Glitz, glamour and licensing

The Las Vegas show was judged to be a worthwhile trip, viewing it from an overall perspective.  It was, however, also noted that attendance seemed to have gone down this year (although official figures may yet dispute this). Martin Brochstein, SVP, Industry Relations and Information, LIMA, US avers, “While this time we haven’t seen any official attendance figures, I believe that the number of attendees was at least comparable to that of the previous two years in Las Vegas (since the show moved from New York).” Pete Canalichio, Founder, Licensing Brands Inc. opines, “This year’s expo was definitely better attended than the past few years.”

 

Trends

Entertainment has been the focus from quite some time and this year too it was noticed that the category was at its glory at the show with Hasbro, Disney, Warner Brothers, Sony, Dreamworks, Paramount, etc.

 

Milin Shah, Vice President-Global Licensing, Bradford Licensing praises the creativity exhibited by Saban Brands who placed a naming sponsorship for the Power Rangers on the wi-fi network at the expo. He further shares that there was noted a very strong presence, for the first time, for celebrity personalities throughout the licensing show. From Bradford Licensing representing Denise Richards, to booths solely for Janet Jackson and TIESTO, CAA and WME (top global talent agencies),  a wide spectrum of brands showcased their clients at the show. “With the successes of merchandising collections braded by Jessica Simpson, Paris Hilton, Kardashians, etc – celebrity personalities will continue to be a trend in the industry,” adds Shah.

 

Key takeaways

It was also learnt that while the show is generally dominated by large production houses with their movie and character licenses, this year’s show did see some corporate brands exhibiting too. Canalichio shares, “The most prominent being Electrolux and Unilever (Good Humor, Klondike) and also more licensees were seen with their own booths this year, including a Chinese Pavilion that featured several licensees from the country.” He further points out, “This is certainly a positive development as one would like to see both licensees and licensors exhibiting at the show. The show saw several attendees from different areas including brand owners, manufacturers (licensees), inventors, artists, licensing agents, and investors. Also, a significant share of the attendees was international – signalling robust growth of brand licensing globally.”

Kelvyn Gardner, Managing Director, LIMA, UK comments, “A highlight of the expo, from an international perspective, was the fact that one of the undoubted biggest draws of the show was UK originated Moshi Monsters. Moshi Monsters, an online kids’ game, is growing exponentially with the first licensees, such as Topps and Vivid, already shipping vast numbers.”

 

Quality crowd

It is quite unexpected to have a dull moment at the Vegas Show, and having spoken to industry insiders, it’s clear that the show was packed with plenty of deal making and networking opportunities for attendees and exhibitors alike!

Martin opines, “I think the quality of the crowd has gotten consistently better, with significantly more retailers from the US and other major markets around the world coming to meet with licensors and to get a jump on the properties that will make their way onto store shelves in the next 18 months to 2 years.”

 

In store

It goes without saying that much of the industry’s future is inherently tied to the health of the global economy and levels of consumer spending. Martin avers, “I think the wide range of new properties being shown in Las Vegas gives ample evidence that new characters, brands, entertainment vehicles, artwork and other kinds of IP consistently bring something new to retailers and consumers.” He further points out that there seems to be a lot more activity from within the music business, as performers look to licensing to supplement their other revenue streams. Also, increasingly, characters from online games are generating licensing programmes.

 

Shah further adds, “The future of the licensing industry will see much more innovative and creative brand extensions. Over the last five years, we’ve seen big leaps in food or beverage licensing. This category will continue to grow in the industry, and do not be surprised if some manufacturers and grocery stores start carrying brands on products that make you scratch your head, as risks will be taken due to successes in this category.”

 

Lookout for

As the world economy grows and brand licensing becomes more and more recognised as a powerful technique for companies to grow their business, the Licensing Expo will continue to grow in size and corporate brand presence.  According to Advanstar, demand for booth renewals and expansion was very strong, which portends a very healthy show in 2012.

Moreover, as pointed out by Canalichio, the international presence is a good sign, which implies that regional licensing shows will also be well attended. It is also learnt that a new trend that is worth keeping an eye on in the licensing industry is that of retailers beginning to license their private label brands. “But, the question to ask is will one retailer showcase a brand extension of a competitor retailer’s private label?” questions Shah.           

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