Trademark Products’ Phil King talks exchange rates and the expansion of DTRs.
It’s the start of a new year, one which could potentially bring some serious changes to the way business is done in our industry.
We got the lowdown from some key licensees as to what they think will be their main challenges in 2019 and why.
Today: Phil King, md, Trademark Products
“Moving from a year that has not been the easiest at retail, with the high street struggling and uncertainty about Brexit hitting the exchange rate means more challenges with prices as cost of goods increase.
One of the key challenges this year will be to manage business with these fluctuating exchange rates, coupled with the tough high street marketplace, were we are seeing less commitment as uncertainty effects customer spend.
Another key factor moving into 2019 is the expansion of DTR licences specifically in the apparel sector, where we are losing key retailers who deliver volume sales.
More and more we seeing properties becoming successful, only for DTRs to be granted and we lose retail sales opportunities. This creates the challenge to make deals work when you lose the volume retailers and royalty they can generate.”