Winter 2018

THE HOTTEST LICENSED TOYS AT TOY FAIR 2018

Subway Surfers by SYBO Games VOLUME 35, NUMBER 1

Features 14 LIMA Survey As a new year dawns, licensing executives have positive prospects for 2018.

16 Transforming Toy Brands into Lifestyle Properties The Toy Association discusses how toy manufacturers are becoming increasingly focused on licensing their own brands.

19 Hot Wheels 50th Anniversary Special Section From the launch of the Custom Camaro in 1968 to the No. 1-selling toy in the world, we take a look back on 50 years of Hot Wheels.

Departments 27 Toy Fair 2018 Our annual look at the U.S. toy industry’s biggest event, with coverage of licensed products across all toy categories.

50 Building a Brand

Brand Finance breaks down the winning ways of today’s top brands.

58 Celebrity Right of Publicity

Wes Anson and Evan Loker of CONSOR discuss establishing value and royalty rates.

66 Keeping It on Brand Pablo Garrahan offers tips for creating effective video content.

8 Jackie’s Point 10 Industry News 12 Stat Shot 13 Toy Insider Events 18 Talking Social Media 31 A Look Inside: SYBO Games 54 Inside Retail 56 Euromonitor 60 Marketing Memo 62 Outside the Box 64 Of Counsel

THE LICENSING BOOK, Winter 2018 — “THE LICENSING BOOK” (ISSN-0741-0107) is published quarterly by Adventure Publishing Group, Inc.®, 307 Seventh Ave., Room 1601, New York, New York, 10001. Periodicals postage paid at New York, NY 10001 and additional mailing offices. © 2018 Adventure Publishing Group, Inc ®. All rights reserved. No part of this publication may be reproduced or transmitted in any form, or by any means, electronic or mechanical, including photocopying, recording any information storage and retrieval system, without permission in writing from the publisher. Printed in U.S.A. Subscription rates: $48 per year. THE LICENSING BOOK, THE LICENSING BOOK INTERNATIONAL, WORLDWIDE LICENSING and the “WLE” design, are trademarks and service marks of Adventure Publishing Group, Inc.® registered in the United States Patent & Trademark Office Postmaster: Send address changes to THE LICENSING BOOK, c/o Adventure Publishing Group, 307 Seventh Ave., Room 1601, New York, New York, 10001.

JACKIE'S POINT TOYS AND LICENSING GO HAND IN hand. Not only are the most popular kids’ licenses featured throughout all categories of the toy industry, but the hottest toys are branching out into additional consumer products categories with increasing prevalence. Manufacturers of top-selling toys are no longer content with simply adding new series, sizes, or characters to their lines (though they’ll certainly do that, too!). Makers of the hottest products in the toy industry, such as Hatchimals, Fingerlings, and L.O.L. Surprise!, are quickly taking on licensing partners both in and out of the toy aisles in hopes of “pulling a Shopkins” and turning into a 360-degree brand. The Toy Association’s Kristin Morency Goldman offers more on how toy manufacturers are transforming toy brands into successful lifestyle properties on page 16.

As we walk the aisles of North American International Toy Fair in New York this year, we hear more and more about the importance of content. The consumer experience with a property or brand is what drives its overall success. Interestingly, kids not only want to experience a brand, but they want to watch other kids experience it as well.

The YouTube unboxing phenomenon is still going strong. Kids will sit and watch other children unbox toys for hours.

They will watch other families visit Disneyland, Play Fair, or the Shopkins Pop Up Café. Today’s kids love content that feels real and organic. They feel as if they know these kids and families, and trust their opinions about toys. This innate

8 • The Licensing Book

trust of other kids and “real” people has led toy and other consumer products manufacturers to seek out partnerships and collaborations with well-known digital influencers for product reviews and promotions.

These partnerships can be extremely successful—or sort of underwhelming—depending on the strategy behind the collaboration. In order to get the most out of a relationship with a brand ambassador, there are some things to keep in mind. We asked Melissa Hunter, founder of Family Video Network—and perhaps best known as Mommy from the YouTube channel Mommy and Gracie Show—about the mistakes brands make when working with digital influencers.

Check out her take on page 18.

Also in this issue, the Licensing Industry Merchandisers’ Association’s (LIMA’s) Marty Brochstein shares with us the results of its 2017 survey. Despite a challenging year at retail, the survey reveals that licensing professionals have a positive outlook for the year ahead, with most expecting increases in their licensing business. Take a look at page 14 for the results of the survey.

Enjoy this issue of The Licensing Book, and if you’re attending Toy Fair, be sure to stop by booth 1801 and say hello!

Jackie Breyer is editor-in-chief and co-publisher of The Licensing Book, and editorial director at Adventure Publishing. She has been reporting on the toy and licensing industries for 15 years. Contact her at jbreyer@ adventurepub.com.

Adventure Publishing Group Inc.® Vol. 35, No. 1, Winter 2018

Laurie Schacht President laurieschacht@aol.com Jonathan Samet Co-Publisher jsamet@adventurepub.com Jackie Breyer Co-Publisher/Editorial Director jbreyer@adventurepub.com Marissa DiBartolo Senior Editor mdibartolo@adventurepub.com Ali Mierzejewski Senior Editor amierzejewski@adventurepub.com Maddie Michalik Associate Editor mmichalik@adventurepub.com Stephanie Grassullo Assistant Editor sgrassullo@adventurepub.com Kristen Nelson Assistant Editor knelson@adventurepub.com Jacqueline Cucco Editorial Assistant jcucco@adventurepub.com Kelly Corbett Editorial Assistant kcorbett@adventurepub.com Joe Ibraham Art Director jibraham@adventurepub.com Bill Reese Production Director breese@adventurepub.com Lori Rubin Comptroller lrubin@adventurepub.com Adventure Publishing Group, Inc.® 307 Seventh Ave., Suite 1601 New York, NY 10001 Telephone: (212) 575-4510; Fax: (212) 575-4521

Winter 2018

LICENSING NEWS Cartoon Network Cruise Ship to Set Sail This Year

Cartoon Network Wave

Turner partnered with Oceanic Group, an Asia-Pacific cruise management company, to launch Cartoon Network Wave, a fully branded ship inspired by Cartoon Network characters.

The ship will set sail from its Singapore home port later this year. The 11 guest deck, 2,000-guest Cartoon Network Wave is the first immersive Cartoon Network vacation at sea.

Cartoon Network Wave’s theming and onboard experience is inspired by Cartoon Network characters from TV shows including Adventure Time, Ben 10, The Powerpuff Girls, and We Bare Bears. This includes a variety of entertainment, activity, and recreation features, as well as retail, food, and beverage options.

Cartoon Network Wave will dock at the Singapore Cruise Centre and sail to 13 destinations in the Asia Pacific region, including Singapore, Malaysia, Thailand, China, Taiwan, South Korea, Australia, and Japan.

Online bookings for Cartoon Network Wave will start later this year. More details on booking dates and itineraries will be available at cartoonnetworkwave.com.

LIMA to Induct Elias Fasja-Cohen, Brian Goldner into Licensing Hall of Fame

Mattel, NetEase Launch Mobile Games Studio Mattel163

The International Licensing Industry Merchandisers’ Association (LIMA) named Elias Fasja-Cohen, CEO and founder of Tycoon Enterprises, and Brian Goldner, chairman and CEO of Hasbro Inc., as the 2018 inductees to the LIMA Licensing Hall of Fame. This year’s Hall of Fame Induction will take place May 22 at the LIMA Licensing Awards Ceremony during Licensing Expo 2018 in Las Vegas.

Fasja-Cohen co-founded Tycoon Enterprises in 1990, professionalizing the licensing business in Mexico and opening the doors of the Mexican market to major licensors. Under his leadership, Tycoon extended its structure to offer licensors consistent and simplified service throughout Latin America.

As Chairman and CEO of Hasbro Inc., Goldner is responsible for toy and game innovation, entertainment experiences, digital gaming, and consumer products for the company’s brands. Since joining Hasbro in 2000 and taking on the role of CEO in 2008, Goldner has been instrumental in transforming Hasbro from a traditional toy and game company to a global play and entertainment leader.

Candidates for the LIMA Licensing Hall of Fame must be actively involved in the business of licensing for a minimum of 15 years and must have made contributions with ongoing relevance to the industry. Inductees are selected by the LIMA Board of Directors based on industry recommendations.

Mattel Inc. entered a joint venture with NetEase Inc. to form Mattel163, a publishing and development studio.

The studio aims to bring to market a wide variety of digital experiences based on Mattel’s global brands.

NetEase is a global internet technology and video game company that develops mobile gaming franchises, including Fantasy Westward Journey, The Ghost, Onmyoji, Rules of Survival, and more.

Mattel163’s first title will be based on Mattel’s UNO game, which is now available on Facebook Messenger and coming soon as a mobile app to iOS and Android devices. The company plans to create more mobile games and education apps inspired by Mattel brands, including Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and more.

Inspired by NetEase’s heritage as an internet technology pioneer, the name Mattel163 is an homage to the company’s original URL—http://www.163.com—a reference to early days of internet availability in China when users dialed the digits “163” to gain online access.

10 • The Licensing Book

Winter 2018

RHCB Expands Wonder, Dream World Brands at New York Toy Fair Random House Children’s Books (RHCB) will launch Wonder and Dream World product lines at the North American International Toy Fair in New York City, taking place Feb. 17 to 20. Over the past year, RHCB deepened its investment in the developing author and illustrator properties to extend brand equity, build consumer engagement, and generate new revenue streams.

The Wonder and Dream World brands are based on books by authors R.J. Palacio and Emily Winfield Martin, respectively. Following last year’s theatrical release of Wonder in movie theaters, RHCB’s new collection targets kids ages 8 to 12 and encourages kids to #ChooseKind.

Multi-year partnerships for the Wonder line include Clarkson Potter for stationery and journals available at Target, Barnes & Noble, and more; Changes for T-shirts available at Hot Topic; Out of Print Clothing for accessories; Raymond Geddes for anti-bullying-themed classroom supplies; and SG@NYC for jewelry available in speciality stores and online. YOTTOY Productions’ new We’re All Wonders Auggie plush will be introduced at Toy Fair and will launch in the spring.

Dream World by Emily Winfield Martin is a new lifestyle brand geared to millennial moms of infants and toddlers. Partners for the program include Finn + Emma for apparel, accessories, and toys; Milestone for special moments memory cards; New York Puzzle Co. for puzzles; MerryMakers for plush; and Kids Preferred for nesting blocks, soft books, and bookends.

Wicked Cool Toys Unveils Pokémon Product Line at Global Toy Fairs

LEGO Expands Jurassic World Partnership with Construction Sets, Lifestyle Collections, and Animated Content

Wicked Cool Toys unveils its new Pokémon product line at the 2018 International Toy Fairs in London, Nuremberg, and New York. The company was awarded the master toy license from The Pokémon Co. International for the brand, and will deliver a line of action figures, plush, role-play, and other toys based on the Pokémon animated series.

This line is expected to arrive at retail locations in worldwide markets—excluding regions in Asia—in the fall.

The LEGO Group will offer an expanded line of construction sets, new animated content, and, for the first time ever, a lifestyle collection to add to its Jurassic World line of products. In anticipation of the upcoming global theatrical release of Jurassic World: Fallen Kingdom in June, the company will debut construction sets that span every LEGO age category, two animated videos, and a collection of soft lines and publishing to reach audiences beyond the toy aisle.

In support of the theatrical launch of Jurassic World: Fallen Kingdom, LEGO will globally launch 13 constructions sets that span across the various LEGO play categories: LEGO Systems for kids ages 6 and up, LEGO Juniors for kids ages 4 to 7, and LEGO Duplo for kids ages 2 to 4, plus a collectibility offering with LEGO BrickHeadz, available this spring only at Walmart. The sets will hit shelves in April, with retailer exclusives at both Toys “R” Us and Walmart. Additionally, fans will find new soft lines and publishing offerings available later this year.

A selection of the LEGO Jurassic World: Fallen Kingdom sets were revealed for the first time last month, including LEGO Blue’s Helicopter Pursuit, LEGO Juniors T. rex Breakout, and LEGO Duplo T. rex Tower.

Pokémon Litten Figure

Winter 2018

The Licensing Book • 11

STAT SHOT

TOP 10 DOLLAR GROWTH TOY PROPERTIES IN THE U.S. Hatchimals L.O.L. Surprise!

Disney•Pixar Cars PJ Masks LEGO Batman Disney Moana/ Vaiana/Oceania Fingerlings Total DC Comics Beyblade The NPD Group/ Retail Tracking Service

Transformers $0

$50

$100

$150

$200

$250

Dollar Change 2017 vs. 2016 ($MM)

DOLLAR SALES, U.S. TOY INDUSTRY, SUPERCATEGORIES* SUPERCATEGORY

ANNUAL 2016

CHANGE

Action Figures & Accessories

$1.37 billion

-5 percent

Arts & Crafts

$895.2 million

-8 percent

Building Sets

$1.85 billion

-6 percent

Dolls

$3.02 billion

4 percent

Games & Puzzles

$2.09 billion

Infant, Toddler, & Preschool Toys

$3.24 billion

1 percent

Youth Electronics

$586.4 million

1 percent

Outdoor & Sports Toys

$3.76 billion

1 percent

Plush

$1.26 billion

8 percent

Vehicles

$1.42 billion

-3 percent

All Other Toys

$1.25 billion

15 percent

GRAND TOTAL

$20.74 billion

1 percent

3 percent

*Approximately 80 percent of U.S. toys retail market. Source: The NPD Group Inc./Retail Tracking Service. Projected to 100 percent of the market, the U.S. toy industry is estimated at about $27 billion.

12 • The Licensing Book

Winter 2018

TOY INSIDER EVENTS

SWEET SUITE & HOLIDAY OF PLAY: THE BEST WAY TO REACH INFLUENCERS & PRESS

ON JULY 11, THE TOY BOOK AND THE TOY INSIDER WILL HOST the ninth annual Sweet Suite event, known as the BIGGEST Night of Play, at Pier Sixty in New York City. The event will welcome more than 250 digital influencers, 150 members of traditional press, and 80 toy brands and licensors to meet face-to-face and get hands-on with the hottest toys, games, and content of the season.

