Top 6 brand licensing trends that drive consumer engagement in new ways
By Allison Ames, president & CEO, Beanstalk
As marketing professionals, there’s nothing more important than spotting and understanding industry trends and how they can drive creativity and change. In the brand licensing space, which at its core is a marketing tool, cultural intelligence is especially important.
We’ve had our eye on several key trends so far this year – and it was gratifying to see our observations confirmed at this year’s Licensing Expo in Las Vegas, the largest annual global licensing trade show. The three-day expo attracts the most influential brand owners, retailers, manufacturers and licensees across corporate brands, entertainment, art, character, fashion, and media brands, among other segments. It’s the perfect place to spot diverse trends and the next ‘must have’ products and experiences.
According to a recent study by Licensing International and Brandar Consulting, global sales of licensed merchandise hit an astronomical $340.8bn last year; now is truly the time to keep our fingers on the pulse of brand licensing.
1. Everything fashion
Fashion mashups were a big theme at this year’s show. The Fashion Showroom displayed several unexpected fashion collabs, including Crayola x Vans, Minecraft x Lacoste, CAT x Transformers, Teletubbies x Christian Cowan, and more. With retailers experiencing excess inventory, trusted brands are proving to be a top draw as a means to mitigate risk on shelves.
Minecraft and Crocs have collaborated on a limited line of shoes and an in-game activation. The two brands already have a highly engaged consumer base, so partnering furthers their respective strengths and brand love in a wearable format.
Pacsun’s third collection with The Metropolitan Museum of Art (in full disclosure, a Beanstalk client, but heralded by the media this year as one of the most innovative fashion partnerships) is available now. The collection features several works from The Met and focuses on New York iconography to thread the collection together, while also appealing to a diverse and younger audience.
Epic Games, the game development giant behind Fortnite and Fall Guys, and fashion house LVMH, announced its strategic alliance following Expo. The partnership will bridge the gap between fashion and the metaverse by creating new fashion-driven experiences including virtual fitting rooms and fashion shows, 360-degree product carousels, AR, digital twins and more.
2. Sustainable sourcing
Sustainability continues to be a meaningful theme as an important driver to protect and preserve our ecological health. As consumers continue to become more environmentally conscious, we expect sustainability to play an ongoing role in consumers’ purchasing decisions. The third day of the event featured a dedicated spotlight on driving purpose with sustainable sourcing.
The award for Best Sustainability Initiative, at this year’s Licensing International Excellence Awards, went to Goodyear for its brake calipers. The calipers, manufactured by licensee FDP Brakes, utilize proprietary green production processes that enable vehicle owners and automotive professionals to sustainably restore their brakes.
Products of Change, a global education hub aimed at driving sustainable change, launched its new POC Industry Framework to help the global brand and licensing industry transition to a more sustainable way of business. The organization also hosted sessions on sustainability best practices and provided one-on-one expert consultations at their booth.
3. Brands with purpose
Social responsibility took center stage at Licensing Expo, with purpose-driven initiatives on display during the Expo’s dedicated “Day of Purpose.” The agenda spotlighted intentional initiatives to engage guests through interaction and purpose.
Crayola debuted its Crayola Flower truck at Licensing Expo before embarking on its cross-country road trip. With its roots in giving back, the floral concept prioritizes the value of acts of kindness by creating custom tailored fundraisers and web shops for each stop on the truck tour. Each purchase of Crayola Flowers exemplifies three acts of kindness; giving flowers to another person, supporting sustainable flower growers and raising money for a nonprofit.
Funko teamed up with the It Gets Better Project to debut its first wave of new Pop! With Purpose Pride collection; all proceeds benefit the nonprofit’s mission to uplift, empower and connect queer youth across the globe. The first range of Pops! featured the cast of Netflix’ hit series, “Queer Eye.”
Canadian bridalwear designer Justina McCaffery partnered with Operation Prom National Network (OPNN) to launch a campaign at Expo that raised awareness of needs of at-risk and inner-city youth whose families struggle to afford the experience of prom. The initiative gave away a custom-made Justina McCaffery gown or suit with an optional financial donation to OPNN.
4. Everyday snacking
Food and beverage licensing has remained top of mind for brand marketers as they develop new ways to ‘sweet spot’ with consumers in their everyday lives. From food brands having the ability to strategically stretch within our food culture, to entertainment properties extending into consumables, grocery aisles would not be as innovative without licensed products.
Kellogg’s and Six Star Pro Nutrition are teaming up to create Frosted Flakes and Froot Loops-flavored whey protein products, launching at Walmart and other retailers this August.
Coffee producer White Coffee recently debuted its Entenmann’s and Perkins Restaurant & Bakery-flavored coffee grounds and pods that bring the signature baked good flavors to the morning cup of joe. A Bailey’s Irish Cream-flavored range from the coffee manufacturer is set to debut this upcoming holiday season.
The Lumistella Company, owners of The Elf on The Shelf, partnered with Hometown Food Company on three new Funfetti cookie mixes (Sugar Cookie, Hot Cocoa and Candy Cane). And, while not quite edible, Food Network and Lumistella have joined forces for “The Elf on the Shelf: Sweet Showdown,” a holiday-themed sweet treat competition set to premiere this holiday season.
5. Immersive experiences
Experiences are making a comeback post-pandemic. Be it pop-up shops, immersive branded installations or location-based entertainment, brands across the spectrum from character properties to corporate entities are leaning into experiences to reconnect with consumers live and in person.
MasterChef announced it extended its partnership with MSC Cruises for immersive MasterChef at Sea and MasterChef at Sea Juniors experiences, where participants of all ages can put their culinary skills to the test against other guests.
Paquin Entertainment Group announced its plans to extend and expand its successful “Beyond Van Gogh” and “Beyond Monet” experiences to new cities across the US including Milwaukee, WI and Tallahassee, FL. The experiences take inspiration from Amsterdam and Paris, the home cities for Van Gogh and Monet, respectively, and transform the each artist’s masterpieces into over 50,000 square feet of immersive exhibitions.
6. Never-ending nostalgia
The power of nostalgia will never go away. Familiar products and movies and TV shows of the past trigger fond memories and connect with consumers on an emotional level. And right now, ‘80s- and ‘90s-themed brands and products are in!
Hallmark’s Rainbow Brite is celebrating its 40th anniversary with several companies, including Funko/LoungeFly, The Loyal Subjects, Mad Engine Global and Goodie Two Sleeves set to create colorful and collectible apparel, accessories, figurines and more.
Sony Pictures is also gearing up for a milestone 40th anniversary year for two of its most iconic properties, "Ghostbusters” and “The Karate Kid,” with new product launches designed to bring these iconic properties to life in 2024.
Funko and Blockbuster announced a new product line – Rewind – which will focus on nostalgic collectibles and packaging around the Blockbuster design. The collectible figures will come in a VHS-type package based on the character’s IP.
In the case of Licensing Expo, what happens in Vegas should not stay in Vegas. The important trends that were clearly present at the show have implications for marketers across all industries, not just through licensed products and experiences. Thinking about how to take advantage of these cultural moments and incorporating them into a brand marketer’s path ahead will most certainly drive continued relevance, loyalty and engagement with consumers.