The Year in Review: 2024

December 17, 2024: The licensing community faced many challenges in 2024, including economic, supply chain, and political happenings that impacted nearly every licensor, licensee, and retailer. Those were balanced by a variety of product categories and properties that were notable for their licensing and collaboration activity and/or their sales success. This year’s wrap-up features 30 trends to ponder as the business moves into 2025.

1. Economic uncertainty. On paper, the majority of economic indicators were strong or improving throughout the year. But most consumers weren’t feeling it, largely due to still-high food, housing, and healthcare costs. The conflicting signals made it difficult to forecast what would happen with sales throughout the year, including during the holiday season. With the change in the U.S. presidential administration at the start of next year, uncertainty will likely be a prevalent characteristic of 2025 as well.

2. Supply chain headaches. Just when the issues caused by the pandemic and subsequent inflationary period were starting to clear up, more challenges arose in 2024. A variety of factors played a role, including turmoil in the Middle East and elsewhere, more frequent and extreme climate issues, strikes and work stoppages at ports and railroads around the world, economic and trade-relations developments in China, and more. Most of these issues look like they will continue into 2025, potentially exacerbated by significant U.S. tariffs against key trading partners.

3. Reduction in licensing deals. The total number of licensing and collaboration agreements announced in 2024, across property types, product categories, and geographic regions, seemed to be lower than any time in recent memory. With some exceptions—eyewear, fragrance/beauty, others—the focus was instead on renewals, expansion of existing deals, repeat collaborations, and the like. This despite the continued skew toward short-term initiatives such as collaborations, limited editions, pop-up experiences, and promotions with merchandise as one element—all of which should drive more deals, not less.

4. Quest for value. Consumers concerned about the economy have made value a priority, with several behaviors on the rise as a result. They are switching to lower-priced retail channels, taking advantage of the price perks of membership in subscription programs, utilizing coupon-driven marketplace apps like Rakuten, and waiting for the lowest sales price before they buy. Some retailers have made permanent price cuts on select items to appeal to these shoppers.

5. Struggles at both luxury and low-end retail. In the past several years, the lowest-price retail channels and those at the highest end of the price spectrum have been outperforming other retail channels. But this year has brought challenges to dollar stores and to luxury retailers both. Off-price chains, which offer quality designer goods at closeout prices, appeal to consumers in the current environment and have largely bucked this trend.

6. Downsizing of filmed entertainment and gaming studios. Rounds of layoffs, sometimes in multiple waves, were news throughout 2024 across several industries, especially in the entertainment industry. Sectors impacted included Hollywood studios (e.g., Disney, Warner Bros. Discovery, Paramount Global, Lionsgate, Amazon Studios), agencies and management companies (CAA, UTA), and gaming studios (Ubisoft, Riot Games, Microsoft Gaming, Bungie, TakeTwo Interactive, Electronic Arts), as well as networks and other content providers.

7. Down on D.E.I. The backlash from the right toward D.E.I. programs and content has led to a retrenchment of the diversity and inclusion efforts that had been growing since the George Floyd killing in 2020. Walmart is one of the latest major players to announce that it was ending its corporate D.E.I. efforts. This trend does not mean that most companies have stopped working with diverse partners, hiring and hearing diverse executives and staff, or developing products that appeal to all consumers. But it does affect how products are marketed and how companies prepare themselves for blowback. This is just one aspect of the complications of doing business in an era of political polarization.

8. Expansion of Asian retailers. Asian-headquartered retail and restaurant chains have been opening in the west at a fast clip, from low-priced gift and homewares stores such as Miniso, to fast fashion purveyors and discount marketplaces such as Schein and Temu, to Asian food purveyors including sushi, ramen, matcha, bakery, and mochi shops. All have become partners for Asian and western product and promotional collaborations. This trend represents the latest example of the expansion of Asian culture across the west that has been so prevalent over the past decade or more.

9. Backlash toward fast fashion. Many consumers are looking for sustainable options when they make purchases and are concerned about fast fashion’s business model and its environmental impact, as well as how the players treat the people who make their clothes. Some countries and regions (such as the EU) are even implementing mandates requiring the retailers to rein in waste. That said, collaboration deals in this channel continued at a steady pace throughout the year, with initiatives including Anya Hindmarch with Uniqlo, Victoria Beckham with Mango, Kate Moss with Zara, Saweetie with Forever 21, and Blippi with Shein.

10. “Forever products.” In a countertrend to consumers’ quest for low, low prices, many are also looking for artisanal, unique, and well-made merchandise that may cost more but will last for a lifetime. This is a way to reduce their carbon footprint and limit their purchases to things that are meaningful for them or their gift recipients. As a result, shoppers are turning to mom-and-pop specialty shops as well as the likes of Etsy, craft fairs, antique stores, and flea markets. One impact of this trend on licensing is the rise in celebrities or brands curating collections in collaboration with maker platforms such as Etsy, as musician Kacey Musgraves, tennis player Naomi Osaka, and others have done.

11. Packing a protein punch. The energy, protein, and nutrition category, cutting across protein powders, energy drinks, and nutrition bars, has seen significant growth in 2024, building on a trend that has been notable over the last few years. Top IPs in the space include sugary flavor brands (e.g., Hershey), superhero characters and other entertainment properties (anime characters), and sports entities (European football clubs).

12. Wicked. The ubiquitous licensing, collaboration, and promotional deals surrounding the release of the first of two Wicked films, coming after a not-quite-as massive program for The Barbie Movie in 2023, is reminiscent of the old days of film licensing when it was traditional to sign dozens or hundreds of licensees for a feature film. The difference is the current reliance on short-term and promotional types of deals as opposed to the programs of yore that were expected to generate hundreds of millions of dollars or more in sales and have legs well after the film release. It will be interesting to see the scope of the licensing effort to support next year’s Wicked part two.

13. Tattoo aftercare. Skincare collaborations have been a top trend for a few years now. The latest wrinkle consists of a growing number of partnerships focused on tattoo aftercare, consisting of products to protect and soothe the skin right after getting a new tattoo and solutions to ensure that existing tattoos stay healthy and vibrant over time. Properties in the space to date are mostly celebrities with experience caring for their own tattoos, or brands such as the UFC, whose fighters have distinctive tats their fans can identify and often discuss. Skincare in general remains an active category for new deals.

14. Home textiles. Home goods have experienced two years of declining sales after a robust pandemic period driven by home improvement and decorating projects. That said, licensing has been a bright spot, especially in home textiles, as marketers look to established IPs to help boost consumer interest. The activity has been propelled by fashion labels including DKNY, Nicole Miller, Perry Ellis, and Laura Ashley, as well as other properties such as Bed Bath Beyond, Polar Express, Jill Zarin, Waverly, Jeremiah Brent, Aerosoles, and Hallmark, among others. Some properties entered the category for the first time, while some textiles makers entered the licensing space for the first time as well.

15. Cocktail kits and RTD cocktails. The latest niche of the alcoholic beverage industry to be a hotbed of collaboration and licensing is at-home cocktails, riding the wave of the popularity of craft cocktails in restaurants and bars. Emily in Paris, Louisiana State University, and Avril Lavigne are among the properties that have been licensed for RTD cocktails, while Wicked and actor Regé-Jean Page have been associated with cocktail and mocktail kits, which offer layers of DIY and customization that help increase fans’ engagement with the partner IPs. Food and beverage brands that lend themselves to cocktails, including both alcohol and companion ingredients, are frequent players in both spaces.

16. Sports x character collabs. Licensed products combining sports properties and characters are nothing new, with the practice rising and falling cyclically over the decades. The past year brought one of the largest number of initiatives in memory, with greater-than-ever diversity in sports, types of characters, and geographic areas involved. From the Looney Tunes partnering with the International Olympic Committee, to Barbie with the new Professional Women’s Hockey League, to One Piece with the Borussia Dortmund football club in Germany, these pairings potentially bring new fans to both properties and offer something fresh to add to their respective merchandise offerings, as well as reinforcing key marketing messages.

17.  Podcasts as properties. Podcasts involving licensed IPs remain a vibrant category for licensed entertainment directed at adults (e.g., The Wiggles’ new parenting podcast), children (the Blippi & Meekah podcast with iHeart), and all-ages audiences (You Don’t Know Peanuts). In 2024, they started to emerge as outbound licensing opportunities as well. For example, the true-crime podcast Morbid paired with Spencer’s, while Wondery Kids’ Wow in the World signed Thames & Kosmos, Goliath, and Tonies as its first licensees.

18. Taylor Swift. For a celebrity who is not heavily involved in licensing, per se, the singer had a major impact on licensing, consumer products, and the economy in general. Not only did she sell $2 billion worth of tickets for her Eras Tour and 800,000 books about the tour in the title’s first week at Target, she made an economic impact at every stop on the nearly two-year-long tour as consumers bought clothes to represent her different eras and loads of beads for friendship bracelets, not to mention tour merchandise. And her influence extended to the NFL, where her relationship with Kansas City Chiefs tight end Travis Kelce brought new fans to the game and boosted sales of Kelce jerseys and other NFL-licensed products.

19. Tiktok. Over the past few years Tiktok has evolved into the most important social media channel for many licensors and licensees, especially those trying to reach teens and young adults. Although most brands are present in a variety of social channels—Instagram, YouTube, Twitch, and others—Tiktok has become essential in launching new trends and in driving sales of licensed merchandise. But influencers and the entire licensing community are awaiting January with trepidation. It looks as of this writing that Tiktok will be banned in the U.S. on January 19, after losing a final court challenge, unless Chinese parent ByteDance divests the U.S. business and sells to a U.S.-based owner (which it says it won’t do).

20. College sports in transition. The collegiate licensing space is experiencing a great deal of change. The implementation of name, image, and likeness licensing has given licensees valuable opportunities to tie in with collegiate athletes but has been accompanied by growth pains and lawsuits. The fast-paced growth of women’s sports—which continues as a key trend in pro sports as well—has improved the overall financials and expanded licensing opportunities in women’s basketball and other sports, although there’s a way to go until the women achieve equality with men’s sports. And conference realignment has created new rivalries and boosted licensing prospects for teams and athletes moving into a more high-profile conference.

21. Social justice in sports. Even as many licensees and licensors are being cautious about any activities related to diversity and inclusion, the sports industry—especially women’s sports and NBA basketball, but others as well—are moving in the opposite direction. One example is the rise of new fashion labels/sports licensees headed by former athletes. These are often built around social justice messages such as female empowerment, inclusion for all, or giving authentic voice to Black creators, athletes, and fans. Playa Society and FISLL are two of many such enterprises.

22. Automotive, auto racing, and related brands. Always an important sector of corporate licensing, auto-related IPs have been experiencing a golden age in 2024. From fashion collaborations (e.g., Goodyear with Anti Social Social Club) and experiential initiatives (Formula 1 with Round Room Live and Grand Prix Plaza) to toys (Oracle Red Bull Racing with LEGO) and e-bikes (Volkswagen with MC E-Bike), automotive-themed products were top of mind. The trend should continue into 2025 as new brands are entering the market and/or retaining licensing agents to help them expand, as Peugeot recently did by signing WildBrain CPLG to help it add lifestyle products to its licensing program.

