail theatre with plenty of life sized models and figurines as well as play stations. Their outlets are seen as a destination in their own right by consumers. Mintel Trend Experience Is All highlights that most consumers still put a premium on the advantages of shopping in-store, which includes the ability to try products in person and to be helped by customer service associates.

This trend is not about countering online sales, but rather turning shops into enjoyable experiences that promote purchases – either in-store or remotely. Retailers are reminded that shops are windows and adverts as much as places to purchase stock and they need to extend the time people spend there as well as the frequency of their visits.

So, what’s next?

Post-pandemic (or when the restrictions are eased), LEGO should be able to continue to build on its success. As I also investigated in my West End Farewells? – Regent Street’s Hamleys has met a modern cross-roads Opinion piece in ToyNews recently, for consumers, a shopping day out will continue to be a leisure activity and it will increasingly be a choice rather than a necessity.

Overall,the retail landscape will be leaner, the battle for consumer attention will be fierce and when the economy recovers, consumers will remain value conscious. In city centres, particularly, newer and better retailers are coming in which will undoubtedly help with the footfall into the high street, moving forward.

There is a huge opportunity and good retailers will continue to do well. LEGO is in a very good position to capitalise on these.

Utku Tansel has 17 years of success in driving global thought leadership, project and content management, delivering strategic business intelligence and insight to major international companies. He can be contacted via LinkedIn

Opinion | Toon-age day stream: How Disney+ is about to change toy licensing for good

It almost seemed by design that Disney’s subscription based streaming platform, Disney+ launched just as the Coronavirus pandemic began to tighten its grip on the UK and force the world’s population inside and away from the entertainment venues of yesteryear. And in just a short space of time, its impact on the wider world around has begun to be recognised.

Kids Brands Insights’ Steve Reece takes a closer look at the Disney+ platform and the moves already being made that will overhaul the nature of toy licensing, indefinitely.

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Netflix has vastly changed the world of what was once simply called ‘television’. The content proliferation process which has been ongoing for the last decade or more is accelerating, as lockdowns around the world have vastly increased viewing. In response Netflix is producing more and more entertainment content. But aside from the occasional freak occurrence like The Queens Gambit which saw Chess set sales soar, we haven’t seen that great an impact on toy merchandising.

Disney+ of course changes all of that, because whereas Netflix is full of content for adults with adult themes and is not focused purely on a family entertainment audience, Disney+ is all about family entertainment.

“Even coming out of lockdown, viewing is likely to remain high versus historical levels because human behaviour is habitual.”

Those who questioned whether this type of video on demand could drive merchandise sales soon got their question answered by the success of The Mandalorian. Logically though, if tens of millions of people subscribe to a service, then each piece of content must be averaging millions of views. When you compare that with cable/satellite TV which back in the old days were just about enough to drive some degree of licensed product sales, then it becomes clear that Disney+ heralds a bright new era for licensed toys.

The other effect that has been underestimated is the degree of immersion/obsession which an entertainment franchise creates. There are brands which lots of people like, and there are brands which some people become deeply obsessed with. The depth of content on offer via VOD platforms, the drip feed of the next instalment/series and the binge-watching habits of locked down people lead to a deeper immersion and bond with content brands, which in turn should drive toy sales.

Even coming out of lockdown, viewing is likely to remain high versus historical levels because human behaviour is habitual and the habits of binge-watching huge amounts of content has become deeply ingrained.

The other effect of VOD platforms is to smooth out the long tail after the content first releases. For sure, major headline content releases will drive big initial viewing, but many people don’t buy in, either because they are still too busy watching other series or because they don’t believe the hype yet. This long tail offers a longer-term payback than the traditional blockbuster movie with two sales spikes around cinematic release, and secondary release to DVD or previously to less content abundant VOD platforms.

The other key factor here is scale. At the time of writing, Disney+ reportedly has more than 95m subscribers around the world. Disney forecast more than 200m within the next year or two, but the potential could be much higher, so the effect of this platform is only going to increase.

Every so often something comes along with marks a fundamental shift in the toy business, Disney+ heralds a new age of toy licensing, it’s that big a thing.

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Steve Reece is the founder of the toy expert consultancy, Kids Brand Insight, leaders in supplying services to the toys and kids entertainment industries.