Guests will enjoy delicious food and cocktails, all while getting a first look at new product reveals and making new industry connections. Last year at Sweet Suite, guests enjoyed one-on-one time with representatives from more than 80 of the hottest kids’ brands and properties on the market, including Nickelodeon, Cartoon Network, Hasbro, Mattel, VTech, LeapFrog, Just Play, Warner Bros. Interactive Entertainment, Spin Master, Moose Toys, MGA Entertainment, K’NEX, LEGO, and more.

For the second year in a row, Sweet Suite will partner with top YouTube creators to bring Sweet Suite Live—a livestream of toy unboxings—to the event floor. Top sponsors will create custom boxes for YouTubers to open live on camera in the special Sweet Suite lounge, while thousands of followers watch the fun from home.

Last year, channels such as Mommy and Gracie Show, That YouTube Family, Little Lavignes, Kitties Mama, Kid Toy Testers, and more participated in the fun.

Enormous swag boxes will also be shipped directly to attendees’ homes after the event, sparking a resurgence in social media impressions and ensuring influencers and journalists have products on-hand to review and share with their followers.

For the first time ever, Sweet Suite will feature “What’s Poppin’?!,” a special area dedicated to the latest toys, games, and more

Winter 2018

surrounding pop culture brands. This exclusive section will allow influencers and the media to get up close with the coolest products surrounding their favorite fandoms, including superheroes, video games, comics, collectibles, and more.

Want to make a BIG impression at Sweet Suite 2018? Platinum and Title sponsors are invited to host their own private events on July 10, the morning of July 11, or July 12. Throw a party for select groups of influencers, theme the experience toward a new brand or product launch, or just get to know top-tier influencers in a more intimate environment! What you do is up to you; we’ll provide the influencers, promos, pre-event support, and more! All special events will be coordinated by Melissa Hunter of Family Video Network and Mommy and Gracie Show.

On Thursday, September 20, The Toy Book and Toy Insider team will host the seventh annual HoliDAY of Play event in New York City, where members of the media will be the first to see the Toy Insider’s Hot 20, Top Tech 12, and STEM 10 hot holiday toy picks, as well as meet with top manufacturers just before the holiday season.

This one-of-a-kind cocktail party will welcome traditional press, top lifestyle bloggers, and YouTube personalities to engage with sponsors and experience the top holiday toys. Just in time for a firstlook at the hottest holiday toys, HoliDAY of Play is a great place to show off new products and be a part of the first round of holiday shopping coverage. •••• If you’re interested in learning more about these events, contact Laurie Schacht at thetoyinsidermom@gmail.com.

The Licensing Book • 13

LIMA UPDATE

LIMA SURVEY:

OPTIMISM REIGNS DESPITE CHALLENGES THAT LIE AHEAD

by MARTY BROCHSTEIN, senior vice president of industry relations and information, Licensing Industry Merchandisers’ Association (LIMA) chandise distribution platforms are changing. One U.S.THE CALENDAR HAS NOW FLIPPED TO 2018, based agent points optimistically to “excitement and and licensing executives remain an optimistic lot, but energy coming from online/on-demand retailers.” with a firm grasp on the issues that face their companies Even as optimism reigns in many corners, there’s and the business as a whole in the coming months. still acknowledgement of the challenges that lie ahead.

They’re coming into the year with generally good Not surprisingly, the word “consolidation” pops up frefeelings. Among respondents to LIMA’s annual end-ofquently in the responses—particularly since the survey year Global Licensing Industry Outlook Survey of licenswas conducted just as Disney’s prospective purchase ing professionals, 69 percent reported increases in their of a large chunk of 21st Century Fox was announced. licensing business in 2017, including 38 percent report“The centralization of all major brands in only one player ing increases of 7 percent or more.

And, they mostly expect the good times to keep roll- makes it even tougher to get to the consumer,” says an agent in Mexico. ing. Almost the exact same percentage—65 percent— And it’s not just Disney, as some acknowledge major expects increases in 2018, with 24 percent forecasting challenges facing the licensing business in the next two gains of 7 percent or more in their licensing business. years. “Outcomes with the merger of For retail as a whole, busiDisney and Fox, and potential others ness surged to a 4.9-percent “We are in an era of a such as Hasbro and Mattel is going gain in the U.S. this past holito be a big one,” says a marketer for day season, according to the new shopping pattern a U.K. firm.

Mastercard SpendingPulse being established and, as One French consultant respondreport, which measures retail ing to the LIMA survey doesn’t point business across all payment licensors, the challenge is a finger at any specific companies, types. This is the largest seato stay open-minded to but rather notes that, “Supply and sonal jump in six years. Online demand for franchises will continue shopping jumped 18.1 percent, new ways of doing to be off balance, and this will probabut Mastercard also reported business.” bly get worse. Hundreds of franchises that specialty and department [are] offered but retailers (all under store business showed “moderpressure, especially brick-and-mortar) ate” increases, which is “partic[are] only buying Star Wars, Frozen, Paw Patrol—[a] very ularly impressive given recent store closings.” short list actually.”

Now that the holidays are over, the spotlight falls on There is other imminent consolidation that stretches the number of major brick-and-mortar retailers who plan well beyond the toy and juvenile entertainment busito close several stores. Walmart’s Sam’s Club abruptly ness. A proposed merger of Discovery and Scripps shut 63 locations, Macy’s announced 11 closings for Networks Interactive, expected to close early this year, 2018 as part of a lengthier plan to close more than would bring licensing-rich properties, such as HGTV and 100 locations, Sears and Kmart will close 103 locations the Food Network, among others, into the Discovery combined, and Toys “R” Us announced on Jan. 23 it is family. Hearst’s acquisition of Rodale is also expected to planning to close 182 of its Toys “R” Us and Babies “R” close early in the year, and Meredith Corp.’s acquisition Us stores across the U.S. of Time Inc., which was announced in late November, is So what’s feeding the good feeling with which the slated to happen during the first quarter. executives are entering the new year? A few themes The challenges go far beyond big business combicome to the fore, many of them related to ascendant nations. There are also the effects of other commercial technologies and digital entertainment platforms. Sevand societal forces, such as the velocity with which coneral entertainment-oriented licensees and licensors cite sumers adopt and subsequently move on from brands, positive licensing signs from the over-the-top market. cultural heroes, and trends. A sports licensor in the U.S. There was “some success with new licensing programs points to the challenge of “establishing relevancy and being launched off digital channels, such as YouTube lasting connection with younger demos that are relucand Netflix,” wrote one licensor. A sports licensor points tant to make long-term commitments, and tend to have to “the rise of eSports.” And, of course, digital mer-

14 • The Licensing Book

Winter 2018

Do you expect your company’s business in licensed goods in 2018 to: 1.8%

1.8% 5.4%

25.5%

21.8%

Increase 1%-3% Increase 4%-6% Increase 7% or more Remain flat Decrease 1%-3% Decrease 4%-6%

23.6%

Decrease 7% or more 20.0% Source: LIMA’s Global Licensing Industry Outlook Survey

fleeting engagements with brands.”

Similarly, an art licensor points to macro forces. The industry, writes this executive, needs to confront “major brand fatigue, and [to continue] to figure out what ‘the new normal’ is for the retail industry. We are in an era of a new shopping pattern being established and, as licensors, the challenge is to stay open-minded to new ways of doing business.”

“In general, brick-and-mortar [retailers] are struggling to increase in-store shopper traffic and gain a greater share of consumer spending dollars,” writes an agent in the U.S. “More shoppers are spending dollars online or not shopping as much as they used to. Millennials [are] looking for immersive experiences and not so driven by acquiring more possessions. So, the traditional licensing opportunities and deals are more difficult to close. It is much more difficult to get healthy advances and minimum guarantees, if at all. Consequently, cash flow for licensors is an issue.”

A Japanese licensing consultant is concerned about unreasonable expectations for businesses getting into licensing for the first time, unprepared for the challenge.

“Lots of companies are entering the licensing business, simply expecting more profits, but with very scarce understanding over the business. You cannot earn money in a day or two, without a clear strategy over the brand or property and continuous effort to market.”

Winter 2018

In the end, writes one philosophical licensing agent, “It’s still a competitive slog for retail attention. But that’s how it always has been and always will be.”

The Global Licensing Industry Outlook Survey is one of the research projects that LIMA produces each year, free for members. There’s also our Annual Global Licensing Survey—a detailed look at the how the business breaks down both regionally and in the top 50 countries around the world. LIMA offers members free access to custom twice-a-year reports from Kidz Global on kids’ perceptions of their favorite characters, entertainment vehicles, and licensed brands in more than 40 countries.

We’ll add other research in the coming months. ••••

Marty Brochstein joined Licensing Industry Merchandisers’ Association (LIMA) in 2008.

Brochstein was a business journalist for more than 20 years, covering consumer products and retail industries. He spent five years as a senior editor of Television Digest and was the founding editor of Consumer Multimedia Report. He was also editor of Consumer Electronics Monthly and Electronics Merchandising, and spent time with Discount Store News, Chain Store Age, and Home Furnishings Daily.

The Licensing Book • 15

TOY LICENSING

INSIDE LOOK:

Transforming Toy Brands into Successful Lifestyle Properties

by KRISTIN MORENCY GOLDMAN, communications specialist/content developer, The Toy Association WITH LICENSED PLAYTHINGS ACCOUNTING FOR more than 30 percent of total toy sales in the U.S., it’s safe to say that it’s a lucrative business. And while toys based on entertainment properties have done well for several decades, toy companies are becoming increasingly focused on licensing their own brands—and doing an incredible job of it.

To learn more about this ongoing trend, The Toy Association spoke with industry experts and toymakers who successfully transformed their properties into bestselling brands that cut across multiple consumer categories—from apparel and fashion to backpacks and school supplies.

WHAT THE EXPERTS SAY Sean McGowan, toy analyst and managing director at Liolios Group, says that it’s common practice for toy companies to start thinking about licensing opportunities before the first piece of plastic ever hits retail shelves. According to McGowan, Hasbro set the model for this practice. “When they evaluate new ideas, one of the key criteria is how well the property can be licensed out,” he says. “Other companies have seen the

WowWee’s Fingerlings

16 • The Licensing Book

success of this ‘brand blueprint’ and have followed it in a disciplined way. The effect has been to shorten the time between the success of a toy and the roll out of the licensing program.”

When a company enters the licensing space wisely, the payoff can be huge—not only are the profit margins very high, but many companies also see a surge in brand loyalty.

“With the ubiquity of licensing, kids have become more enamored with—and more loyal to—their favorite brands,” says Adrienne Appell, trend expert at The Toy Association. “They’ll love the toy first, and then want to incorporate that brand or character into every aspect of their daily lives. For many companies, extending the life cycle of their property into other categories simply makes a lot of sense.”

MOOSE TOYS Moose Toys’ Shopkins brand well surpassed its beginnings as a collectible toy. Today, it’s a cross-category franchise that has more than 220 licensees and 15 agents supporting the brand’s global growth.

While it may be a current trend for toy brands to branch out to other categories through licensed product, the brand DNA still needs to ring true to these extensions, according to Dianne Bellchambers, head of licensing at Moose Toys.

“A hot toy brand is no longer all that is required for success in the licensing space. To be successful in a broader licensed program, toy brands need to be robust with a clear identity that captures

Winter 2018

their audiences’ attention and continues to engage and delight fans,” says Bellchambers, adding that the Shopkins brand is a great example of this, with a licensing portfolio that continues to grow at a rapid rate.

A new Shopkins home-entertainment release is scheduled for the first half of this year, as well as a new partnership with Pez. “We are also very excited that we have secured the first licensing partners for Shopkins Cutie Cars, including Scholastic for books, Mighty Kingdom for a mobile app, and many more that we can’t talk about just yet—but you will be sure to see a bigger rollout this fall,” says Bellchambers.

WOWWEE WowWee hit the proverbial jackpot last year with the release of its Fingerlings toys, and the company is poised to build on the momentum this year with exciting new items that further engage children’s imaginations within the Fingerlings fandom, says Richard Yanofsky, co-founder and president of WowWee. Licensing initiatives throughout entertainment, accessories, clothing, and more will “bring to life new environments and contexts for kids to play in and express their personality,” says Yanofsky. “We are also working to create real-life characters in the Fingerlings family so that audiences can engage with the brand on a real and relatable level.”

WowWee’s skilled use of technology in creating relevant toys for kids helps set the company apart from competitors. “Our objective is always to take known and loved characters and really expand on their presence within the real world and pair it with the most complex advanced technology to create a tangible experience for kids to power the story,” says Yanofsky.

MGA ENTERTAINMENT Known for its top-selling toy brands L.O.L. Surprise! and Num Noms, MGA Entertainment has an expansive licensing program with upwards of 80 global licensing partners in key categories for each property, spanning toys, apparel, accessories, home, beauty, party, publishing, craft and activity, and stationery. The company’s approach to licensing has remained the same over the past several years, but the portfolio has expanded, says Isaac Larian, CEO of MGA Entertainment.

“Through a variety of channels, including YouTube, we have tapped into the collectible and mystery pack toy unboxing craze and have seen incredible success creating brand loyalty among consumers without needing a traditional entertainment model as a starting point,” says Larian, adding that the company focuses on the most popular attributes of its toys when building out

Winter 2018

MGA Entertainment’s L.O.L. Surprise!

its licensing programs.

For example, knowing that Num Noms are bestloved for their scents, the company ensured that all licensed product based on the collectibles are scented—even bedding and apparel. And the L.O.L. Surprise! board game keeps players on their toes with fun surprises that fans of the brand have come to expect, says Larian.

Looking ahead, Larian says that MGA will continue to put the consumer first and focus on creative and unique licensed products that tap into the brand attributes that are most popular with fans. •••• For more insight into toy, game, and licensing trends, be sure to attend The Toy Association’s Toy Trends Briefing at the 115th North American International Toy Fair. Information about the free seminar is available in the Knowledge Network section at toyfairny.com.

As The Toy Association’s communications specialist and editor of its Toy News Tuesday weekly e-newsletter, Kristin Morency Goldman stays abreast of the latest economic data; safety standards; trends; and toy-, play-, and youth entertainment-related news.

The Licensing Book • 17

TALKING SOCIAL MEDIA

FIVE KEY MISTAKES

BRANDS CAN MAKE WHEN WORKING WITH INFLUENCERS

by MELISSA HUNTER, founder, Family Video Network INFLUENCER MARKETING IS ONE OF THE BEST ways to connect with consumers and inform them about your brand and products. Lots of companies are leveraging this key medium, but not all companies are doing it right. As you prepare for your next influencer activation, be sure to avoid these five easy-to-make mistakes.

