Amanda Cioletti
Event & Content Director Global Licensing Group, Informa Markets
Fashion is second largest segment
The entertainment/character segment lead as the largest sector for the total global licensing market, accounting for $122.7 billion in global sales in 2019. Fashion was the second largest generating $32.2 billion in sales, 11.5 per cent of the global licensing market. US-based Informa Markets creates platforms for industries and specialist markets to trade, innovate and grow. Its portfolio comprises more than 550 international B2B events and brands in markets including fashion & apparel. Amanda Cioletti, event & content director for the Global Licensing Group (a part of Informa Markets), spoke to Paulami Chatterjee about some of the global licensing trends.
How big is the fashion licensing business world over? How much is it set to grow in the next few years?
Fashion accounts for a sizeable portion of the licensing industry. In fact, according to the 2019 Global Licensing Survey published by Licensing International, fashion is the second largest sector generating $32.2 billion in sales, 11.5 per cent of the entire global licensing market. Apparel and fashion accessories are the most popular kinds of consumer products according to the same report. Looking ahead, we will continue to see more licensed fashion collaborations as consumers continue to demand fashion products that fit their own personal taste and style.
How does licensing help a brand?
Consumers develop a connection toward their beloved brands; and as competition for space in stores and online attention grows tight, brands can harness licensing to stand out and specifically target and drive consumers towards their brand. The potential to unlock powerful brands with in-demand products that drive real value to both parties of the licensor and licensee. What's also great is that small to large businesses can benefit and profit from brand licensing, generating billions of dollars each year in retail sales of licensed merchandise.
What are the key licensing events related to the textile/apparel industry that you organise every year?
The Global Licensing Group hosts several global events that textile/apparel industry professionals worldwide can attend to make new business connections. Licensing Expo Shanghai and Licensing Expo Japan cater to the Asian-Pacific market. We also host Brand Licensing Europe which is based in London and is geared toward the European market. In the United States we host our flagship event, Licensing Expo in Las Vegas, as well as Licensing Leadership Summit in New York City.
What are some of the global licensing trends that you strongly feel about in Asia-Pacific and India?
The licensing market in the Asia-Pacific and India regions comprise a large portion of global sales of licensed goods, 13 per cent of the total according to the Global Licensing Survey. The report also found that Northern Asia and Southern Asia/Pacific markets experienced the strongest year-over-year increases in licensing business, each showing growth of more than 5 per cent for the year.
Luxury and digital brands are poised for a strong market in the Asia-Pacific and India region. Licensors, those who license their brand IP, have immense opportunity in the market to expand and cater to luxury goods consumers with an emerging middle class. Notably, in License Global's Top 10 Brand Collaborations of 2019 report, the top collaboration was with Hypebeast brand Supreme and luxury designer brand, Jean Paul Gaultier. The growth in digitally savvy consumers in the regions showcase that more consumers are opting to purchase their fashion goods in an e-commerce setting.
Which are the 5 most profitable licensing characters for apparel? How much are they worth?
The entertainment/character sector leads as the largest sector for the total global licensing market, accounting for $122.7 billion in global sales in 2019. The Walt Disney company is a trailblazer as the top leading licensor globally, generating $57.7 billion through the retail sales of licensed merchandise. Other prominent licensors in the character space include Warner Media which owns Cartoon Network, Warner Brothers, and HBO as well as Hasbro, Universal Brand Development, and Viacom Nickelodeon Consumer Products. You'll notice several of the aforementioned brands came about through strategic mergers and acquisitions of other entertainment properties. Characters owned by these companies have shown they carry immense retail value.
Given the current pandemic situation, do you think virtual events will be the norm going forward? What are their advantages/disadvantages vis-a-vis physical events?
For the fashion/textile industry which operates through a seasonal pattern and is constantly evolving, virtual events are great supplements to live trade events that occur once a year. The added flexibility with the market timing gives businesses more chances to continue to network and seek new business opportunities year-round. We can expect more virtual events to only add to the live trade show experience moving forward.
How can virtual trade shows be leveraged even better to offer efficient, impressive, and state-of-the art digital solutions in the future?
Virtual trade shows are another great way to connect professionals with other professionals in a B2B setting or with businesses directly to an engaged customer base (B2C). Through the online interactions we're seeing in real-time from customers, the data can reveal consumer behaviours and trends that help us organise a stronger event that fits their needs.
What has been the biggest change you've seen in the licensing business over the last five years? How are established licensing brands responding to it with matched innovation?
The new opportunities in licensing have widely expanded over the last five years. New licensable opportunities now span categories that include e-sports, digital influencers, growing e-commerce brands, straight-to-video entertainment brands, among many more. We're also seeing that the transformation of retail and manufacturing practices has shifted the industry to new heights. For fashion specifically, brands are now able to reach new consumers demographics from luxury to independent retailers and to big box retailers through licensing.
Two years down the line, how has the acquisition of UBM helped you consolidate your business?
Informa has afforded a deeper pool of resources and ability to cross-collaborate between its expansive portfolio of shows and brands. We've enjoyed continuing to find and harness new ways of supporting the licensing community through the opportunities Informa has afforded.
Big Data, Artificial Intelligence, Machine Learning - these technologies are rapidly transforming businesses today. How will trade shows be impacted by this in 10 years from now and what will organisers need to do to keep up with these changes?
The business of licensing is built on connections; through these new technologies, we are only finding more ways to continue to connect professionals in a meaningful and productive way. The events industry has already begun embracing several of these technologies to assist with prospective lead scoring, predicting churn in attendees, and even personalising an online experience to fit the attendee's preference. To keep up with these changes, event organisers need to adopt the right technology that aligns with their event's goals from attaining a new attendee base to even predicting the next trends and brands that should exhibit on the show floor.
This article was first published in the August 2020 edition of the print magazine.
Published on: 02/09/2020
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of Fibre2Fashion.com.