23. Experiences over products. Experiential licensing and promotional initiatives continue to grow, evolve, and diversify, as consumers, especially young adults, lean toward spending on experiences rather than merchandise. Some of the many active areas within this space in 2024 have included pop-up cafés, live touring shows, outdoor trails, afternoon teas, art exhibitions, and multifaceted live immersive experiences.

24. All eyes on China. The relationship of global licensors and licensees with China is changing. The country has become less important as a base for manufacturing—although still critical in many categories—since its strict pandemic lockdowns led to supply chain diversification and as global consumers’ perceptions of Chinese-made goods have become more negative. Conversely, deflation and other economic woes in China have reduced its impact as a key market for global merchandise, with the struggles of luxury brands, well-established in the market, being one example. And the growth of a local licensing market, including the rise in signature products tied to local influencers and other trends, creates more competition for brands from outside. The U.S.’s planned tariffs on Chinese goods, likely to be significant if implemented, may add to the challenges in 2025.

25. A.I. in action. Generative A.I. came on the scene in a big way in November 2022 and the licensing community spent 2023 experimenting and pondering its uses. This year marked the first time the technology has been utilized in a significant way in processes and products, although most in the business are still leery about the technology’s accuracy, privacy concerns, and other factors, and are staying away for now. A.I. helped develop Mattel and Forever 21’s virtual Barbie collection (produced with Virtual Brands Group), along with human creators; Pocketwatch debuted a generative A.I. application to allow fans to create unique Ryan’s World merchandise, something other licensors are experimenting with as well; and Warner Bros. Discovery paired with Geek Club and CircuitMess to launch a Rick and Morty Butter Bot interactive A.I. desk companion.

26. Cowboycore. Beyoncé and her country album Cowboy Carter, released in March, helped bring cowboycore, which had been starting to wane, back in a big way. Consumers in urban and rural areas were seeking out cowboy hats, cowboy boots, floral print dresses, classic denim jeans, fringed jackets, and the like, which was evident in the collections of everyone from couture designers to Uggs. Pharrell WIlliams’ fall 2024 men’s collection for Louis Vuitton went full cowboycore, including bolo ties and Nudie suits. The success of Yellowstone’s lifestyle licensing program can also be seen as part of this trend.

27. Snoop Dogg. The pop-culture sovereignty of Snoop Dogg started making a significant impact on licensing and merchandising in 2023, with multiple launches (footwear with Skechers, his own Snoop Doggie Doggs petwear, cereal with Broadus Foods) adding to his longtime presence in categories such as marijuana and jewelry. But his well-regarded stint as a commentator at the Olympics in summer 2024 really cemented his mainstream appeal. Deals in the second half of this year included a Snoop Dogg Holidaze Collection at Spencer’s, a Snoop Dogg Cadillac bundle with General Motors and Fortnite, a Doggyland audio device for kids from Tonies (based on his kids’ series on YouTube), and limited-edition ice cream flavors with Dr. Bombay.

28. Board games. While this category in 2024 could not equal the explosive growth of the pandemic era of 2020 through 2022—sales increased just 1% in 2023, according to ICv2—board and other tabletop games remain a central focus of licensing, collaborations, and promotions. This is in part due to their ability to bring people together—a desirable attribute for some consumers in the current environment—as well as to get them away from the screen. Trends of note include licensed trading card games, on-the-go games, co-branding between licensed properties and game brands, corporate happenings (e.g., LEGO getting back into board games and Goliath acquiring Funko games), cooperative gaming, corporate promotions centered on board games, and more.

29. Musical artists have been releasing limited-edition merchandise tied to specific albums for years, but the trend became almost a requirement in 2024, with more categories involved (e.g. an upswing in candle deals) and a premium on design-forward merchandise. The trend includes current releases, such as Coldplay pairing with Spotify and F.C. Barcelona for special apparel tied to Moon Music or Big Sean partnering with Billionaire Boys Club to support Better Me Than You. Album anniversaries have also been a focus, as Nine Inch Nails paired with Dr. Martens for three boots inspired by the cover of the 30-year-old The Downward Spiral and Metallica collaborated with Dixxon Flannel to mark the 40th anniversary of Ride The Lightning.

30. Newstalgia, retro forward, and kidult. Retro has been cited as a trend almost every year in recent memory, to the point that it has become more of a genre of art and content—with different permutations each year—than a trend. This year, however, the idea of putting a modern new spin on previous eras, whether that be the 1960s (a time before most of today’s adults were born) or the 1980s, 1990s, and 2000s of adult consumers’ childhood, was bigger than ever. 

The Year in Review: 2023

December 19, 2023: The licensing business had an eventful year, as it dealt with new technologies, economic and consumer confidence challenges, controversies, strikes, and more. At the same time, there were many bright spots, including notable growth trajectories in several property sectors and product categories. Here are 20 of the most notable trends of the year:   

1. Generative A.I. The release of OpenAI’s ChatGPT immediately jumpstarted the use of generative artificial intelligence for tasks like writing and research, from creating marketing materials to comparing legal documents to completing scripts and novels. Similar applications enable the creation of still and moving pictures. By spring of 2023, examples had quickly come to light of TV series, manga, children’s books, and other content—all produced through the use of generative A.I. Much is still unknown about the potential ramifications of this technology, which could range from copyright issues and misinformation to bias and job losses. 

2. Pandemic hangover. Several of the product categories given new life during the pandemic lockdowns started to come back to earth in 2023, including sporting goods, toys, home goods, and luxury products. Mergers, bankruptcies, and closures accompanied the trend, which was exacerbated by low consumer confidence and consumers’ struggles at the lower end of the income scale, despite largely positive topline economic news. It should be noted that licensing was generally a bright spot even in the most affected categories. 

3. DTC. Even as wholly direct-to-consumer brands have struggled in a multichannel world, more brand owners and manufacturers are realizing that DTC is a needed component of any retail strategy. This is not just (or even primarily) a sales channel but also a way to tell a brand’s story, cross-promote different manifestations of the brand, engage consumers, and test new concepts. Licensors such as Cloudco and Paramount launched DTC websites; licensees debuted or improved their DTC presences and saw sales through this channel increase; and fashion and lifestyle brands like Nike and True Religion transitioned more of their business to DTC platforms, both physical and digital. 

4. Controversy and “cancel culture.” Brands and organizations including Disney, Target, the L.A. Dodgers, Bud Light, and Starbucks all found themselves in the spotlight of unwanted negative publicity due to their LGBTQ+ promotions—the likes of which have been uncontroversially implemented for at least a decade—especially leading up to Pride Month. Some of them reversed course in response to the backlash, which in turn raised the ire of those who were supportive the first time around. A politically divided consumer base creates similar situations around #metoo incidents, statements about the Ukraine/Russia or Israel/Gaza conflicts, commonplace DE&I efforts, and more. It is difficult for marketers, especially the most popular, to avoid such situations and it is increasingly essential to be prepared.

5. Looking further east. Anime and manga have become more and more mainstream over the years and the sector continues to go from strength to strength. Building on that trend, Asian culture in all of its forms is increasingly making its way into U.S. and western markets in a big way. In 2023, K-pop artists paired with U.S. and European sports entities for products and promotions. Japanese sushi and noodle restaurant chains with western outposts partnered with both western and eastern-origin properties for tie-ins, often involving merchandise. Virtual YouTubers (Vtubers) gained popularity outside of Japan and boosted their commercial activities in the U.S. And Hello Kitty once again became ubiquitous after a relatively low-profile period. 

6. Sports as fashion. The fashion industry has gone all in this year on sports influences, as designers have been inspired by soccer, basketball, motorsports, the ski slopes, and racket sports (think tenniscore and its spin-offs pickleballcore and padelcore). The landscape includes a growing number of collaborations between fashion labels and sports leagues, teams, and athletes. Fashion brands created around fictional sports teams (some wholly original, some from TV series and films) have also been expanding. 

7. Oh, the horror! Horror films, both standalone examples like M3GAN and series like the Scream franchise, have been doing well at the box office in recent years, while streaming platforms have seen viewership for horror movies, both new and classic, spike since the start of the pandemic. Most of the major and indie studios have launched licensing efforts around their portfolios of horror films, with examples such as MGM’s Killer Klowns From Outer Space breaking out and racking up licensees and sales. 

8. Mighty museums. Museums around the world—and especially in the U.S., where licensing programs in this sector have historically been relatively narrow—have been expanding their licensing and collaboration activities beyond traditional categories into beauty collaborations, fashion collaborations, cut flowers, and more. Institutions are also creating interest among potential new visitors by pairing with characters, from the Van Gogh’s partnership with Pokémon and the Rijksmuseum’s with Miffy, to the Louvre’s with Barbapapa. 

9. Tea and coffee. Collaborations involving coffee and tea were stronger than ever in 2023. Corporate brands, celebrities, TV shows, and other forms of IP entered the coffee category through deals for coffee pods, ready-to-drink canned coffees, boozy ready-to-drink coffee cocktails, and/or packaged beans and ground coffees. A number of properties, especially from the entertainment/character sector, have also forged licenses in the tea space, with luxury gift sets and experiential tea parties being prominent. A newer addition to the warm beverage category to watch is functional mushroom teas, an area of collaboration for a handful of celebrities in the past year (and part of a broader interest in mushroom-related products).

10. For the foodies. There seems to be no end to food-related licensing deals of all shapes and forms, including both food and non-food examples. Entertainment-based meal kits, children’s cooking kits, novelty foods like Dorito’s liqueur, all manner of food-to-food brand extensions, grocery store chic, food-branded sneakers, and inbound and outbound whiskey collaborations—these are just a few examples of a sector that has been growing year after year with no signs of slowing down.

11. NFTs: regrouping and retrenching. Licensors have taken a step back from one of the hot trends of 2022: NFTs. While there are still some collectible programs that are working, albeit not to the degree they were, most IP owners are experimenting more with NFTs’ ability to enhance consumer engagement and trying to figure out how to best utilize them for that purpose. A number of licensors are also simply taking a wait-and-see attitude, standing ready to follow the leaders into the space once some best practices have emerged.  

12. Collegiate upheaval. The collegiate licensing space has endured a year of big change. Name, image, and likeness (NIL) licensing has caused some turmoil, with calls for federal laws to even the playing field and talk of paying college athletes outright. More student-athletes are transferring from school to school throughout their collegiate careers as they pursue the best current financial and athletic opportunities and set themselves up for potential future pro success. Big-name universities are changing conferences, setting up new rivalries and leading to the collapse of entities like the Pac-12. Many of these and other developments are impacting the collegiate licensing sector, to various degrees. 

13. The Hollywood strikes. The leading U.S. actors’ union, the Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) went on strike, joining the Writers Guild of America (WGA), with the two main issues in both cases being compensation and artificial intelligence. The situation caused delays and uncertainty for entertainment/character licensors and their partners. But today’s licensing business relies more on classic characters than new productions, with exceptions, of course. That lessened the impact of the strikes (on licensing, at least) compared to those in years past. 

14. Sexual wellness. Collaborations and licensing deals in the sexual wellness space globally have been growing steadily over the past decade, and seemed to hit the mainstream in 2023, as retailers including Target, Spencer’s, and Sephora expanded their offerings. In addition, the likes of actress Gillian Anderson and Indian actor Ranveer Singh entered the space, joining a growing list of celebrities who have invested in or collaborated with sexual wellness companies. 