CHOOSING INFLUENCERS BY THE NUMBERS Many searches for influencers start by looking at view counts, subscribers, or followers, and choosing those with numbers that are in the millions. This is certainly a quick and easy way to choose an influencer, but is it the right way to choose the person or people who will continue to be associated with your brand after your planned integration ends?

You need to be careful with whom you entrust your brand. While numbers need to be considered, your search should start with looking for influencers who have content that is similar in tone, attitude, and values to your brand. Take the extra time to look at each influencer’s content to make sure that they are safe representatives for your brand.

Also, check out branded content they already produce. How well do they convey a brand’s message?

Does their branded content stick out like a sore thumb among their standard fare? What type of response does their branded content get from their audience? Nothing is worse than working on an influencer campaign that

provides no actual influence with your target audience.

BEING A CONTROL FREAK Choosing an influencer because you love their style, voice, and level of professionalism, and then micromanaging the entire integration is a total waste of your time and theirs. At the outset of your engagement with an influencer, clearly communicate your messaging and what you want to ultimately achieve through the integration. If there are critical talking points that you need the influencer to communicate, let them know what those are. If there are specific phrases or terminology that you need to have conveyed, clarify that. But then step back and let them do their thing! Do not present them with a brief that is actually a script, or ask them to make excessive edits to their content. Influencers are not actors, they are creators, so let them be creative.

Let them present you with their vision for how best to share your product and messaging with their audience.

Remember that it is their audience. Allowing influencers to take the lead and express themselves will result in a strong relationship and, most importantly, you will have an integration that yields the best results.

THROWING PRODUCT AND MONEY OUT THE WINDOW You may have obtained a mailing list of influencers, briefly looked through their content, and decided that several of them might be a good match for your brand. You pack up your product and ship it off to those influencers and await the flood of coverage, only to become disappointed when you receive a trickle of coverage.

Before you start shipping product to influencers, you need to contact them to make sure it is something they want to feature. Otherwise, you have absolutely no idea if your product is of any interest to them, or if they require monetary compensation. They might even have a production schedule that doesn’t line up with your promotional timeline. From the influencer perspective, nothing is more frustrating than receiving something out of the blue with no context.

Look for sponsored content: This sponsored Instagram post from The Rock Father promotes Spin Master’s Hero Droid BB-8. Instead of a simple product shot, this influencer strategically poses his daughter dressed as Rey alongside BB-8, making this post completely unique.

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CONTINUED ON PAGE 65 Winter 2018

{

EVERY HOT WHEELS CAR CREATED IS ON THE FOREFRONT OF DESIGN AND PERFORMANCE...

What is it like to lead the global design team of the No. 1 selling toy in the world?

Hot Wheels is a brand that spans threegenerations of consumers, and it’s an honor to work on a brand that so many people have grown up with. I feel like I have one of the best jobs in the world, I get to share my passion for cars, toys and design, in addition to working with a team that is smart, dynamic, passionate and FUN!

}

How has Hot Wheels’ design changed over the past 50 years?

With the growth of technology and new processes Hot Wheels design has evolved over the past 50 years, and the outcome every year is to create some of the coolest-looking toy cars on the market. What hasn’t changed is that every Hot Wheels car created is on the forefront of design and performance.

What is your design team’s background?

The Hot Wheels design team is a group of passionate professionals that come from all walks of design-automotive, entertainment, action sports and industrial. Every person on the team brings a different perspective and the result is always a product that delivers thrilling vehicle experiences.

What is your all-time favorite Hot Wheels toy?

Hot Wheels Criss Cross Crash has been in the Hot Wheels line for almost 40 years, and to this day it’s one of the bestselling track sets. Every time you put this toy in front of a kid they are mesmerized by the racing, crashing and smashing.

What is happening in the Hot Wheels world in 2018 that you are most excited about?

Hot Wheels has a ton of new toys that play into the entire system of play, but I am most excited about Hot Wheels Augmoto hitting shelves later this year. When we incorporate digital into a toy we want to make sure it enhances the play experience and this toy does just that.

Hot Wheels Augmoto is the first racing platform that combines gameplay of Hot Wheels electric cars and AR technology to provide the next generation of smart racing.

Kids can race their cars on a physical track and bring the set to life with a loop of fire, oil spills, fireworks and a recharge pit lane.

This toy takes what is great about classic Hot Wheels play and brings it to life in an engaging way through digital.

What car do you drive?

A Black Porsche 911S, with Hot Wheels stickers on the windows. Each sticker adds 30HP!

ADVERTISEMENT

Answers:

1. HOW MANY Hot Wheels have been produced since 1968?

a. 50 million

b. 68 Million

c. 6 Billion

d. 68 Billion

2. Which was the FIRST Hot Wheel’s DIE-CAST car off the line?

a. Deorra b. Silhouette

c. Custom Mustang

d. Custom Camaro

3. How many Hot Wheels are produced per YEAR?

a. 100,000

b. 1 million

c. 519 million

d. 968 million

4. How many Hot Wheels are produced a WEEK?

a. 10,000 b. 200,000

c. 1 Million

d. 10 million

5. How many Hot Wheels are produced per SECOND?

a. 6.5 b. 10

c. 16.5 d. 21.5

6. How many WHEELS are produced per year?

a. 900,000

b. 2 billion

c. 10 billion

d. 136 billion

7. How many MILES OF ORANGE TRACK are produced each year?

a. over 6,000 b. 10,000

c. over 50,000 d. 100,000

8. How many DIFFERENT variations of Hot Wheels cars exist?

a. 20,000 b. 35,000

c. 68,000 d. 89,000

9. HOW MANY Hot Wheels does the average kid own?(in the US)

a. 12 b. 35

c. 45 d. 68

10. How often is #HOTWHEELS shared on social media?

a. every 30 seconds

b. every 2 hours

c. once every day

d. 10 times every week

11. Hot Wheels have remained about $1 for how long?

a. Since 2000

b. Since 1981

c. Since 1975

d. Since 1968

12. Which was the FIRST LIFE-SIZE Hot Wheels

replica car, built?

a. Rodger Dodger

b. Deorra II

c. Twin Mill d. Boneshaker

1. 6 Billion 4. 10 million 7. over 6,000 10. every 30 seconds

2. Custom Camaro 5. 16.5 8. 20,000 11. Since 1968

3. 519 million 6. 2 billion 9. 45 12. Twin Mill

Toy Fair 2018 WINNING MOVES GAMES With Monopoly The Card Game, players experience the fun of the classic board game with the gameplay of Rummy. Players draw and trade cards to build the most valuable hand of Monopoly cards before their opponents.

Designed for players ages 8 and up, the deck includes property cards, token cards, house and hotel cards, and free parking that all add to a player’s payoff.

Rubik’s Tower is a twist on the original Rubik’s cube. Designed for kids ages 8 and up, the tower combines two two-by-two Rubik’s cubes that stack on top of each other, rotating around a central axis to create a twisty puzzle.

HASBRO Inspired by Marvel’s upcoming Black Panther film, Hasbro introduces a new line designed for kids ages 5 and up. The Marvel Black Panther Vibranium Power FX Mask features a flip-down lens for two ways to play, and has a button on the side for light effects. The Marvel Black Panther Vibranium Power FX Claw features slashing sound effects and lights that are activated with surface contact.

The Marvel Black Panther Nerf Vibranium Strike Gauntlet looks like the head of a panther and is inspired by the technology worn by Shuri in the movie.

The My Little Pony line expands with the My Little Pony Singing Rainbow Dash Figure. Designed for kids ages 3 and up, the pony figure sings five songs and says phrases when kids push her cutie mark. She comes with sunglasses and a microphone kids can use to join in on a duet.

Designed for kids ages 3 and up, there are two new play sets inspired by the storyline in My Little Pony: Friendship Is Magic season eight. The My Little Pony Pinkie Pie Beats & Treats Magical Classroom comes with a 3-inch Pinkie Pie figure and is double sided so kids can play out baking lessons on one side and musical fun on the other. The My Little Pony Twilight Sparkle Magical School of Friendship play set includes a 3-inch Twilight Sparkle figure and accessories, and features a working elevator, lights, and lockers.

The My Little Pony Cutie Mark Crew Collectible Sets are inspired by characters from My Little Pony and My Little Pony Equestria Girls. Designed for kids ages 3 and up, the theme packs include 2-inch figures, and are available in five-character packs with a mystery figure in each one. There are three assortments in wave one and two assortments in wave two.

Hasbro’s Mighty Muggs figures feature a push-and-turn mechanism that changes their facial expression when kids push down on their heads. The figures are designed for kids ages 6 and up, and are available in Marvel and Star Wars styles.

Hasbro introduces Disney Princess Little Kingdom Magical Movers, a new line of figures and play sets designed for kids ages 4 and up. The Disney Princess figures have a string that kids can pull and release to charge the doll and launch it into movement. The Dance ‘n Twirl Ballroom Belle Castle Playset features Belle twirling down a ramp into the ballroom with her enchanted friends, Mrs. Potts, Lumiere, and Cogsworth, looking on. The Disney Princess Little Kingdom Magical Movers Mini Playset Assortment features both Jasmine on a flying carpet and Cinderella on a horse, with Ariel coming in the fall.

Hasbro introduces three new Transformers figures inspired by the Cyberverse animated series.

Transformers Cyberverse Ultimate Class Megatron is designed for kids ages 6 and up, and can change from vehicle to robot mode in eight steps. The last step activates Megatron’s signature Fusion Mega Shot Action Attack move. The Transformers Cyberverse Ultra Class Bumblebee converts from robot to vehicle mode in seven steps, and features Bumblebee’s Hive Swarm Action Attack move. The Transformers Cyberverse Warrior Class Optimus Prime transforms from vehicle to robot mode in eight steps, and features Optimus Prime’s Energon Axe Action Attack move.

Black Panther Mighty Mugg

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Toy Fair 2018 WREBBIT3D Wrebbit3D expands its Harry Potter collection with the 280-piece Knight Bus Wrebbit3D Puzzle, the sixth model in the line. The collection, which already includes a Hogwarts Great Hall, Hogwarts Astronomy Tower, Hogwarts Express, Diagon Alley, and The Burrow-Weasley Family Home, is expected to expand with more puzzles in time for back-to-school season.

JAKKS PACIFIC Jakks Pacific expands its line of Big Figs with new DC and Star Wars figures. Inspired by the DC Rebirth timeline, the new 20-inch Batman features 23 points of articulation and weapon accessories, including Batarangs. For the upcoming film Solo: A Star Wars Story, Han Solo figures will be available in 18- and 20-inch sizes. Also from the Star Wars saga is a 20-inch Darth Vader with his iconic red lightsaber, and an 18-inch Boba Fett with blasters and a jet pack.

Potty Time Daniel Tiger includes an 8-inch figure, a potty, a pretend bottle of soap, and a toilet paper roll that spins.

The Pascal Mood Messenger features Rapunzel’s chameleon friend, Pascal, inspired by Disney’s Tangled: The Series. Designed for kids ages 3 and up, Pascal changes colors with his moods: yellow for happy, red for grumpy, blue for sleepy, and purple for Rapunzel.

Kids can pick their mood and hang him on the doorknob so he lights up and makes sounds when someone walks by.

The Deluxe Baby Assortment features Disney Princess dolls with soft and cuddly bodies for kids to nurture. Designed for kids ages 2 and up, these dolls can hold their pacifiers and suck their thumbs. The assortment includes Ariel, Aurora, Belle, Rapunzel, Cinderella, and Tiana.

The Royal Ball Gown Elena of Avalor doll features Elena dressed in her series-inspired red royal ball gown and tiara. Designed for kids ages 3 and up, the doll is 14 inches tall and features long curls, a removable dress, shoes, and a tiara.

Kids can relive all the adventure from Disney’s Moana with the Singing Moana & Friends doll and figures. Moana is dressed in her signature outfit, her shell necklace activates 12 movie phrases, and she sings “How Far I’ll Go.” Designed for kids ages 3 and up, the doll comes with Pua and Heihei figures. A Walk and Flop Pua is also available. Kids can pull on the pig’s tail to watch him take a couple of steps, flop on the floor, pick himself back up, and walk a little more. The Tamatoa Musical Jewelry Box is inspired by the singing crab from Disney’s Moana. Designed for kids ages 3 and up, Tamatoa will light up and sing 30 seconds of his song “Shiny” when kids push the center button.

The Fly Wheels Junior Flyer features a 10-inch front wheel that grips the sidewalk and ergonomic easy-grip handlebars with a button for sound effects. Designed for kids ages 2 through 4, the Fly Wheels Junior Flyer will be available in numerous licenses, such as Mickey Mouse, Minnie Mouse, Paw Patrol, PJ Masks, Peppa Pig, Cars 3, Disney Princess, Avengers, and The Incredibles 2.

The Fly Wheels 15-inch Cruiser features LED lights that light up as kids ride. Designed for kids ages 3 through 7, this cruiser has a three-position seat that adjusts as the child grows, large rear wheels, and a sculpted front plate of kids’ favorite characters, such as those from the Avengers, Spider-Man, Disney Frozen, and Cars 3.

Series three through six of Squish-Dee-Lish Shopkins will launch this year, adding more than 120 styles to collect, such as Poppy Corn, Waffle Sue, Bart Beans, and Berry Tubs.

Deluxe Baby Assortment

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Toy Fair 2018 MAGFORMERS Kids can create magnetic builds with the Magformers Paw Patrol 20 Pc Ready for Action Set, designed for kids ages 3 and up. The set includes 14 magnetic pieces and six insert character cards. Kids can follow along with the idea booklet and play mat for step-by-step building, or go off the map for creative free play. When playtime is over, the pieces stack and store with their magnetic power for easy cleanup.

NFL PLAYERS ASSOCIATION This year, the NFL Players Association (NFLPA) will put a focus on extending the toy category, including plush dolls, articulated action figures, and mini-figures. This will give fans more imaginative, dynamic, and varied options to bring the players they watch into their homes.

Toy manufacturers have tapped into the diversity and depth of hundreds of NFL players to create products that have fueled the growth of this segment. NFL players’ colorful characteristics and personalities are being adapted for toys and are popular with fans.

