TOTAL LICENSING
EUROPEAN INSIGHT
SURVIVING THE ECONOMIC REALITY
Now is not the time to be timid!
Spring brings a welcome change in and, in extreme cases, avoiding signing example, but they still want brands
the temperature. But no amount contracts or even walking away from and so we have to do deals to reflect
of early sun will distract the media agreed-to deals. This is a challenging this – my attitude is, if you want to
and the European business commu- situation – it’s hard to do business on lower the bar, then let’s do the deal
nity from the chilly global economic such extended terms, especially in the differently, such as by being more per-
By Morten
conditions. face of aggressive competition from formance related or by focusing on
Geschwendtner
In our territories, covering Nordic and the more cash-rich entertainment gi- the strongest retailers only. It’s impor-
Director
Eastern Europe, things are as bad or ants. It would be easy to cut costs and tant to make sure that deals don’t fall
Kidz Entertainment/
worse as anywhere else and yet we’ve scale back but I don’t think that’s the apart so speed and flexibility about
EEMC
experienced strong performance in the right thing to do. In fact, I believe it terms and rates and timing are vital to
first quarter of 09 with good deals for would haunt and hurt us in the future. close the deal. For example, we’ve just
good brands. We’ve not changed the Rather, our strategy is to adopt a posi- signed a deal for a new property in our
way we do business in any profound tive, proactive strategy and to move portfolio. The licensee wanted to pay
way. We are focusing especially hard closer to our partners. half the amount we wanted but after
on each individual market and putting From a trade perspective this requires negotiations we agreed to the lower
more resources into sales. We’re being exhibiting at important local and in- guarantee and structured the deal so
frugal and efficient as businesses should ternational trade shows and having that once the lower figure had been
always be. And we’ve just taken on a a presence in the key marketing and reached, the rate went up. This per-
designer, the final part in our strategy consumer product magazines. From a formance-related structure suits eve-
to become a full-service agency. But local point of view it means providing ryone better at the moment.
what we have done is mapped out a more opportunities for licensees and So yes, it’s going to be a tough year.
clear strategy for working under these partners to meet and exchange infor- We’ve had to streamline our portfo-
conditions and been completely open mation. And from an agency point of lio and let go of some of our brands
with our clients and partners by asking view it means increasing our outreach in order to focus on fewer, stronger
them embrace it, too. efforts to retailers and offering our ones. But it’s not a time to be timid.
At the beginning of this year, we ad- full service design and marketing work Being up-front about how we need
dressed all our clients with a statement wherever possible. We’ll also apply to do deals in this economic climate
of how we see the market behaving in resources very specifically to ensure has led to some very close discussions
2009 and explained some of the radi- our brands get equal billing across the with partners, which can only be a
cal measures we think might be neces- marketplace. good thing. Products bearing the most
sary to come through it in a position Most importantly we have to work popular brands will always be in de-
of strength. At the end of 2008 we with our clients to speed up the entire mand and our job is to facilitate their
felt the negative impact of the global deal process and approvals timeline, availability and promotion, whatever
crisis very heavily in some of our ter- and be ready to negotiate deal terms the economic weather.
ritories, and we don’t see the situation that are realistic in terms of local part-
changing any time soon. Retailers have ners’ capabilities. This could well mean
moved away from what they believe to agreeing new deal structures that en-
TOTAL LICENSING SUMMER ... EDITORIAL ALERT
be ‘risky’ brands and product lines in able us to conclude a deal even if the
The Summer issue of Total Licensing will be distributed
favour of ‘safer’ ones. A reduction in terms are below normal expectations.
at Licensing Show in Las Vegas, and at
retailers’ commitment to volumes and So far, clients and partners have re-
the new Licensing Factory event in Croatia.
inventory looks likely to continue well sponded very positively to these pro-
into the future. Some retailers in Hun- posals even though many clients have Key features for the issue are:
gary, Russia and Ukraine have already had budgets cut themselves and can
Licensing 2009 Show Preview - Preschool Licensing update
gone bankrupt and there has been access support as an incentive if we
Licensed Celebrities and Personalities
consolidation among others. We’re not can deliver results. The responsibility
Territory Spotlights
at the end of this trend, either. then lies with us to deliver what we
Latin America, Spain and Portugal, Emerging Europe
The effects are, of course, trickling say we can.
down to agents, licensees and brand Such radical proposals aren’t made To be part of the features, we need to hear from you by
owners. Many partners have begun to lightly but these are unusual times. the editorial deadline of 20th April latest.
ask for delayed payments, are holding Russia and Ukraine have seen their
For further information, contact Francesca Ash (francesca@
off their payment of existing invoices currencies devalued by 40-50%, for
totallicensing.com) or Rebecca Ash (
becky@totallicensing.com)
131
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144