TOTAL LICENSING
By Mariya Rogozhina, Vestnik
Hurt but Alive
The Russian Licensing Industry Awaiting the End of the Pandemic
The Covid-19 pandemic is bringing rapid changes to all national economies, and Russia is no exception. Licensing, as every other sector, is affected by the lockdown implications. Which licenses will survive the storm? Which branded products will be in demand in Russia? What support do Russian licensees need and what are the prospects of the licensing market post-pandemic? In a special review for Total Licensing by Vestnik edition, the key players in the Russian licensing industry share their views on the current trends. Overview The licensing industry in Russia, as the whole consumer market, is facing tough times due to the Covid-19 pandemic. Customer buying power is falling swiftly as people are losing their jobs, are furloughed or have to take unpaid leave. This means a number of Russian customers are spending their savings while enduring the lockdown. Another sharp drop in the Russian rouble, due to plunging oil prices, made it even worse for the Russian consumer. In a world of increasing uncertainty, impulse purchases, previously a driver of licensed goods sales, have reduced significantly. Apart from money-saving issues, the reason for this lies in the
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retail shutdown – emotional spending is an attribute of brick-and-mortar stores. As a result, experts claim a downturn in licensed products sales. “During the period when strict limitations are imposed and a number of sales channels are disappearing, with shopping malls being closed, there is a decrease in sales in many categories, and licensed goods are no exception,” commented Maya Moskvicheva, CEO, Marmelad Media (Riki Group). “Yet, we’ll be able to analyze the figures and see which categories were affected most, only when we have sales reports for this period from our licensees”.
Categories The impact of the Covid-19 pandemic differs across product categories. Oleg Roy, a Russian writer and producer, claims a strong fall in the categories of impulse purchase, such as toys, plush, confectionary, and stationery. Moreover, apparel sales crashed by 70% during two months of the lockdown. Meanwhile, there is a clear shift to FMCG categories, especially, food and beverages and health care products. Dinnerware, large and small consumer electronics are also seeing growing sales.