Products include oversized plush from Forever Collectibles, vinyl figures from Funko, pocket-sized collectibles from Party Animal Teenymates, and more.

The Kirk Cousins action figure, from McFarlane Toys, is a collectible for Washington Redskins fans. Through its collaboration with EA Sports’ Madden NFL Ultimate Team Series, McFarlane Toys crafted this figure to look and feel real with a football cocked back in Cousins’ right hand. This collaboration is one of the most successful licensing partnerships the NFLPA has had with a toy maker.

New England Patriots quarterback Tom Brady, who topped the first release of the NFLPA Top 50 Player Sales List for the 2017-2018 season, has continuously been in-demand among toy buyers. Brady sold the most Funko Pop Vinyl figures and bobbleheads in backto-back lists. On that same list, Philadelphia Eagles quarterback Carson Wentz and Atlanta Falcons quarterback Matt Ryan trailed only Brady in sales of plush dolls—further evidence that consumers seek all kinds of toys in the mold of their favorite NFL players.

The NFLPA’s licensing program is unique because of the popularity of its players, number of fans, and amount of fans who want a piece of their favorite player in toy form.

From Antonio Brown of the Pittsburgh Steelers, to J.J. Watt of the Houston Texans, to Russell Wilson of the Seattle Seahawks, each player’s distinct and unique personality opens a new door to a different audience. With new rookies joining the league every year and emerging players that have breakout seasons, evolving player popularity prevents product from going stale.

There are always new individuals to choose from across an innovative and constantly growing range of toy products.

Additionally, it’s not just one player that excites buyers. There are teammates that come with it, making the collectibility of each toy a more exciting prospect. If consumers already have the Amari Cooper figurine from the Madden NFL Ultimate Team Series, they’ll soon want the Derek Carr release. If an individual’s collection includes Todd Gurley, then he or she will want to add Jared Goff plush. The combinations are endless, and it becomes less of a purchase and more of a mission to collect every release available.

NFL-licensed Funko Pop! Vinyls

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A LOOK INSIDE

SYBO GROWS

SUBWAY SURFERS The Licensing Book chats with Naz Amarchi-Cuevas, head of licensing, SYBO Games, about what's next for the most downloaded mobile game of 2017.

Tell us about SYBO. How did the company get its start?

Sylvester Rishøj Jensen and Bodie Jahn-Mulliner got together in 2010 and created the idea for a unique digital world they called Subway Surfers. Originally conceived as an animation property about a hooligan character that graffitis a metro railway escaping a grumpy inspector and his dog, Subway Surfers launched in 2012. Through word-of-mouth, Subway Surfers quickly rocketed the charts, becoming one of the most downloaded games. Last year, it ranked as the No. 1 most downloaded game in the world and just surpassed 1.8 billion total downloads, with 33 million in December alone.

SYBO was the first to develop the “World Tour” concept that is now widely used within the gaming industry.

Today, nearly all runner apps follow the Subway Surfers digital script—an amazing feat.

Last spring, Sylvester and Bodie refocused their attention back to bringing Subway Surfers to the screen as an in-depth, character-driven animated show. Daytime Emmy Award-winning producer Sander Schwartz (The Batman, Baby Looney Tunes, Ozzy & Drix) along with screenwriter Brent Friedman (Star Wars Rebels, Star Wars: The Clone Wars) came on board to help guide the vision and delve into the lore of the Subway Surfers universe. Later this year, fans will actually hear the characters they’ve grown to love speak for the first time and begin to follow the adventures of Jake, Tricky, and Fresh.

Subway Surfers was the most downloaded mobile game in the world last year. What are your plans for the franchise this year?

We’re bringing the brand to life in so many ways this year. From eventizing the World Tour concept in several cities across the world; to introducing Jake, Tricky, and Fresh in a whole new way; to debuting the animation, fans and licensees will experience Subway Surfers like never before.

As gameplay takes characters running through major

Winter 2018

world cities this year, unsuspecting consumers will encounter oneof-a-kind experiential events in real life.

Our core fans—who will always remain our priority—are psyched to immerse themselves in the upcoming series.

For the holidays, they were treated to the first look at the animation through a series of still shots and a teaser trailer itself. Leading up to the 10 x 4-minute digital animated series premiere this summer, we will keep fans engaged with additional reveals of the character backgrounds, art, animation teasers, and more. A long-form series of 22-minute episodes is also in development.

Tell me about your plans for licensing Subway Surfers. What kind of partners are you looking for?

Our consumer products program, SUBSURF, aims to target partners extremely connected and dedicated to Gen-Y and Gen-Z fans. SUBSURF is a lifestyle franchise that authentically embraces society’s focus on the globalized Worldhood megatrend, weaving together an array of strong global influences, including authentic street art, edgy youth fashion, regional global styles, skate culture, music, and dance. We are looking to align with partners who bring funk and fashion to the brand.

What are SYBO’s key priorities for the year ahead?

We are elevating and bringing the Subway Surfers brand to new heights. SYBO firmly cemented the game in the mobile arena, and it’s now destined to expand as an entertainment and consumer products property. We must find the right partners that broaden the Subway Surfers experience, while keeping true to the brand’s edgy, retro image. ••••

The Licensing Book • 31

Toy Fair 2018 BONKERS TOYS Bonkers Toys introduces Maniapps, a new line based on popular brands for games and apps, including Bowmasters, Fruit Ninja, Jetpack Joyride, Talking Tom, Temple Run, slither.io, Cut the Rope, Agar.io, Goat Simulator, and more. Designed for kids ages 6 and up, the new line will launch later this year and will include apps that have more than 11 billion game downloads in the first assortment. The range of products will feature collectible figure blind bags, blind box backpack clips, small plush, and mystery multi-packs.

Maniapps

Rubble’s Bulldozer

JAM’N PRODUCTS Jam’n Products extends its line of Paw Patrol R/Cs in collaboration with Spin Master. Featured R/Cs include Rocky’s Recycling Truck, Rubble’s Bulldozer, and Skye’s Helicopter, in addition to Marshall’s Fire Truck and Chase’s Cruiser. All of the R/Cs feature 2.4 GHz full-function control, with left, right, forward, reverse, 360 spinning, and wheelie movement.

More accessories and play patterns will be added to the Switch ‘Em! Monster Maniacs line, which features friction-powered Ford and Chevrolet trucks.

In addition, Jam’n will introduce a launcher, a play mat, and accessories for added play value to its line of Ford and Chevrolet 2.75- and 3.5-inch Race/Rescue Junior vehicles.

LEGO Designed for kids ages 10 and up, the LEGO BrickHeadz Wonder Woman, based on the construction character from the Justice League movie, features colorful LEGO bricks that re-create all of her iconic details, including flowing black hair, a headdress, and gauntlets. She also has a detachable sword and shield in her hands, and stands on a buildable collector’s baseplate with a BrickHeadz icon for easy display.

The LEGO Star Wars Defense of Crait set has everything a Resistance warrior needs to play out the epic final battle from Star Wars: The Last Jedi. The set features a highly detailed Resistance Ski Speeder with spring-loaded shooters, a removable engine section, a minifigure cockpit, a lowering stabilizer, a command tower with stud shooter on top, assorted weapons and tool elements, a foldout trench section with rotating laser cannon and spring-loaded shooter, and a gun emplacement with a stud shooter. Designed for kids ages 9 and up, this set includes five minifigures.

Kids can help Black Panther and Nakia win the ultimate battle against super villain Killmonger and Ulysses Klaue, with the LEGO Marvel Super Heroes Royal Talon Fighter Attack set. The Royal Talon Fighter features an opening minifigure cockpit, two stud shooters, and a rear prison compartment to trap a minifigure. Designed for kids ages 7 and up, the set also includes four minifigures with weapons to intensify the role-play conflict.

All of the above LEGO sets are available now.

BrickHeadz Wonder Woman

32 • The Licensing Book

Winter 2018

Toy Fair 2018 CRA-Z-ART Cra-Z-Art will introduce new slime sets in the spring, including the Nickelodeon Super Slime Studio, which lets kids create mess-free slime. Kids add the measured ingredients into the slime maker, turn the handle, and watch as slime starts to form.

Once finished, kids can add glitter and paint to their slime creation. Designed for kids ages 8 and up, the set does not require any batteries.

Cra-Z-Art will introduce new Kodak puzzles next spring, including Kodak Premium Puzzles 100 and Kodak Premium Puzzles 1,500. Designed for kids ages 6 and up, the puzzles feature richer color and new sizes. Kodak’s photography, imagery, and color come to the tabletop in these detailed puzzles. Puzzles are also available in 350- and 1,000-piece sets.

Additionally, Cra-Z-Art will introduce the Keith Kimberlin Puzzle Collection and Animal Club Puzzles, which feature pictures of animals for kids to piece together.

Cra-Z-Art’s new puzzles are designed for kids ages 6 and up and will be available in the spring.

JUST PLAY This year, Just Play introduces the Barbie Dreamtopia Kiss and Care Unicorn Doctor Set so kids can pretend to care for enchanted creatures. Designed for kids ages 3 and up, the set comes with a soft plush unicorn that features a magical light-up horn and tools to care for the fairytale friend, including a stethoscope, a bottle, a syringe, a horn cast, and an ice cream snack to reward patients. The included rainbow backpack lets little ones take their tools with them on the go.

Designed for kids ages 6 and up, JoJo Siwa Singing Doll: “Kid in a Candy Store” sings the new JoJo Siwa song, “Kid in a Candy Store.” The 10-inch doll wears JoJo’s sigBarbie Dreamtopia nature oversized pink bow, and features poseable arms and legs. It also includes a pink Kiss and Care Unicorn microphone and a hairbrush so kids can brush and style the doll’s blonde hair.

Just Play also adds a line of toys based on the new animated film, Peter Rabbit.

Designed for kids ages 3 and up, kids can use the Peter Rabbit Garden Set to create their own garden. Little gardeners can help Peter water his garden with the pretend watering can, and plant vegetables with the removable carrots and cabbages. The play set comes with a 3-inch Peter Rabbit flocked figure, a garden planter box, a gate, a watering can, a pumpkin, cabbages, and carrots. Peter Rabbit features removable clothing and poseable arms and legs.

Designed for kids ages 3 and up, the Peter Rabbit Collectible Figure Set features detailed 3-inch figures of characters from the new film, including Peter Rabbit and Flopsy. Kids and collectors can collect the poseable figures, which include removable clothing to enhance imaginative play.

Kids can re-create scenes from the new film with the Peter Rabbit Egg Capsule figures. The detailed 3-inch, flocked figures come packaged in an egg capsule.

Designed for kids ages 3 and up, the figures are posable and include removable clothing for imaginative play. The full assortment includes the characters Peter Rabbit, Flopsy, Benjamin, Johnny Townmouse, and Pigling Bland, each sold separately.

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Toy Fair 2018 Peppa Pig

ENTERTAINMENT ONE Entertainment One (eOne) extends its portfolio for Peppa Pig and PJ Masks this year.

Peppa Pig is a preschool series that generates more than $1.2 billion in global retail sales annually. The brand has more than 1,000 licensees worldwide, with more than 80 partners in the U.S. and more than 50 partners in Canada. The brand is also a finalist in The Toy Association’s 2018 Toy of the Year awards program for the License of the Year category.

The series airs daily on Nick Jr. and is currently in its seventh season, with season eight also in production. The brand also reaches a live audience. Peppa Pig’s Surprise, the newest North American stage show, kicked off in September at venues across the U.S. and Canada. The show was extended to run through May. Peppa Pig Fly Wheels Junior Cruiser, from Jakks Pacific, features character graphics and an extra-wide, 10-inch front wheel for stability and maximum control. Designed for kids ages 2 and up, the two push buttons on the handlebar activate sounds and music.

Designed for kids ages 3 and up, Crayola’s Peppa Pig Crayola Color Wonder Kit lets kids color at home or on the go. The kit includes 18 Color Wonder coloring pages featuring characters and scenes from the series, and Mess-Free Markers so that Peppa fans can express themselves without a mess. The Mess-Free Markers are created with special ink that only appears on Color Wonder paper and not on fabrics, furniture, skin, or other surfaces.

LeapStart Peppa Pig Playing Together, from LeapFrog, takes kids on an adventure while they build reading and vocabulary skills and learn how to share with others. Designed for kids ages 2 and up, this interactive book includes reading comprehension activities that let young readers predict what happens next, explore the details of the story, and then recall what they’ve read when they’re done.

PJ Masks is an animated series that airs daily on Disney Junior. The brand has more than 75 licensees in the U.S. in a broad range of product categories, including toys, apparel, bicycles, bedding, and more. The series recently launched its second season, and new partners and offerings will launch this year. PJ Masks is also a finalist in the 2018 Toy of the Year Awards program in the License of the Year category.

Kids can help Romeo plot evil schemes with the new PJ Masks Romeo’s Lab Playset, from Just Play. Romeo’s lab opens to reveal a secret lair with two levels of play, featuring a light and sound control panel that plays sounds and phrases, a working kid-powered crane, a laser launcher, and a rolling lab charger. The play set includes a 3-inch Romeo figure, Romeo’s Robot figure, and three bonus tools.

Designed for kids ages 3 and up, the play set will be available in the fall.

VTech’s PJ Masks Super Catboy Learning Watch lets kids use their imaginations to transform into Catboy while they play four educational games. As they play the games, kids will explore PJ Masks shapes and early math skills while they try to defeat Romeo, Luna Girl, and the Ninjalinos. The watch features the voices of the PJ Masks characters and nine different PJ Masks clock faces. Designed for kids ages 3 and up, the watch features an alarm clock with three alarm tones, a timer, a stopwatch, and a cuckoo clock.

PJ Masks Pretend ‘n Play Activity Table Set, from Jakks Pacific, is a modular activity set that doubles as themed room décor that offers play set-up for PJ Masks adventures. The table features a space-saving design, and transforms into a headquarters-themed superhero station with colorful graphics that don’t peel, scratch, or fade.

Designed for kids ages 3 and up, the set also include a color-coordinated chair.

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Toy Fair 2018 PILLOW PETS Pillow Pets now offers Sesame Street-licensed plush featuring characters such as Elmo, Cookie Monster, and Abby Cadabby. The Sesame Street characters will also be available as Pillow Pets Sleeptime Lights.

