Like many business sectors, licensing runs on a calendar and has a certain rhythm to it. After a couple of months of summer rest and relaxation, the UK industry is back in full force. We have entered the trade fair season and also recently enjoyed the UK Licensing Awards.
The Licensing Awards
The Licensing Awards are now firmly established as a key part of the licensing calendar. This year, over 1,200 industry executives attended the event. It is certainly more of a challenge to win an award these days with much more competition and a higher standard of entry. The latter point is probably one we should all take some pride in—licensed products are getting better, while overall, I think business standards in the licensing industry have risen.
This isn’t all down to the awards, of course, but the awards certainly help bring a sense of focus to the industry. Overall, I think licensing professionals are more aware that product development has to be of a high standard and authentic, while brand owners have got better at supporting their brands. There is also more understanding of “what the consumer wants” in general terms.
The awards also give some insight into market trends and movements. For example, it was interesting to see HMV win in the Best Retailer of Adult Licensed Products category and for MINISO to win the Radar Award for retailers who are becoming more noteworthy in the licensing mix. In both cases, these retailers focus on fandom and pop culture—their recognition underpins how important this market is becoming to licensing.
LEGO Formula 1
LEGO’s Formula 1 range winning Best Licensed Toy or Games range was a demonstration of how licensed brands are emerging from a range of categories these days beyond entertainment, albeit Formula 1 has received a boost from the popularity of the Netflix series Drive to Survive. It was also good to see some new faces picking up awards—for example, KP Snacks brand Tyrrells winning Best Licensed Food or Drink range for their Wallace & Gromit Wensleydale and Cranberry Crisps range.
To keep growing, licensing needs new participants and needs to be aware of new opportunities. Related to this latter point, it was also good to see Character.com’s SpongeBob SquarePants Adaptive Clothing Range from Fashion UK winning the Innovation Award. It is good to see the licensing industry being more aware of inclusivity and creating products that are more inclusive. In this regard, licensed brands can be very influential.
Caroline Mickler WINS Achievement Award
A final observation about the Licensing Awards was how pleasing it was to see Caroline Mickler winning the Honorary Achievement Award. This was richly deserved, not least for Caroline’s pioneering work with The Beatles. The success that Caroline had with the Fab Four’s licensing program arguably paved the way for other “band brands” to succeed in licensing and helped establish a very vibrant licensing genre.
Tradeshow Season
Beyond the awards season, tradeshow season is upon us. I have been to three shows already, including Top Drawer. Top Drawer is a show that has traditionally been licensing-lite, but interestingly, this year there seemed to be more licensed products on show than I have ever noticed before.
Top Drawer focuses on gifting, stationery, homewares, accessories, and interiors, generally toward the mid-to-higher retail tiers. This shift toward licensing can be explained in part by more companies recognizing that a well-crafted licensed product can be stylish and bring a ready-made consumer audience with it in a range of retail environments.
I think it is also explained by changes in retail—retailers like gift shops and bookshops are more inclined to sell a broader mix of products, and in this context, a well-curated licensed product selection can bring instant wins for them.
It was good to see companies like Chunki Chilli at Top Drawer who are relatively new to licensing but are enjoying success with their Wallace & Gromit Knitted Toys. They are a good example of a company and category that can succeed in licensing if a different approach is taken. Their success should encourage other manufacturers that licensing can work for them.
What shows like Top Drawer and events like the Licensing Awards have shown is that the licensing industry needs to continue to be imaginative and flexible in regards to new business.
There are new opportunities out there and new ways of working, but it is important to start the conversation with an open mind. Sometimes you have to rewrite both the rulebook and the playbook to find success.
This article was written by Ian Downes, Director at Start Licensing Limited, for The Bugg Report.
This article also appeared in Edition 51 of The Bugg Report Magazine