OPINION – Hurrah for the madding crowd: How crowdfunding is fueling the flames of fandom

It’s like the old Funko strapline says: Everybody’s a fan of something. It’s no secret that adult fandom has become an increasingly important market to the toy industry and pop culture scene in general, but – with limited shelf space among retailers – just how can brands and manufacturers cater to it all? Here, Start Licensing’s Ian Downes tells us why he’s such a big fan of the crowdfunding scene

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Whether its football, film or TV, we are all fans of something. Fandom is a bond that ties people together. Fans are at the heart of licensing. Fans are the consumers who buy into licensed products or have licensed products bought for them.

Traditionally, it was difficult to have a direct relationship with fans. In the age of social media it has become easier to communicate with fans and build a rapport with them. Rights owners have got better at dialoguing with fans and have recognised that having a direct relationship with them is a valuable asset.

That said it is still quite challenging to know what fans want. Sometimes as an industry, we haven’t always tried that hard to find out. Licensing can be an industry that lives in the moment. Often reacting to ‘what’s hot’ and delivering a standard range of products.

Moving forward it would be good to see more products developed that reflect IP more distinctively and reflect fan interest.

“It’s a good time to talk to fans more frequently and with a higher level of engagement. Crowdfunding campaigns are a great way of doing this.”

In licensing, you traditionally need a licensee and a retailer to support your brand and back your idea. Retailers have finite space and manufacturers are not able to invest in all new ideas they see. Of course online selling and opportunities like print on demand have changed this up, but there are still gatekeepers to get past to get products to fans.

But there is an increasingly viable alternative, and it’s crowdfunding.

This is, of course, not a new thing and is a path that has been trod by IP owners and licensees already. Aardman Animations used Kickstarter to help finance a new Morph animation series back in 2013, while many a boardgame has been launched following on crowdfunding campaigns. Meanwhile, Unbound offers a route to market for authors with a highly engaging crowdfunding platform for new books. It’s true that a number of their books wouldn’t have been published otherwise, but have been commercially successful as they found their audience.

It’s a good time to talk to fans more frequently and with a higher level of engagement. Crowdfunding campaigns are a great way of doing this. Crucially they are also a proven way of bringing good creative ideas alive. So often these ideas would have stayed on the drawing board.

The Vine Lab has recently launched a Kickstarter campaign around Wallace & Gromit’s A Close Shave. The team is crowdfunding a high spec Collector’s Model that is being launched to help celebrate the film’s 25th Anniversary. In the real world it would have been difficult to find a retail home for it. Fans would have missed out on a super product.

As more and more, consumers are looking for original products and experiences, crowdfunding is becoming an increasingly  viable way of tapping into their passion and getting closer to fans. Used carefully and responsibly crowdfunding should be a feature in a contemporary licensing programme. It’s also a fabulous way of supporting the creative community.

We are all fans of something, and I’m a fan of crowdfunding.

OPINION – Asgard Media’s Kelvyn Gardner on the importance of looking outside of the industry

Next week the ‘virtual doors’ of the Festival of Licensing will open to the licensing world. So, before we’ve even begun to get used to London’s Excel as the new home of Europe’s biggest licensing event, Asgard Media will now be coming to terms with being a digital exhibitor.

We were founded in 1998, the year before the very first Brand License London 1999 – as it was then called. Although the way we go about our work, already different through emerging technologies, is even more radically changed by working through a digital platform, our mission remains the same – to bring new companies into licensing.

Most of you reading this will already be utilising licensing as an important part of your work. You may be an agent or licensor/brand owner, a manufacturer of consumer goods with a license portfolio, a service provider of design, e-commerce and sundry other diverse roles. Licensing is a big business in the UK, and a growing business. We’re all proud of our part in it. 

Here’s an uncomfortable fact, though. Only a tiny proportion of British manufacturing firms utilise licensing. Licensing International’s research shows that the UK, the second biggest licensing market in the world, generated retail sales of licensed products worth $15 billion in 2019. 

MakeUK  (www.makeuk.org) the trade association for manufacturers, calculates total output of our manufacturers at $250 billion. Now, not all of that output is consumer goods, but, even so, this means that only 6 per cent of all the manufacturing output of this country is using licensing

What a shame when we all know that licensing could help almost all manufacturers of consumer goods. Put simply, that’s what Asgard Media does. We help manufacturers use licensing to improve their business. 

We call ourselves ‘Licensing Consultants’, but what does that mean to a company not currently involved in consumer products licensing? What is it that we know that can add value to their business?

What we know is that licensing works. Take one of our own newest clients, The Harrogate Tipple. At the beginning of 2019, they were a regional small-batch distiller of craft gin under their own brand. A nice business but confronting huge competition in the craft gin market, many retail doors closed to them. 