15. Gender-neutral fashion. Gender-neutral fashion lines became a top trend among fashion designers and labels in 2023, including in their collaborative ranges. No longer a niche strategy involving LGBTQ+ designers, many different labels, retailers, and IP owners launched gender-neutral lines, or gender-neutral pieces as part of women’s and/or men’s ranges. The trend is part of a broader movement toward being inclusive (in every meaning of the word) in product offerings, not just in one-off collections but routinely. 

16. Collectibility. Despite a drop-off in sales and in the secondary-market value of products that fall into traditional collectibles categories, collectibility remains top-of-mind in licensors’ strategies. IP owners are taking a broad view of the term, paying attention to the collectibility of things like limited-edition watches, purses, sneakers, plush, and many more items. This mindset is attractive to consumers and fits well with the current tendency in many categories to create multiple limited, well-curated merchandise collections in lieu of ongoing product lines. 

17. Kidulting. Licensors and licensees continue to lean in to adults’ desires to incorporate childhood-favorite activities, products, and pop culture into their daily lives. Toy companies are marketing their playthings to both adults and kids, or to adults alone. Sugary cereal brands are lending their flavors to everything from protein powders to beer to grown-up fashions. And luxury designers are creating handbags and footwear with bold designs incorporating characters from their consumer base’s youth. These are just a few manifestations of the trend. 

18. Retro on the runway. Fashion fixated on styles of the 1970s, 1980s, and 1990s. From all-over floral prints and patterns to flares and oversized collars, fashion collections in 2023 have been likely to take their cues from one of these decades. All appeal to millennial and Gen Z consumers, whether they experienced these styles in their youth or not. The red-hot (and hot-pink) retro-infused Barbiecore trend also continued through the release of the long-awaited Barbie movie. 

19. Occupational apparel. Interest in workwear as a design inspiration, and the growing importance of work clothes and footwear as a category for collaboration, intensified. Luxury and other designers are incorporating workwear styles more than ever into their collections. Chefs continue to lend their names to clothing and especially footwear that function well for the culinary crowd. And brands from Roxy to Puma to Givenchy are entering the occupational footwear category with products that are tough and trend-forward.

20.Taking stock of TikTok. It seems that each year brings its own must-use social media platform, and this year that is TikTok. One area of interest: Preschool properties such as Bluey, Sesame Street, Teletubbies, and Peppa Pig are gaining fans, and sometimes notoriety, on the platform, despite TikTok’s official but unmonitored minimum age of 13. Licensors of preschool IP are increasingly viewing TikTok a way to reach nostalgic teen and young-adult fans with fresh content; form or strengthen relationships with young parents of preschoolers; and even, in some cases, bring new teen and young adult fans to a property they did not experience in their youth (e.g., Bluey).

The Year in Review: 2022

December 20, 2022: The licensing community in 2022 witnessed much uncertainty and many continuing challenges. The year also brought a number of positive developments, from progress on diversity and sustainability, to addressing the unmet needs of significant consumer groups, to an increased willingness to consider new properties and products. Here, in no particular order, are some of the notable happenings from the past 12 months:

1. Roblox: Entry point to the metaverse. In 2022 a presence in the metaverse, especially on Roblox, became a must for many licensors, as they took their first steps into this territory and/or tested new strategies. And, despite news about falling values of NFTs and other challenges in the space, licensors and licensees continue experimenting on that front as well. The year marked a more thoughtful approach to NFTs, with the focus not so much about collecting but about unlocking bonus features, proving authenticity, and other specific use cases. Meanwhile, metaverse- and NFT-origin properties, from Bored Ape Yacht Club to Cool Cats, paired with agents and started to extend their brands in a big way.

2. Addressing the unmet needs of female consumers. Marketers started to pay attention to topics that affect huge groups of female consumers but have been ignored in the past. Naomi Watts and Serena Williams launched brands for women undergoing menopause. Pretty Little Things paired with GIRLvsCANCER for a collection of post-mastectomy lingerie. And Puma and Modibodi partnered for a collection of period wear, in just one of several such collaborations. Meanwhile, licensing deals involving senior women celebrities proliferated in 2022, with marketers aiming the products not just toward older consumers but young adults as well.

3. Playing pickleball. Pickleball really hit its stride in 2022 as a theme for licensed merchandise. From pickleball paddles featuring corporate logos and art and lifestyle imagery to collaborative lifestyle apparel collections mirroring the still-hot tenniscore trend, the growing sport made its mark in licensing. Sponsorship deals with the major governing bodies, often including official merchandise and/or signature products, also proliferated.

4. Disability: The latest frontier in DE&I. As the licensing community continues to hone strategies to improve efforts toward diversity, equity, and inclusion, one notable area of attention in 2022 has been the disability community. Home goods companies such as Pottery Barn launched their first ranges of accessible chairs, tables, and vanities; retailers and fashion brands launched new adaptive apparel collections, as Kohls and GAMUT Management did with Tommy Hilfiger and three private labels; and, in a first, the Michael Graves brand released a design-forward range of walkers, shower chairs, raised toilet seats, and other assistive healthcare products, meant to be both attractive and functional, with CVS.

5. Getting serious about education. The desire of parents to address their children’s post-lockdown learning loss was one factor that led to several pairings of children’s entertainment and other IP with products and services sold not just in teacher supply stores but directly into K-12 school systems in the U.S.—a specialized market where licensed IP remains relatively rare. Sesame Workshop partnered with Discovery Education, America’s Test Kitchen with GoNoodle, and One Animation with SplashLearn, to name a few. The focus is often on supplemental materials to support social-emotional learning.

6. Male celebrities in the beauty game. It seems like the beauty category has no limits on how many collaborations it can contain, and it almost always shows up on this annual list in some form. This year a primary focus was male celebrities. Male rockers from Ozzie Osbourne to Machine Gun Kelly got into nail polish and glam cosmetics; male celebrities such as Idris Elba, John Legend, and Alex Rodriguez launched skin and hair care brands. Skin and hair care were particularly hot categories for collaboration in general in 2022, especially on the celebrity front, although an unending string of cosmetics and nail collabs with IP of all types continued as well. 

7. In kids’ programming, rappers ruled. Rappers from the earlier days of hip hop have been getting into children’s programming and lifestyle products in the past few years, and their efforts really started coming to fruition in late 2021 and especially 2022. Chris “Ludacris” Bridges (Karma’s World), Darryl McDaniels of Run DMC (Young DMC), LL Cool J (Rock the Bells), Taboo of The Black Eyed Peas (KB & JJ), and Snoop Dogg (Doggyland) lead the way. Both the content partners and the rappers hope to diversify the content kids are seeing on their devices.

8. Barbiecore. Fuchsia and other bright pink hues have been at the forefront of fashion, often combined with a Y2K sensibility. You can thank Barbie, in large part, for this trend. Anticipation for the Barbie feature film, combined with fan-created Barbiecore memes on social media and Mattel’s own efforts in the fashion industry, have led to an abundance of hot pink scrunchies, sweaters, leggings, and more, both official and in homage to the original.

9. Cereal, cereal everywhere. Cereal marketers were particularly ubiquitous in extending their brands into lifestyle products and sweet treats of all kinds in 2022, from Cinnamon Toast Crunch popcorn to tiger-striped Frosted Flakes sneakers. Food brands in general continue to be among the most active IP types when it comes to novelty, fashion/lifestyle, and unexpected brand extensions—seemingly a perpetual trend of the year. This year they ranged from the high-profile and uber-active candy, fast food, and snack brands to newer players (Velveeta martini, anyone?).

10. Preschool power. Preschool properties tend to rise and fall cyclically, and they seemed to be on an upswing in 2022. Bluey, CoComelon, and Spidey & His Amazing Friends were among the properties that became an essential part of life for little ones and their parents. As the television landscape grows more fragmented, preschool properties seem to be one area where a mass consumer base for licensed products can still be cobbled together.

11. Race to resale. As one of many tactics on the road to becoming more sustainable, resale sites made a big splash in 2022, building on the growth achieved in previous years. Players such as ThredUp and Vestiaire Collective paired with designers for new upcycled or curated collections; labels such as Balenciaga got into the resale market for the first time; brands expanded their existing resale services, as sportswear label On did by adding apparel to its pre-owned footwear offerings; and new third-party players like luxury resale specialist Re-See were established. At the same time, with more exposure comes more scrutiny, and researchers are more often studying whether these services and the brands behind them are truly sustainable. 

12. Experiences: Back in a big way. After starting up again last year, the location-based entertainment landscape was back almost to normal in 2022, with most locations active and lots of new deals and grand openings being announced. Many observers had expected post-lockdown live events to integrate some digital elements as a way of reaching a wider audience of fans not willing or able to attend in person, but that has largely not happened. Rather than creating hybrid events, licensors are looking at when and where in-person events are appropriate and when they should be complemented or replaced by digital events, given the two configurations’ respective pros and cons.

13. Supply chain headaches as a way of life. Supply chain snags were top of mind in the early months of 2022, as images of ships clogging the port of Los Angeles and Long Beach made an impression. While the situation is much improved since then, there are still periodic snags, from transportation disruptions to labor shortages to continued periodic COVID outbreaks. Inventory challenges remain ongoing for some retailers and brands, and supply chain-driven cost increases are still in place and are one of many drivers behind rising consumer prices. Licensors and licensees are, on balance, much better positioned to deal with these challenges than they were even a year ago, however.

The Year in Review: 2021

December 21, 2021: Many of the notable happenings in the licensing business in 2021 could be described as new milestones or turning points related to trends that have been ongoing for some time. This is a phenomenon that is typical of most year-end reviews. The past year, however, also gave rise to a few entirely new trends that were quickly embraced by the licensing community. Here is a look at 20 of the top trends of the year across property types, product categories, and territories:

1. Supply chain headaches. Many licensing executives have said they consider 2021 as worse in many ways than even the peak pandemic year of 2020, largely due to a variety of interrelated supply chain issues. These include continued on-and-off disruptions due to COVID in different parts of the world, labor shortages, shipping and transportation logjams, shortages of raw materials, and rising costs. Taken together, these and other challenges have led to consumer impacts including higher retail prices, products that are hard to find in some categories, and significant delays in receiving home deliveries. Experts almost universally predict supply chain issues will continue well into 2022, regardless of what happens with the virus (which is on the upswing again as of this writing). At the same time, predicting demand is problematic due to pandemic uncertainty and the fast pace of trends. Marketers are in a better place to deal with these issues than they were at the start of the crisis; they have more capacity to print on demand, more flexibility on where they manufacture, more control over aspects of the supply chain, and better processes for making data-driven decisions, for example. But the challenges remain formidable and threaten retailers’ and brands’ relationships with their customers, not to mention their profitability.

2. NFTs and the metaverse. At the beginning of 2020, most licensing executives had never heard of non-fungible tokens. By the end of the year, a significant percentage of them had done deals in this space. Big players such as Sotheby’s, Facebook (now Meta), the NBA, and Nike launched, purchased, or partnered with platforms to enable the buying and selling of NFTs, while artists, athletes, children’s properties, fashion designers, and almost every other type of property offered their first branded tokens, whether as collectibles, promotional premiums, or keys to unlock fan experiences. Similarly, awareness of the “metaverse” (in which NFTs play a role) seemingly went from 0% to 100% over the course of the year. Licensors held concerts, premiered TV series, advertised on digital billboards, and sold digital collectibles and accessories in virtual worlds such as Roblox, Fortnite, The Sandbox, and many more. The evolution in the metaverse, and how the licensing community interacts with it, are areas to watch in 2022 and beyond.

