Licensing
Stock scarcity Another major impact was a lack of stock. Covid-19 had a huge impact on global supply chains because it caused many factories across the Far East to close or reduce their operations drastically. Many workers either lost their jobs through the loss of their employer or through illness and this in turn led to rising costs due to lower production numbers and longer lead-times which also affected the price of raw materials. To deal with this, toy manufacturers had
to spend a lot more time on planning and scheduling, and retailers had to spread their risk more widely across ranges, rather than focussing on specific product lines. This presented opportunities for smaller licensees to gain a listing earlier in a programme. Neither of these effects can be reversed overnight so what does this mean for 2022?
What we might expect from Toy Brand Licensing in 2022
The Covid-19 pandemic had a huge impact on the performance of the global toy brand licensing industry in both 2020 and 2021, and the effects will continue to be felt in 2022, says The Point.1888
As a toy brand licensing specialist with brands such as CoComelon, Moomin and Blippi on our books, we make it a priority to closely monitor how retailers, brands and licensees in the toy sector are dealing with the changes so that we can support them and predict what is awaiting them in 2022. In this article, we’ll share our expectations for next year and how The Point.1888 will be preparing for them.
But first, let’s talk about what happened in 2020 and 2021.
What impact has Covid-19 had on toy brand licensing so far? There have been two major effects:
A swifter migration to online shopping The move to online shopping accelerated when the pandemic hit and, while this proved fatal for many stores on the high street, it did give toy partners new opportunities for direct sales and engagement with consumers.
A surplus of stock in Spring In an attempt to meet their commitments, toy manufacturers have done their absolute best to get as much stock into the UK in time for 2021’s peak shopping periods. However the impact of Covid-19 has meant many delays. This will result in a surplus of stock on shelves in the early part of next year when shipments finally arrive. Along with this will come the many delayed product launches and promotions, which we hope will be spread more evenly throughout the year to minimise competition and increase the likelihood of sales.
Sustainability will be key We also predict that brands and retailers will continue to make sustainability a priority and we expect to see more toys and other products made of recycled materials. In fact, we know many retailers will be dedicating whole shelves to sustainable products.
Increased prices at retail The rise in the cost of raw materials, additional transportation and duty rates has hit manufacturers hard and we expect these charges to be passed down the chain to consumers.
This will be a concern for many brands who want to ensure their product ranges remain competitive, particularly if they have chosen high quality materials which already command a higher price. To support these brands and overcome the other challenges we’ve predicted, we have a number of plans up our sleeves.
Increased emphasis on marketing Earlier this year, we launched Story.1888, to provide our clients with the PR and marketing support needed to maximise the impact of their brand licensing efforts. The licensing industry is great at creating amazing products, but not always so
40 | toy news | Jan/Feb 2022
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