By Sibylle Dorndorf

Take a peek at children’s bedrooms and you’ll see which characters from movies, TV series, books and video games are hot at the moment, whether a Disney princess, Harry Potter, Star Wars or Paw Patrol.

Top or flop?

However, you need expertise and experience to tell whether a licence will prove a goldmine or damp squib. Does this cinematic hero suit our target market and portfolio? What kinds of products would work under this licence? Even asking the right questions at the outset is no guarantee of success. Maura Regan of Licensing International (LI) knows that established experts are needed more than ever for this. As President of the LI trade organisation, she has spent the last twenty years and more observing the market – which has never been so mercurial.

Licences drive growth

Even if here in Germany the licensing business is also feeling the effects of consumer restraint, the decline of two percent is much lower than that of non-licensed toys. Indeed, licensing’s share of total market sales in Germany actually rose considerably in 2023: the industry registered an all-time high of 26 percent. Just the on-trend licensing themes alone around Disney, the numerous additional products complementing Pokémon trading cards, the Gabby’s Dollhouse preschool theme, Minecraft and the Avatar play worlds are generating several million euros of additional revenue. While Germany was long considered a “developing nation” when it came to licences, this has now changed: yet another reason for LI to appoint a proven licensing expert as its German Managing Director.

A new face at Licensing International

Licensing International appointed experienced licensing professional Ute Stauss to this key position effective 1 February 2024. She held various licensing roles at Disney for almost two decades. And she has worked together with many other national and international media and entertainment companies in her capacity as an independent strategy consultant. Sibylle Dorndorf spoke with Maura Regan and Ute Stauss about the global licensing market in general and LI’s strategic direction and positioning in Germany.

Interview

Maura Regan, Germany, Austria and Switzerland were long considered a “developing region” when it came to licences. What is your view of the current position and potential of the Western European market and German-speaking countries?

Maura Regan: The Western European market presents a huge opportunity for the licensing industry going forward. According to the latest Global Licensing Industry Study conducted by us at Licensing International, global sales revenue generated by licensed merchandise and services grew to $340.8 billion in 2022, an 8 percent increase over the previous year. Western Europe is the second largest market worldwide for licensed retail sales, and grew by 4.9 percent in the same period. The fact that this growth happened despite inflation and economic crises in a number of countries just illustrates the incredible attraction of licences and brands.

With Ute Stauss, you are gaining expertise from other industries as well and in the areas of business guidance, licensing for consumer goods, brand collaborations and strategic product development – with an international focus. Can we take that as an indication that Licensing International is now more focused on the German, Austrian and Swiss markets than before?

Maura Regan: The region remains a priority for us. With Ute, we are planning to extend our offering while maintaining all of the benefits that our members – and the licensing industry as a whole – need to be successful and to advance the global brand licensing business.

In all markets, we are now finding that adults are a target group with great potential for growth. Geeks, nerds, kidults, AFOLs – whatever term we use to describe the members of this segment, they all have one thing in common: they may help offset the decline in sales. Licensing is one of the factors driving this trend. How can companies and brands make the most of it? 

Maura Regan: We recognise that kidult consumers are really passionate about the brands they love. So, all endeavours in the area of licensing must remain true to the product in question. Kidult consumers are put off by partnerships where there is too little consideration of the products and experiences that support the characters and themes they love. To make the most of this trend, companies first have to understand their target market. 

How do you see this, Ute Stauss?

Ute Stauss: Licensing is an important factor in this trend and a driving force behind it. There are many different ways to benefit from it, particularly by recognising niche trends. What I mean by this is that adult consumers who are into geek and nerd culture have other and more specific interests here with regard to products. This then takes me on to product development. This target market in particular is interested in unique, premium merchandise, for example limited editions. Another important aspect is outreach to fan communities aimed at fostering engagement through events, online forums and the like. Brand awareness and loyalty can be increased by successfully establishing relationships with influencers and brand ambassadors within geek and nerd culture and then building on these through themed attractions and interactive events. These allow adult fans to completely immerse themselves in their favourite series or games. Budgets obviously have to be considered, but connecting with fans is certainly easier these days thanks to social media.

You are joining the toy industry at a very exciting time. We are seeing changes in buying patterns, the lifestyles of young families and how children spend their leisure time. Sustainability is a major topic. With your background, do you see parallels here with other industries?

Ute Stauss: The changes you mention are being felt across various sectors. Sustainability is a major topic in every industry, whether that be food, clothing, travel, housing, technology, cars, etc. Whatever the sector, it is evident in buying patterns, lifestyle choices and leisure pursuits. In the entertainment industry, too, there is growing demand for content that promotes sustainability, environmental awareness and social responsibility among children and families.

You are familiar with the toy industry from your former role as Director of Licensing at The Walt Disney Company and have been able to gain valuable experience in other sectors as a licensing and brand extension consultant. What is your current impression of the industry, especially the importance of attractive licensing themes for companies?

Ute Stauss: The toy industry is very dynamic and highly competitive. Attractive licensing themes play an important role and, all in all, are crucial to the competitiveness of the industry as a whole. Success also depends on the establishment and expansion of strategic licensing partnerships and consideration of new trends, such as gaming, e-sports and digital IPs.

In your future role as Managing Director of Licensing International Germany, you intend to especially promote networking opportunities, educational programmes, expanded retail initiatives and the Young Professionals Network. What is your short-term objective and what would you like to focus on in the future?

Ute Stauss: At the moment, I’m still in the process of getting a comprehensive picture of what our members want and the support they need from the organisation. And there are some highly successful events and formats at international level that we could adapt for the German speaking market. We will analyse all of these findings and categorise them into short-, medium- and long-term goals so that we can implement them step by step. It’s very important to the organisation and myself that we are a relevant player in the licensing industry now and in the long run.

In Germany, the licensing market is in flux and in the process of moulding itself, not least through new events such as BRANDmate. Do you see this as something positive and how open are you to, let’s say, “mutual inspiration”?

Ute Stauss: As Maura already mentioned, the international licensing market is huge. The numbers she gave are impressive. Growth is a constant. The variety of companies, expectations, interests and goals make this industry unique and also provide space for innovation, such as BRANDmate. We could very easily imagine ourselves implementing further formats in partnership. We are currently working on concepts outlining the potential content and scope.

As a strategy consultant, how will you set priorities in this patchwork?

Ute Stauss: I believe it’s important for the industry to be continuously presented with new trends, ideas and topics so that opportunities can be seized. The key words here are technology and artificial intelligence – which can be used to overcome current challenges as well. Another goal of mine and of Licensing International is to provide reliable, fact-based statistical data and studies. We want to create transparency and support our members in this complex and varied industry going forward.

Do you have a personal licensing favourite for 2024/2025?

Ute Stauss: I would struggle to pick just one favourite from the many fantastic and amazing themes and licences in our vibrant and varied industry.

Maura Regan: I can only concur with that. There are so many incredible offerings planned for marketing local entertainment activities, for everything from entertainment brands to sporting goods. Every time I see life breathed into a brand in this way – and how the fans engage with it – I realise the powerful role played by the licensing sector. I’m especially impressed by the degree to which licensing themes can evoke emotion.

About the author Sibylle Dorndorf:

Sibylle Dorndorf has been covering the toy industry for almost 30 years. The journalist last worked as the editor-in-chief at the TOYS family of magazines of the Göller Verlag publishing house from Baden-Baden, Germany. Her passion: Companies that reinvent themselves; brands that credibly position themselves; people who have something to say; and products with a future.