Start Licensing’s Ian Downes finds that Cardfactory is much more than just a ‘card factory’ this week, and licensing plays its part.
One of licensing’s strengths is its ability to operate in different retail markets and tiers. Brands can be selected and nurtured to fit specific retail channels. This can go from value driven retail right through to top tier retail. The skill is to pick the right brand and to develop the right products for the chosen channel.
With this thought in mind, I recently popped into a branch of retailer Cardfactory. From the outside it seems to be a retailer that has recognised that licensing can help it achieve its goals and deliver consumer engagement. It is encouraging to see that such an omnipresent retailer as Cardfactory is embracing licensing.
I did a bit of desk research and it seems that Cardfactory has 1,058 stores in the UK and Ireland. Many of which are located on local high streets. Arguably it is filling the space and role that retailers like Wilko and Woolworths used to fill. In this regard Cardfactory is more than a card factory – it sells plush, giftware, party goods, confectionery, balloons and toys. All of which are licensing friendly product categories.
Licensing and licensed products are front and centre in the Cardfactory. Recognising its high street location and with a nod to passing traffic, it makes good use of its windows realising that these displays are a useful sales opportunity. In the store I visited, the window space currently includes a display featuring Peter Rabbit crafting kits, Paddington water bottles and mini library book sets featuring both characters. On this latter point it is worth noting that retailers like Cardfactory are becoming important sales outlets for publishers particularly for gift formats. Here licensing programmes are helping to drive book sales.
Not unexpectedly Cardfactory has a heavy commitment at the moment to Mother’s Day across cards and gifts. The offering includes licensed options with cards such as Little Miss, Mrs Brown and Peppa Pig featuring. Maybe there is scope for a Little Mrs Brown special edition card one day!
It was also interesting to see a bit of old school NPD in amongst the licensed Mother’s Day cards. There was a Minions-themed Grandma concertina card which harped back to a style of Christmas cards I remember from the 1970s – so I guess the format would be well received by Grandmas of a certain vintage.
Continuing the notion of licensing being a flexible business model, it is good to see that licensor and licensees are embracing opportunities like Mother’s Day recognising that it is sensible to be a player in as many occasions as possible.
Cardfactory supports a broad range of card themes as you would expect. These include humour lead cards. Here licensing features as well with brands like Subbuteo, Only Fools and Horses and Wallace & Gromit on sale. In the Children’s Birthday card section licensing is featured prominently with brands like Batman and Sonic the Hedgehog. Here again licensing is being used effectively across age groups – for example there is a Wallace & Gromit Grandad card. This is a reminder of the flexibility of licensing again – in this case it can travel up and down generations. Licensing is not just focused on or relevant to children’s products.
Cardfactory also leans into licensing in its toy offer. It has a mixed range of toy products selected with gifting, parties and rainy days in mind I think. Featured items include Spidey plush, a Gabby’s Dollhouse Make Your Own Jewellery Set and a Barbie stationery set. These items are all keenly priced and include a lot of boxed products that have a high perceived value. It also carries some books including Disney Tangled.
There is also a well stocked partyware fixture with Disney the dominant force in this section. It also sells items like balloons and party favours.
Cardfactory’s product mix is carefully curated and is essentially a one stop shop for parties, cards and gifting. I imagine consumers like the fact that the products are competitively priced, but they can also buy in a coordinated way. It is good to see licensing playing such an active part in the product mix – the range of licensed products in-store underpins how flexible licensing can be. Licensed products are also a convenient method for retail buyers to buy in a coordinated way.
Licensing’s ability to be ‘retail flexible’ was also brought home by a visit to a Peacocks shop on the same high street as the Cardfactory I visited. At one level, Peacocks continues to market a clothing range developed with football personality Michael Owen, while also featuring a range of pocket money priced toys at till point which feature licensed brands. This is a great example of how a retailer can use licensing to reach different audiences.
A closing observation is that retailers seem to be focusing their efforts evermore on events like Mother’s Day. I have noticed a number of retailers including WHSmith and Sainsbury’s betting big on Mother’s Day this year with a mix of FSDUs, branded event bays and multi-siteing product throughout the store.
Licensing is playing its part in this with brands appearing on cards, books and gifts specially developed for the event. This in itself shows how licensing is more creatively savvy and tuning into events. But the Mother’s Day ranges I have seen also reinforce the point that licensing can play its part in a broad range of retailers – a great example of this is an Emma Bridgewater branded Summer Flowering Gift Bag on sale in Waitrose. Good to see licensed products like these in the market. Licensing really is your flexible friend. I just hope my mum doesn’t read the Licensing Lookout!
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.