TOMY Kids can tackle any terrain with the John Deere Tough Treads Tractor, from TOMY. When they push the button on the wheel, it ejects super tough spikes to conquer any obstacles that may lie in the way. The John Deer Tough Treads Tractor is designed for kids ages 3 and up.

Designed for outdoor play, the John Deere 15-inch Big Scoop Tractor with Loader features a working loader and an easy-to-use front bucket with a handle. This truck can scoop rocks or sand and is designed for kids ages 18 months and up.

Pokémon trainers can throw their Pokémon into action with the Pokémon Ultimate Throw ‘n Pop Set. The set includes two belt clips, two Throw ‘n Pop Poké Balls, and two 2-inch Pokémon figures. Kids can choose either Pikachu or Abra, place it inside the Poké Ball, close it, and throw their Pokémon into battle. Additional Poké Balls and figures are sold separately.

Kids can create and share their own Pokémon stories with the Pokémon Petit Pals Destination Sets. Take Pokémon on a weekend trip to the beach or meet friends at the local coffee shop. All figures and accessories feature miniature suction cups, making Pokémon Ultimate Throw ‘n Pop Set play creative and customizable.

Kids can have a more in-depth experience with the Pokémon Ultra Sun and Pokémon Ultra Moon video games with the Pokémon Z-Power Ring Set. Reacting simultaneously to various events in the video games, there is also a role-play mode, which turns kids into Pokémon trainers. Designed for kids ages 4 and up, the Pokémon Z-Power Ring Set includes the Z-Power Ring, two Z-Crystals, and a 2-inch Mimikyu figure. All Pokémon products are suitable for kids ages 4 and up.

The Ultimate Sonic Figure is a high-end collectible that kids can customize. Taking on Classic Sonic’s original styling from 1991, this new figure is 5.5 inches tall and fully articulated, allowing kids and collectors to re-create multiple poses from the game. Designed for kids ages 8 and up, the figure also includes multiple accessories and a display stand.

Kids can pose and customize the Sonic 8-inch Collector Plush, from TOMY. Designed for kids ages 3 and up, the highly detailed and articulated Classic Sonic figure features interchangeable facial expressions, hands, and accessories. Sonic comes with a display stand that serves as storage for unused accessories.

Kids can re-create the antics of Nature Cat, the nature adventuring feline, with the Nature Cat Feature Plush, designed for kids ages 3 and up. Kids press his belly to hear 13 phrases from the Nature Cat animated series.

The Nature Cat Play Tent simply pops open and into the right shape with no poles or sticks required for assembly and fits into a convenient carrying bag with straps. Designed for kids ages 3 and up, it fits two children and features Nature Cat character designs and artwork.

Kids can help Thomas and his friends transport cargo throughout Sodor with the Thomas the Tank Engine Big Loader Play Set. Designed for kids ages 3 and up, this set features multiple loading areas and a fully automated engine that transforms from Thomas to Percy and Terence, and back again. It also includes a mechanical vehicle chassis, three vehicle bodies, more than 8 feet of track and destinations, and cargo.

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Toy Fair 2018 TOY STATE This fall, Toy State will launch a full line of products for the new Netflix series True and the Rainbow Kingdom, including figures, plush, play sets, and dolls, marking a major expansion into new categories as part of the company’s overall global growth strategy.

After a successful debut last year, Toy State also expands its Nikko Air fleet of Race Drones in partnership with the Drone Racing League. Kids can experience the latest in racing technology with the Stunt 75, which offers extreme stunt performance, and the Mini FPV Racer for indoor FPV racing.

The Nikko Air DRL drones allow pilots of all skill levels to experience the thrill of racing.

Toy State will also launch a line of Monster Jam construction products under the Machine Maker brand, allowing kids to build their favorite Monster Jam trucks with all the pieces and tools included.

JAZWARES Jazwares introduces new additions to its Peppa Pig collection, including countdown calendars to help kids anticipate and prepare for special occasions in their lives. Peppa Pig’s Vacation Countdown and Peppa Pig’s Birthday Countdown are designed to build excitement surrounding important events in every kid’s life, as well as teach numbers and counting skills.

The calendars include seven secret countdown compartments for kids to open. Each door reveals a new themed surprise toy.

Both of the countdowns fold out to reveal a themed play scene backdrop for kids to display, or they can use their imaginations and act out the event with Peppa. Designed for kids ages 2 and up, the calendars will be available this spring.

SONATA Sonata’s Barbie line expands with Barbie Musicals, a double-microphone that allows two kids to sing at once. Sing along to the included pre-recorded songs, create solos, or connect a phone to use downloaded music.

The Elena De Avalor Kitchen provides a realistic cooking experience with cookware and sound effects.

The PJ Masks line adds new musical products, including keyboards, guitars, drum sets, and interactive carpets.

Outdoor toys based on the upcoming Bumblebee movie include roller skates, scooters, and riding accessories.

There will also be an exclusive line of outdoor My Little Pony-themed fourwheeled skates, scooters, and riding accessories, including helmets and protectors.

Elena De Avalor Kitchen

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Toy Fair 2018 UNIVERSITY GAMES University Games’ Briarpatch introduces two new cooperative preschool games. In the Pete the Cat The Missing Cupcakes Game, kids ages 3 and up work together to get the missing cupcakes back from Grumpy Toad. Kids collect colorful cupcakes as they sing songs, act out charades, and identify their favorite animals and foods in this fun board game.

The World of Eric Carle Around the Farm Game introduces kids ages 3 and up to counting and to baby and adult animals. Everyone wins in this cooperative game when each baby animal is reunited with its parent animal. Briarpatch’s Play ‘n Learn system, represented on every package, lets parents know what key learning milestones are accomplished with each game.

Mysticons figures

PLAYMATES TOYS Inspired by Nickelodeon’s new series, Rise of the Teenage Mutant Ninja Turtles, Playmates Toys will introduce a new Teenage Mutant Ninja Turtles collection.

The Teenage Mutant Ninja Turtles Action Figure Assortment includes fully articulated figures ranging in height from 3.25 to 5 inches. The Teenage Mutant Ninja Turtles Deluxe Ninja Action Figure Assortment includes 5.5-inch figures that flip and have signature phrases. The Teenage Mutant Ninja Turtles Giant Figure Assortment features figures that are 10.25 and 11 inches, each with its own core translucent weapon. The Teenage Mutant Ninja Turtles Vehicle with Figure Assortment features Shell Hog motorcycles equipped with spring-loaded projectiles that kids can connect together. The Teenage Mutant Ninja Turtles Turtle Tank is a two-in-one play set that transforms into Donatello’s removable lab and rises up to serve as the command headquarters. The Teenage Mutant Ninja Turtles Epic Lair Playset has four levels of play, with seven rooms and more than 20 features.

Playmates Toys will expand its Ben 10 line based on the Cartoon Network animated series. The Ben 10 Basic Action Figure Assortment includes 5-inch figures based on characters from season two, which features upgrades in each alien’s powers. The Omni-Launch Battle Figures transform mid-air when launched with the Omnitrix launcher. The Deluxe Transforming Figures transform Ben into an alien and back again. Kids can mix and match alien body parts to create their own 3-inch mini-figures with the Alien Creation Chamber.

The new Mysticons line based on the new Nickelodeon series will expand with action figures, deluxe figures, griffins with figures, roleplay, and dress up. The 7-Inch Figure Assortment includes four Mysticon warriors that come with a Topps trading card with codes to unlock quests in the Mysticons digital app. Each Deluxe Lights & Sounds Figure has a creature bracer and chest plate that flash along with sound effects and phrases when kids raise its left arm. Mysticons can ride their royal griffins into battle with the Griffin & Figure Assortment. Each Griffin comes with a companion figure and features realistic eyes, removable armor, a saddle, and flapping wings.

The Voltron line based on the Netflix original series, Voltron: Legendary Defender, expands with a combinable figure assortment.

Each item in the Voltron Classic Legendary Lion Assortment has projectile launchers for stand-alone play, or can be transformed and combined to form a 16-inch classic Voltron figure. The Voltron Classic Legendary Electronic Black Lion figure features phrases and sound effects from the original 1984 show, and acts as the head and body of Voltron when combined with the other figures.

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Toy Fair 2018 SNAPTOYS Snaptoys extends its Jim Henson’s Word Party line beyond plush with three new SKUs this spring, including wood blocks and puzzles for kids ages 18 months and up. My First Building Blocks contains a set of 22 pieces, including the four baby characters from the Netflix series, fun shapes, and colors. Kids can re-create the playground from the show or build their own structures. Lulu and Bailey’s Stack and Play puzzles let toddlers and preschoolers stack Word Party characters in many ways.

Snaptoys offers an extensive building blocks line from educational toy manufacturer BanBao. Designed for kids ages 4 and up, this high-quality line is compatible with all major building set brands.

The Peanuts line will include more than 30 SKUs featuring popular characters, such as Snoopy and Charlie Brown.

BASIC FUN!

Basic Fun! celebrates the 35th anniversary of the My Little Pony brand with My Little Pony Collector Ponies, which will be available in the spring. The line includes the original six ponies: Blue Belle, Cotton Candy, Butterscotch, Snuzzle, Blossom, and Minty. The ponies feature long hair for kids to comb and style. Each pony includes a comb, a ribbon, and a mini collector poster. My Little Pony Rainbow Ponies are re-creations of the original six Rainbow Ponies: Sunlight, Starshine, Windy, Parasol, Skydancer, and Moonstone. Available in the spring, each has long hair and a comb, a ribbon, and a mini collector poster, and features a unique scent. Available in the fall, My Little Pony Pretty Parlor Playset includes a grooming stand, a mirror, a comb, a saddle, a bridle, hats, and more. The set comes with an exclusive Peachy pony and her pet cat Twinkles, and closes up for on-the-go play. Basic Fun!’s new My Little Pony products are designed for kids ages 3 and up.

Next fall, Basic Fun! will introduce Lite-Brite Ultimate Classic, which resembles the original Lite-Brite from the ‘80s, but with a bigger screen, brighter pegs, and more templates, including six retro patterns. Kids ages 4 and up can insert the pegs into the templates or freestyle an original design, then press the button to see the creation light up in four different ways.

Originally introduced in 1960, the Fisher-Price Classics Nifty Station Wagon was the first play set sold with the Play Family.

The set is designed for kids ages 2 and up, and has details and play features from the original vehicle. The wagon has eyes that roll, a spinning backseat, and a removable top to transform into a convertible. The wagon includes three Play Family figures—mom, dad, and puppy—and will be available next fall.

The new Bendy and the Ink Machine collectible construction toys are based on the computer game by the same name. Made for kids ages 7 and up and available in the spring, the line includes blind packs, buildable figures, and scene sets based on settings and characters from the game.

Exploding Kittens, the popular card game and successful Kickstarter campaign, will be reimagined as a buildable and collectible construction line next fall. Designed for kids ages 7 and up, the sets will highlight the game’s characters, and will be available as blind packs, buildable figures, and scene sets.

Basic Fun!’s Mash’Ems, Fash’Ems, and Blast’Ems collectible lines will be avilable in new licensed characters for kids to collect.

Ms. Pac-Man Mini Arcade Game and Tetris Mini Arcade Game are retro-styled mini arcade games that look, sound, and play like the original games. Designed for kids ages 8 and up, the newest arcade games will be available next fall.

Strawberry Shortcake Classic Mini Doll with Pet assortment is inspired by the original ‘80s doll and features the same details, including hats, shoes, scents, and pets. The dolls are available as Apple Dumplin’ & Tea Time Turtle, Cherry Cuddler & Gooseberry, and Apricot & Hopsalot. Designed for kids ages 3 and Tetris Mini up, the Strawberry Shortcake collection will be available next spring.

Arcade Game

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Toy Fair 2018 IMAGINE BY RUBIE'S Imagine by Rubie’s, the toy division of Rubie's Costume Co., offers a collection of licensed dress-up costumes and accessories so kids can dress up as their favorite characters year-round. The dress-up line will expand with products from several feature films in 2018, including Solo: A Star Wars Story, Black Panther, Avengers: Infinity War, Aquaman, Bumblebee, and Spider-Man: Into the Spider-Verse.

The Deluxe 2-in-1 Reversible Black Panther Costume Top Set includes a reversible Black Panther costume top on one side and Black Panther’s blue and black battle suit on the other. The set also comes with two molded matching masks.

The officially licensed Hot Wheels (Championship Trophy) Deluxe Costume Top Set also joins the line. The deluxe set features a padded costume top with zipper and a matching hat.

Hot Wheels (Championship Trophy) Costume Deluxe Set

Deluxe 2-in-1 Reversible Black Panther Costume Top

SPIN MASTER Spin Master’s Cool Maker line of DIY kits that help kids learn skills such as how to sew, make pottery, and more, expands with a new collection of kits based on JoJo Siwa. Cool Maker JoJo Hair Styling Kit lets kids airbrush highlights, streaks, and tattoos onto their hair with five colors. Available in the spring, kids can also design an included hair extension and hair bow when they use the cordless airbrush to add color to the ribbon.

Kids can choose from six glittery pots and an assortment of nail decals to design their own manicure with the Cool Maker JoJo Glitter Nails. Available in the spring, kids can easily peel off the nails and start again.

Cool Maker JoJo DIY Spa Kit lets kids create sparkly, scented bath bombs and soaps. Kids can mix and shape to make four bath bombs and six soaps. Available in the fall, the kit includes an easy-to-use bomb press and soap tray, and a bonus JoJo Bow sleep mask for beauty rest.

Cool Maker JoJo Styling Kit, Glitter Nails, and DIY Spa Kit are designed for kids ages 8 and up.

Cool Maker JoJo Bow Maker lets kids create colorful double bows and customize them with gems and stickers.

Mix and match six different fabrics, and reuse the bows and clasps to make new creations. Cool Maker JoJo Bows Accessory Pack can be used with the set, and includes fabrics, gems, stickers, and more.

Designed for kids ages 6 and up, the Cool Maker JoJo Bow Maker and Accessory Pack are available now.

The Masha and the Bear Interactive Masha giggles when kids swing her from side to side. The doll also recites 12 phrases from the show and sings a song.

