Children know more and more brands. KidzGlobal's BrandTrends survey showed that French children 7 to 9 years old are spontaneously able to cite over 160 different brands! They're increasingly targeted by multiple brands and are becoming demanding. However, they want to be active consumers and have opinions. Brands are facing numerous challenges. The epoch is about mass customization. The offering is huge and franchises are releasing too many products.
Children's screen time is also evolving and their exposure to brands alongside. A recent survey conducted by Junior City on 405 youngsters aged 11 to 14 revealed that while TV remains on top, kids also watch ATAWAD (anytime, anywhere, any device): 80% watch programs like that vs. 71% for YouTube, 44% replay TV and 23% for Netflix. Large-scale distribution is finally starting to be aware of digital figures, which licensees and central buyers now need to take into account.
Retail is having a tough time getting involved
In terms of logistics retail is undergoing a big transformation. There are numerous strategic partnerships being established in large-scale distribution. Large chain stores are focusing on food and retain the same logic: not taking too many risks and promoting only the top 3 properties on their shelf space. In specialized outlets the goal is to be as competitive as possible by offering trendy products with strong added value. The offering must constantly change so buyers have the feeling there is novelty. That kind of chain store's strategy is to create more licensing events to avoid a stagnation of traffic in stores. That means there still are great development opportunities for those stores.
Online sales offer brands new alternatives. Amazon is developping On Demand, Ventes Privées is partnering up with brands to offer ephemeral and exclusive sales, and some manufacturers are creating their own online stores. All of these options represent new distribution channels for brands. Direct to consumer will maybe be the next challenge that will allow everyone to find a suitable space.
The market is renewing itself
With Entertainment franchises slumping, all of the licensing pros are looking for new properties. Sports brands, e-sport, bloggers, online programs, food franchises: what will tomorrow's franchises be? This important question is on every mind. The strength of the Internet networks is altering the system. Bloggers and online channels now have a considerable impact on establishing a brand.
While brands, licensees and retail face numerous challenges, Kazachok continues to believe that licensing still has a rosy future. It remains a must for children as well as adults who are keen on various franchises. The key will be to bring fresh enthusiasm as well as offering ever more efficient products and services.