The power of licensing, by BrandTrends
The BrandTrends Group unveils some major findings from its most recent
research, and some key facts can be extracted on how to boost sales quickly.
In the highly competitive world of consumer products for children, licensing of entertainment brands
has emerged as a powerful strategy to drive sales and capture the attention of young consumers.
How to boost sales quickly
There are numerous strategies available on how to boost sales quickly and capture the attention of
potential customers. From implementing limited-time promotions to leveraging upselling and crossselling
techniques, social media marketing, collaborating with partners and influencers, one highly
effective method stands out: incorporating well-known entertainment characters into your products.
This strategy holds particular appeal for children, making it a powerful tool for driving sales..
By featuring popular and favorite characters, you tap into the strong emotional connection children
have with these familiar figures. This association can instantly capture their attention and pique their
interest, increasing the likelihood of a purchase. Whether it’s a toy, clothing, or any other
merchandise adorned with a popular character, children are often drawn to them like magnets.
The presence of a well-known entertainment character not only attracts kids but also appeals to their
parents or caregivers. Many parents are familiar with these characters through movies, TV shows, or
books, and they understand the joy and excitement they can bring to their children. Consequently,
they are more likely to view products featuring these characters as a desirable and worthwhile
investment, leading to increased sales.
Additionally, leveraging well-known entertainment characters can enhance brand recognition and
visibility. Characters that are already established in popular culture come with built-in fan bases and
dedicated followings. By aligning your products with these characters, you tap into the existing fan
base and benefit from their enthusiasm and loyalty. This can lead to greater exposure for your brand,
as fans of the character become aware of and interested in your offerings.
But the key question is: does it work? And if so, the follow up question is by how much?
According to a recent survey conducted by our company, BrandTrends Group, in December 2022, it
was revealed that an overwhelming 67% of parents globally would choose a product featuring a
well-known character or entertainment brand over another product of equivalent quality,
packaging, characteristics, and price.
Preferred across all categories
The influence of licensed products extends across a wide range of product categories, making them
highly sought after by both children and their parents. From toys and games to stationary, clothing to
food and drinks, and even personal care products, licensed merchandise consistently outperforms
generic alternatives. The survey results indicate that 73% of respondents prioritize licensed toys and
games, followed by clothing (71%), food and drinks (67%), stationery (59%), and even kids’ meals at
fast-food restaurants (66%). This overwhelming preference for licensed products underscores their
market dominance and highlights the crucial role they play in shaping consumer choices.
Captivating all audiences, with a strength on the younger ones
Licensed products possess a universal appeal that transcends age groups, captivating the hearts and
minds of children across the spectrum. However, the survey data reveals that younger children,
particularly those aged 3 to 6, exhibit a stronger attraction towards licensed products, with an
impressive 72% expressing interest in them.
As children grow older, their interest in licensed merchandise remains extremely robust, but
gradually wanes versus as they were younger. Indeed, they become more drawn to direct corporate
brands in various sectors, such as fashion (Nike, Adidas, Lacoste …), cosmetics, and electronics
(Apple, Samsung …), and therefore a go a little bit the Entertainment licensed products. This natural
shift in preferences highlights the need for continuous adaptation and innovation within the licensing
industry to maintain engagement with older age groups.
The influence of household income
While licensed products hold immense appeal for children across different income levels, the
research findings demonstrate a notable correlation between household income and the propensity
to purchase licensed merchandise.
The survey reveals that 61% of respondents from the lowest income quintile of households would
opt for a licensed product when presented with an equivalent alternative, whereas this percentage
jumps to 76% among the highest quintile of incomes. This indicates that even though licensed
products enjoy widespread popularity, price considerations still play a role into consumer decisions
and therefore the distribution of these products. As household income increases, the willingness to
invest in licensed products becomes more pronounced, emphasizing the economic aspect that
influences consumer behavior. The correlation between household income and the propensity to
purchase licensed merchandise underscores the economic dimension that factors into consumer
decisions.
Furthermore, it is important to highlight that parents often exhibit a greater willingness to make
personal sacrifices in order to satisfy their children’s aspirations for specific brands, and even more
on Entertainment products and on fashion. This further underscores consumers’ perception
regarding the pricing of licensed products.
Three key factors
To thrive in the highly competitive market of licensed products, licensees must adopt a strategic
approach that enables them to capture their target audience’s attention, engage them across
multiple platforms, and cater to diverse income levels. By focusing on three key factors, licensees can
position themselves for success:
1. Dynamic alliances:
Building strong alliances with well-known and popular entertainment brands is essential.
Licensees must prioritize collaborations that provide a laser-like focus on their target
audience and enhance the overall appeal of their products. Additionally, maintaining high
quality standards and creating attractive packaging that effectively showcases the licensed
characters or brand will help differentiate their products in the market.
2. Targeted engagement:
Licensees must stay at the forefront of trends and developments to understand the evolving
interests and preferences of different age groups. This knowledge, which by the way is
provided by BrandTrends Entertainment, can guide them in creating marketing strategies
that specifically resonate with each target segment. Customizing marketing efforts,
leveraging digital platforms, and developing interactive and immersive experiences, such as
licensed mobile apps, games, and online platforms, will help to effectively engage tech-savvy
children and adolescents.
3. Inclusive value proposition:
Recognizing the influence of income levels on purchasing decisions, licensees should ensure
their pricing and benefits are optimized to cater to a wide range of consumers. This can
involve implementing tiered pricing structures, forging partnerships with retailers that cater
to various income levels, and emphasizing the unique experiences, durability, and added
features of licensed products compared to generic alternatives. Communicating any
educational or developmental benefits associated with the licensed characters or brands will
also contribute to developing a compelling value proposition.
In order to thrive in the ever-evolving market, licensees must demonstrate agility and adaptability,
constantly seeking innovative approaches to engage consumers, broaden their product offerings, and
harness emerging technologies. By embracing these strategies, licensees can effectively navigate the
competitive landscape, seize the attention of their target audience, and generate increased sales in
the realm of children’s products.
To achieve this, licensees can greatly benefit from the expertise and support of BrandTrends Group.
With its wealth of information and insights, BrandTrends Group is well-equipped to assist licensees in
developing robust strategies. Through their comprehensive understanding of market trends and
consumer preferences, BrandTrends Group can provide valuable guidance in formulating effective
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marketing approaches, identifying emerging opportunities, and capitalizing on the latest
advancements in technology.
