TOTAL LICENSING
The licensing industry has watched, over recent years, as retail changed from thriving bricks and mortar malls and stores to online. Retailers of physical stores found ways to attract consumers with events and activations. And, in many cases, it was beginning to make a difference. Stores and chains that developed their experiential business, began to see an uplift in visitors and, consequently, sales. And then the virus hit. First in China and then spreading its tentacles around the world. And the world went into lockdown. Shopping, certainly initially, was limited to essentials and products that could ease the burden of being incarcerated for an unknown length of time. Regular stores were closed with only the essential food stores and pharmacies still open. Online shopping became the norm. Amazon’s customers spent over $11,000 each and every second as hundreds of million of people stuck in lockdown turned to the delivery giant to keep them fed, entertained and able to work under the new conditions.
Fitness product sales went up 55%. Toilet paper sales went up 231% leading to a global shortage. Laptops and other computer sales rose 40%. Overall, according to Adobe, e-commerce in the U.S. rose by 25%. All thanks to COVID-19. Other winners were cloud services, news, gaming and e-commerce ad spend, as well as grocery delivery services. As people settled into the new normal, their purchasing decisions were largely based on three needs – to protect, to connect and to entertain. But, of course, the question is very much what will happen post-pandemic? Will consumers return to shopping in stores in reasonable numbers, whilst still navigating social distancing or will they feel more comfortable, and confident, continuing to shop online. Online grocery shopping, certainly, is likely to see a good percentage realising the convenience of online shopping. Other stores are going to have to go the extra mile to draw customers in and make them feel safe within their stores.
Online streaming services such as Netflix and, more recently Disney +, saw huge spikes in demand. In fact, Disney who expected to take five years to reach between 60 and 90 million subscribers, were already up to 54.5 million by early May. Amazon and Netflix have seen over 60% growth in their subscriber base in India as a result of the lockdown.
Were we warned? Nostradamus wrote in the year 1551: “There will be a twin year (2020) from which will rise a Queen (Corona) and will spread a plague (virus) in the darkness of night, in a country with seven hills (Italy) and will transform the twilight of men into dust (death), to destroy and ruin the world.”
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