Licensing Gross sales Topped $340 Billion In 2022; Barbie Enhance Anticipated This 12 months

The Barbie film is not only a billion-dollar field workplace success. It is also a blessing for the licensing trade, with its dramatic demonstration of the facility of manufacturers.

Licensing Worldwide, a commerce affiliation for the licensing trade, simply launched its annual International Licensing Trade Examine, which signifies that the trade is poised for sturdy progress after a interval of pandemic-related challenges.

International gross sales of licensed merchandise and companies hit $340.8 billion in 2022, up greater than 8% over the $315.5 billion offered in 2021. Whereas an excellent a part of the elevated spending was as a consequence of inflation, the licensing trade outperformed the general retail market in 2022, which grew by 5.4%.

“Manufacturers stay how shoppers are making their selections,” mentioned Maura Regan. president of Licensing Worldwide, mentioned in an interview. “We’re proving time and time once more that manufacturers promote.”

Whereas inflation continues to be a priority, by way of manufacturing prices and client shopping for energy, the trade is anticipated to have any even higher yr this yr, due to Barbie and different elements which have shoppers shopping for licensed merchandise.

The Barbie film decisively reveals the power of manufacturers, Regan mentioned. “One thing like Barbie is only a fantastic., fantastic sendup of a franchise that’s been beloved for years, and years, and years,” she mentioned.

“For the trade total,” Regan mentioned, “it demonstrates why licensing works, how licensing works. And from a client expertise, the patron needs to have that model expertise each which manner. They need a film expertise, they wish to put on it, they wish to take it residence, they need Barbie’s Dream Home, they need Barbie’s convertible,” she mentioned.

Licensed merchandise have confirmed to be fairly resilient even in robust financial occasions, particularly licensed merchandise for youngsters, Regan mentioned. Grownup followers even have proven willingness to spend on extra on licensed merchandise that includes their favourite reveals or manufacturers.

Licensing Worldwide’s annual commerce present in Las Vegas, Licensing Expo, drew 12,000 attendees in June, up 13% from the earlier yr.

The Licensing Worldwide report highlighted a lot of methods the trade is altering post-pandemic, together with progress in licensing offers tied to in-person experiences, resembling theme parks, live shows and different attractivities, in addition to the necessity for licensed manufacturers to create direct gross sales channels to shoppers.

Among the many prime findings within the examine, which was ready by Brandar Consulting for Licensing Worldwide, and included a survey of over 200 corporations within the licensing trade, have been:

Location-based and companies licensing noticed explosive progress

Experiences, resembling licensed theme parks, and in-person occasions resembling live shows and Broadway reveals, had an excellent yr in 2022, as shoppers confirmed “a really wholesome urge for food for experiences, leisure, journey, eating, and festive gatherings,” after pandemic lockdowns, based on the examine. Location=based mostly leisure and promotions have been up 67%, and Licensed companies, which incorporates eating places, lodges, journey, and hospitality, was up 205% in 2022.

There may be extra competitors for retailer shelf house.

Licensing producers famous that the shift to smaller retailer footprints on the a part of retailers, in addition to the transfer towards larger use of in-house and personal label manufacturers have made it tougher to get their merchandise on retailer cabinets. “This may be detrimental to launching new licensed merchandise,” one survey respondent commented.

Direct-to client licensing gross sales

Ecommerce gross sales accounted for 30% of all licensed product gross sales in 2022, down from the height of 34% in 2021. The ecommerce share stays up considerably over pre-oandemic 2019, when it was 22%, and it has practically doubled within the 9 years the examine has been performed.

Many licensees have created their very own direct-to-consumer gross sales channels in response to the shop shelf compression points, the examine reported, with ecommerce and DTC channels turning into more and more important to drive gross sales.