Toys - Star Wars, Harry Potter, Pokémon: licensed toys on sale
Puzzles with Harry Potter or Disney motifs, construction sets with Star Wars spaceships, Paw Patrol dogs and Pokémon fantasy creatures to cuddle - it's easy to see which characters from films, series, books and computer games are currently popular when strolling through toy stores. Licensed toys are popular - with children, adults, manufacturers and retailers. Many of them will be under the Christmas tree again this year. But there is no guarantee of success.
For a long time, Germany was at the bottom of the league when it came to licenses, says Joachim Stempfle from the market research institute Circana. "In the meantime, Germany has made huge gains." According to forecasts, licensed products will account for just over a quarter of total toy sales this year. According to the German Toy Trade Association, this could amount to 4.5 billion euros at the end of the year - which would be four percent less than in the previous year.
Surprisingly positive development
Manufacturers of licensed products are also feeling the effects of the slowdown in purchasing mood this year. Although there was a slight decline of two percent compared to the previous year, this was significantly less than in other toy sectors, says Stempfle. Licenses are still at an all-time high, which nobody expected years ago. "This is because many large manufacturers work with licenses and many of them are very successful," says Stempfle.
Yet the licensing business is actually old hat. There were already suitable products for the Mickey Mouse comics, explains Werner Lenzner, licensing expert at toy manufacturer Simba Dickie in Fürth. With the first Star Wars film in 1977, the topic gained more and more momentum. According to Lenzner, the group of companies based near Nuremberg now generates a quarter of its turnover with licenses. The advantage is that the brand is already known to the target group. "It simply sells better and faster."
Manufacturers pay for brand awareness
Licensed products attract greater attention, confirms marketing professor Andreas Fürst from the University of Erlangen-Nuremberg. Consumers are also generally prepared to spend more on a well-known brand. Companies can therefore charge more for the products - and have to because of the license fees alone.
Even everyday products such as soap bubbles or pencil cases could benefit from licenses, says Lenzner. "You can score points against the competition with licenses. They arouse desire." Children in particular are brand-conscious, says Eva Stemmer from the Brandmate trade fair, which brings the licensing industry together in Offenbach every year. While parents attach importance to ergonomics when buying a school bag, for example, children love the pink model with "Barbie" on it, she says.
Brand alone does not work
Place a well-known character on a product and it sells? It's not that simple, emphasizes Stemmer. "You need products that fit the target group." Marketing expert Fürst agrees: if the connection to the license is not clear, the products sell less well. "In extreme cases, this can lead to brand damage for the manufacturer and the licensed object."
Sometimes it is also puzzling why one licensed toy works and another doesn't, says Simba Dickie expert Lenzner. "A license is also a bit of a gamble." And sometimes success is short-lived. "There are licenses that are established and last for years," says market researcher Stempfle. Others disappear again quickly. "To keep licenses alive, new products have to come along, but above all new content."
The "Barbie" movie
One example of this is the "Barbie" movie. This also boosted sales of the dolls. Manufacturer Mattel has announced further films about toys such as the Hot Wheels cars and Polly Pocket figures. Some companies now even have their own studio departments and bring out a series or movie to go with a new toy series, as Lenzner explains. An effort that can pay off: "If you have a good brand, there's a gold-rush atmosphere," says Stemmer.
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- Strolling through toy stores, it's evident that Pokémon fantasy creatures, Barbie dolls, and Star Wars characters are among the current favorites, showcased in licensed toys like puzzles and construction sets.
- According to Joachim Stempfle from Circana, Germany has seen significant improvements in the licensing scene, now accounting for over a quarter of the total toy sales this year.
- Licensed toys, such as Pokémon toys and Barbie dolls, are expected to be under many Christmas trees, although total toy sales might decrease by four percent compared to the previous year.
- Werner Lenzner, a licensing expert at toy manufacturer Simba Dickie in Fürth, highlights the importance of licenses intoy sales, particularly in the case of Star Wars, which gained momentum with the first movie in 1977.
- In Bavaria, particularly near Nuremberg, companies such as Simba Dickie generate a significant portion of their turnover through licensed products, benefitting from the brand's recognition by the target audience.
- Even generic products, like soap bubbles or pencil cases, can gain advantage with licenses, as Eva Stemmer from the Brandmate trade fair points out, with children being particularly brand-conscious in toy shopping.
- However, Lenzner warns that a license alone does not guarantee sales success if the fit between the product and the target audience is not appropriate, potentially leading to brand damage if misaligned.
- The "Barbie" movie had a significant impact on doll sales, prompting Mattel to announce further movies for popular toy brands such as Hot Wheels and Polly Pocket.
- Sometimes, a license's success can be unpredictable and short-lived, as Stempfle explains, and to keep licenses alive, manufacturers must continually introduce new products and content to maintain interest.
Source: www.stern.de
