As global markets gradually re-open, licensors and licensees are pivoting to new business models in an effort to mitigate the impact of COVID-19. During Licensing International’s recent VRoundtable moderated by Stu Seltzer of Seltzer Licensing Group, industry execs shared the different tacks they’re taking:

• Roll with the punches. When the pandemic forced the cancellation of WWE’s WrestleMania 36 in March, the company made quick changes to event merch. Tees were changed to “WrestleMania 36: I Wasn’t There.” Ringside folding chairs with WrestleMania 36 artwork were sold through a separate website that was later expanded to include seats dating back 10-15 years, says WWE’s Sarah Cummins. That kind of nimble responsiveness will be crucial amidst continuing uncertainty.
• Quality Above All. “The consumer will forget pretty quickly that we had something 20% off. But if something is poor quality, they will remember it for a lifetime. Everyone’s mantra should be that customers and quality rules. … We should respect [our customers] enough to give them something isn’t dumbed down and doesn’t have every single piece of delight taken out for margin requirements,” said Spencer Gifts’ Holly Rawlinson.
• Seize new opportunity. Children’s underwear licensee Handcraft launched a potty training video during the pandemic to provide instruction in one of the passages of parenthood… and potentially land some new consumers, says Handcraft’s Marshall Mizrahi.
• Change with the times. It’s not business as usual, so the usual ways of doing business are being reevaluated. “Some of the risk that has been on the licensing manufacturer has shifted a little bit more so that we are all partners. The expectation isn’t that to design product you are forking over $25,000 or $50,000,” said Rawlinson. “People are recognizing that now is the time for partnership and you need to trust us when we take on a brand. If it works, everyone is going to do well.”
  Alan Dorfman, CEO at Super Impulse echoed this: “We are doing more business with smaller licensors … and with some of the smaller licensors the expectation for upfront payments may be lower and we are getting longer terms. Let’s make money on the success of the brand and not on the up-front money.”
• Take the long view. “It’s building a business and finding those licensors that want to partner with you and understand that we are stuck at home, the world is weird, it’s hard to produce goods, make new content and get people into a store.  And it’s going to be harder. It’s not about the money today, but rather making the money in 2021 and 2022. So, let’s work together for free today,” said Mizrahi.

The next Licensing VRoundtable, “COVID-19 CPG: We Make Consumers Feel Good” will take place on June 10, 11:30 am EDT/ 4:30 pm GMT