It is undeniable that the last 12 months have proven to be more challenging than expected. The political, economic and social climate around the world has been unsettling, to say the least, and Latin America has been no stranger to the phenomenon.
It has been two years since the pandemic was declared over and we are still dealing with the impact it has had on our countries, mainly on employment generation and cost of living in general. Amazingly, we are still suffering the effects of inflation and devaluation. Colombia went from having an exchange rate of around COP 3,000 for 1 dollar at the beginning of 2020 to almost COP 5K by the end of 2022. It is currently near to COP 4,000, which is still too high. Chile also saw its currency devalued, but not to the extremes of Colombia. Mexico has held up against the dollar, but the cost of living also skyrocketed.
If we add to this the turn of almost the entire continent towards left-wing governments, the result could not be otherwise. The economy received a devastating blow and consequently our industry has been directly affected. We have gone from reactivation mode to uncertainty and caution mode. That only means one thing, now everything takes more time and effort to materialize.
The context allows us to understand why negotiations that took place a year ago, or even a little more, are being closed now, or why, if the contracts were signed just a few weeks after Licensing Expo 2023, the product is still under development or just about to be launched on the market. Both licensees and retailers spent the last year waiting for market conditions to improve.
Things have changed little, in fact, at times they seem to be getting worse. That is why, this year’s article is entitled "Agent on a Mission".
It is in times like these when true agents get to show what they are made off and at KOPA we are on a mission: to be a real trooper for our clients and licensees. Several years ago we learned that in this business, and in our market, time and dedication are key. We made the decision to work with a select group of clients, in order to concentrate fully on each license.
Despite the difficulties, the results are noticeable and our client Global Merchandising Services is proof of this. We currently have six licensees and will soon add two more, one in Mexico and another in Ecuador. That is eight companies for a category that did not even exist in the region until four years ago. Thanks to the joint work of licensor, agent and licensee, today we can find Iron Maiden, Ozzy Osbourne and Motley Crue t-shirts in stores such as Koaj (Colombia), Suburbia, C&A, Cuidado con el Perro and Toxic (Mexico).
Selling Rock and Heavy Metal is not easy, besides knowing the property in depth, we have to really like the music, because it is the only way to think and feel like their fans, to understand them and genuinely connect with all of them. On the other hand, the search for the right licensee is equally demanding. For things to work and for the product to be successful, it requires a partner who feels and understands each band as another devoted fan, otherwise they will treat it as "just another license" and then complain because sales were not as expected.
During 2023 we had two launches that we even entered for the Licensing Awards. They weren’t nominated, but that doesn’t detract from their merit, both cases were very significant achievements.
In Mexico we partnered once again with Toxic to launch a striking apparel collection inspired by the metal band Ghost during its visit in September 2023.
The capsule included 16 SKUs featuring graphic tees, hoodies, denim jackets with embroidered badges, caps, backpacks and skateboards. Launching online and in 16 stores across popular Mexico City malls, plus 9 more pop-up stores.
The range was supported with dedicated windows and eye-catching displays, along with an engaging social media campaign encouraging customers to win tickets to the show and autographed memorabilia by the band itself. The response was overwhelming. Thousands of photos of fans in full costume and makeup flooded Toxic's Instagram account.
Toxic is a passionate licensee that continues to be at the forefront of the music/lifestyle category, delivering fulfilling experiences for its clients.
Later in November, Rock Activity launched in Colombia an apparel collection that captured the aesthetics and symbolism of the metal band Mastodon.
It included 11 SKUs between tees and hoodies and was available domestically through their website. It was launched prior to the concert with a photoshoot party, where guests were invited to participate as models while a radio celebrity bursted Mastodon’s notes through the speakers of an eclectic hotel in downtown Bogota.
By a terrific social media campaign, the licensee was able to engage Mastodon's fans who went crazy for the possibility of winning tickets to the show for its purchases and also meeting their idols.
It was a first-time experience for the artist, licensee and its customers. Before it no other artist was able to connect in such an emotional way. The photos of that day are proof of it. The licensee recently renewed its contract with Iron Maiden, Slayer and Ghost.
The news from Tetris is also very positive, as we continue to build Tetrimino by Tetrimino, the licensing program in the region. Current licensees The Brands Club (Chile) and Cornejotex (Ecuador) have been joined by Newarx and Black Storm, both from Mexico.
Newarx is currently working on a product line aimed at convenience stores, where we will soon see board games, mugs, pins and squishies.
Black Storm is also developing what will be its first clothing collection. The garments will be available at the renowned Liverpool chain in Mexico.
2024 is a very special year for Tetris, it's its 40th anniversary and we plan to celebrate it in a big way. For several months we have been working with Megan F. Buettner, Head of Consumer Products, on a unique project, which we hope to officially announce during the Licensing Expo.
The news from Godzilla is also good. Stilotex (Colombia) will soon launch a second clothing collection, aimed at the children's segment. Our beloved monster has found a new group of fans among the little ones.
We will continue on our mission and look forward to seeing you in Las Vegas!
May 2024
