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Industry Analysis
COVID CRISIS
HOW LICENSING INDUSTRY IS REACTING TO THE CORONAVIRUS EMERGENCY A global crisis, without any precedent. A pandemic that has blocked industries and businesses around the world. Industry events canceled, with a timid hope for the second half of 2020 but with no confirms. The only certainty is that we won’t be back soon to the rhythms kept until February 2020 No forecast of when it will be possible to meet again in person or travel to network with business partners; or when it will be possible to illustrate a company showroom or a product catalog. Licensors, licensees and retailers have to re-invent their business models, with the first goal to overcome this period and therefore to create new strategies for the future, made of unclear colors and uncertainty. Following the shock due to the collapse in turnover, companies are thinking about how to go further, in view of the so called “new normal”. We do not have an exact vision of what will happen in the coming months, between assumptions and hopes. In the meantime, LM interviewed some key members of the international licensing industry to get their opinion
Maura Regan
on the present and future of our sector. Among the many opinions, insiders agree that licensors need to support licensees and retailers to overcome the current block together.
MAURA REGAN, PRESIDENT, LICENSING INTERNATIONAL (USA) How do you think the licensing community is reacting to this period? I am proud to say the licensing industry is coming together during this unprecedented time to support and help each other - even companies that are usually considered competitors. You may have noticed how many brands have built online initiatives to keep a link with their fan base. What do you think? I love it! We have been conducting webinars, virtual round tables, lunch and learn and our YPN program (Young Professional Network) all with great success. These events don’t replace in person interactions and connection, but they are hugely successful particularly during these times. Aware of the collapse of sales in the various categories, e-commerce is obviously has become the main retail channel. How do you think brands may benefit from this? E-commerce has been a growing platform and Covid 19 has accelerated its growth. That said there are retailers who are still
trading and doing business: drug and grocery, Walmart, home depot in the US. At the moment, faced with the vertical sales loss for numerous categories, others are emerging somewhat strengthened, such as publishing, in particular for kids, gaming and above all food. Also here, what may be the impact on licensing, according to you? Brands and licensed brand products become even more important and relevant. Now more than ever consumers are seeking assurances of quality through every stage in the supply chain- brands provide that quality assurance. What do you think will be the necessary steps for future reconstruction and revitalization of the licensing industry? This industry is incredibly innovative and creative. There will likely be a paradigm shift in how people and companies collaborate on all sides of the deal and pricing structures.
“There will likely be a paradigm shift in how people and companies collaborate on all sides of the deal and pricing structures.” - Maura Regan -