3. Student-athletes take control. Collegiate students gained the right to make money from their names, images, and likeness (NIL) in July 2021 and as of the end of the year many of the top names have entered into endorsement deals with the likes of Gatorade and Nike, as well as creating signature products with apparel companies large and small. Students are also learning how to earn from their social media activity, local promotional appearances, and the like. Meanwhile, universities, licensees, tech companies, and agencies have set up platforms to help students navigate their newfound roles as IP owners and to help matchmake deals for products and brand ambassadorships. It is still early days and experts predict that unexpected consequences, both good and bad, may still arise from this change. There are also likely new laws governing NIL, both at the state and possibly the federal level, ahead. But the space certainly offers brand-new opportunities for student-athletes, agencies, licensees, and retailers.

4. Sustainability as a mandate. Sustainability in some form or other has been on our year-end lists for years, but 2021 was notable as a time when companies transitioned from implementing individual PR-generating initiatives to making sustainability a part of every decision. Licensors, licensees, and retailers are increasingly taking a multifaceted approach that makes it possible to incorporate recycled or other eco-friendly materials; collect used products for recycling, upcycling, resale, or donation; reduce the materials used in the production of products and packaging; etc. All become options depending on the needs of each initiative and are factored into every step along the way. There is also a pervasive realization that sustainability is a process, with a goal of continuous improvement along defined metrics.

5. Making headway on DE&I. The conversations around diversity, equity, and inclusion, which were reinvigorated by the George Floyd murder in May 2020, continue, and they have resulted in a variety of initiatives in 2021. As with sustainability, there has been a realization that DE&I must be integrated into all decision making and that the objective is to make progress rather than to create one-and-done programs. The emphasis in 2021 when it comes to licensed products and collaborations has been mostly on Black consumers, IP owners, and licensees, although there is a recognition that diversity encompasses not just race and ethnicity, but also gender and sexual preference, body type, disability, age, military service, and more. In terms of licensed products, visible changes in 2021 have included more programs associated with diverse celebrities whose life experiences resonate with the consumers they want to reach; more products that address the needs of consumers of all skin colors, hair textures, eye shapes, etc. (viewed as an accepted standard, rather than as part of a special initiative); more pitch competitions and innovation and accelerator platforms to attract and nurture diverse creators on both the product and property side; more licensees that are owned by people of color; and more internal hiring and professional development programs and processes to further the careers of diverse employees and put them in positions of power.

6. The return of experiences. Announcements of live, location-based experiences came back big in 2021 after an almost complete hiatus in the last 10 months of 2020. Many observers expected experiential initiatives to be hybrid in nature for a while, with some digital elements incorporated for those not comfortable in crowds, and that has happened in some cases. But for the most part marketers are all-in on creating purely live experiences, keeping in mind the need for safety and continued flexibility. Examples of the many new experiences involving licensed properties announced in 2021 include a Paddington Café in London, a Moomin children’s museum, The Grinch cave experience through Vacasa, a CoComelon world tour, a Barbie exhibition, and a Hasbro family entertainment center at American Dream. Some of these ventures opened in 2021, while others are on the horizon for 2022 and 2023.

7. The impact of Brexit. Primarily a concern to marketers in the U.K. and Europe, Brexit caused confusion at first as companies on both sides of the English Channel struggled to comply. Other ramifications have included rising costs on certain items, as well as delays in receiving goods, especially in the beginning when ports were clogged due to the volume of products that had been coming into the U.K. before the deadline. Some companies have had to find new places to source things like packaging and products (for cost reasons) or have expanded their operations (sometimes through acquisition) to maintain offices, warehouses, and/or factories on each side of the Channel. On a macro level, economists have said Brexit contributed to inflation and reduced average income for British citizens, which could impact sales of licensed products. All of this has come on top of the global supply chain problems faced by the licensing business worldwide.

8. Challenges in China. China’s positioning within the licensing business—both as a place to produce merchandise for export to global markets and as a big potential consumer market for global brands—took a hit on a number of fronts. Supply chain concerns have caused manufacturers in some categories to move or diversify their factory base away from that country, at least in part. The crackdown by the Chinese government on formerly independent Hong Kong has companies questioning their ability to operate in the latter, a traditional business-friendly portal to the rest of Asia. Human rights violations against the Uyghurs in Xinjiang led the U.S. Congress to bar sourcing from factories there, a move the apparel industry applauded. And the country has been putting a damper on its domestic celebrity collaboration and endorsement sphere by removing big-name celebrities like tennis player Peng Shuai and actress Zhao Wei from the public eye, banning the popular influencer sector of androgynous male stars known as “Little Fresh Meat,” and implementing strict rules on fan clubs that hamper word of mouth.

9. The power of listening. Young kids’ properties made a big move into audio in 2021, as parents continue to be concerned about the amount of time their children are spending on their screens. The year saw the debut of a number of podcasts, tied to both preschool properties such as Sesame Street and Peppa Pig and to older-skewing IP such as Stranger Things. Licensors of properties for kids have also licensed content (audiobooks, music, etc.) for use on screenless audio devices marketed by the likes of Toniebox, Yoto, and Storypod. Musical albums for young kids—a category that tends to rise and fall cyclically but hasn’t peaked in a while—also proliferated, with Teletubbies, Bluey, and Clangers among the preschool TV properties to spur releases on streaming platforms and vinyl.

10. Trading card transformation. One category that has seen significant change is trading cards. The sector had been rejuvenated by pandemic lockdowns, which gave a boost to collecting and many other hobbies. In 2021, the introduction of collegiate NIL licensing and NFTs opened up possibilities for a number of new deals and products. The most significant development was the entrance of Fanatics into the category, causing disruption by taking over the licenses for the U.S. professional leagues and players associations from their long-time partners including Upper Deck, Panini, and Topps. (The latter lost its Major League Baseball license after a 70-year-long partnership.) As a result, those companies have been diversifying with new licenses such as L.O.L. Surprise!, Funko Pop!, PGA Tour, the Nippon Professional Baseball Organization, and Overtime Elite, a new basketball league.

11. All eyes on Squid Game. Most years bring at least one hot-market opportunity that stands out from the crowd. In 2021 that would be the Korean TV show Squid Game, which airs on Netflix. It dominated the zeitgeist in the U.S. (and in many countries globally) for a short time after its September 2021 premiere. A limited number of official licensees were on board, including Zavvi, Akedo, and CASETiFY, with t-shirts and the like available on the Netflix and Netflix/Walmart e-commerce hubs as well. Some of the stars of the series signed deals for collaborations and/or brand ambassadorships. Thanks to immediate strong demand after the premiere of the show, coinciding with a relative dearth of products on the market, a large amount of unauthorized and coattails/lookalike merchandise appeared. This was a boon for consumers looking for Halloween costumes, but a lost opportunity for official sales. The Squid Game brand offered lessons on how difficult it can be to capitalize on the growing number of hot-market properties that arise from streaming platforms, given their vibrant but short lives.

12. Beauty and more beauty. The beauty segment has remained among the most active in 2021 when it comes to collaborations and, to a degree, longer-term licensing agreements. Celebrities have been at the forefront, but no property types have been excluded from the phenomenon. Brands from Mentos and the Met to Mr. Coffee and Machine Gun Kelly entered into nail polish collaborations to feed young consumers’ desire to create and share their nail art, while celebrity nail artists, along with a growing range of beauty brands in general, extended their brands into related products. Celebrities such as Jennifer Lopez, among others, entered the skincare sector, as did Alex Rodriguez, one of a growing number of male celebrities to get into the beauty space. Meanwhile, Target, JCPenney, Kohl’s, and Walmart all refreshed and expanded their beauty departments, some through collaborations with other retailers. New categories such as collagen attracted interest from collaborators, especially celebrities. And properties as diverse as Bridgerton, Tapatío, Xbox, Doja Cat, Gilmore Girls, Pebbles Cereal, and Bratz, among a seemingly endless list, launched color cosmetics.

13. Strategic DTC. In 2020, companies rushed to strengthen their e-commerce and online presence due to the lockdown. In 2021, they continued to expand into new social commerce initiatives, shoppable content opportunities, personalization platforms, and more. One thing that became obvious was that IP owners needed a direct-to-consumer hub to pull together a consistent brand message, create synergies between content and products, collect data and feedback, have a constructive conversation with consumers, and offer loyal fans exclusive merchandise, promotions, and content. Many property owners have launched or improved their DTC sites this year, using them as a core element of their online and offline strategies rather than as something of an afterthought. The more fragmented the consumer, content, retail, and brand landscape becomes, the more important a strong DTC presence will be, experts believe.

14. Retail relationships. Partnerships between complementary retailers have been on the upswing, especially in the latter half of the year, often resulting in shop-in-shops that strengthen one partner’s profile in a given category while widening the other’s visibility and distribution base. The retailers involved were varied: Kroger teamed with Bed Bath & Beyond, Macy’s with Fanatics, Nordstrom with the MoMA Design Shop, REI with Athleta, Paper Source with Barnes & Noble (in an alliance between two new sibling brands), and, at the end of the year, Forever 21 with JCPenney.

15. Anime still ascendant. Anime has been growing in popularity for customers in Western territories for some time, driven by its newfound accessibility on streaming services, and 2021 may have been the strongest year yet. The major platforms, including Netflix, Crunchyroll, and Funimation, have been increasing their licensing activity for the anime properties they own or represent in the U.S., Europe, and elsewhere. Collectibles remain at the core of many programs, but anime IPs have been expanding into a variety of new areas, including collaborations with luxury brands (e.g., Undercover, Gucci, Loewe, and Longchamp); sneaker and cosmetics capsules; and promotional partnerships for custom QSR meals, especially with Japanese restaurants and services (Kura Sushi, Shoryu Ramen) in the West.

16. Corporate novelties proliferate. Fast food chains and snack brands, along with other corporate licensors, likely debuted a record number of novelty products—on top of a steadily growing total that has accumulated over the past few years—to generate publicity, goodwill with loyal fans, and sometimes sales. The breadth and depth continues to grow: 7-Eleven introduced a multi-pocket snacking outfit with Kerwin Frost; Pine-Sol created a limited-edition sneaker drop; Cheez-It inspired 100^th anniversary fanny packs, blankets, aprons, and hoodies; McDonald’s has a pajama collection with Peter Alexander; White Castle offered a line of costumes with Spirit Halloween, and more. The corporate licensing pendulum had swung away from novelty products and toward brand-extension for a long period of time, but now it seems to have swung almost all the way back to the novelty side (although brand extension remains the norm in many industries). How long will the trend last?

