TOTAL LICENSING
By: Dalia Benbassat
VP Corporate Relations and
Acquisitions
THE HEALING POWER OF
Tycoon Enterprises SA de
CV
T. +5255 5395-7833
MULTI-PLATFORM BRANDING
F. +5255 5395-7873
tydalia@tycoon.com.mx
As if there weren’t too many discounts. They are also turning down protective element when facing this
already… Grandma just delivered a offers that would have been incredibly crisis. Like a vaccination.
newborn! tempting at any other time. Most are So it is time to roll our sleeves up and
tightening their decision-making filters work creatively at assessing the cur-
It seemed bad enough… except it just and are allowing fewer licensed brands rent crisis and turning it into some-
got a little worse. onto their shelves - selecting those thing good. It is time to be smart and
Latin America has shared the misfor- brands by one main consideration - make smart choices.
tunes of the global crisis in a way that zero risk. Yet we must acknowledge that not
The even fewer TV players, juggling ALL brands will see it through in the
with the line-ups of content suppliers same way. This will be a time when
and constantly in pursuit of the larger strong brands, or a brand that can
audience, whose tastes are continu- prove itself, will grow and solidify, since
ously changing and causing the pro- the degree of comfort that this type
gramming mix to be as erratic as ever. of brand offers will be highly valued,
Pay-TV still has far from the level of and most companies will be inclined
penetration required for licensed ac- to taking the “sure thing”, even at the
tivities in most territories. expense of what might have otherwise
Licensees have become weary as a been a good opportunity.
result of abuse from retailers, from Smaller or emerging brands however
surprises in consumer behavior, from will have a harder time than ever in
currency fluctuations and from fight- getting their act straight. As anything
ing piracy and parallel imports. that appears risky will likely be placed
Consumers have been hit by unem- in quarantine.
ployment, by increased prices, and, How do we make sure that the brands
most recently, by new unexpected we sell (represent or market with) be-
illnesses! The “swine-then-human come the safe or safer option, rather
flu” showed up uninvited, crashing an than the “I would rather avoid the
already weary party! risk” alternative.
In a way, we’ve all been stricken. How- If you are a property owner you must
ever, we will see it through. ask yourself today:
And hard times bring also opportuni- What are your chances of running a
ties - licensed opportunities. sound merchandising program if your
As it is the added value which a li- brand is aired only on Discovery Kids,
censed brand delivers, it provides a or is a one time event on Nick?
is not very different from many of the
larger territories. The only difference,
maybe is that for so many Latin Ameri-
cans this has been such a long on-go-
ing crisis that they have become quite
ingenious and crafty in dealing with it.
For the licensing industry, conditions
seem harsher than ever.
The few retail players, who are be-
coming fewer as a result of acquisition
or merger, have been hit by recession
and many of them are going through
a budget freeze, trying to clear inven-
tories after a bad Christmas season
and sending back large loads of mer-
chandise in the shape of returns or
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