Licensing show: green living, new properties
NEW YORK Leveraging name brands into health living and studios shopping new movie properties were some of the key trends at Licensing International 2007 in New York City June 19-21.
Show organizers expected a record turnout of 23,000 people this year – about a 10% increase over last year – and it showed on the convention floor with big crowds the first two days. While there wasn’t any one key trend that stood out, there were a few minor ones that were notable.
Mattel had a busy show, signing two major deals with Warner Bros. and it unveiling a new program to encourage vendors to become more eco-friendly. The 'Barbie B Cause' program uses Mattel’s toy icon as a spokeswoman for its effort to encourage licensees and customers to save energy and respect the environment.
“This is something we’ve been doing in-house for several years but we’re expecting to roll it out to the public as early as this fall,” said Richard Dickson, senior vp of marketing, media and entertainment for Mattel.
He said Mattel held a summit for key vendors earlier this year to talk about ways they can become more eco-friendly through things like recyclable packaging. “We don’t have any real guidelines for vendors right now but we explained there are some basic rules we’d like them to follow,” said Dickson. “That’s why we’re calling it 'Barbie B Cause,' because it’s the right thing to do and the right time to do it.”
Nickelodeon is taking a similar approach with its new effort to leverage popular brands into healthy living. Earlier this year, it teamed with General Mills to launch a line of 'Dora the Explorer' cereals with high fiber and low sugar and is now moving into pre-packaged fruits and vegetables as part of its Go Healthy Challenge.
“We’re looking to create kid-sized packages of fruit to give them an alternative to candy,” said Jonathan Finn, Nickelodeon’s vp of consumer products’ communications. “It’s an area that didn’t even exist for us a few years ago and we’re looking to sign more partners for 2008 and 2009.”
Disney and Target used the Licensing Show to unveil a deal that will give Target exclusive rights to a full line of new 'Little Einstein' merchandise from Disney starting in July. The company did not say how long Target would retain the exclusive rights to the line but said the staggered roll out would start with apparel and include toys, games, DVDs, books and other products in the 'Little Einstein' lineup.
“'Little Einstein' products have always sold exceptionally well at Target stores so there seems to be a natural affinity,” said Simon Waters, vp of global franchise management for infant, toddler and preschool for Disney Consumer Products.
And at a press conference at the show June 19, Disney Consumer Products chairman Andy Mooney said retail sales of product from Disney and its licensees is on track to hit $26 billion in fiscal 2007, more than double the $13 billion generated in 2002. More than $1 billion of that total for 2007 will come from 'Pirates of the Caribbean' merchandise and close to $2 billion from 'Cars' product.
And a few major studios signed master toy deals for big budget movies due in theaters in 2008. Paramount Licensing signed iToys to be one of its key toy licensees for 'The Spiderwick Chronicles,' a fantasy adventure film scheduled for release in Feb. 2008.
“We’re looking to do a custom toy line with two or three companies that will work closely with the film makers to create a unique product line,” said Michael Bartok, evp and division head of Paramount Licensing.
Warner Consumer Products signed Mattel as the master toy licensee for 'Speed Racer' and 'The Dark Knight,' two of its tent-pole releases for 2008. 'Speed Racer' is a new version of the classic 1960s cartoon series from brothers Andy and Larry Wachowski ('The Matrix') and 'The Dark Knight' is the second film in the renewed ‘Batman’ franchise.
On the first day of the show, the Licensing Industry Merchandisers Association (LIMA) reported that licensing royalties inched up 1.5% to $6.04 billion in 2006. As usual, entertainment-based properties led the way with 44% of the market followed by trademarks and brands with 18%. Apparel was the leading product category with 17% of the market and toys were a close second with a 15% share.