The BrandTrends Group unveils some major findings from its most recent research, and some key facts can be extracted on how to boost sales quickly.
In the highly competitive world of consumer products for children, licensing of entertainment brands has emerged as a powerful strategy to drive sales and capture the attention of young consumers.
How to Boost Sales Quickly
There are numerous strategies available on how to boost sales quickly and capture the attention of potential customers. From implementing limited-time promotions to leveraging upselling and cross- selling techniques, social media marketing, collaborating with partners and influencers, one highly effective method stands out: incorporating well-known entertainment characters into your products. This strategy holds particular appeal for children, making it a powerful tool for driving sales.
By featuring popular and favorite characters, you tap into the strong emotional connection children have with these familiar figures. This association can instantly capture their attention and pique their interest, increasing the likelihood of a purchase. Whether it’s a toy, clothing, or any other merchandise adorned with a popular character, children are often drawn to them like magnets.
The presence of a well-known entertainment character not only attracts kids but also appeals to their parents or caregivers. Many parents are familiar with these characters through movies, TV shows, or books, and they understand the joy and excitement they can bring to their children. Consequently, they are more likely to view products featuring these characters as a desirable and worthwhile investment, leading to increased sales.
Additionally, leveraging well-known entertainment characters can enhance brand recognition and visibility. Characters that are already established in popular culture come with built-in fan bases and dedicated followings. By aligning your products with these characters, you tap into the existing fan base and benefit from their enthusiasm and loyalty. This can lead to greater exposure for your brand, as fans of the character become aware of and interested in your offerings.
But the key question is: does it work? And if so, the follow up question is by how much?
According to a recent survey conducted by our company, BrandTrends Group, in December 2022, it was revealed that an overwhelming 67% of parents globally would choose a product featuring a well-known character or entertainment brand over another product of equivalent quality, packaging, characteristics, and price.
Preferred Across All Categories
The influence of licensed products extends across a wide range of product categories, making them highly sought after by both children and their parents. From toys and games to stationary, clothing to food and drinks, and even personal care products, licensed merchandise consistently outperforms generic alternatives. The survey results indicate that 73% of respondents prioritize licensed toys and games, followed by clothing (71%), food and drinks (67%), stationery (59%), and even kids’ meals at fast-food restaurants (66%). This overwhelming preference for licensed products underscores their market dominance and highlights the crucial role they play in shaping consumer choices.
Captivating All Audiences, With A Strength On The Younger Ones
Licensed products possess a universal appeal that transcends age groups, captivating the hearts and minds of children across the spectrum. However, the survey data reveals that younger children, particularly those aged 3 to 6, exhibit a stronger attraction towards licensed products, with an impressive 72% expressing interest in them.
As children grow older, their interest in licensed merchandise remains extremely robust, but gradually wanes versus as they were younger. Indeed, they become more drawn to direct corporate brands in various sectors, such as fashion (Nike, Adidas, Lacoste …), cosmetics, and electronics (Apple, Samsung …), and therefore a go a little bit the Entertainment licensed products. This natural shift in preferences highlights the need for continuous adaptation and innovation within the licensing industry to maintain engagement with older age groups.
The Influence Of Household Income
While licensed products hold immense appeal for children across different income levels, the research findings demonstrate a notable correlation between household income and the propensity to purchase licensed merchandise.
The survey reveals that 61% of respondents from the lowest income quintile of households would opt for a licensed product when presented with an equivalent alternative, whereas this percentage jumps to 76% among the highest quintile of incomes. This indicates that even though licensed products enjoy widespread popularity, price considerations still play a role into consumer decisions and therefore the distribution of these products. As household income increases, the willingness to invest in licensed products becomes more pronounced, emphasizing the economic aspect that influences consumer behavior. The correlation between household income and the propensity to purchase licensed merchandise underscores the economic dimension that factors into consumer decisions.
Furthermore, it is important to highlight that parents often exhibit a greater willingness to make personal sacrifices in order to satisfy their children’s aspirations for specific brands, and even more on Entertainment products and on fashion. This further underscores consumers’ perception regarding the pricing of licensed products.
Three Key Factors
To thrive in the highly competitive market of licensed products, licensees must adopt a strategic approach that enables them to capture their target audience’s attention, engage them across multiple platforms, and cater to diverse income levels. By focusing on three key factors, licensees can position themselves for success:
- Dynamic alliances:
Building strong alliances with well-known and popular entertainment brands is essential. Licensees must prioritize collaborations that provide a laser-like focus on their target audience and enhance the overall appeal of their products. Additionally, maintaining high quality standards and creating attractive packaging that effectively showcases the licensed characters or brand will help differentiate their products in the market.
- Targeted engagement:
Licensees must stay at the forefront of trends and developments to understand the evolving interests and preferences of different age groups. This knowledge, which by the way is provided by BrandTrends Entertainment, can guide them in creating marketing strategies that specifically resonate with each target segment. Customizing marketing efforts, leveraging digital platforms, and developing interactive and immersive experiences, such as licensed mobile apps, games, and online platforms, will help to effectively engage tech-savvy children and adolescents.
- Inclusive value proposition:
Recognizing the influence of income levels on purchasing decisions, licensees should ensure their pricing and benefits are optimized to cater to a wide range of consumers. This can involve implementing tiered pricing structures, forging partnerships with retailers that cater to various income levels, and emphasizing the unique experiences, durability, and added features of licensed products compared to generic alternatives. Communicating any educational or developmental benefits associated with the licensed characters or brands will also contribute to developing a compelling value proposition.
In order to thrive in the ever-evolving market, licensees must demonstrate agility and adaptability, constantly seeking innovative approaches to engage consumers, broaden their product offerings, and harness emerging technologies. By embracing these strategies, licensees can effectively navigate the competitive landscape, seize the attention of their target audience, and generate increased sales in the realm of children’s products.
To achieve this, licensees can greatly benefit from the expertise and support of BrandTrends Group. With its wealth of information and insights, BrandTrends Group is well-equipped to assist licensees in developing robust strategies. Through their comprehensive understanding of market trends and consumer preferences, BrandTrends Group can provide valuable guidance in formulating effective marketing approaches, identifying emerging opportunities, and capitalizing on the latest advancements in technology.
This article originally appeared in Edition 5 of The Toy Universe Magazine