Kids can dress Masha in three new outfits with the Masha and the Bear Deluxe Snap and Fashion set. Each outfit comes with its own accessories and easily snaps onto the Masha doll. Outfits include a swimsuit with flip flops and a rubber ducky, a school dress with glasses, and a blue play dress. Both Masha and the Bear items are available now and are designed for kids ages 3 and up.

Masha and the Bear Interactive Masha

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AURORA WORLD This spring, Aurora World will expand its tokidoki collection of Japanese-inspired plush. Aurora World will extend the Unicorno and Mermicorno collections with Lolopessa, Lilypad, and more. Additionally, Aurora will add a Moofia range, featuring cow- and milk-themed characters that will be available in blind bags, as clip-ons, and as standalone plush. Tokidoki plush are designed for kids ages 3 and up.

New Precious Moments plush featuring the teardrop characters will be available this spring.

tokidoki Moofia line

GENIUS BRANDS Genius Brands International’s animated series Rainbow Rangers is currently in production on season one and two, which will launch in the fall in the U.S. on Nick Jr. The global consumer products program is expected to launch in the spring of 2019.

Licensing partners for Rainbow Rangers include Mattel as master toy partner, MacMillan Publishing as master publishing partner, and Bentex as master apparel partner. Additional partners include A.M.E. for sleepwear, Planet Sox for hosiery, Handcraft Manufacturing for packaged underwear, Global Design Concepts for bags and backpacks, Jay Franco for bedding and bath, H.E.R. Accessories for jewelry and hair accessories, Kiddieland for foot-to-floor ride-ons, Taste Beauty for health and beauty, and Kid Galaxy for bubble toys.

Additional categories will include footwear, cold weather accessories, games and puzzles, novelty, activity, bikes, stationery and backto-school, costumes and boxed role-play, room décor, consumer packaged goods, and more.

Rainbow Rangers was created by Rob Minkoff, director of Disney’s The Lion King; Shane Morris, co-writer of Disney’s Frozen and his partner Tim Mansfield; and Elise Allen, author and writer of Dinosaur Train and The Lion Guard, who serves as head writer and co-creator. Andy Heyward serves as executive producer, and key designs are created by Ruben Aquino, who has designed Disney characters.

The series follows seven girls with unique personalities and superpowers who are Earth’s first responders, protecting people, animals, resources, and the natural beauty of the world. The girls live in Kaleidoscopia, a land at the other end of the rainbow. Whenever there’s trouble, they ride the rainbow across the sky to save the day. At home, they also face the same daily situations as preschoolers.

Genius Brands Netflix Original preschool series Llama Llama premieres this year. Currently in production, Llama Llama stars the voice talent of actress Jennifer Garner, and centers around first childLlama, Llama hood experiences and the connections between Llama and his parents, grandparents, and best friends. The series will be produced in 20 different languages, and tells tales of life in a friendly town through the eyes of Llama.

Genius Brands will strengthen the global consumer products program for Llama Llama, focusing on toy, juvenile products, feeding, and apparel. Current licensees include Franco Manufacturing for room décor, Cuddle Barn for animatronic plush, and Kids Preferred for plush and puppets. Initial products will roll out in conjunction with the series debut, and a full retail program will launch this year.

Llama Llama is based on the book series by author and illustrator Anna Dewdney. The series is led by director Saul Blinkoff (Doc McStuffins, Barbie’s Dreamtopia, Winnie the Pooh), Joe Purdy (Arthur), art director Ruben Aquino (Disney’s Frozen, The Lion King, Aladdin, Mulan), and producers Jane Startz and Andy Heyward.

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Toy Fair 2018 NKOK

Leading up to the release of the new Sonic the Hedgehog video game, NKOK will introduce Sonic the Hedgehog R/C full-function vehicles with turbo boost and working lights.

SpongeBob and Patrick Jellyfish Racers will be available in single or double packs, and will feature lights, sound effects, and music.

SpongeBob Jellyfish Racer

MATTEL Mattel partnered with Crayola for a line of designable accessories for Barbie dolls. Kids can design Barbie’s fashions and transform the color of the fabric using the Crayola stylus tool with the Barbie + Crayola Rainbow Design Assortment. The Barbie + Crayola Tie Dye Fashions Assortment comes with three fashions, a dress form, a spray bottle, and three Crayola markers for kids to create different tie-dye looks. Kids can color in one of seven fashions and accessories with five Crayola Supertip markers with the Barbie + Crayola Color-In Fashions Assortment. It comes with a Barbie doll, five washable fashions, two accessories, and a dress form.

The Barbie + Crayola Color Magic Station lets kids pick a stencil and a Crayola paint color to create a rainbow splash effect. The set comes with a Barbie doll, three fashions, three washable Crayola paints, a dress form, tweezers, and eight stencils. The Barbie + Crayola Rainbow Design Assortment, Tie Dye Fashions Assortment, Crayola Color-In Fashions Assortment, and Magic Station are made for kids ages 5 and up and will be available in the spring.

Kids can stamp Barbie’s fashions with unique shapes, and then dress their Barbie in them with the Barbie + Crayola Color Stamp Fashions Assortment. The stamp ink and fashions are washable, so kids can design, wash, and repeat. The Barbie + Crayola Confetti Design Studio lets kids design skirts for their Barbie dolls. Kids can punch confetti to fill one of the skirts, and then use washable Crayola Gel markers, washi tape, and stickers to decorate it.The set includes a Barbie doll, skirts, markers, three hangers, 15 papers, a pack of pom poms, washi tape, and two pads of stickers. The Barbie + Crayola Color Stamp Fashions Assortment and Confetti Design Studio are designed for kids ages 5 and up and will be available in the spring.

New to Mattel’s Fisher-Price Imaginext line is the Jurassic World Jurassic Rex, made for kids ages 3 and up and available in the spring. Kids can grab the handle to make the Jurassic Rex lunge forward with arms out, push the trigger to chomp her mouth, press the button on her head to open the blindfolds, twist the Power Pad to change her eyes from green to red for predator mode, and turn the Power Pad to launch an ATV vehicle from the play set. It also includes a projectile launcher with projectiles, an ATV vehicle, and an Owen figure.

Mattel’s Jurassic World line will be available this spring ahead of the June release of Jurassic World: Fallen Kingdom. The Jurassic World Chomp & Roar Mask is based on the character Blue, and features realistic details, such as skin texture, color, and moving eyes and teeth. It is made for kids ages 6 and up.

Jurassic World Velociraptor “Blue” Claws is made for kids ages 3 and up, and has flexible and bendable claws.

The Jurassic World Pterano-Drone is a quadcopter Pterry-Drone that takes flight with a handheld remote control. Designed for kids ages 8 and up, the drone has auto-circle and auto-land features.

Inspired by the movie, the Jurassic World Thrash Jurassic World ‘n Throw Tyrannosaurus Rex Figure features a larger size Thrash ‘n Throw designed for thrash and throw head movements, and roar sound effects. The Tyrannosaurus Rex Figure Thrash ‘n Throw Tyrannosaurus Rex Figure is made for kids ages 4 and up.

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KIDKRAFT

KidKraft’s Disney Princess Royal Celebration Dollhouse is compatible with kids’ 12-inch dolls. The set features four levels and stands more than 5 feet tall. The dollhouse includes a kitchen, a dining room, a bedroom, and a working turret elevator that glides up to the second and third floors. It also features a 10-piece accessory set, including an expansion accessory that looks like a storybook when closed, but unfolds to reveal more dollhouse rooms.

Disney Princess Kids can use the expansion accesRoyal Celebration Dollhouse sory with the dollhouse, or take it on the go for mobile princess play. Designed for kids ages 3 and up, the Disney Dollhouse will be available next June.

The Paw Patrol Cruise and Play Table features more than 9 feet of train track, 54 wooden pieces, and six wooden Paw Patrol character cars. Kids can also use the moving periscope to scout out danger from the Lookout Tower. Designed for kids ages 2 and up, the Paw Patrol play table will be available next August.

LITTLE KIDS INC. Little Kids Inc. will expand its line of bubbles with new licensees, including a partnership with Entertainment One (eOne) for PJ Masks products that feature Catboy, Owelette, and Gekko. PJ Masks No-Spill Bubblin’ Bucket features Little Kids’ patented No Mess design, and PJ Masks Bubble Vehicle Assortment lets kids hand crank chains of bubbles out of the Cat-Car, Owl Glider, and Gekko Mobile. Kids can also create continuous streams of bubbles with the PJ Masks Bubble Blastin’ Machine. The PJ Masks Water Rescue Pack Assortment lets kids fill up the backpack, take aim, and blast water up to 30 feet. The collection will also include a PJ Masks Giant Bubble Wand Assortment and PJ Masks 8 oz Bubbles Assortment. The new range will be available in the spring.

Sesame Street products will also be available in new designs this spring. Sesame Street No-Spill Bubble Wobblers feature the No Mess design, and Elmo and Cookie Monster wobble back and forth but don’t tip over or spill.

Sesame Street Giggle & Bubble Elmo lets kids touch Elmo’s nose to make him sing, count, talk, giggle, and blow bubbles.

PJ Masks Water Rescue Pack Owelette

WICKED COOL TOYS Wicked Cool Toys is the official master toy licensee for the Pokémon brand, and the company will debut its Pokémon product line at retail in the fall, including action figures, plush, roleplay items, and more. The new interactive Power Action Pikachu Plush features sensor technology, and the Pop Action Poké Ball launches Pokémon plush up to 10 feet. A line of scaled figures will feature an extensive range of Pokémon, as well as an entirely new packaging design.

Wicked Cool Toys partnered with CozyPhones, makers of three-in-one headphones for kids. CozyPhones feature adjustable and removable ultra-thin speakers nestled in a soft fleece headband for a snug, secure, and comfortable fit. A built-in volume control feature limits the volume to 90 dB to protect kids’ hearing. Wicked Cool will introduce new licensed styles this summer, featuring characters from Paw Patrol, Teenage Pokémon Decidueye Figure Mutant Ninja Turtles, JoJo Siwa, Shimmer & Shine, and more.

In partnership with Nickelodeon, Wicked Cool Toys will debut a new line of collectible figures and plush toys based on The Loud House. The animated series chronicles the chaotic life of the Loud family siblings: Lori, Leni, Luna, Luan, Lynn, Lucy, Lana, Lola, Lisa, Lily, and—the only boy—Lincoln Loud. In each episode, Lincoln—with best friend Clyde at his side—tackles the obstacles that come his way living in a home with 10 sisters. The Loud Family toy line will be available at retail this fall.

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BRAND FINANCE

BUILDING A BRAND LEGO Reigns Supreme as the Industry’s Strongest Brand

by DAVID HAIGH, CEO, Brand Finance Every year, valuation and strategy consultancy Brand Finance values the brands of thousands of the world’s biggest companies. Brands are first evaluated to determine their strength on a scale from 0 to 100 (based on factors such as marketing investment, familiarity, loyalty, staff satisfaction, and corporate reputation) and given a corresponding letter grade up to AAA+. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine brand value. The world’s most valuable toy brands are ranked in the Brand Finance Toys 25.

The purpose of a strong brand is to attract customers, build loyalty, and motivate staff. However, for a commercial brand, the first answer must always be to make money.

Huge investments are made in the design, launch, and ongoing promotion of brands. Given their potential financial value, this makes sense. Unfortunately, most organizations fail to go beyond that, missing huge opportunities to effectively make use of what are often their most important assets. Monitoring brand performance should be the next step, but is often sporadic. Where it does take place, it frequently lacks financial rigor and is heavily reliant on qualitative measures poorly understood by non-marketers.

As a result, marketing teams struggle to communicate the value of their work, and boards then underestimate the significance of their brands to the business. Skeptical finance teams, unconvinced by what they perceive as marketing mumbo jumbo, may fail to agree to necessary investments. The marketing spend available can end up poorly directed as marketers are left to operate with insufficient financial guidance or accountability. The end result can be a slow but steady downward spiral of poor communication, wasted resources, and a negative impact on the bottom line.

Without knowing the precise financial value of an asset, how can you know if you are maximizing your returns? If you intend to license a brand, how can you know you are getting a fair price? If you are intending to sell, how do you know what the right time is? How do you decide which brands to discontinue, whether to rebrand, and how to arrange your brand architecture? Brand Finance conducted thousands of brands and branded business valuations to help answer these questions.

Brand Finance recently conducted a share price study that revealed the compelling link between strong brands and stock market performance. It found that investing in the most highly branded companies would lead to a return almost double that of the average for the S&P 500 as a whole.

BRANDED BUSINESS VALUE A brand should be viewed in the context of the business in which it operates.

Where a company has a purely mono-branded architecture, the business value is the same as the overall company value, or enterprise value.

In the more usual situation in which a company owns multiple brands, business value refers to the value of the assets and revenue stream of the business line attached to that brand specifically.

Source: Brand Finance Toys 25 2018

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BRAND CONTRIBUTION Brand contribution represents the overall uplift in shareholder value that the business derives from owning the brand rather than operating a generic brand.

Brands affect a variety of stakeholders—not just customers, but also staff, strategic

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BRAND FINANCE partners, regulators, investors, and more—having a significant impact on financial value beyond what can be bought or sold in a transaction.

BRAND VALUE In the very broadest sense, customers, staff, and other stakeholders hold all the expectations and opinions for a brand’s focus about an organization and its products and services. However, when looking at brands as business assets that can be bought, sold, and licensed, a more technical definition is required.

Brand Finance helped craft the internationally recognized standard on Brand Valuation, ISO 10668, which defines a brand as, “a marketing related intangible asset including, but not limited to, names, terms, signs, symbols, logos, and designs, or a combination of these, intended to identify goods, services or entities, or a combination of these, creating distinctive images and associations in the minds of stakeholders, thereby generating economic benefits/ value.”

BRAND STRENGTH Brand strength is the part of our analysis most directly and easily influenced by those responsible for marketing and brand management.

To determine the strength of a brand we have developed the Brand Strength Index (BSI). We analyze marketing investment, brand equity (the goodwill accumulated with customers, staff, and other stakeholders), and the impact of those on business performance.

Following this analysis, each brand is assigned a BSI score out of 100, which is fed into the brand value calculation. Based on the score, each brand in the league table is assigned a rating between AAA+ and D in a format similar to a credit rating. AAA+ brands are exceptionally strong and well managed, while a failing brand would be assigned a D grade.

