WildBrain CPLG’s Anna Artyukhova on anticipating a surge in interest for brand licensing later on in the year.
The COVID-19 pandemic has affected every country across the globe.
LicensingSource.net has been catching up with a selection of licensors and licensing agents from Europe, the US and Russia to find out more about how their businesses have been affected and how they see the rest of 2020 playing out.
Today, we head to Russia to get the views of Anna Artyukhova, md, Russia and CIS, WildBrain CPLG Russia.
“The situation is starting to improve. In early June, we saw some stores begin opening their doors following two and half months of lockdown. It is still a little early to talk about when retail may get back to up its previous level here, as not all restrictions on movement have been completely lifted yet. Also, as retailers now have new operating conditions and requirements they need to comply with, foot traffic in stores is still relatively low but there is an upward trend expected.
While bricks and mortar will need some time to recover, we’re feeling positive impacts from the online shopping habits consumers have picked up since being in lockdown, especially in larger cities. During quarantine, for example, many nationwide grocery retailers have significantly improved their product delivery platforms which will be beneficial for consumers in the long-term. Additionally, we’re seeing retailers team up with major shipping operators such as Yandex, Delivery and others to increase the efficiency of their online offering.
The summer is going to be quiet, but we expect to see the market start to come back from autumn onwards. Right now, we’re seeing business in Russia becoming more cautious which is largely due to the uncertainty of the local economy. Among the main factors cited by manufacturers in a recent Nielsen Group survey as negatively impacting the licensing industry is the devaluation of the Russia rouble, problems with payment discipline and lower demand for the goods they produce.
Although we expect companies to delay any new licensing collaborations and launches until at least September, we do anticipate a surge in interest for brand licensing later on in the year. After a long lockdown, consumers will be looking for comfort and positivity in brands they already know and love.”