Asgard Media took them on. We put them into their first license, Downton Abbey. In just eighteen months they have won major international quality awards for Downton Abbey Gin, opened export markets to USA, Europe and Australia, and even picked up Best Newcomer Award at the 2020 Licensing International Licensing Excellence Awards. Even the Yorkshire Post reported this. Sales, distribution, consumer profile, all boosted fantastically by this wonderful marketing tool, licensing.

And licensing is not just a tool for SMEs. Long-term Asgard Media clients like Finsbury Foods and Yoplait continue to add new licensed SKUs to their ranges every year and enjoy these same business benefits.

So, our mission, every day, and focused on the Festival of Licensing, is to take the lesson of the Harrogate Tipple to the 85 per cent of UK manufacturers who do not use licensing right now. We have no allegiance to any particular brand or property; we look for the right fit between our licensee clients and all the brand opportunities out there. 

We believe that we are a positive force for UK licensing as a whole. However, I really must end with a direct appeal to manufacturers: come and meet Asgard Media at the Festival of Licensing. It will cost you nothing to find out from us just how licensing can boost your sales, your profits and your profile. It just might change your life.

Opinion: How will we adapt to a post-coronavirus economy? – Trudi Bishop

By the time this goes to print the state of the COVID-19 pandemic will be in a very different place than it is now so bear with me.

We are experiencing unprecedented times. The pandemic is not just affecting the health of the global population, but it is also having an effect on the health and wellbeing of the planet as a whole. Due to the various lockdowns we have seen a significant reduction in air pollution over these countries. To give some context (but not wanting to downplay the significance of the pandemic), according to WHO, air pollution kills almost 7million people every year. But this barely gets a mention in people’s conversations or on the news.

Every day our children walk to school they breathe in the poisons from our commuters’ cars (it’s also worth recognising children in buggies are at the same height as a car exhaust) yet we don’t seem to find social media meme’s saying ‘stay safe’ for our kids but simply accept this is how life is.

With the sudden and exponential onset of COVID-19 we are seeing businesses having to rethink their whole way of operating. Working from home has become the ‘right and safe thing to do’. Amazon has stopped all ‘non-essential’ deliveries. With these small changes we will see an immediate positive effect on our children’s wellbeing.

Beyond this, as public events, sports and schools close we will be ‘forced’ to spend more time with each other as families. This may be a little daunting for some, but it can also be seen as an opportunity. We have the chance to reconnect with our children and allow life to slow down to really think on what is important. As the UK is not in full lock down it also allows us to reconnect with, notice and appreciate nature.

The ‘business as usual’ mentality has had to change in light of this tragedy. Attitudes to our consumption behaviour have changed whether through necessity (due to lack of goods) or due to focussing on our health and wellbeing. And despite the selfish act of stockpiling by many people, it has also brought out the good in humanity. We have neighbourhoods looking out for the elderly and housebound by buying and delivering goods for them. Behaviour has changed and it is the more positive results of the pandemic that I hope we can show children on how society really can be.

But what happens once the pandemic passes and business as usual returns? The economic scars could be long and deep. There will be the temptation (as we see in China already loosening rules on pollution) to ramp up production and put the long-term negative effects on the environment aside for short term monetary gain to get us all ‘back on track’.

Surely as we all have to rethink how we work, live and shop, this presents us with the opportunity to make the permanent and systematic shift toward a better future, giving us a very real chance of saving humanity and the precious environment.

We owe it to our children and we owe it to ourselves.

Opinion: Is the Wild West about to be tamed? – Anthony Marks

Anthony Marks is MD of Fanattik a pop culture specialist, a gifts and collectibles licensee for 20th Century Fox, Universal Studios, and Paramount Pictures. He talks us through why the days of the Comic Con counterfeiter may just be numbered

As a self-confessed geek I have no problem admitting that I have been visiting Comic Cons for more than 25 years, and many a time I remember queuing up for hours in the rain to get into an event and spend my money on product that mainstream retailers were ignoring.

Although visitor numbers have reduced from their heyday, a big London show can attract well over 100,000 visitors over a weekend and regional shows more than 30,000.

I still visit the shows, but this time with my commercial hat on to see product from all over Europe under one roof. The shows have never ceased to amaze me with regards to how much unlicensed poor quality product is freely available to buy, so I read with interest that a representative from Marvel was seen attending this month’s Liverpool Comic Con, it definitely had the exhibitors at the show in a tizz from the reports I received.

My company started off selling licensed limited edition art prints and many years ago we went through a phase of exhibiting at shows all over Europe, we found ourselves placed next to stands selling prints featuring images downloaded from the internet and run off on a home printer. We complained to show organisers and they just didn’t care, they had to sell the space and they didn’t care who they sold it to.