17. Musicians at the forefront. Musicians are one of the property types with the most energy when it comes to collaborations with apparel, footwear, beauty, and other core categories, often with an eye on sustainability. In addition, they are at the forefront of some of the newer, more experimental categories, including: NFTs (Kimbra with Kollection), immersive retail (Queen), metaverse partnerships (Ariana Grande with Fortnite), signature dishes and merchandise bundles with QSR chains (Justin Bieber with Tim Hortons), cosmetics (My Chemical Romance with HipDot), fashion collaborations with anime/manga properties (Steve Aoki), and cannabis (Travis Barker). Several musicians signed new licensing agents in 2021 as well, including Cyndi Lauper retaining Epic Rights, the Notorious B.I.G. estate working with WME, and Ja Rule hiring TreImage. For several years, musicians have been among the leaders within the celebrity realm when it comes to embarking on new licensing and collaboration ventures, but it seems like their dominance was even greater than usual in 2021.

18. Kindness and self-care. The first year of COVID brought an emphasis on mental health. That continued into 2020, with a particular focus on kindness and self-care, among other social-emotional content. Peanuts launched Take Care with Peanuts, encompassing lesson plans, family activities, videos, and charitable initiatives; Care Bears inspired Share Your Care Day, a partnership with the Born This Way Foundation that encourages fans to show friendship, acceptance, kindness, and love. For kids, social-emotional learning is a component of many properties, especially at the younger end of the age spectrum. This is true not just for properties such as Ninja Life Hacks, where social-emotional topics are core to the brand, but also for many other properties and products, from the new book-based Everything Emberley brand to Peppa Pig’s new global early-learning program.

19. Embracing gender identity. The societal call for diversity, along with attitudes among millennial and especially Gen Z shoppers, requires companies to embrace consumers no matter their gender identity or sexual preference. Like many of the other trends discussed here, this development has been ongoing in various forms for several years, but 2021 marked a turning point in the number and variety of gender- and sexuality-inclusive programs. In fact, initiatives have become common enough to not attract attention just by virtue of their existence (with some exceptions). The trend manifests in various forms, including Pride collections tied to kids’ properties (albeit aimed at adults for the most part); the ubiquity of unisex or gender-neutral apparel and cosmetics products connected to properties of all types; and partnerships involving transgender celebrities. The latter include Indya Moore’s capsule of apparel and accessories with Tommy Hilfiger and Chinese transgender star Jin Xing becoming the new face of the Dior J’Adore fragrance campaign.

20. Fancy flavors. The pairing of licensed brands and properties, both food-related and non-food related, with food marketers for the creation of limited-edition, oddball flavor combinations spiked in 2021. Examples include Arby’s French fry-flavored vodka with Tattersall Distilling, James Bond martini-flavored tipsy popcorn from Joe & Seph’s, and Kraft mac and cheese ice cream from Van Leeuwen, among others. The wine category has really embraced this trend of late, with 2021 examples including an Oreo Thins red blend from Barefoot Wines and a Grey Poupon white from The Wine Foundry.

The Year in Review: 2020

January 18, 2021: As we all know, the year 2020 brought fundamental changes to the licensing business, primarily driven by the pandemic, but also by social justice issues, political upheaval, and ongoing trends in retail, technology, and consumer behavior. In most cases, the happenings of the year furthered trends that were already ongoing, but at an exponentially faster pace.

In RaugustReports and elsewhere, we continue to regularly cover the nuances of how the pandemic and other societal and consumer products trends are affecting the licensing business. We want to take a moment here to recap 20 of the most notable product, property, and retail trends of 2020:

1. Safety first. Face coverings—unheard of as a licensing opportunity in most markets until 2020—were the category of the year, with masks at the forefront but related products such as face shields also present. Existing products that could be used to cover eyes and nose, such as gaiters and balaclavas, also saw a spike in sales, while designers incorporated masks and shields into hoodies and other clothing. Licensed IP also found its way into a number of other safety-related categories, such as disinfecting wipes, hand sanitizer, disinfecting storage boxes, self-distancing kits, and more. And, on the retail side, new means of getting products into consumers’ hands, notably curbside pickup and delivery, took off as a means to keep customers and employees safe.

2. Taking care of each other. Marketers turned their product development, sales strategies, and marketing messages toward raising funds, offering emotional support, and filling needs for consumers. Marketing initiatives (and products) offered thanks and financial support to frontline workers. Retailers built promotions around sidewalk chalk and craft supplies to assist consumers in creating and sharing their messages of thanks and support. IP owners such as Sesame Workshop, licensees, and many others offered resources to help children learn to wear masks and wash their hands, not to mention deal with their fears and other emotions. Brands helped mark important milestones and traditions in consumers’ lives that were impacted by the lockdown, such as creating virtual graduations and summer camps.

3. Focus on diversity, equity, and inclusion. In the midst of the pandemic came the killing of George Floyd at the hands of the police and the protests that followed, intensifying the discussion on racial and ethnic equality and inclusion. Marketers took several steps to be part of the conversation: changing offensive logos and product names, expanding the range of colors available in their product lines (from crayons to cosmetics to ballet shoes), severing ties with celebrities making racist comments (past and present), and looking at diversity and inclusion within their own organizations. Retailers also sought out more black-owned businesses as suppliers.

4. Experiential crisis. When the global lockdowns began—in mid-March in the U.S.—the increasingly important experiential licensing and promotions market disappeared. Live sports, theatrical plays, movie-going, restaurants, museums, theme parks, comic-cons, and more all stopped, with a big impact on the licensing business. While some have started back up again in fits and starts—and deals for future experiences are again being forged—their previous crowd-filled status will likely take some time to recover. Marketers experimented with different techniques to take up the slack, including gift boxes, virtual experiences, and small socially distanced gatherings for a select few. Unique licensed products and memorabilia have also filled some of the void as a way to engage fans. When big events come back, it seems likely many of these elements will also remain as part of a hybrid strategy.

5. Turning point for e-commerce. For some time, e-commerce’s share of retail sales of licensed products has been growing fast, but nothing like the pace of 2020. Marketers increased their presence and sophistication in targeting consumers via DTC websites, third-party e-commerce channels, marketplaces, social shopping platforms, subscription boxes, and more, while implementing an omnichannel strategy to accommodate bricks-and-mortar and nontraditional outlets alongside online sales. Meanwhile, physical retail was suffering through bankruptcies, permanent store shutterings, and temporary lockdowns.

6. Full stream ahead. Digital entertainment platforms of all types got a big boost from stay-at-home consumers, who killed time by streaming TV shows (new and old), competing in video games online with friends, playing casual games on their phones, and watching e-sports and other competitions in lieu of live pro sports. All of this created opportunities (sometimes short-lived) for manufacturers to tie in with related IP (The Office, the stars of Tiger King, Animal Crossing, Among Us) and for owners of those properties to extend their brands. Meanwhile, the move to streaming caused big challenges for licensors that work with film properties; streaming has not yet proven viable for movie licensing or for revenue-generation in general in this segment.

7. Hunger for leisure time activities. In addition to streaming and other online entertainment pursuits, consumers sought out activities to fill the extra time on their hands. This lifted a number of categories, including puzzles and games for all ages, outdoor and other toys, children’s coloring and activity books (and children’s books in general), crafts and hobbies for all ages, musical instruments, and gadgets and ingredients for cooking and baking, among others.

8. Help for home schoolers. Educational products were in demand as consumers first sought materials such as workbooks and leveled readers that would keep their students up to speed when schools were closed, to books and educational toys to support the transition to remote learning (which is still ongoing in many areas). Meanwhile, on the adult side, online courses—including licensed examples—took off as consumers decided to learn something new during their down time, whether for personal fulfillment or for career training in a period of furloughs and layoffs.

9. Nesting out of necessity. The stay-at-home orders and the prohibition of all but very small, socially distanced gatherings led consumers to want to improve their surroundings at home. They completed small DIY projects indoors, improved their gardens and patios, and acquired home décor that made them happy and freshened the look of their home without too much investment. They also made purchases to facilitate the transition to at-home learning and work, including office furniture and supplies, electronics, and décor.

10. Wellness to the fore. The virus reminded consumers of the need to improve their overall health as a way to boost immunity and ward off the disease, and they had time to focus on fitness and healthy cooking. They bought exercise equipment and participated in online yoga courses, acquired sporting goods and outdoor gear, and looked for immunity-boosting foods like kombucha, supplements, and fresh produce. They also sought out ways to reduce anxiety and sleep better, from meditation apps to yoga equipment to CBD.

11. Lending comfort. While it is true that consumers were focused on wellness in 2020, they also balanced that by embracing treats that made them feel better during tough times, driving sales of sugary cereals, decadent desserts, and salty snacks. Marketers and consumers also doubled down on nostalgia. Streaming of older TV shows helped drive this trend to a degree, but a lot of the focus on retro properties was simply due to consumers’ search for familiar friends (whether characters, brands, or other types of properties) that gave comfort by reminding them of better times.

12. Athleisure and only athleisure. Apparel, accessories, and footwear represented a hard-hit segment. Working at home and having social lives curtailed were not conducive to buying new clothing, which further hurt brands and retailers that had already been struggling. Exceptions included athleisure items (hoodies, yoga pants) and sleep/lounge wear. Both gained strength as consumers sought comfort and something to put on while exercising at home. Some retailers reported relative strength for other niches, such as nice tops to make the upper half of consumers’ bodies look presentable while on Zoom calls for work and pleasure.

13. Beauty not forgotten. The NPD Group estimated the beauty industry declined 25% in the U.S. in the first half of the year—the smallest drop of any country—as staying home and wearing masks reduced the need for cosmetics and fragrances. (Mexico experienced the worst performance globally, with a decrease of 42%). That said, there were some bright spots during the year, notably skincare, an already growing segment that became more important in the age of “maskne.” And the role of licensed IP remained strong in the beauty space, despite the challenges, with properties from characters to celebrities closing deal after deal, especially for limited collaborations.

14. Back to boxes. Most of the key developments of 2020 reflected the trends that were already ongoing before the crisis, albeit at a sped-up pace. But one business model, namely subscription boxes and meal kits, saw a turnaround. Although some individual companies had been doing well pre-pandemic, this form of distribution in general faces challenges in finding the right pricing strategies and retaining customers long-term. The lockdown put new life into the segment, as boxes-by-mail represented a safe way for non-cooking-experienced consumers to create tasty meals, provided crafty new ways to pass the time each month, gave marketers a way to engage fans, and filled holes in consumers’ lives (e.g., prom-in-a-box). Will the resurgence continue after the pandemic wanes?

15. Partnership as prerequisite. “Partnership” is a core tenet of licensing and collaboration, but it sometimes is more lip service than reality. During the pandemic, true partnership became critical for licensees, licensors, retailers, and other collaborators as a matter of survival. That meant renegotiating contracts to find more balance, collaborating to identify and quickly implement new opportunities, maintain continuous contact to monitor day-to-day changes and tweak tactics on the fly, and so on.

16. Sustainability turns real. When the pandemic hit, many observers thought it would put a hold on the sustainability initiatives that had been proliferating in recent years. But the opposite was true. Factors driving this movement ranged from a growing awareness that climate change may help fuel the spread of viruses such as COVID-19 to an increasing desire by consumers to purchase from companies whose beliefs and actions are in alignment with theirs. In 2020, companies overall moved away from one-off initiatives that are as much about publicity as results and toward a more strategic process of real, continuous, step-by-step change built into all aspects of their business.

