Licensing Magazine interviewed Ute Stauss, Managing Director at Licensing International Germany. The discussion delved into the key trends, challenges, and international growth potential driving the German licensing industry.
What are the main trends shaping the licensing industry in Germany?
We’re experiencing a shift away from the entertainment and toy business towards lifestyle, sports, and gaming products. New members are joining us, such as FT Bayern Munich, one of the biggest football clubs in Germany, the toy company Schleich Beck, and newcomers from the gaming industry.
Gen Z is currently defining licensing strategies. The concept of fandom and the growing importance of streaming platforms such as YouTube, and the gaming industry, are shaping the business. How are these elements developing within the German market?
When it comes to gaming and fandom, there is room for growth. They are shaping new dynamics that are appealing to Gen Z. The same is true for the combination of fashion, lifestyle, and gaming, which is one of the key trends in Germany. For example, Adidas recently launched The Minecraft Movie Collection.
Sports licensing is following the same path and is poised for continued growth, driven by the Euro 2024. Two of the major sports brands in the world – Adidas and Puma – are located in Germany, fostering innovative products and strong collaborations.
What is the German market’s current position regarding international relevance and expansion potential for German brands?
The answer is twofold. On the one hand, we have a strong set of German brands with stable and successful businesses. On the other hand, I think the German market tends to be more conservative, avoiding risks in licensed products or collaborations. It is a successful market, providing rich business opportunities, but it may be tricky, and it has different nuances and angles in it.
Earlier, we mentioned gaming. Gamers and fandom members are looking for specific products and are willing to spend much more than average consumers when it comes to licensed products. But if you look a little deeper, you will find out that top gamers have developed their merchandise, and their own YouTube channel, building a sort of shadow world that is not accessible from the outside. It’s a different world, and gamers wouldn’t shop in big retail chains or outlets. The ordinary licensing business strategies don’t work with them.
There is room for growth, but it’s a complex dynamic, and brands need to be a little more creative and try to understand and manage this shift.
What is the added value that German brands can bring to international markets?
Attention to detail, product quality, and delivering real value are deeply embedded in the German mindset. Products are expected to serve a clear purpose and add meaningful value to consumers’ lives. It’s almost an engineering-driven approach, and we love it!
In your opinion, what will be the next major challenges that the German licensing industry has to face?
Tariff uncertainty is deeply affecting the market and it is the biggest challenge that the whole industry is facing.
Other than that, dealing with Gen Alpha will be a major challenge. This target has a small attention span, and they are not loyal consumers, so brands need to convey the right message within a short window of time – ideally within 8 seconds. Either you do right or fail. And how can the industry get quicker when jumping on trends? How to get quicker when dealing with product development, especially with the high expectations of fandom consumers when it comes to quality and attention to detail? Learning how to balance these demanding requests, with innovation and enough flexibility, is key. However, I think our market has proven very stable, so I’m optimistic.
Curated by Cristina Angelucci
Read the complete article in the Licensing Magazine Summer Issue, pages 94 – 96.
