Danilo’s Dan Grant on consumers and retailers valuing strong brands.
With inflation now at over 10%, energy costs and food bills sky rocketing, the cost of living crisis is intensifying.
LicensingSource.net asked a selection of licensees what impact this is likely to have on the licensing industry, as well as what positives the sector has in its favour in the run up to Q4.
Today: Dan Grant, licensing director, Danilo.
“Everyone is going through some very tough times at the moment and it’s set to continue for a while yet. Consumers will start making much more calculated decisions over purchases, but that is obviously not specifically on licensed products.
From Danilo’s perspective, greeting cards and gift wrap will hopefully be less impacted than some categories as they are lower priced items and consumers will still want to send cards and gifts for birthdays and Christmas. Calendars and diaries may be more impacted where they are purchased as gifts or pick up items.
However, many consumers still see a calendar and diary as an essential item each year, so I would expect that to continue to a certain level, even during these difficult times.
“The biggest positive that licensed brands have is the marketing support that goes alongside them, to promote the brands and make them a desired item. This is especially important with kids, when they are creating their Christmas lists and specifying the branded items they want.
I believe that consumer and retailers also value the strong brands and many consumers will rather invest in a higher quality branded item rather than something that may be at a lower price point and potentially of a poorer quality. So, the key thing will be carefully made decisions on purchases.”
This feature originally appeared in the autumn 2022 edition of Licensing Source Book. To read the full publication, click on this link.
Want to read more news like this? Simply sign up to our daily digest by clicking here. You can also follow @LicensingSource on Twitter and @licensing_source on Instagram.