17. Seasonless strategies. Several brands, especially in the fashion industry, abandoned the tradition of three to four distinct seasons per year, opting instead for periodic merchandise drops. They transitioned from wide assortments and waste to narrow, well-curated ranges and from in-and-out, trend-driven pieces to long-lasting classics. The trend, which had been discussed for years but took a small, concrete step forward in 2020, is propelled by consumer demands as well as financial considerations on the part of the marketers.

18. Brand rebirths. Mergers and bankruptcies led to the closure of consumer product brands and retail nameplates in 2020, particularly in the first half of the year, as many already-struggling companies were not able to survive the disruption of COVID-19. But many, from Pier One to Modell’s, were scooped up by IP investors and brand managers, and several were reborn almost immediately as online-only operations. This strategy will not work for all brands, but those with strong consumer engagement and loyalty, a well-defined positioning, and an identifiable niche may be able to thrive in e-commerce where they could not in the physical world.

19. A just-in-time, data-driven outlook. More and more, marketers are keeping tabs on their businesses on a daily basis, supported by a continuous stream of diverse data points from social media, e-commerce, and other sources. They are diversifying their supply chains, and sometimes taking control of them, to reduce lead times and prevent disruptions. Licensees, licensors, and retailers are working together closely to quickly capitalize on new opportunities—products, channels, content and design themes, marketing messages—and to immediately abandon anything that is not working.

20. Licensing as ecosystem. Along with “pivot” and “acceleration,” the term “ecosystem” has become ubiquitous in the pandemic era. Marketers are increasingly taking steps to ensure that their entire business is one interrelated entity rather than a loose affiliation of siloed components. Direct-to-consumer websites complement third-party distribution, buy-now initiatives, and marketplaces; streaming entertainment, traditional media, and experiences each have their own strengths and objectives as part of a greater whole; licensing, collaboration, and promotion work hand-in-hand for the good of the property. Like many of the trends here, this has long been a goal and a process, but it has certainly stepped closer to reality in 2020.

Many of these developments are positive and/or necessary. But it should be remembered that, overall, 2020 was a challenging year. A number of the trials facing the licensing business are expected to continue for a while: high unemployment, economic uncertainty, political and social upheaval, the unpredictable nature of the virus even with vaccines on the way, struggles for many individual retailers, manufacturers, and property owners, and more. The bulk of the trends outlined here are also likely to outlast the pandemic in some form and become part of the “next normal,” whatever that may look like in these uncertain times. It will be interesting to see what 2021 brings.

The Year in Review: 2019

December 17, 2019: Many of the notable licensing trends of the past year have been percolating for some time, but seemed to reach a turning point in the past 12 months. As was the case in 2018—but to a greater degree this year—several of the most top-of-mind issues are not licensing trends at all, per se, but rather broad topics that touch all corners of consumer products and business in general, with licensing not immune. Some of the trends discussed here are continuations of developments from previous years, while others are new to the list. And, while a few will certainly come and go quickly, many seem to be about fundamental, long-term change.

Here are 19 of the top trends affecting the licensing business in 2019, in no particular order:

1. Politics and social movements. Social unrest from Hong Kong to Paris, domestic issues such as gun violence in the U.S., trade wars involving the U.S. and China, and the uncertainty surrounding Brexit—all had as much impact on licensing as any other trend this year. Uniqlo saw sales plummet in South Korea, due to a dispute between the Japanese and Korean governments, while gun licensors saw leading sporting goods chains stop carrying their merchandise after a mass shooting, to name two examples. The licensing community found itself dealing with the ramifications from events that were often beyond its control.

2. Circular fashion. Sustainability in all its forms became the norm, from making products out of recycled or alternative eco-friendly materials to creating recycling programs for branded goods. The year also saw a spike in collaborations involving clothing rental services (e.g. Derek Lam creating a collection with Rent the Runway); resale programs (Burberry and Stella McCartney pairing with The RealReal); and upcycling (Hyundai Motor’s collection with Zero + Maria Cornejo). Significantly, these circular fashion techniques run counter to the core goal of the licensing business: selling new merchandise.

3. Inclusivity in all forms. Licensors, licensees, and retailers have been making efforts to embrace all consumers, and that trend intensified this year. This trend is not just about addressing and including all ethnicities, but all ages, sizes, political views, religious beliefs, physical and neurological needs, and economic strata, both through product design and messaging. Examples include Hana Taijima’s Uniqlo collection of apparel for Muslim women and others who want modest clothing; Brooke Shields’ fashionable apparel for women aged 50-plus with QVC; Target’s adaptive Halloween costumes (none licensed yet); conservative pundit Tomi Lahren’s range of gun owner-friendly athleisurewear with Alexo Athletica; and retailer Express’s collaboration with OUT Magazine for a collection of gender-neutral and gender-fluid accessories and apparel.

4. Evolution of subscription e-commerce. While some segments within this tier struggled, such as meal kits and pop culture boxes, there were areas of strength, including styling services and targeted efforts such as vegan, kids’, and plus-size offerings. Meanwhile, subscription businesses of all types tweaked their models to provide more flexibility, give consumers more control, add more distribution points, and expand into new customer segments. Despite the challenges, licensors, licensees, and other marketers continue to launch new initiatives, including Build-a-Box with CultureFly, Esquire with Sprezza Box, Tasty with LG, and Betty Boop with Ipsy.

5. Social commerce and shoppable content. The link between social and traditional media and consumer product purchases solidified in 2019 as the major social media platforms added more sophisticated buy-it-now features, e-commerce companies improved their community and social attributes, and brands launched their own social commerce platforms. By the end of the year, Tik Tok was testing shoppable links, Instagram was curating shoppable holiday collections, Foot Locker and Asics were teaming up on a shoppable anime series, and Adidas was selling sneakers through Snapchat.

6. Corporate brands as pop culture. The trend for corporate trademarks, especially from the world of food, beverage, and especially restaurant brands, to extend into lifestyle products and experiences became even stronger in 2019 than in the past few years. From lifestyle merchandise shops and catalogs to pop-up hotels and cafés, brands from Dunkin and Taco Bell to White Castle, Chick-fil-a, and Hot Dog on a Stick were all part of the pop culture conversation, leading to increased awareness and sometimes even upticks in sales.

7. Self care. The concept of taking time to foster a positive mental, physical, and emotional state to ensure better performance at work and at home gained mainstream acceptance in 2019, and licensed and collaborative consumer products followed. Properties such as Women’s Health, Zoella Lifestyle, and Goop joined retailers such as Lululemon and Ikea in supporting this trend whole-heartedly. Licensing opportunities in this space encompass candles, comfortable apparel, meditation gear, gifts and home décor, health and beauty products, and more.

8. Plant-based alternatives. Plant-based proteins made their way into the produce department, quick-service restaurant menus, and even the meat aisle, targeting vegans who occasionally want to eat something approaching meat and meat eaters who occasionally want to cut back on animal products. Licensors started taking their first steps into plant-based products as well. Oprah’s O brand with Kraft Heinz, Tom Brady’s TB 12, and Tapatio with iWon Oganics are among the properties testing meat and dairy substitutes made from alternatives such as cauliflower, pea protein, and brown rice flour. Meanwhile, celebrities such as Kate Upton and Beyoncé are lending their names to vegan meal kits.

9. The mainstreaming of e-sports. E-sports have been on the licensing community’s radar for quite some time. But 2019 marked the year mainstream sports licensees finally saw enough potential to commit to this segment. Manufacturers normally associated with pro sports leagues and clubs, such as Puma, Fila, Outerstuff, and Nike, which paired with e-sports organizations Cloud9, Counter Logic Gaming, Misfits Gaming, and Furia, respectively, were among the examples. At the same time, retailers and etailers from Foot Locker to Fanatics also made significant inroads into the pro video gaming segment.

10. CBD: opportunity and uncertainty. After the Farm Bill passed in 2018, the licensing community’s attention turned from marijuana to CBD, some forms of which have many of the health and wellness benefits that marijuana purportedly has, without producing a high. While there are still areas of illegality (and some grey areas), a number of licensors associated themselves with CBD in segments including sports (Rob Gronkowski, USA Triathlon), pet products (Willie Nelson, Martha Stewart), and skincare (Amber Rose), as well as general wellness and products for specific conditions. Meanwhile, marijuana is still an attractive opportunity to many IP owners, with Drake a recent example. It should be noted that there have not been many studies done on the effectiveness or health concerns that might be tied to CBD or any form of cannabis, and as-yet-undiscovered risks could reverse the progress in this segment. This is what happened with vaping in 2019.

11. Experiences, not products. Retailers continued to move toward the experiential end of the spectrum, and in some cases away from product sales altogether. The newly relaunched Toys ‘R’ Us is primarily experiential, with Target fulfilling any in-store orders via e-commerce. Nordstrom expanded its Local stores, which offer a variety of services and amenities, but no merchandise. In other cases, products are still for sale, but the experiential elements take center stage. Such is the case for John Lewis and Waitrose’s new experiential concept store in Southampton, U.K., which has “experiential playgrounds” at the center of each floor, or Lululemon’s new experiential store at Mall of America, where a small selection of products serve as a complement to the main orders of business, such as yoga classes and coffee drinking.

12. Immersive hospitality. Examples of branded hotels continued to proliferate, with Cartoon Network, Yuengling, Karl Lagerfeld, and the St. Louis Cardinals all announcing or opening new travel destinations. A more high-profile trend during the year was the rise of licensed IP-connected pop-ups including hotel rooms (Lisa Frank with Hotels.com); full hotels (Taco Bell, Nutella); and vacation rental homes (Booking.com’s Addams Family mansion and Airbnb’s Barbie Malibu Dreamhouse). These are about as immersive an experience as you can have for a few days.

13. Betting on sports. A U.S. court case in 2018 resulted in states other than Las Vegas being able to legalize sports betting. As more and more states do so—11 as of October 2019—sports leagues and teams have dipped their toes into this new market by creating partnerships to provide play-by-play data for use in betting, launch official team or league-branded betting platforms, or develop sports-betting games. Potential exists in some global territories as well, as not only the U.S. pro leagues but soccer clubs, mixed martial arts entities, and golf tournaments, among others, are taking advantage of opportunities at home and abroad.

14. Retail apocalypse redux. Many retailers continued to struggle in 2019, showing poor results, shutting stores, declaring bankruptcy, and/or closing completely. This is a phenomenon in the U.S., the U.K., and many other territories. In November, arts and crafts chain A.C. Moore became one of the latest to add its name to the list of chains that have disappeared. Many observers believe the challenges will continue into 2020 as a number of retailers important to the licensing community seem to be at a crossroads.

15. Licensee consolidation. Mergers and acquisitions have been a hallmark of the licensing business of late, with retailers, licensors, and licensees all affected. Licensed manufacturers were at the center of much of the action in 2019, from Delta Galil purchasing The Bogart Group in the apparel industry to Masterpieces acquiring Fanpans and Baby Fanatic in the sports licensee space. The toy industry, which is dealing with the loss of Toys ‘R’ Us, the threat of tariffs, and competition with phones, tablets, and streaming, has been one hotbed of activity. Recent deals include Jazwares taking over Wicked Cool, Simba Dickie purchasing Jada Toys, and Cartamundi acquiring U.S. Playing Card.

