Sara Davies: ‘Licensing is Enormously Important’

Sara Davies MBE, entrepreneur and youngest female investor on BBC One’s long-running “Dragons’ Den” program, presented the keynote during Day Two at this year’s Brand Licensing Europe (BLE).  

Davies’ fireside chat with Ian Hart, senior digital director, License Global, called “Crafty Licensing: Transforming a Business Through Brand Licensing,” focused on Davies’ path in business, from founding Crafter’s Companion while still at university and growing it into a global arts and crafts business, to meeting the surging demand for creative hobbies during the pandemic.   

Davies talked about her early days of Crafter’s Companion, and how she found her niche in TV shopping, where she discovered a new audience who were new to crafting.  

“Through the process of storytelling, I convinced people to get into crafting,” says Davies. “We build a great brand, and this is how we came into licensing.”   

While highlighting her successes, Davies shared what she learned during a long legal battle in securing a patent, which she defended several times before securing it.  

“For me, it wasn’t business, it was personal,” says Davies. “If it went all wrong, it would have taken the business down.”  

Sara Davies MBE and Ian Hart in the day 2 Brand Licensing Europe Keynote

When Crafter’s Companion ventured into brand licensing, Davies saw it as a win-win for both licensor and licensee.  

“We do craft better than anyone else in the world,” says Davies. “It’s a very niche industry, but we have 20 years of experience. I know if you want to do licensing in craft, we understand the customer more than anyone. We can develop a story for a product that [a customer] needs. By licensing, we can bring this new customer base that would never have considered crafting. In my experience, two plus two is much greater than four. We’re going to create a demand with the product.”  

Crafter’s Companion signed a multiyear deal with Warner Bros. Discovery Global Consumer Products covering EMEA, North America and LATAM. The licensed Fan-Art Like a Pro range targets kidult millennials and fans of all abilities, with premium art kits to inspire fun, fandom and creative skills building. Licensing deals like this were years in the making, as Davies had her sights set on the U.S. since her business launched close to 20 years ago.  

“It’s about managing your expectations and building your brand,” says Davies. “I learned about licensing as we built the infrastructure. [When partnering] with Warner Bros., I worked in licensing for 10 years.” 

It was that experience with working on her brand and with other smaller brands that honed her business intuition, particularly in licensing.   

“There are many product companies out there just to license – that’s not what we do,” says Davies. “We develop the product. More companies are trying to get into the door without knowing much about the industry.” 

The craft and licensing business has changed less than five years after the pandemic, which may give an opportunity for independent companies looking to get into craft licensing.  

“The supply chain in craft industry has changed,” continued Davies. “A lot of the smaller companies, the bigger businesses go bust. That creates a lot of opportunity. You also have a lot more pressure on companies. The mental well-being side of craft was talked about, and new people got into. There’s a huge increase in demand. How do we deal in our industry with this new demand? Lean into the business and adapt to the change.” 

So, what makes a good brand licensing partnership for Davies? One word: Authenticity. “You can have the biggest brand with the world, but it won’t resonate with the customer without it,” says Davies.  

One of the ways Davies keeps her brand authentic is forecasting trends in her industry. With her position, Davies can help newer companies break into businesses.  

“When you have the position of authority, it’s a privilege,” says Davies “I can push the trends and share the story that goes with it. I’ll get wheeled all over the world to do a pitch. I do more listening than talking. I spend the time in the pitch getting the person to tell me about the business, then I can tell the story … even if it means readapting my pitch.” 

Davies’ transformation from businessperson to personality has helped her to raise her profile to a champion of the craft industry.  

“I like to use that opportunity to sell crafts, not Crafters’ Companion,” says Davies. “All the work I do now, it’s about getting new people into crafts. I want to be the Mary Berry of craft. I continue to make myself the queen of craft and opportunities will follow.”  

Davies urged the audience – and business owners – to broaden their horizons into licensing. “If we want to grow, we need to unlock new areas and bases, and it’s through licensing,” says Davies. “I know we can do it better than any business out there. Licensing is single-handedly the biggest opportunity.” 

After the chat, Davies fielded questions from the audience, particular those who had questions about launching their independent brand.  

“It needs to work for you,” advises Davies. “Do not just agree to things. Earn your stripes and learn the business.”