LEGO BUILDS ON SUCCESS IN EMERGING MARKETS LEGO remains the world’s most valuable and strongest toy brand, with a brand value of nearly $7.6 billion, an exceptional BSI score of 90.6, and a corresponding brand rating of AAA+. Despite this position, LEGO’s brand value actually slipped this year, down 0.3 percent. While not substantial, it represents a wider challenge for the brand as revenue fell 6 percent in the first half of 2017 and net profit was down 3 percent.

China is the brand’s biggest developing market, enjoying double-digit growth in the first half of 2017, but the more established markets have not been as fortunate. Since sales in Europe and the U.S. account for approximately 75 percent of all revenue, to in-

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Source: Brand Finance Toys 25

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BRAND FINANCE

Source: Brand Finance Toys 25 2018

crease its brand value, LEGO must turn to untapped markets, especially in Asia, and make adjustments to remain relevant in the established ones. LEGO recently formed a partnership with tech giant Tencent to develop licensed games, videos, and other content for children in China. This provides an opportunity for LEGO to maximize growth in China by tapping into the digital space, which should positively impact its brand value in the future.

BANDAI NAMCO EXPERIENCES SLIGHT GROWTH Bandai Namco remains the second most valuable toy brand this year, with a brand value of $1 billion, up 1.4 percent. Its slow growth coincides with a drastic decrease in brand value for the company’s other brands, as Yo-Kai Watch, Mobile Suit Gundam, and Power Rangers have fallen 24.8 percent, 26.3 percent, and 35.2 percent, respectively. The Japanese toy market experienced falling sales in recent years due in part to a population decrease in the 0 to 14 age group.

Despite these challenges, Bandai Namco managed to keep its second place position through a global diversification plan and new agreements. The company recently announced a strategic partnership with Dontnod Entertainment to facilitate the creation of a new IP game based on a narrative adventure experience to take place in a fictional U.S. city. This represents the next stage of Bandai Namco’s diversification strategy, keeping a worldwide audience in mind, and likely benefitting its brand value and brand strength in the future.

HASBRO PERFORMS BEST IN 2018 GROWING NEARLY 30 PERCENT Owing to the success of its portfolio of brands in-

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cluding My Little Pony, Nerf, and Monopoly, Hasbro is the fastest-growing toy brand, with brand value increasing 29.1 percent to U.S. $272 million. The majority of Hasbro’s brands improved this year, with several increasing their brand value by more than 20 percent. Although Mattel’s portfolio of brands in the table have a higher value than Hasbro’s, Mattel dropped from sixth to ninth, swapping places with Hasbro, with a 3.6 percent decline in brand value to U.S. $243 million.

My Little Pony, Hasbro’s best-performing brand, galloped up the ranks, growing 27.3 percent in brand value to U.S. $252 million. It is the second strongest toy brand in the table, with a BSI score of 87.9 and a brand rating of AAA. The brand transformed itself over the years, bringing its traditional dolls into the entertainment world and reaching its audience through different channels.

Most recently, My Little Pony: The Movie was well received, which led to the creation of a new TV show and a line of Equestria Girls dolls. Placing the My Little Pony brand on the big-screen is a step in the right direction, and capitalizing on this will help boost the brand’s revenue and improve its brand value in the future. ••••

David Haigh is CEO at Brand Finance, the world’s leading brand valuation and strategy consultancy. Certified with ISO 10668 in brand valuation, Brand Finance bridges the gap between marketing and finance and advises organizations with valuable intangible assets on how to maximise their value. Headquartered in London, the company has a global network of offices and partners in more than 20 countries worldwide.

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Want to Reach Millions of Consumers During the Holiday Season?

• Holiday Gift Guide in the November issue of Family Circle magazine, read by nearly 16 million* consumers (*MRI Spring 2017). Family Circle readers purchased nearly $43 million of toys.

Extensive Online Presence • A comprehensive companion website, thetoyinsider.com, features product reviews, demo videos, direct-to-retail links, and guest blogger contributions.

• Digital media brand promotions across Facebook, Instagram, Twitter, YouTube, e-newsletters, and more. toyinsider @thetoyinsider @thetoyinsider @thetoyinsider

Widespread Media Coverage Laurie Schacht, the Toy Insider Mom and the Toy Insider Team, appeared in more than 250+ National and Major Market TV segments, along with hundreds of print, radio, and online features.

To participate in the 13th Annual The Toy Insider™ contact: Jonathan Samet —(212) 575-4510 x 2321, jsamet@adventurepub.com Laurie Schacht — (212) 575-4510 x 2320, thetoyinsidermom@gmail.com

www.toyinsider.com

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INSIDE RETAIL

CREATIVE CHALLENGE

Surge in Retailers’ Private Labels Test Licensing EVERY RETAILER’S HOLY GRAIL IS TO CARRY well-priced, exclusive goods that consumers desire and that they can’t find anywhere else. It’s a proven formula for building traffic and margins, and one that—in an increasing number of cases—has driven them toward developing and selling more private-label lines.

For some in licensing, private label is becoming of increasing concern as they see the amount of shelf space they’re competing for dwindling. For others, it’s an opportunity for a direct-to-retail (DTR) agreement involving a celebrity or lifestyle brand that serves the retailer’s goal—but without the time and expense of building a brand on their own from scratch.

In the meantime, the modern shopping and communications environment is challenging all previous assumptions. “Retailers are looking at the data and it tells them that millennials and consumers in general are less interested in national brands than maybe their predecessors were,” says Beanstalk’s Michael Stone. “The millennial consumer is interested in a brand story, and through social media retailers can now tell that story about their own brands.”

For the licensing community, it’s seen most often in apparel and accessories, but also in areas such as grocery, health and beauty, and consumer electronics.

LONGSTANDING DTRS AFFECTED, TOO Even some longstanding DTRs have been affected.

For example, Iconix Brand Group has three of its brands—Danskin, Starter, and Ocean Pacific—being displaced at Walmart, which is ending the long-term licensing deals. Additionally, the 20-year DTR agreement between Cherokee and Target ended in January as the mass merchant prepared to launch more than a dozen of its own brands.

Indeed, sales of private brands at the big retailers—

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Walmart, B.J.’s Wholesale Club, Costco, Dollar General, Target, and others—grew 4.6 percent in 2016 compared to a 1.1-percent increase for national brands, according to the Private Label Manufacturers’ Association.

In creating their own brands or entering into DTR agreements that stand as defacto private labels, retailers are relying on their own design and supply chain management skills that were once the province of outside manufacturers. It’s a skill set they’ve been developing over the past few decades, but seems to have crested in the last 18 months.

Through the years, there have been cyclical increases in the private-label business, with retailers attracted to margins fatter than those for national brands that were also being sold elsewhere. But those cycles have periodically been short-circuited when a line or two didn’t sell, and the retailer had to eat all the costs of markdown and clearance sales. At that point, national brands offered by outside suppliers seem safer.

A SLEW OF NEW PRIVATE LABELS Traditional brick-and-mortar retailers are also looking at e-commerce competitors, such as Amazon, which has assembled its own roster of more than 20 private-label brands, including several that debuted in November— Goodsport, Rebel Canyon, and Peak Velocity for activewear, and Rivet and Stone for furniture.

Even Walmart’s Jet.com e-commerce site introduced its own private label, Uniquely J, for items such as coffee and toilet paper. Many retailers once carried five or six licensed footwear brands, and have since reduced the assortment to one or two as they add their own private brands. Fashion labels are also taking a hit, says SG Companies’ Elisa Gangl.

But it is Target that has captured the most attention.

After scrapping the Cherokee DTR, Target launched its

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Cat and Jack children’s apparel and accessories brand last year, which company executives say is on pace to garner $2 billion in sales this year. It further extended its private-label roster with Pillowfort (children’s bedding and throw pillows), JoyLab (activewear), Project 62 (home décor and furniture), Goodfellow & Co. (menswear), and A New Day (women’s dresses and shoes).

There will always be room for a hot license to generate traffic and sales. “I think the evolution of licensing is going to be that these private brands take some share, but retailers can’t ignore that licensing is still important in terms of driving traffic,” says Derrick Baca of Hybrid Apparel. “Are there going to be big licensing sections any more? Maybe not for a little while, and you can see that the sections have shrunk, but as these private brands have grown, so do other opportunities.”

CREATIVE APPROACHES Some companies are creatively addressing the changing landscape. For example, Hybrid spent more than nine months developing the Love Tribe brand with Macy’s, which carries the apparel in more than 200 stores. Love Tribe is matched with licensed IP from companies such as Nickelodeon and Peanuts.

“The days when mass merchants would roll with a design that had already been sold in specialty and midtier retailers are gone,” says Will Thompson of Changes, a company that developed distinct Walking Dead apparel designs for mass, mid-tier, and specialty retailers.

“They want their own designs and they want the same type of service that is given to specialty retailers.”

Those unique designs are also a sign that the days of private brands being limited to low-priced goods in select categories may be nearing an end. Dick’s Sporting Goods announced last year that it is paring back the number of national brands it carries, going deeper with fewer brands, and raising the prominence of its owned brands—Walter Hagen, Top Flite, and Field & Stream— and DTR lines such as country singer Carrie Underwood’s Calia athleisure collection. While Dick’s overall same-store sales declined 0.9 percent in the third quarter, those for private-label goods rose by a double-digits percentage, CEO Edward Stack told analysts.

Similarly, Target Executive Vice President and Chief Merchandising Officer Mark Tritton says that company’s private labels will provide a benefit to traffic and sales in all of its categories over time. Despite a growing number of retailers’ private brands, licensors remain confident that proprietary IP still has an upper hand.

“Where licensing has the upper hand is it takes a lot of time to build brand recognition, trust, and value that comes with a trademark,” says a licensing executive at a major publisher. “A retailer can build their own brand or go from zero to 60 with a licensed trademark that already has built-in awareness with consumers.” ••••

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AMONG OTHER MOVES

• Grocery chains are expanding into proprietary fashion apparel. In September, the German chain Lidl launched an 84-piece womenswear collection with model Heidi Klum—“Esmara by Heidi Klum: Heidi in the City.” A second collection was due in December.

Lidl currently has 17 stores across four states, including nine in North Carolina. Lidl’s move came nearly a year after 246-store Midwest grocery chain Hy-Vee deployed Tesco’s F&F fashion label for apparel boutiques that are being installed in its stores. Hy-Vee is operating the boutiques and Tesco is supplying the apparel. Tesco merchandised the F&F label for apparel in its stores in the UK. The F&F apparel and boutiques have been installed in 14 Hy-Vee stores across three states since debuting with a 3,300-square-foot display at a Lakeville, Minnesota location in the fall of 2016.

Meanwhile, Kroger recently said that it will sell a new private-label apparel brand at 300 of its Fred Meyer and Kroger Marketplace stores starting in the fall. Kroger has sold clothing at Fred Meyer and Marketplace locations before, but the new strategy is part of an effort to add more profitable store brands throughout the chains, says a Kroger spokeswoman.

• Changes is thinking about fashioning its internally developed brands—Hous, Z!, and Pet Project—as potential private brands for retailers, says Thompson. But it is proceeding with caution. After positioning Hous as an electronic dance music (EDM) T-shirt brand several years ago and having it given away for free by disc jockeys at EDM concerts, Changes launched a program with a major retailer. The T-shirts were popular at concerts, but retail sales were short of forecast. “I think we assumed people from the EDM world wanted a brand that would unite them,” says Thompson. “We misjudged it because I think people in the EDM world want to be very individualistic and don’t want to look the same.”

• Crafts retailer Michaels Stores is building out its sourcing business following its acquisition last year of distributor Lamrite West. Michaels set up a 100-person staff with operations in China, Dallas, and Hong Kong to support a direct-sourcing business that includes delivering licensed products under the Martha Stewart, Disney, and David Tutera brands, the assortments of which will expand this year, according to CEO Carl Rubin.

This story was published for LIMA members on licensing.org— the website of the international Licensing Industry Merchandisers’ Association (LIMA)—on Dec. 12, 2017 as part of LIMA’s Inside Licensing news service. For more information on Inside Licensing, contact Marty Brochstein, senior vice president, industry relations and information, at mbrochstein@licensing.org.

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EUROMONITOR

THE BIRTH OF A NEW CONSUMERISM Experiential Licensing Brings New Cross-Industry Prospects

by UTKU TANSEL, strategy analyst, licensing, Euromonitor International AS SHOWN IN EUROMONITOR INTERNATIONAL’S Experiential Licensing: Consumer Fundamentals Falling into Place report, today’s consumers are increasingly redefining their values and priorities, leading to the birth of a new consumerism. The “experiencing is everything” phenomenon is driving growth in sports and music licensing as well as theme parks and themed travel. Thus, themed flights and holidays, hotels, and cruises enjoy growing popularity. This trend also presents many opportunities across a wide range of industries, including travel, apparel and footwear, toys and games, consumer electronics, personal accessories, and home and garden.

“

“Today’s consumers are redefining their values and priorities, leading to the birth of a new consumerism, while time has become a luxury in our connected world.”

NEW CONSUMERISM FUELS “EXPERIENCING IS EVERYTHING” PHENOMENON Today’s consumers are redefining their values and priorities, leading to the birth of a “new consumerism,” while time has become a luxury in our connected world.

The experience trend is having an impact across many areas— from sports and music licensing to licensed themed travel and theme parks—while consumers

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increasingly seek to “do something different,” searching for unique, often personalized experiences.

THE U.S. DOMINATES SPORTS LICENSING AND LICENSED MUSIC MERCHANDISE SALES Globally, sports licensing has registered a steady 5 percent year-over-year growth in the past few years, driven largely by licensed sports apparel merchandise.

The sales of sports licensing is largely constant and does not tend to fluctuate from year to year. The U.S. is by far the world’s biggest market for sports licensing and the business is driven largely by major sports leagues.

THE WIDE RANGE OF CROSS-INDUSTRY OPPORTUNITIES FOR LICENSING Apparel (menswear, womenswear, childrenswear, accessories) and footwear, video games, consumer electronics (headphones/earphones, wireless speakers), traditional toys and games, personal accessories (jewelery, bags and luggage, pens) and home and garden (bed textiles, dinnerwear) are some of the major industries and categories that would benefit further from experiential licensing.

MILLENNIALS: A KEY SEGMENT FOR LICENSING Millennials make up a sizeable demographic, ranging from 11 percent of the population in aging Japan, to 18 percent in more youthful markets, such as Vietnam. It is a key consumer segment for licensing businesses globally, and travel is an important area for them.

