LIMA retail panel talks over licensing, knowing your customer and growing influence of Netflix.
Key retail buyers from Sainsbury’s, Hot Topic, Tesco and Asda met yesterday to discuss major issues facing the licensing industry and their businesses, including over licensing.
Cindy Levitt from Hot Topic, John Carolan from Sainsbury’s, Tesco’s Rachel Wakley, Asda’s Ruth Golightly and former head of licensing and character at Mothercare, Barbara Robinson all took part in a special LIMA debate to kick off Brand Licensing Europe week.
Held at the House of Commons in front of an audience of 100 brand owners, licensing agents and licensees, the panel discussed topics including how they research brands, the growing influence of Netflix and YouTube and if smaller, untested properties can ever get shelf space.
When asked if there was one thing they would change about the industry, all the panel said that over licensing was an issue.
Cindy Levitt, svp merchandise and marketing at Hot Topic, said: “Sometimes it feels like licensors licence [their brand] to so many licensees that they’re all on top of each other at retail.
“Also, there is an issue with devaluing licensed merchandise – there always seems to be a race to the bottom [on price].”
John Carolan, head of buying childrenswear at Sainsbury’s, agreed: “Licensing to me is premium, and the price should reflect that. Sometimes as an industry I think we lose that in the sake of trying to get big volumes, and some brands perhaps lose out.”
For head of licensing at Tesco, Rachel Wakley, knowing your aspirations when it comes to brand value is a key point. “It is quite difficult to put a brand value on anything, but helping us understand what value it has numerically in terms of revenue will really help you cut through with buying teams.”
The panel also underlined the importance of knowing your customer – and your ‘customer’s customer’ – before approaching a retailer with a brand.
Former head of licensing and character at Mothercare, Barbara Robinson said that customer focus is key. “If it’s not a good brand mix for that company, [the licence] won’t get off the ground. You need to understand what that retailer is doing to have more success.”
John continued: “Very few brands can sell across all retailers; you end up spreading yourself very thin. I’m a great believer in trying to be a home for your brand in a retailer. It’s been the toughest year in retail I’ve ever seen in 28 years, but the customer still wants to buy something.
“There is such a lot of opportunity to sell licensed product all year round.”
Hot Topic’s Cindy added: “Ask if your property has a back story – does it have a following and can it push traffic to retail?”
Tesco’s Rachel said that brand owners should also consider that the customer and the consumer are very different people. “Start with your customer and you won’t go far wrong,” she advised. “Also, think about where your product and brand will sit alongside everything else – not just other licensed product, but everything else people want to buy in their budget.”
Ruth Golightly, licensing manager for George @ Asda, pointed out that you don’t always need to have conversations with the head people at the retailer.
“Assistant buyers are often the ones bringing the brands in to us,” she said. “Also, make sure that new innovation is coming through – the customers want the brand but they want the new innovation as well. It’s how the retailers compete against each other.”
The panel also noted that they were monitoring subscription on demand TV and YouTube constantly to keep up with trends.
“I think that Netflix in the US has game changed licensing,” said Hot Topic’s Cindy.
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