The retail landscape in licensing is vital since it is the extension of the licensing world into real life. Consumers have become increasingly confident shopping online at the expense of brick-and-mortars, transforming global shopping patterns. The evolution of e-commerce is causing a shift in product selection as non-traditional channels increase their licensed merchandise lines, and single brand and pop-up stores expand. As omnichannel becomes increasingly important, s- and m-commerce thrive.
The retail landscape in licensing is incredibly important since it is perceived as the extension of the licensing world into real life. Global retailing sales recorded 3% growth in 2015 in constant terms. Steady constant value terms growth is expected to continue over 2016 to 2020. Asia Pacific is projected to account for 36% of global retailing sales by 2020, up from less than 34% in 2015.
Internet retailing (e-commerce) outperformed other retail channels consistently throughout the review period recording a CAGR of 21% over 2010-2015. Across all the key industries for licensing businesses, including apparel and footwear, traditional toys and games, beauty and personal care, home and garden, personal accessories and packaged food, the share of internet retailing rose between 2010 and 2015. It is also projected to be the most dynamic channel over 2015-2020 posting a 12% CAGR.
Thanks to years of infrastructure investment, many e-commerce companies have begun to grow their marketplace businesses, providing a well-established site where third party merchants can sell their goods. Top global marketplaces in 2015 included Alibaba, Amazon, eBay, JD.com and Rakuten.
While marketplaces increase the ease of doing business online, shoppers become more adventurous making an online purchase. Consecutively, product availability increases, and more licensed merchandise becomes accessible by a rising number of consumers.
In terms of internet retailing, China and India are unique markets where the licensing industry faces an entirely different set of e-retailers. Therefore, both licensors and licensees need to adjust their strategies accordingly. In 2015, China became the world’s largest internet retailing market, overtaking the US.
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