16-19 LSB 2020 Licensee Feedback_muk.qxp_NEW LSB 2008 GRID 06/07/2020 08:15 Page 17
LICENSEE FEEDBACK
Helen Genia, senior manager, consumer products, Mattel “It certainly has been a challenging time - from a very stuttering March and April where the key Easter period was lost for some of our key partners, to what now I think is becoming a more positive outlook with retail starting to open up, with people learning to readjust to the new normal. There have certainly been some categories that have benefitted and some that have struggled. At the beginning of the crisis and as we continue to adjust, we had a very clear objective to support our partners and to have open conversations, so that we could all navigate this situation as efficiently and effectively as possible. This is an evolving situation, so being nimble and following the consumer is key. Online retailing has been a major factor in some categories’ success, so partners will now have to bring more focus to this area of their business from marketing to retail. Ensuring propositions online are robust and in line with the rest of the market, has become what consumers expect as normal now, so it will need to become even more of a priority for some businesses.”
Lisa Shand, md, Blueprint Collections “Sales have reduced rapidly as outstanding orders were cancelled by customers as soon as lockdown was announced. We have had to delay orders with our suppliers and re-phase them to arrive during the autumn. Licensors in the main have been good and have helped where possible. We have renewed a few licences during lockdown on realistic terms. In our category, which in the kids’ area is impulse purchase, it may take a little longer to build [at retail] as people are still shopping alone. Online sales have grown, but this is from a relatively small base as our category is not a massive online seller. We will need to assess what stockholdings customers have and what the re-forecasted demand will be moving forward. Many retailers will have the wrong season’s stock in-store - hopefully our stock will sell-through over back to school and customers will need to re-stock for the autumn. [Conversations are needed on] reducing the entry cost to a new licence to encourage newness and product development. Lower royalty rates and small or no advance payments will help licensees invest in newness for the future.”
Above: Some categories have benefitted and some have struggled, says Helen.
Left: Lower royalty rates and small or no advance payments will help licensees invest in newness, says Lisa.
Kim Bown, director, Misirli “Generally the ongoing conversations with our key retailers and licensors have been very supportive and, because of that we have not had a particularly difficult time through lockdown. With the furlough scheme we have so far safeguarded our employees’ jobs. Some retailers have been exemplary in trading with us through this time - big shout out to Tesco. Unfortunately, some Above: Ultimately we have felt that the supply base have need to work different priorities in keeping afloat. all together, says Kim. I think it is still too early to call how the retail landscape will be short to medium-term, but I think the lockdown has shown many arms of our sector can operate in new ways, with more flexibility and a real commitment to partnerships. I think we have all seen a different perspective with our lives, from true business relationships, the passion and determination of our key workforce in keeping things running and appreciation of our family and friends, where unfortunately many have seen how short life can be. All business matters, whether it be licensor, supplier or retailer; ultimately we all need to work together.”
Danny Schweiger, joint md, Character World “As most organisations restructure to make themselves relevant to the new world, all businesses will need to re-prioritise and work smarter than ever before. We are all also facing many threats over the coming months including a potential second wave, future lockdowns and let’s not forget Brexit developments. Probably the biggest concern will be when government furlough support ends. Coming together as a licensing community in person at exhibitions might be a challenge in the next 12 months, which won’t help as there is no replacement for face to face meetings. Besides learning more flexible effective ways of Zoom working, I have really enjoyed the opportunity to get to know people better as they relax in their own homes. From a business point of view the huge challenges we have all faced have created a more empathetic culture, while personally it is has been a fantastic opportunity to enjoy living at a slower pace while recalibrating the balance to my life.” Right: The challenges we’ve faced have created a more empathetic culture, says Danny.
LICENSING SOURCE BOOK EUROPE 2020
17