The war in Ukraine has disrupted the flow of licensed products across the world, especially for companies doing significant business with or in Russia, a growing licensing market before the war started. But, as the pictures in the news everyday can attest, no one in the licensing community has been more affected than those in Ukraine itself.
The country has traditionally possessed a relatively small licensing business, compared to many other countries around the world; Disney recently said on an analyst call that .2% of its total operating income is attributable to Ukraine, while Russia accounts for about 9.8%. But global properties and brands have long targeted this market with content, advertising, and licensed merchandise (either shipped in from other territories or made by local licensees). A number of homegrown properties have actively been licensed as well.
Here is a look at a sampling of recent activity in some of the key licensing sectors in Ukraine, all of which are, like every Ukrainian business and person, now being impacted immeasurably by the war:
- Entertainment/character properties. Glowberry’s preschool TV series Brave Bunnies airs in more than 63 countries and is the top Ukrainian entertainment property on the global market. Recent deals have been announced with Penguin Random House U.K.’s Ladybird imprint for publishing and with Spin Master for toys. Unimage’s Mini Town, another preschool show, airs on Ukraine’s PlusPlus channel and on YouTube and is represented for licensing by Nerd Agency, a division of the Ukrainian entertainment company Film.ua Group. Goose, an animated meme represented by Art Nation Agency, has implemented initiatives with Visa, for training posters to promote financial literacy, and with the Kyiv Metro, for an informational campaign about subway use.
- Sports. The Ukrainian National Football team’s kits are licensed to Spanish sports licensee Joma—they were with Adidas in the past—and are available in a variety of global soccer-themed e-commerce sites around the world as well as in local retail channels. In June of last year the national team resolved a conflict about the design of its jersey; a coat of arms includes Crimea in a map of Ukraine—something the Russian team had protested as it has considered Crimea to be under its ownership since 2014—and the slogan “Glory to Ukraine.” The UEFA football championships were held in Ukraine in 2012, boosting sales of licensed football merchandise locally, while merchandise tied to clubs in other sports has been available in Ukrainian stores and online as well.
- Fashion designers. Anton Belinskiy, known for his distinctive bags and slouchy apparel styles, has marketed collections through collaborators including 032c, a German fashion and media brand, and Dada-Base, a Ukrainian fashion label that has worked with a long list of global designers. Belinskiy and 032c are currently selling a “Free Ukraine” t-shirt from one of their 2017 collections. Lilia Litkovskaya, with her Litkovskaya label, is one of the most well-known fashion brands within Ukraine and her profile is growing internationally. Among her collaborators are the Ukrainian smart suitcase and travel accessories brand Have A Rest. Anna Osmekhina’s TTSWTRS is known for its tattoo-inspired fabrics and often collaborates with tattoo artists; the Ukrainian-made apparel label has 12 branded stores inside and outside Ukraine and has gained a global fan base including the likes of Nicki Minaj and Kourtney Kardashian.
- Celebrities. A number of Ukrainian beauty, fashion, and lifestyle influencers have gained popularity within Ukraine and been involved in collaborations and endorsement deals with local brands. Some have a global presence as well. Olga Ferrara, who has moved to New York, has become a fashion icon and has partnered with fashion labels such as JUS10H and House of Want, as well as marketers of swimwear, footwear, jewelry, and handbags. Other celebrities available for licensing include TV presenter, singer, and comedian Olya Polyakova (Super Blonde); musician-actor Oleh Vynnyk; and chef Ievgen Klopotenko, all represented by Art Nation Agency.
- Licensees. In addition to the Ukrainian licensees already mentioned, FS Holdings and WP Merchandise, both part of TECHIIA, distribute and manufacture licensed merchandise, respectively, in Ukraine. WP Merchandise holds licenses for video game IPs including World of Tanks, Mortal Kombat, Assassins Creed, and Dota 2. TECHIIA is also the parent of WePlay Esports; esports has a strong following in the country. Danone Ukraine, the local division of the European food brand, sells children’s eating and drinking yogurts tied to licensed properties such as L.O.L. Surprise!.
- Retailers. Local Ukrainian retailer ToyToy sells licensed playthings including Lamaze infant toys, Chuggington vehicles, How to Train Your Dragon action figures and plush, Wizarding World dolls, and Juicy Couture craft kits. European retailers also have a presence in Ukrainian malls and high streets, including Polish fashion retailer LLP, whose brands include Reserved, Sinsay, and Cropp and which is a frequent collaboration partner with properties such as Peanuts and Pokémon.
- Licensing agencies. As noted, Nerd Agency represents Mini Town, as well as other Film.ua properties, third-party brands, and celebrities for licensing, promotion, and advertising. Art Nation Agency, in addition to handling Goose and the three celebrities mentioned above, works with Ukrainian artists Evgeniia Gapchinskaia and Maria Pryimachenko (Prima Maria), global properties such as Pets Rock and 44 Cats, and more. In addition, the major agencies specializing in Eastern Europe, such as Plus Licens, and those based in Russia, such as Megalicense, typically include Ukraine in their sphere of business and have licensing specialists or full offices on the ground there. For example, Megalicense represents Hello Kitty and Peppa Pig in both Russia and Ukraine.
Many of these Ukrainian businesses have decided or been forced to cease operations and/or halt shipments since the invasion began, some because of the war physically raging around them, some due to disruptions to the supply chain and other issues caused by the war, and others because they are called to prioritize aiding their neighbors and their country. Klopotenko turned his restaurant into a bomb shelter, Belinskiy is making thermals to keep Ukrainian soldiers warm, and Film.ua created an animated film starring a Ukrainian boy and a Russian boy to help explain the war to young children. These are just a few examples of how companies have pivoted since the war began.
Of course it also goes without saying that licensed merchandise is the last thing most Ukrainian consumers are thinking about right now.
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