TOTAL LICENSING
EUROPEAN INSIGHT
GO EAST!
Strategies for the Russian market
Our recent transformation into Kidz did not grow up with familiar brands clear from Claus’s experience is that to
Entertainment/EEMC has led to us in the way that people did in the West, succeed in Russia it is absolutely vital
expanding our operations into Russia, as everything was controlled by the to understand the unique set of rules
By Morten
Geschwendtner
which in licensing terms is a huge and state up until the fall of Communism that govern business there - to make
Director
untapped resource. in 1991. Brand development is still in an impact you have to employ a very
Kidz Entertainment/
This vast country has a population of its infancy. different strategy from what would be
EEMC around 142 million and an economy
What makes Russia doubly attractive is used elsewhere in the world.
that, after the turmoil Developing Russian
of the 90s, is in good contacts and estab-
shape and weathering lishing local networks
the present difficulties is absolutely vital. The
well, with long-term country is still very
growth assured. much influenced and
Despite this, the li- run by politicians and
censing industry it is necessary to know
in Russia is tiny in who the movers and
comparison to more shakers are that have
mature markets and influence in your sec-
there is huge poten- tor. It doesn’t matter
tial there. By way of who are you are, or
example, the licens- what you represent -
ing market in the US you have to establish
and Canada in 2008 Russian contacts to get
was worth $60billion, anywhere.
a drop of 14% from Claus’s efforts are al-
2007. Across the whole of Eastern Eu-
the level of consumer spending, which
ready reaping rewards - working with
rope, including Russia, the figure was
is amongst the highest in the world.
our excellent team of Russian staff, he
just $229million, but this was an in-
Two economic disasters in the 90s led
has signed a deal that will see Fifi and
crease of 2.8% from 2007.
to people losing absolutely everything
the Flowertots launching in the most
What is so unique about Russia is
and there is now a culture of spending
sought after children’s time-slot in
that, due to its history, there is virtu-
money while you have it. The econom-
Russia - the 6.00pm slot that is known
ally no brand heritage there - people
ic systems that have been put in place
as ‘Goodnight Kids’. Fifi will launch in
since make it highly unlikely that the
the summer and run for 3 years, a huge
TOTAL LICENSING AUTUMN/FALL
economy will implode again, but this
achievement in a country where state
culture still exists - Russians do not
control of the big channels makes sell-
Over and above its regular readers in 102 countries,
need encouraging to put their hand in
ing TV content incredibly hard.
the Fall issue of Total Licensing will enjoy their pockets.
Claus and the team have also signed
bonus distribution at
Russia is a blank canvas for brands and
the first ever direct to retail deal in
* Brand Licensing Europe
nobody really knows what will make it
Russia. This will see more than 20 Ice
* MIPCOM and MIPCOM Junior
big. It won’t necessarily be the big boys
* The Dubai Character Show,
Age 3 products going on sale in the
- the Disney Channel was recently re-
* Licensing Asia (Tokyo),
1,500 stores owned by X5, the biggest
* Italian Licensing Forum and other major events.
fused the right to broadcast there, an
retail group in Russia. This will tie in
unimaginable situation elsewhere in
with Fox promoting the movie and
* No magazine covers as many markets and as many the world.
subsequent DVD sales.
territories as Total Licensing. From our own perspective, Russia is a
Russia is the last frontier of the licens-
big priority for the next few years and
For full information, an editorial calendar
ing world and it undoubtedly holds
that is why our Co-owner and Direc-
and advertising details contact:
huge potential for the industry, but
tor of Entertainment, Claus Tømming, is
that potential has to be carefully han-
Editorial: Rebecca Ash, (
becky@totallicensing.com)
spending an increasing amount of time
dled. As Disney has found out to its
Advertising: James Ash (
james@totallicensing.com) in the country to establish our pres-
cost, it’s the Russian way or ‘No Way’.
ence there. What has become most
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