Start Licensing’s Ian Downes shares four observations about trends in the licensing market based on a year of Looking Out.
I sometimes equate my Looking Out to a batter in cricket starting their innings. It can take a while to get your eye in and to see the ball well, but once you do the runs can start to flow more easily. Looking Out can be similar, some days I don’t see anything when at the retail crease, while on others spotting licensed products can be easy. Maybe this is because I now have lots of experience of Looking Out and I can spot a licensed product at 22 yards very easily. I also think it is because there is more licensing in the retail market these days.
The shape and form of licensing has changed over recent years and will no doubt continue to evolve, but in general terms licensing seems to be more accepted by retailers. This has made my job a little easier.
I generally send my Lookout column across to the LicensingSource.net team on Thursday mornings. I remember in past years panicking a bit on Wednesday afternoon about what I was going to write about. In cricketing parlance I hadn’t kept the scoreboard ticking over and Lookout runs were thin on the ground.
However, I don’t feel I have panicked this year and it has been easier to find stories to share. As we approach the end of another year I thought I would share My 4 for 2024 – four rather unscientific observations about trends in the licensing market based on a year of Looking Out.
Retailers seem more willing and able to take the plunge to create their own licensed ranges. Of course, direct to retail has been part of the licensing mix for years – I remember Woolworths used to have a lot of exclusive deals and ranges for example.
However these days there seems to be more thought given to this opportunity by retailers and a more strategic approach taken. Licensing has become part of a strategic approach to range development.
One driver seems to be a desire to offer consumers a point of difference from competitors, along with adding an additional reason to visit a physical store plus ‘exclusives’ help to build a marketing story. This latter point is ever more important in an economically challenging market. Retailers want to create offers that aren’t just focused on price and undercutting competitors. Licensing can help build a point of difference.
A great example of a retailer using ‘exclusives’ well is Iceland. It has built up a real head of steam through a range of noteworthy brand licensing partnerships. This point is reinforced in its recently published Christmas brochure. It has taken this opportunity to shine a light on ‘exclusive’ Christmas party items featuring brands it works with across the year including Harry Ramsden’s, Greggs, Cathedral City and TGI Fridays. It is encouraging to see the apparent success Iceland has had with brand licensing.
A trend that I observed last year was the growing success of ‘live licensing’ with IP being used in a range of ways in activities such as plays, art trails, theme parks, escape rooms and the experiential marketplace in general. This trend seems to be continuing with a number of high profile examples of ‘live licensing’ being launched in 2024 and others ‘coming soon’ for 2025 being announced. I am sure it is a category that isn’t without its challenges and is, of course, subject to economic pressures as well.
Getting started in this area can be time consuming and expensive, but it seems the rewards can be significant. For brand owners this kind of licensing allows them to explore new channels, build direct consumer relationships and often activations can create new retailing opportunities.
A personal favourite of mine is the Horrible Histories Terrible Thames boat tour. It has been sailing for a while now so I assume it has been deemed a success by all parties. The Horrible Histories boat cruises up and down the Thames as a specially written Terrible Thames tour, delivered by costumed actors. I think it is a great example of what can be done in the live licensing category. I am particularly fond of it as I often see the boat passing by when I am mudlarking on the Thames foreshore – I mudlark on different parts of the foreshore so have heard snatches of the commentary but never the complete tour. One 2025 resolution for me is to get on board the boat and to experience the full Terrible Thames Tour.
Licensed category wise it seems that licensing has definitely grown beyond just being about character licensing. Of course this is still a significant part of the mix, but there seems to be an ever increasing presence for IP rights sourced from elsewhere including gaming (of course, many successful gaming brands are character driven), heritage licensing and sports licensing.
There have also been some great licensed ranges developed using band brands like The Rolling Stones and The Beatles. Some of this growth is driven by retail interest and demand. Retailers like HMV have supported the category. I think there is also a greater acceptance and trust around licensing from IP owners. Success begets success. I expect to see more ‘band brands’ taking the plunge in 2025.
Likewise the heritage sector is becoming more competitive as heritage brands have seen the success of established brands in the sector. Brands like the V&A have been successful for a while, but the perceived success of newer players in the sector like the Ashmolean Museum has encouraged other regional or specialist museums to investigate the market. They have realised that there could be an opportunity for them as well. That said it will be important that new entrants work hard at delivering something that is fresh, unique and authentic to the market. Dare I say it heritage licensing has to be well curated.
Overall it is good to see more sectors and sources of licensing thriving and developing.
My fourth and final observation is that there seems to be a growing interest in fan driven products and pop culture in general. I was recently in Oxford Street and popped into the MINISO shop there. This is a great example of a retailer that has found a significant niche in the ‘pop culture’ sector and built success around it. This is how it describes itself on the website “Forget about boring shopping experiences; at MINISO, it’s all about unleashing your inner child and embracing the playful side of life. Whether you’re exploring our aisles filled with cute plush toys, browsing through our vibrant accessories, or discovering the latest collaborations with iconic brands like Sanrio, Disney, Pokémon, Care Bears, We Bare Bears and more, there’s never a dull moment at MINISO.”
Upon my visit the shop was full of shoppers browsing but also buying. Product ranges were well presented and included a nice mix of ‘exclusives’. MINISO obviously knows its categories, consumers and product well. I suspect one aspect that consumers like about MINISO is that it is a retailer that ‘gets them’. Likewise retailers like HMV, Forbidden Planet and TruffleShuffle have built their businesses on the firm foundations of fandom, but importantly understanding what makes fans tick and not taking fans for granted. I certainly feel that this is an aspect of the licensing marketplace that has grown in a positive way. One related aspect of this is that there is a growing collection of licensees which also ‘get this’ market and cater for it well. There is a recognition that there is a mutuality in it – between licensee, retailer and fan.
To return to the cricketing world, it is time for me to declare the Lookout XI’s innings for 2024. I’m not out but I definitely need to put my feet up in the pavilion for a few days. It has been a tough year but an enjoyable one. I am pleased to see that even in tough times licensing has a role to play and is becoming more widely recognised for its potential to deliver positive results.
Wishing you all a well earned rest and lots of licensed presents – I think we all have a duty to put at least one licensed product on our wishlist this year. Support your industry!
Ian Downes runs Start Licensing, an independent brand licensing agency. His X handle is @startlicensing and on Instagram he is @iandownesphotos – he would welcome your suggestions for what to look out for.
