LIMA’s Peter Hollo tells us why digital disruption is a big challenge for German retailers.
The UK licensing sector is in pretty rude health at the moment, but how much is this replicated in other countries?
All this week, The Source will be checking out the landscape of some key overseas territories with the help of some experts, and discovering that there are some challenges – and properties – which are universal, regardless of location.
Today: Germany
“Licensing in Germany is a growing industry and performing really well,” Peter Hollo, LIMA representative in the territory says.
“It has been significantly growing through the last years and will keep on growing in 2017 as well. German retail has understood how important products, with the matching properties, are when it comes to driving the business. This has a huge impact on the whole industry.”
The biggest challenge facing retail, Peter believes, is digital disruption. “Taking care that growing their own online business doesn’t cannibalise their bricks and mortar business,” he says. “Or even simply to survive, as they are facing some extremely strong competitors, like Amazon.”
For brand owners, too, Germany can be a tricky market.
“We do not have these big three retail companies dominating the market, like we know from the US, UK or France,” Peter continues. “It takes a lot of manpower, time and money to get your licensed product on the shelves. You have to talk to so many different people and you have to convince them.
“That can be hard sometimes. But it’s also a big advantage – if you lose a retailer, you never lose much market share that you are in danger. If you are smart, you can always find a way to change your distribution.”
This feature originally appeared in the summer 2017 edition of Licensing Source Book. Click here to read the full publication.
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