Licensing Industry Annual Report: The Future Looks Brighter - License
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Licensing Industry Annual Report: The Future Looks Brighter

Source: License! Global

Art


Art 2004-2008 (Click to view larger.)
The art licensing category continues to benefit from the need for retailers to offer product differentiation. A unique offering in any category gives consumers a reason to choose one retailer over another and artists license their work across every category from kitchen textiles to jewelry to publishing. Their influence reaches across all channels, as well. No longer the purview of specialty boutiques, artists' influence can be found on the shelves in every channel of retail from discounter to high-end department store.

A children's clothing line based on the picture book artwork of Todd Parr began selling at Nordstrom department stores nationwide. The collection, under the brand Planet Color by Todd Parr and created by Jen's Ideas, features tees, thermals, embroidered baseball caps and dresses for girls and boys ages 6 months to 6 years old.

2009 was a big year for Paul Frank Industries. The brand signed a slew of deals including for sportswear with apparel manufacturer Equipment Apparel and with American Greetings for greeting cards, gift packaging, stickers and party goods, in addition to deals for accessories, party goods, jewelry and infant products. Paul Frank signed similar deals outside of the U.S., as well.

Not to be outdone by the monkey, the bunny had a strong year in licensing. Jim Benton's character and publishing property It's Happy Bunny is partnering with Games2Win for online video games; Imagine Apparel Group for girls' sleepwear; Mystic Apparel for juniors' swimwear; and StickerYou for customizable stickers, decals, static clings and appliqués.

Overall, eco-friendly themes were a growing trend in the category such as The Scrap Kins from Brian Yannish Designs and PlanetPals and PeacePals.

Also growing in popularity was the licensing of well-known artist brands such as Andy Warhol, Salvatore Dali and the work of celebrity artist Tony Curtis.

Brands


Brands 2004-2008 (Click to view larger.)
Top consumer brands continued to look to licensing extensions not only to create incremental revenue, but also to keep names top of mind among consumers. In particular, the food and beverage category (see "Buffet of Brands") continued to be strong.

Among the several major announcements that characterized the past 12 months include: M&M's will create a product extension into home electronics (Brand Unlimited); Pinnacle's Duncan Hines brand will extend to bakeware (IMC); and GNC (General Nutrition Centers) will extend to food, fitness equipment and apparel categories (IMG).

Character/Toys


Character 2004-2008 (Click to view larger.)
The character/toy category was driven by some big names both on the big screen and the small screen. One of the stars of the 2008 holiday season was Bakugan. And while that brand remains a strong seller, a new powerhouse has emerged the last few months in toys based on Cartoon Network's Ben 10 franchise.

On the big screen, Hasbro had huge success with product based on its summer blockbuster Transformers: Revenge of the Fallen. Other big screen names creating buzz in toys included Star Trek, G.I. Joe and X-Men/Wolverine.

Not to be undone, a number of doll brands reinvented themselves and celebrated anniversaries over the past year. Mattel's Barbie celebrated its 50th milestone and rolled out new product across categories. Nickelodeon's Dora the Explorer grew up and launched, among other things, an interactive Dora for tweens with changing hair length and eye and jewelry color. American Greetings' Strawberry Shortcake also launched a new look appealing to tween girls.

MGA and Mattel spent much of the year embroiled in legal battles over the Bratz doll line, with Mattel eventually emerging victorious. MGA just recently announced two new doll lines called Moxie Girlz and BFC, Ink.

Even with the buzz surrounding these products, it was retailers who created the most buzz in the category. KB Toys went bankrupt leaving Toys"R"Us the first and only name in the toy specialty category. TRU subsequently acquired the KB brand, in addition to FAO Schwarz and a number of online players, including http://eToys.com/.

In addition, about 350 Toys"R"Us holiday-themed shops will open nationwide, including 80 pop-up stores in malls and shopping centers. The remaining locations will be in-store "Holiday Express" shops in Babies"R"Us stores.

Sears has also added toy departments to its stores. The sections measure about 1,800 square feet and feature about 800 to 1,000 SKUs, many of which are licensed product, targeted to the 3- to 5-year-old demographic.


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