The most faked brands that we noticed always seemed to be Nintendo, Star Trek and Pokemon. I couldn’t understand why the brands weren’t sending representatives to these shows which were mostly in major cities, easily commutable from their or their agents offices.

A colleague used to take pictures of stands selling fake keyrings, pin badges, glassware etc but after being threatened by stall holders numerous times he decided it wasn’t worth doing anymore, especially as the show organisers and the brands we were sending the pictures to wouldn’t act on them anyway.

Licensees invest a lot of money in testing, especially on items such as jewellery as it comes into contact with the skin, the last thing the industry needs is a red top to report how a child’s neck turned green because they were wearing a necklace bought at a show. The press won’t care that the item was unlicensed they will just report the brand featured.

These stands are not always run by someone who just wants to make a little bit of extra money by selling product they produced at home, there is one large organised group which has multiple stands not just at the London shows but I have seen them at Frankfurt, Amsterdam as well as many of the regional UK shows, blatantly selling unlicensed product imported direct from China (I saw the packing boxes behind their stands). The show organisers know who they are but don’t want to get rid of them because of the number of stands they book all in one go.

A few years ago I offered my services to one event, I would travel down to their show at my own expense and walk the halls with one of their team to try and clean things up, they wouldn’t even have to buy me a sandwich for lunch, but they turned me down.

Things are changing though.

Newham Council – which covers Excel where a lot of the London events are held – sends a team to each event, they are very good at shutting down stands selling plush if they don’t have the CE mark on them, but when it comes to other product they are a little lost and they could do with brand representatives alongside to point out what shouldn’t be for sale.

An example of a pro-active brand is Bethesda. I saw its head of European licensing at an event last year visiting existing licensee’s and the smaller stands. When he saw unlicensed product, he showed the stall holder his card and stated calmly that his legal team were at the show and would be along in half an hour, so the offending product had to be taken down.

Sure, it helped that this man was built like he could go ten rounds with a professional boxer but the fact that he could prove he was an official representative of the brand was enough to persuade the exhibitor to co-operate.

With the bigger shows wanting to form more commercial relationships in the form of sponsorship deals with the brands, things are going in the right direction. In the future the Wild West may not be totally tamed, but it will at least be a safer place for fans and licensee’s to visit.

Opinion: International trust and how to keep our young consumers onside – Trudi Bishop

In my on-going battle against plastic waste, I have previously written that it was time for brands to be more public about the actions they’re taking to be more sustainable. Consumers aren’t looking for perfection, but they are looking for action. 

Action by brands leads to increased trust and loyalty. For younger consumers, the lack of trust and belief in the actions of adults is growing. This is partially a result of living their entire lives surrounded by the effects of global warming and by news of the climate emergency. All the while, watching politicians declare a climate emergency on one hand, and voting for airport expansion on the other.

They are angry. They are frustrated. They are looking for leadership. Most importantly they want action.  

By the time we reach the UN’s 2030 Sustainable Development Goals’ deadline many of the children currently playing with our products or watching our content will still only just be coming to the end of their teens. The future they face is an uncertain one.

In Greta Thurnberg’s speech to the UN last September she said, “… as young people begin to understand adults’ betrayal of the planet… the eyes of future generations will be watching”.  

The lack of action and broken promises by politicians and brands on the climate emergency has led to an increase in anxiety in children about the effects of global warming.  

More than 1000 clinical psychologists have signed an open letter highlighting the impact of the climate crisis on people’s mental health, in particular the mental wellbeing of children.

The psychologists have suggested that actions by and with their trusted adults can help to mitigate the potential climate anxiety in younger children. 

As a child’s world is small, the actions need to be local, simple and relevant as does the language used when speaking about the climate crisis with children.

Parents and schools can help by doing local litter picks with the children or simple research projects about the environment and how to look after it.

But what of brands and content creators? Brand loyalty starts at a very young age often helped by the brands parents have an affinity with. It is with them that trust in the action of adults and the mitigation of climate anxiety can happen. 

The revamping of trusted favourites such as The Wombles will give children and parents relatable local actions to follow in a fun way. Songs such as Nick Cope’s “Plastic Bag” help teach children about plastic pollution in a gentle, informative way. 

Content creators can use their platforms to inform and entertain making positive environmental behaviours part of a child’s everyday life. 

By starting with the brands children know and love, solutions to the climate crisis can become accessible for the young without scaring them.