An Executive Voices Blog by Tetiana Ruban, CEO of Nerd Agency

Europe is an incredibly diverse region, made up of consumers whose preferences and purchasing habits differ significantly based on what country they live in. There are, however, several common themes that can be seen throughout the territory. Below is a guide to connecting with consumers at retail across the continent.

First of all, food is one of the most significant categories in terms of sales numbers in Europe. As a basic need, the food category is less affected by the crisis. Dairy and confectionery products, especially, show outstanding results with brand licensing in the region.

Fashion, of course, continues to be a core category. And regardless of the sustainability movement, fast fashion still prevails throughout Europe. The average number of times consumers wear the same garment is getting lower and emotions are a primary driver of purchases. Sportswear, in particular, is performing quite well and is also an area where consumers are willing to spend more for high-tech materials and solutions.

Stationery products with an emotional element appeal to kids (who have pocket money to spend) as well as adults. These are mostly small, inexpensive products that instantly cheer you up upon purchase. That same trend can be found within the home décor and accessories categories where smaller, less expensive items can serve as a big hit of dopamine.

With the faster pace of life, demand for categories that require more time and effort is declining. Examples include products connected to hobbies like sewing, knitting, embroidery, and cooking as well as home repair tools. Moreover, younger consumers (including Millennials and Gen Z) are less likely to have these types of skills and are also less interested in spending their time this way.

There are also several trends to focus on for children across Europe. Even though the interests of children in the region are more diversified than ever before—with kids watching dozens of different shows, playing with dozens of different toy brands, playing or watching video games, and becoming easily distracted—the top brands for preschoolers are still from animated series. For the older set, video games (ages six to nine) and influencers and celebrities (ages 10 to 13) are the focus. And while YouTube content is hugely popular with children of all ages in the region, licensing efforts around those properties have been less reliably successful.

Though many brands compete for the attention of teenagers and young adults, we can see the increasing popularity of anime among this target group. And for adults there are additional opportunities across entertainment, lifestyle, fashion, and sports. We are also seeing an increasing demand for local brands in a number of European countries, especially brands based on art and movies.

Most retailers use classic tools like loyalty campaigns, discount cards, and seasonal sales to appeal to consumers. More and more retailers in Europe also have their own apps and send marketing texts to consumers as well as engage with them through social media platforms like Instagram and TikTok.

To attract more customers during the holiday season, most retailers are focused on the following three pillars—to create a festive mood using decorations, music, fun activities, or website design; to provide a reason to make big purchases using discounts or special offers for expensive products; and to simplify the shopping experience by arranging items by theme or price range, offering free gift-wrapping services, extending their hours of operation in the lead-up to the holidays, and offering free shipping.

Each European country has its specific business features, languages, and consumer trends. Therefore, it’s better to find local partners for each country (including a local agent and a local publisher) to provide expertise into each region’s specific needs rather than trying to cover the whole of Europe with one partner.

Nerd Agency is a licensing agency from Ukraine that represents properties like Mavka The Forest Song and The Witch Revenge internationally. It is also a licensing agent in Ukraine for Robocar POLI, The Little Prince, Tara Duncan, Gorjuss, Brave Bunnies, and other IPs. The agency is a Bologna Licensing Award 2024 winner, a Licensing International Rising Star 2022 winner, and a Licensing International Excellence Award 2024 finalist.