Licensing Trends to Watch in 2024
Jacky Kuerzi
January 9, 2024
2023 brought us lots of surprises. The almost guaranteed recession didn’t actually come to fruition, despite the prolonged hike in interest rates. Rhianna revealed her pregnancy on one of the most buzz-worthy Super Bowl halftime performances. Taylor Swift’s boyfriend, AKA Travis Kelce, won over millions of new fans overnight. Even though these surprises rocked us, several trends unveiled themselves and continue to gain steam into 2024. Staying abreast of these trends, especially in the licensing industry, is critical. Below are a handful to keep your eye on as we begin our new year.
Data-Driven Opportunities
Our current economic landscape is one of uncertainty. Following the pandemic, then widespread supply-chain issues, then overstock galore, retailers are more cautious than ever.
Our CEO, Stephen Reily, said it best in our last blog. “At times like these, a new brand in the market will have to invest in research to build its case. The surest way to get a retailer (or a licensee – they are seeking more security as well) interested in a new idea today is to conduct and share research confirming that consumers want to buy it.” – Stephen Reily
Brand Collaborations & Co-Branding
In addition to the above-mentioned risk-averse economy, retailers are also feeling PTSD from years of inventory complications. If buyers are going to invest in a new product, it certainly helps to have a strong brand following already. And what’s better than one loyal customer base… two!
The trend of brands collaborating in licensing deals is not new, but it certainly gained momentum in 2023, and we see no signs of this slowing down in the near future. Individual brands benefit from the other’s strengths, customer base, and increase of impressions in both co-promotions and incremental sales from another aisle of the store they weren’t previously in. Consumers benefit with unique offerings and prized limited-edition releases.
Sustainability Initiatives
Consumers are increasingly more concerned with sustainability and ethical practices, which will continue to influence licensing deals. Brands are looking for licensing partnerships that align with their eco-friendly and socially responsible values. This includes the product itself, as well as it’s packaging, sourcing and manufacturing practices. Sustainability initiatives will become even more visible in licensing contracts as brands require such practices.
The AI Surge
We are only scratching the surface with artificial intelligence, and it’s already making a huge impact on the licensing industry. From a consumer standpoint, AI plays a big role in their brand engagement. Chatbots are answering questions about the brand or products, and products becoming increasingly more personalized via AI. Tailored marketing messages and promotions make consumers feel even more connected to their favorite brands.
AI has also impacted licensing in a big way from the brands perspective. More sophisticated data analysis is helping brands make more informed decisions, especially when predicting consumer behavior and trends. Automated systems provide even more digital support by managing contract compliance, royalty tracking, and anti-piracy efforts. AI tools exist that can create a licensing strategy, although we strongly recommend a licensing agent analysis, especially given these tools are so new to the industry.
Nostalgia-Inspired Products
In a world that seems to get more complex by the day, consumers delight in nostalgia-inspired products more than ever. Retro brands are being reimagined and capitalizing on the sentimental attachment to classic products and characters.
No recent comeback has been quite as colossal as Barbie. A wide variety of categories have capitalized on this nostalgic brand’s success. The merchandising has been incredible; you name it, and there is a Barbie-version. Apparel, shoes, hair accessories/tools, toys, nail polish, skincare, handbags, jewelry, rollerblades, pool floats, food/drinks, even home accessories and rugs! Barbie has proved nostalgic brands resurfacing in 2024 have a LOT of potential for a successful licensing program.
These exciting trends and the opportunity 2024 holds make us as encouraged as ever for the future of the licensing industry. Are you interested in licensing your brand? Let’s chat!