16. Consumer as creator. User-generated content, innovation platforms, crowdfunding, and a general mining of social media activity have all become essential to product development and marketing. Manifestations of this trend in 2019 ranged from Lego acquiring an online fan site, BrickLink, to Alpha Toys creating SpongeBob collectible figures inspired by fan memes. A twist that has formalized the process this year is the forging of data-driven licensing agreements in which social media usage, searches, ticket sales, and other consumer data are utilized to predict trends and inform licensed product development. Such partnerships include Puma with Amazon, the Major League Soccer Players Association/REP Worldwide with Breaking T, and lifestyle publication PopSugar with Kohl’s.

17. Music licensing rocks on. Music licensing, always a key element of the landscape, seemed to have a particularly high profile in 2019, as musicians look to merchandising as a cornerstone of their business model these days and as new techniques make testing products for emerging, niche, or vintage acts less risky. To illustrate, in 2019 we saw high-end designer collaborations (The XX x Raf Simons); pop-up shops (The Beatles in New York City for the holidays); the publication of board books (Running Press’ Baby Kiss: A Book About Colors); and notable licensing deals (Sony’s Thread Shop taking over all of the fragmented licensing activities associated with the Jimi Hendrix estate).

18. The power of pop-ups. Pop-ups—shops, cafés, hotels, bars, and myriad other forms—fit well with the licensing zeitgeist, being immersive, temporary, awareness- and often revenue-generating, and having enough unique elements (sometimes of the in-world variety) to stand out from the crowd. Glossier launched fragrance pop-ups at Nordstrom, a Harry Potter pop-up bar appeared for the holidays in Chicago, Gucci Pin pop-up boutiques hit markets where Gucci does not yet have a permanent presence, a Friendsgiving-themed pop-up store and experience honored the 25th anniversary of Friends in Boston, Elle Décor turned the Plaza Hotel’s Rose Club into a pop-up café, and Schitt’s Creek’s Rose Apothecary became temporarily real. The list goes on.

19. Battle of the babies. While no single hot entertainment property rose to the top as a driver of licensed merchandise in 2019, two that certainly captured the attention of the world were Baby Shark, which hit number 32 on the Billboard Hot 100 in the U.S. in January 2019, and Baby Yoda, the breakout character of the new Disney+ Star Wars spin-off The Mandalorian. Merchandise available for the former is relatively limited outside of books and toys in the U.S. to date, while the toy line for the latter will not hit store shelves until May. For the holiday season, hopes are high for Frozen 2 merchandise, which is plentiful, after a successful release in theaters.

The Year in Review: 2018

December 18, 2018: Many of the trends with the greatest impact on the licensing business in 2018 reflected broader developments in business and the world at large, from an evolving regulatory landscape to the rise of social movements to changes in retailing and distribution. There were some hot properties and product categories, too. Read on for 15 of the key trends of the year, in no particular order:

1. Toy industry turmoil. The bankruptcy of Toys ‘R’ Us led to the closing of all of its U.S. stores and those in many other territories. In the U.S., retailers from Walmart, Target, and Amazon to Party City, Kroger, and JCPenney—as well as some relaunched toy-retailer nameplates of yore—are fighting for the 15%-20% share of industry sales TRU held, according to analysts. While it is to soon to say at this writing whether these new or re-energized players will be able to fill the void created by TRU’s closing, the new normal, at least for now, is a more fragmented and top-brand-centric landscape.

2. Burgeoning blockchain. Blockchain, a tamper-proof record-keeping technology that enables goods and services to be tracked throughout their lifespan, gained traction this year. In licensing, much of the highest-profile activity has been related to cryptocurrency, especially in the realm of sports licensing, and virtual goods. But the value of blockchain is likely to be more profound, albeit less publicized, in the future, especially as a means of securely recording chain of custody. This will have an impact on everything from food safety to the purity of organic goods to anti-counterfeiting efforts. Big players from Wal-mart to luxury fashion labels have been among those supporting early blockchain initiatives in these areas.

3. Enhanced reality. Strides have been made in the adoption of virtual reality, which immerses the user in a three-dimensional digital world; augmented reality, which overlays digital elements onto real-life scenarios; and mixed reality, which combines real and virtual elements in a sort of AR-VR hybrid. Licensors and licensees have been embracing these technologies, from creating virtual-reality gaming experiences to incorporating ever-more-sophisticated AR elements into educational toys. Also on the technology front: The rise of AI-driven digital assistants such as Amazon’s Alexa, which have forged content deals with a number of properties.

4. #MeToo movement. The licensing business was not immune to the ramifications of the #MeToo movement in 2018, with celebrity licensors Mario Batali, Russell Simmons, and Brett Ratner all seeing their product lines end as a result of their alleged transgressions. In addition, the movement helped further the wave of girl-empowerment properties that had already been getting exponentially stronger over the past several years. That trend had been rooted in fantasy (e.g. superheroes) but moved more into reality in 2018. For instance, books about real feminists and accomplished women (e.g. the STEM Stars biographies of female scientists and astronauts under the licensed Discovery #Mindblown brand) proliferated.

5. Acceptance and inclusiveness. This trend has been emerging over the past few years but gained power in all of its forms in 2018. Licensed products are not just appealing to different demographic groups but are embracing acceptance of all. This is occurring through gender-neutral products, graphic t-shirts featuring phrases of acceptance, collaborations involving transgender celebrities and other properties that in the past were considered too controversial to touch, size-inclusive apparel collections, and diverse doll lines. One example: Ellen DeGeneres’ new brand for Walmart, EV1. As the name suggests, it is meant for everyone, encompassing all sizes and featuring a reasonable price point to not exclude lower-income consumers.

6. The force of Fortnite. This free-to-play title from Epic Games—which levels the playing field for all ages and skill levels—managed to bring in $1 billion in franchise revenue from in-game purchases and other income streams across all platforms in its first year. It permeated pop culture from NFL end zone dances to Halloween costumes to social media chatter and memes, leading it to become a sought-after license. Jazwares (the master toy licensee), Hasbro, Moose Toys, and more introduced a raft of products in the fall. Other hot entertainment properties of the year: Cartoon Network’s Rick and Morty and Disney’s Mickey Mouse, celebrating its 90th birthday.

7. A universe of unicorns. The unicorn trend does not seem to be slowing down despite near-saturation levels, with unicorns continuing to appear in collectible toy lines, books, and TV series, including in conjunction with licensed properties from the NFL to Deadpool. Meanwhile, the landscape diversified with the addition of other horned creatures such as narwhals and llamacorns. Other happy and/or magical themes—e.g., rainbows—also were prominent in toys, entertainment, and product design.

8. Politics and regulation. Factors outside the control of the licensing community and under the control of governments and regulators are likely to have a big impact in the near and long term. They include trade wars between the U.S. and China, as well as other nations; the negotiations leading toward the implementation of Brexit in the U.K.; and the E.U.’s General Data Protection Regulation. Currently, the biggest impact on licensing from most of these developments is uncertainty.

9. High on cannabis and CBD. Canada legalized recreational marijuana in summer 2018 and a growing number of U.S. states have implemented some form of legalization, while marijuana’s non-psychoactive cousin CBD has been a hot health trend. All of these developments have created opportunities for the licensing community. Kevin Smith’s Jay and Silent Bob launched a new brand of marijuana with Chemesis in Canada, for example, while Level Brands licensed Isodiol for a line of CBD-based health and beauty products under the Kathy Ireland Health & Wellness brand.

10. Bountiful beauty. The beauty category remains healthy, especially on the high end, as influencers (Patrick Starrr x MAC) and other celebrities (Chrissy Teigen x Becca) continue to collaborate on premium beauty lines, as do characters from Barbie to Hello Kitty to the Disney Princesses. Meanwhile, retailers from Bloomingdale’s and Macy’s to HyVee and CVS are upgrading their beauty departments, and other retail chains are forming alliances for the same purpose (e.g. Banana Republic x Cos Bar).

11. More options for social shopping. Consumers’ ability to move straight from social media to a purchase of a licensed product has strengthened in 2018 as the big players test or add social shopping functions. Almost half (48%) of consumers say they have purchased a product or service through social media, according to research from SUMO Heavy published this year. Facebook is testing a live video feature for merchants, Instagram is mulling the launch of a new shopping app, and YouTube introduced its Merch Shelf program with Teespring. The latter allows content creators and licensors (of Simon’s Cat and Mr. Bean, for example) to sell merchandise in conjunction with their videos.

12. Bricks and clicks. The melding of bricks-and-mortar and e-commerce shopping continued in 2018, as retailers tried to be available where and when consumers wanted them to be. Amazon and other etailers opened physical stores, subscription meal kit marketers and grocery stores partnered to make the former’s products available on shelf, Fanatics launched in-store boutiques in JCPenney’s physical stores, and companies such as Target and Walmart bolstered their e-commerce plays and integrated online with offline operations.

13. So many sneakers. Limited-edition sneaker collaborations show no signs of abating, with new collaborations released continuously to appeal to collectors and fans. From One Piece (with Skechers) and Black Panther (with New Balance) to Comme des Garçons (with Nike Air) and Travis Scott (with Air Jordan), licensors, retailers, and fans alike seem to have an insatiable desire for new partnerships.

14. Going private. The prevalence of private labels over branded goods waxes and wanes year after year, but store brands were certainly on the upswing in 2018. Target launched eight new private labels, including denim brand Universal Thread and home goods label Made by Design. Amazon continued the proliferation of its private labels with Earth+Eden, Love & Care, and CHALLENGE by GNC. Kroger rolled out its Dip collection of apparel in Fred Meyer and Marketplace locations. While some of the store brands are produced in conjunction with a licensed name, overall they represent another challenge to licensed products trying to secure shelf space at retail.

15. Eye on the environment. Eco-friendly product lines started to gain a significant foothold at retail in 2018, after years of fits and starts. Fashion designers began to reject fur in a big way and create more clothing items from recycled plastics, vintage fabrics, or materials such as mushrooms or eucalyptus. Clothing recycling progams began to spring up and big marketers vowed to use recyclable packaging. In the toy industry, Lego is making bricks from plant-based plastics, showing that the trend is not just focused on niche players any more.

Remember to check in with RaugustReports in 2019 for twice-weekly insights on new trends as they happen.

The Year in Review: 2017

December 19, 2017: A lot happened in licensing in the past year, both positive and negative. Here are 10 trends that made an impact on the business in the last 12 months:

1. The “retail apocalypse.” The first half of the year was brutal when it came to retail chains shuttering large numbers of stores and laying off employees, entering bankruptcy, and going out of business completely, with specialty apparel chains and department stores among those most affected. While IHL Group estimates that 2017 ended up seeing more store openings than closings on balance—with dollar stores and deep discounters among those showing growth—many of the struggling chains are critical to the licensing business. For example, the woes of Toys ‘R’ Us have had negative ramifications on the performance of many of the leading toy companies throughout the year.

2. Mergers and consolidation. Throughout all corners of the business, the big got bigger, with Fanatics buying the collegiate licensing division of agency Fermata, home shopping networks QVC and HSN coming together, the news of a merger between IMG College and Learfield, Amazon purchasing Whole Foods, and most recently, Disney’s announcement of its Twentieth Century Fox acquisition. Meanwhile, companies that came together in 2016 continued their integration, from Activision and King in the interactive gaming space to Universal and Dreamworks in the studio world.

