048-051_53_LSB_Summer 2020.qxp_NEW LSB 2008 GRID 05/07/2020 10:52 Page 53
OVERSEAS FEEDBACK
France: Marina Narishkin, director, TF1 Licences “There has been a serious work increase despite the business decrease to prepare post lockdown, as soon as the Chinese factories reopened. The licensing trade is a ‘chameleon business’ which is obliged to constantly change and adapt through many fields of the changing economy: online retail switch, e-commerce, new businesses, mergers in the production world and toys and games sectors, etc. Unfortunately, some small businesses have been negatively impacted, but some sectors have done quite well. Our sister company, TF1 Games/Dujardin experienced a real boom for its board games, especially grassroots family games such as Mille Bornes. Because licensees are agile and our business is all about a long-term proposition, we have managed to avoid a big impact on negotiations in progress. The French government has also protected the companies with financial contributions which were welcomed to support the economy. The Q1 and Q2 royalties from on permanent lines will be impacted, but the moderately good news is that the Q1/Q2 are not the big income drivers, the main royalties in entertainment is expected in Q3 and Q4. If lockdown had taken place at Christmas, the licensing economy would have been massively impacted. Since many agents make 30% of their business Q1/Q2, it is always better to do 50% of 30% than 50% of 70%. The work levels and pressure on employees will increase while companies play ‘catch up’ to recuperate a maximum amount of loss of business. Unfortunately, we are going to see some bankruptcies, but a couple of major challenges will be the retail environment that is trusted by some massive companies like Amazon. In our environment, companies who survive today are either big and merging/buying companies or small and agile. We need to watch out for oversized companies and licensors who might monopolise business and kill opportunity.” Left: Work levels and pressure on employees will increase as companies play catch up, says Marina.
Russia: Anna Artyukhova, md, Russia and CIS, WildBrain CPLG Russia “The situation is starting to improve. In early June, we saw some stores begin opening their doors following two and half months of lockdown. It is still a little early to talk about when retail may get back to up its previous level here, as not all restrictions on movement have been completely lifted yet. Also, as retailers now have new operating conditions and requirements they need to comply with, foot traffic in stores is still relatively low but there is an upward trend expected. While bricks and mortar will need some time to recover, we’re feeling positive impacts from the online shopping habits consumers have picked up since being in lockdown, especially in larger cities. During quarantine, for example, many nationwide grocery retailers have significantly improved their product delivery platforms which will be beneficial for consumers in the long-term. Additionally, we’re seeing retailers team up with major shipping operators such as Yandex, Delivery and others to increase the efficiency of their online offering. The summer is going to be quiet, but we expect to see the market start to come back from autumn onwards. Right now, we’re seeing business in Russia becoming more cautious which is largely due to the uncertainty of the local economy. Among the main factors cited by manufacturers in a recent Nielsen Group survey as negatively impacting the licensing industry is the devaluation of the Russia rouble, problems with payment discipline and lower demand for the goods they produce. Although we expect companies to delay any new licensing collaborations and launches until at least September, we do anticipate a surge in interest for brand licensing later on in the year. After a long lockdown, consumers will be looking for comfort and positivity in brands they already know and love.”
France: Veronique Pichon, president, Sagoo “As yet it's too early to say or to figure out what the market will look like in 2021. Zoom has been the perfect media for us… we took the quieter time as an opportunity to meditate and approach new licensors for future development. We will be challenging ourselves by looking for local development and manufacturers in order to be more reactive with smaller quantities and better quality. Sagoo is not impacted as much as the entertainment industry because we represent arts/music artists and celebrities, as well as classic established evergreen characters. There needs to be conversations about being more flexible in order to be close to licensees’ future demands and listening to what the consumers are now looking for - more local, green… we need to be reactive and pro-active along with licensors to respond.” Above: Veronique says Sagoo has used the time to approach new licensors for future development.
Right: Consumers will be looking for comfort and positivity in brands they already know, says Anna.
LICENSING SOURCE BOOK EUROPE 2020
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