3. Subscription retail and e-tail. Licensors’, licensees’, and retailers’ involvement in all kinds of subscription- and membership-based selling opportunities strengthened in 2017, with meal kits, subscription boxes, social shopping, and all kinds of other iterations being explored. In the subscription box area alone, recent examples run the gamut from JCPenney launching a box for big-and-tall men to actress Sophia Vergara introducing an underwear subscription service.

4. Diversity. Licensing programs and initiatives increasingly focused on specific, underserved demographics such as U.S. Hispanics, Muslims in the U.K. and elsewhere, gay and transgender consumers, or children with special needs. Other efforts are embracing all consumers, whether through product availability—no more ignoring or cordoning off plus-size consumers—or inclusivity in marketing, entertainment, and graphics. Examples range from ASOS’s fashion collaboration with LGBTQ advocacy group GLAAD, to the new Marvel Rising animation franchise, featuring diverse characters and female leads, to New Era’s Hispanic Heritage Collection.

5. New experiences. Experiential licensing and marketing were as hot as ever during 2017, from the proliferation of pop-up shops and cafés across property types, to country singer Tim McGraw’s deal with Snap Fitness for a chain of signature gyms. Some particular areas of interest this year included community virtual-reality experiences for properties such as The Mummy, Ghostbusters, and Justice League, and location-based escape room games for Pokémon, Rubik’s Cube, and Murdoch Mysteries, among others.

6. Influencer-driven cosmetics trends. The cosmetics category continues to be up-and-coming for licensing and collaboration, often centered around a “be yourself” theme. While a wide variety of properties have capitalized on the opportunities in this sector, a driving force has been social media influencers, from K-Beauty experts such as Alicia Yoon, to male makeup artists such as James Charles, to lip artists such as Jasmina Daniel. Their commercial activities typically start with endorsements and brand ambassadorships, later extending into signature collections and sometimes long-term licensing deals.

7. Corporate novelties. A number of corporate licensors, especially in the quick-service restaurant, snack, and coffee shop sectors, created short-term collections of oddball—but popular—products that generated significant publicity and, in many cases, strong sales. (Some items sold at prices in the thousands of dollars.) Taco Bell’s apparel collection at Forever 21, KFC’s “fried chicken couture” (with a refreshed assortment debuting at the end of the year), and Cheetos bronzing cream (a pioneering effort launching in late 2016) all appealed to consumers looking for April Fool’s-level conversation pieces in their closet.

8. Hotter markets. A number of properties and products unexpectedly hit the collective consciousness, generating awareness and commercial opportunities for companies that were ready to take advantage within a very short window. From Ghostbusters sneakers, Austin Powers masks, and McDonald’s Mulan Szechuan sauce—all of which came to the fore through pivotal scenes in entertainment not controlled by the marketers in question—to fidget spinners, these situations are reminders of the need to be ready for anything these days.

9. E-sports. Professional video gaming became more mainstream and gained traction within the licensing business, with leading licensors such as the major leagues sponsoring teams—a potential precursor to more consumer products activity—and pro e-sports players, teams, and leagues all dipping their toes into licensing. Deals remain limited in both frequency and scope, but signs are increasingly pointing toward broader commercial viability.

10. Cannabis. Marijuana and marijuana-related products such as accessories, apparel, and infused foods and beverages grew quickly as a category for licensing, with cannabis brands, chefs, celebrities, and especially musicians continuing to extend their names into the space and High Times and THC among the pot-friendly lifestyle brands signing merchandise deals. Most of the activity was in U.S. states where marijuana is legal, but other countries also have potential; Jay and Silent Bob actors Kevin Smith and Jason Mewes recently paired with Beleave for a marijuana strain available in Canada.

Keep up with current trends as they happen by subscribing to RaugustReports, our free, twice-weekly publication offering insights on the licensing business across property types, product categories, and geographic regions.

The Year in Review: 2016

December 20, 2016: Here is RaugustReports’ perspective on some of the key licensing trends of the past year:

1. A sense of belonging. Membership- and subscription-based distribution channels have become important means of selling and promoting licensed products. Star Wars and Kate Spade merchandise is sold through flash sales sites such as Zulily, Gilt Group, and Joss & Main. Warcraft novelties and Christian Siriano fragrances are featured in subscription boxes from Loot Crate to Birchbox. Chefs such as Jamie Oliver and Fabio Viviani, along with other types of properties, are forging deals with meal kit services from Chef’d to Hello Fresh.

2. Smoke signals. While traditional cigarette brands remain taboo for licensing, it looks like that will not hold true for the young and growing cannabis and vaping industries. Brand extension into smoking accessories, edibles, topical lotions, strains of pot, and e-liquids for vaping, not to mention lifestyle licensing into apparel and the like, are all on the rise. Musicians (Snoop Dogg), chefs (Mindy Segal), adult brands (Hustler), and lifestyle brands (THC) are among the properties involved to date.

3. Behold beauty. While the fragrance industry has become saturated with licenses and the number of new deals has declined, other parts of the health and beauty industry have been active in 2016. Properties from the TV series Outlander to designer Isaac Mizrahi have been among the many to inspire agreements for color cosmetics. Men’s grooming is on the rise, with IPs such as Ryan Seacrest and Elvis Presley in the mix. Celebrities who made their name as makeup artists, such as Pat McGrath and André Walker, continue to lend their names to signature beauty products. And HBA brands from Edge Shave Gel to Short & Sassy have recently launched outbound licensing programs.

4. Merchandising moments. Increasingly, licensing initiatives and collaborations are focusing on very specific themes, experiences, or marketing “moments.” These might include a musician’s album (Beyoncé’s Lemonade collection), a common history or geography (Polaris and Red Wing), a phrase (Liverpool football club’s “The Normal One”), or a character from a commercial (Mountain Dew’s Puppybabymonkey), among others. While none of these tactics are new per se, together they have become a go-to strategy for adding interest to, or testing the waters for, a broader licensing program.

5. The “Internet of Things.” Connected products have become almost the norm in many categories. Toys feature artificial intelligence or augmented reality. Fashion labels’ licensed apparel or accessories give the weather report, facilitate communication, and monitor wellness. Appliances, furniture, and décor are positioned as part of the smart home. There are still challenges, ranging from privacy concerns to figuring out how to effectively mine this fast-evolving sector. But connectivity is here to stay and is having a critical impact on many key categories for licensing.

6. Summer of Go. The launch of Pokémon Go, the augmented-reality gaming app that brought monster hunting into the real world, immediately started a craze that extended to malls, hiking trails, and tourist destinations. The retailers that were able to capitalize the most, from a licensing perspective, were those that already had Pokémon merchandise in inventory at the time. While the craze has faded from its peak, many observers expect the rejuvenated Pokémon to remain a strong property across all retail channels this holiday season, and perhaps beyond.

7. Pop-ups. Experiential initiatives are a way of life in licensing these days, and pop-ups have been a particularly common configuration in 2016. Properties from Kanye West and The Weeknd to M&Ms to Powerpuff Girls, Captain America, Smiley, and Thomas & Friends have popped up with shops, cafés, experiences, and destinations. The phenomenon is global.

8. Thinner slices of celebrity. Licensing continues to spread into new nooks and crannies of the celebrity landscape. Manufacturers and retailers are forging collaborations, limited editions, and even traditional licensing deals with trick sports specialists (e.g. Dude Perfect), cosplay artists (Yaya Han), high-profile e-sports players (Johnathan Wendel), transgender models and reality stars (Caitlyn Jenner), social media-driven male makeup artists (Manny Mua), and fantasy football experts (Matthew Berry).

9. Gender equality and identity. More licensing deals, involving properties from Popeye to B.U.M. Apparel, are incorporating unisex fashion items. Target launched a new Cat & Jack brand, meant to appeal to both boys and girls, removed gender-specific signage in the toy aisles, and took steps to make transgender shoppers feel welcome. Girl-centric remakes of films like Ghostbusters, Oceans Eleven, and Splash offer a new perspective, even while generating controversy among some fans of the originals.

10. Smart girls. More properties and products are meant to appeal to and inspire young females with “smart girl” themes. Those focusing on building interest in science and engineering, for example, are gaining traction at retail. Toy-based properties such as Project MC² and GoldiBlox are signing licensees, while IPs such as Barbie are being featured in science-based activity kits. Meanwhile, high-profile female superhero properties, such as DC Superhero Girls, Miraculous, and Barbie Spy Squad, not only feature strong girl characters but give the girls the same action-adventure-driven powers as the boys’ heroes have always had.

11. Available in all shapes, colors, and sizes. Diversity has long been a topic of conversation but 2016 brought concrete initiatives along these lines at mass retail. Mattel introduced its multicultural, multi-body-type line of Barbie dolls and introduced a fashion doll inspired by plus-size model Ashley Graham. Many of the top children’s entertainment properties highlight a diverse group of main characters, allowing kids to pick a favorite with which they can identify. Fashion and sports brands continue to increase their assortments of plus-size and big-and-tall apparel, and some are starting to sign licenses for ethnic clothing items such as hijabs.

12. The universal language of emojis. From branded emoji sets—and their subsequent outbound licensing activities—to emoji-related brands and character properties available for licensing, to myriad products based on open-source designs, to unlicensed items, emojis commanded a significant amount of awareness and retail shelf space in 2016.

13. Coveted collectibles. Collectible toys such as Shopkins and Num Noms have been top sellers in their core category and have spurred licensing activity. Blind bags and other collectibles, often based on character, video game, and toy properties, outpaced other sectors of the toy and licensed product landscape. Toy-and-collectible hybrids from the likes of Oyo, Bleacher Creatures, and Funko were a growth area within sports licensing and other property sectors.

14. Buy it now. Major League Baseball sent an ecommerce-linked text to fans the moment the Chicago Cubs won the World Series and sold lots of jerseys and other championship merchandise. Clicking on an NFL Players Association-branded emoji in a text message takes the customer to Fanatics’ ecommerce page to view products featuring the same image. Atom Tickets and Disney/Lucasfilm sold merchandise and movie tickets for Rogue One: A Star Wars Story simultaneously. These are just a few of the initiatives creating a stronger connection between product purchasing and daily activities such as texting, social media, and entertainment.

15. Hotels and hospitality. Karl Lagerfeld announced in November that he would launch a chain of hotels, with the first to open in 2018 in Macau. He joins fashion labels such as Armani, Missoni, Versace, and Dior that already have branded hotels around the world, as well as a growing number overseeing room designs in luxury hotel chains. Meanwhile, Edgewell Personal Care signed a license with Hotel Emporium for the latter to develop personal care products for guest rooms featuring the Hawaiian Tropic brand and scent. And CBeebies is among the latest character licensors to launch branded hotels and hotel rooms (at Alton Towers Resort, in this case), among other hospitality tie-ins.

16. Fan-first focus. Companies across consumer products are integrating user-generated content into their merchandise, mining fans’ Instragram and Pinterest accounts for product-development ideas, and relying on fan-focused innovation programs, crowdsourcing, and crowdfunding to gauge fans’ desires. “Maker” themes remain a big part of the toy and stationery landscapes. Handbags, athletic shoes, jerseys, and figurines are customized and personalized through print-on-demand and 3D printing technologies. Although the particulars will evolve, fan-first initiatives are cemented as key components of licensors’ and licensees’ strategies going forward.