The millennials group is projected to record the

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EUROMONITOR

Source: Euromonitor International 2017

fastest growth in world travelers, with a forecast to increase by 69.7 million from 2015 to 2020.

LICENSING TO THEME PARKS BRINGS REVENUE AND BRAND EXPOSURE Theme parks themselves have become an increasingly important component of many brand licensing strategies in recent years, as licensors search for innovative ways to leverage their property, enhance brand awareness, and connect with fans.

Worldwide sales at theme parks stood at $30.9 billion in 2015, registering a 1.6 percent drop on the previous year. However, steady growth is expected as the category is projected to record a value compound annual growth rate of 10 percent from 2015 to 2020, making it the second most dynamic behind national parks in overall attractions.

NEW CONSUMERISM DRIVES THEMED TRAVEL Themed travel is part of the phenomenon that no longer targets commercial movie screens or TV series,

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and now includes anything related to the concept of fan engagement—from licensed themed flights and holidays to licensed themed hotels and cruises. The underlying trend that has given birth to the integration of various aspects of travel is the connection of entertainment, lifestyle, and sports, which are heavily influenced by celebrities and global brands. ••••

Utku Tansel leads licensing at Euromonitor International. Over the past 12 years, he has been responsible for managing diverse research projects covering 32 countries worldwide and for the strategic development of several industry verticals. After heading the syndicated Toys and Games research system for more than five years, in August 2015 he was appointed to his current role developing specialist in-depth licensing knowledge and global expertise, covering a wide range of related industries.

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CELEBRITY LICENSING

CELEBRITY RIGHT OF PUBLICITY

ESTABLISHING VALUE AND ROYALTY RATES

by WESTON ANSON, chairman; and EVAN LOKER, senior financial analyst, CONSOR International Asset Management CELEBRITIES SHOULD BE CONCERNED WITH THE value of their right of publicity (ROP) in terms of a new contract, or as it pertains to their primary livelihood, whether it be sports, movies, or another form of entertainment. There are also multiple constituencies, stakeholders who care, and numerous reasons for concern about the values attached to them.

Celebrities are looking to understand three types of value: how much they can command for a right of publicity endorsement deal, how much they can command for an endorsement as compared to their peers or competitors, and what royalty rates they can command for different types of licensing agreements. A working knowledge of the competitive pricing structure in their profession is a highly useful negotiating tool when it comes time to sign the next modeling contract, for example, or the next renewal of a product endorsement or licensing agreement.

A celebrity’s ROP value is compelling for many of the same reasons as for other intellectual property (IP).

Whether for comparative, business, postmortem, legal, or competitive reasons, value has to be established.

However, the value and valuation of rights of publicity is more complex than any other type of IP. Each use of a person’s ROP is different. For example, a celebrity may engage in a simple 30-day product promotion, a personal appearance tour, a licensed line of products bearing the celebrity’s name, or even a long-term endorsement campaign, such as the partnership between Catherine Zeta-Jones and T-Mobile. Each of these uses of a celebrity’s ROP is different and therefore is going to have a vastly different impact on his or her ROP value.

The drivers of ROP valuation fall into three broad areas: comparative analysis, transactional analysis, and litigation analysis.

COMPARATIVE ANALYSIS The purpose of the comparative analysis is to help bracket a celebrity’s ROP value. After all, the value of ROP is always comparative in nature, as some celebrities

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are more well-known or liked than others. So, in fact, this comparative value helps form the basis of a market value, similar to the way in which houses are valued by comparing them to other houses. The comparative analysis calls for the analyst to research and review a celebrity’s ROP value against three main groups of competition: 1. Other celebrities who are in the same business (e.g. movie stars vs. movie stars) 2. Other celebrities of equal fame and notoriety, but who are in different businesses (e.g. movie stars vs. professional athletes) 3. Comparative personalities who are non-human, but are equally well known (e.g. movie stars vs. comic book characters) A comparative analysis is based on a market review of the competitive landscape, which helps to set the value parameters for the personality or celebrity under consideration. For this reason, the comparative market analysis is tied closely to a transactional analysis.

TRANSACTIONAL ANALYSIS A transactional analysis will first analyze the types of deals in which various personalities or celebrities have engaged for the use of their ROP, such as product endorsement deals and licensed products. Specific considerations within these types of deals should be examined, including the length of time for use of the IP, the breadth of use on products and services, the amount and type of media in which the celebrity’s ROP is used, geographic usage, online/internet usage, spinoff and ancillary usage, and financial terms.

When valuing ROP or other IP assets, it is essential to consider the unique characteristics of the asset, as well as the context of the valuation assignment. The methods used to value IP and intangible assets have many elements in common with those used to value tangible assets, such as real estate, equipment, or other real property.

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ROYALTY RATES AS A MEASURE OF VALUE A royalty rate is merely a representation of value for the underlying IP. It is also a representation of comparative value as measured by fashion, utility, or ubiquity. The royalty rates commanded by celebrities can vary greatly depending on a number of factors. Licensees looking to use a celebrity’s ROP to endorse a product or for use in advertising are typically looking for one or more of the following when choosing a celebrity to represent their brand: credibility, attractiveness, familiarity, likeability, celebrity/product fit, and more.

In this article, we are focusing on the more common product categories and types, such as the fashion and entertainment industry, and on traditional licensing royalty rates for the use of a celebrity’s ROP. In the past decade, however, there has been an increase in celebrity advertising through social media outlets such as Snapchat, Instagram, Facebook, or Twitter. These platforms are upending the celebrity’s ROP value status quo. Celebrities who would generally be regarded as less famous or well-known are able to generate considerable royalty revenue because companies can target very specific potential customers.

A celebrity will post pictures of him- or herself holding or endorsing a specific product, in ways that make the posting seem less like a traditional advertisement created by the company. The celebrity receives a lump sum payment with values ranging considerably, depending on his or her number of social media followers as well as other factors. The number of followers and payment amount are directly correlated.

This simple strategy is gaining popularity with many celebrities as millennials spend more and more time scrolling through social media platforms. Many celebrities often market a product that consumers can either buy directly through the celebrity’s posting or use a celebrity’s discount code. This helps companies quantify the effect that the celebrity’s endorsement has on sales of their product. The celebrity then either receives a lump sum payment or a royalty rate based on the sales of products purchased directly through the social media posting.

Certain product categories can command higher royalty rates as well. Popular product categories—such as luggage and travel accessories, toys/games, and video games/software—have average royalty rates exceeding 10 percent. Fragrances and handbags, which are often endorsed by celebrities, follow closely behind. As for property types (e.g. art, fashion, music, publishing, sports, apparel, etc.), celebrities hold the highest average royalty rate at 10.3 percent, with entertainers/models specifically commanding a 10.4 percent royalty rate.

Royalty rates for celebrity licensing remained relatively flat over the past decade with very minor variances.

While celebrity ROP licensing remains the blue-chip

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standard for endorsement and advertising today, this has the potential to push more celebrities towards ROP endorsement deals, specifically through social media platforms.

ROP endorsements are typically a win-win situation, especially within the entertainment and celebrity industry. Britney Spears is one celebrity whose estimated $220 million net worth most likely comes from her licensing royalties, since it has been several years since the peak of her music and touring career. The key to her licensing success is that she licensed her ROP and launched her own fragrances at the peak of her career and has worked hard to keep a loyal following.

A royalty rate is an objective, data-driven, measurable, and quantifiable value placed on the intellectual property in that agreement. Successful celebrity ROP endorsement and licensing deals rely heavily on celebrities’ popularity, their perceived “brand,” their engagement with and connection to the consumer, and many other factors. As the public continues to admire and adore celebrities, the ability to charge top dollar for use of their ROP will continue to rise.

As a final thought about value and its connection to litigation, as more disputes over IP—and ROP in particular—continue to increase, the value of a celebrity’s ROP is also increasingly important. A value based on royalty rates and the relief from royalty method is a reliable and respected way to arrive at an accurate ROP value.

Thus, we see how value based on royalty rates can be performed to establish value for litigation. •••• CONSOR has assisted clients with their intellectual property valuation, licensing, and other monetization needs for more than 30 years. Whether for transactional or litigation purposes, CONSOR has a successful track record in valuing and defending intellectual property. To discuss your IP valuation and monetization needs, contact CONSOR at info@consor.com or (858) 454-9091.

Weston Anson has worked at Booz-Allen & Hamilton, then as vice president at Playboy Enterprises Inc., and then as senior vice president of Hang Ten International, prior to starting at CONSOR more than 25 years ago. Anson is active with international IP groups (ABA, AIPLA, INTA, LESI, LIMA) and is an adjunct professor at the Thomas Jefferson School of Law. He has authored seven books and more than 150 articles on IP. Evan Loker was a consultant in the private equity industry, and has extensive experience in the consumer products industry.

In his private equity consultant role, Loker led sourcing and network development efforts and analyzed business plans, models, and financial statements. In his role in the consumer products industry, Loker led compliance projects and developed new analytical models and approaches using statistics.

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MARKETING MEMO

A BRAND WITH BUZZ: Creating a Property from Concept to Contract

by J’NET SMITH, owner, All Art Licensing IT’S NOT NEWS THAT THE LICENSING INDUSTRY is exploding. This is in part because of the expansion of media companies like Netflix, Hulu, and Amazon Prime, the latter of which was new to the Licensing Expo last year. Now, more than ever, there are many opportunities for properties to break into licensing.

Over the past decade, licensing has evolved at a fast pace, increasing by 4 percent* in 2016. Though often overshadowed by big brands, new properties should not be discouraged by industry giants. Licensing is a $263 billion industry—there is plenty to go around.

“A brand must Not long ago, people did not have access to global distribution without licensing representation. During constantly develop my time as vice president of licensing for Dilbert, the and move forward... property started as a syndicated newspaper comic strip Creators must commit that fought its way into The Wall Street Journal before to generating content publishers—let alone TV companies—would take note. and growing an There were no print on-demand products, e-books, or audience, leveraging video outlets to offer potential widespread distribution.

each success along the way.”

FROM CONCEPT TO CONTRACT It’s exciting to bring a property up from start to finish. An idea, book, illustration, or video can be the start of a successful property. To obtain licensors, there needs to be a demand that will drive the marketplace. Zoonicorn is an example of this. Created by Mark Lubratt, it took momentum-building steps to develop content and distribution channels with its strategists, producers, designers, writers, and social media experts.

Zoonicorn launched at Toy Fair in 2015, and then presented at Licensing Expo, where it was voted a top five property in the “One to Watch” competition.

Zoonicorns—a cross between a zebra and a unicorn— take dreamland adventures as they teach social and emotional lessons. It launched with an original hardcover Zoonicorn

book and four plush on Amazon, and soon needed an enhanced experience. By Licensing Expo in 2016, it had three interactive stories and game apps, and a website with a parent portal that let kids read along or listen to stories. Each story was paired with a mobile game.

Last April, Zoonicorn expanded again with five original animated music videos that introduced the Zooniverse with original scores. The company actively boosted views and YouTube page visits with organic and paid social media promotions and weekly blog posts. As of last November, the videos had a combined reach of 3.2 million views on YouTube.

In the first three months after the videos launched, 15.5 percent of the completed viewers chose to click or comment. According to marketingcharts.com, this engagement rate is 50 percent higher than the entertainment industry average. Additionally, individuals who watched the videos averaged 1 minute and 20 seconds—a high retention by industry standards.

This helped lead to an agreement with happykids.tv, expanding potential on-demand distribution to more than 20 million homes on multiple platforms. Additionally, this year Jay@Play will launch SKUs for the four plush Zoonicorns, and the brand will add music videos and an 11-second TV pilot at Kidscreen.

ZOONICORN TAKEAWAYS Zoonicorn demonstrates the necessary steps to build a strong licensing program. A brand must constantly develop and move forward, especially with a green light from industry experts and fans. Creators must commit to generating content and growing an audience, leveraging each success along the way. Be prepared to spend advertising dollars on social media and budget on designers or producers, but remember that there are ways to help raise funds through family, friends, partnerships, and even Kickstarter or Indiegogo campaigns.

The more developed the content is, the better negotiations will go when the dream licensor calls. •••• *adage.com, 8 Trends Ahead for the $263 Billion Licensing Industry

J’net Smith is passionate about helping properties achieve success. She has helped hundreds of creative entrepreneurs maximize the power of their brands and talents. Smith has more than 30 downloadable classes for budding licensors at www.allartlicensing.com.

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OUTSIDE THE BOX

HOW & WHEN TO PREP A BRAND FOR SUCCESSFUL LICENSING

by TED MININNI, president and creative director, Design Force THERE’S A LOT AT STAKE WHEN PREPPING A brand for licensing. While it has the potential to become a valuable business opportunity for licensors and their partners, a company should only put a licensing program in place when a brand is ready for it. The property has to have a solid fan base and enough strength in the marketplace to attract solid licensees who understand how to roll out the optimal mix of consumer products and how to merchandise.

Attracting and choosing the wrong licensing partners, even if they represent desirable categories of consumer products, can really harm a property. No brand owner wants to be represented by poorly conceived consumer products and packaging at retail. A newly licensed entity has to be able to hold its own in a marketplace that’s burgeoning with brands. Retailers will pull underperforming properties out of assortments very quickly—even if they get coveted retail shelf space upfront—and the damage can actually prevent re-entry into the marketplace. And, of course, less-than-inspiring licensed products are unlikely to even get into topnotch retail stores in the first place. Lastly, and most importantly, the perception of fans could be irrevocably harmed if licensed products don’t measure up to the brand image created by a property.

So, how can a brand build its presence and chemistry with its targeted fans to get to the point where licensing is not only feasible, but could also make a major impact in the marketplace? We work with many licensed properties within the toy and entertainment industries, and what’s true for them is true for all would-be licensors. Like their counterparts within consumer product companies in every category, toy marketers have to position their brands with a media focus rather than product emphasis to gain sufficient attention and desirability. Well-strategized, consistently delivered content on social media platforms creates brand awareness and engagement on a global scale.

It is essential for marketers to pinpoint the platforms to which their fans are gravitating so that they can focus their efforts. Smart brands invest in content creation on their websites as well, essentially developing their own media platforms. Meaningful brand experience is the only factor that drives sales and growth in this era—not

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product marketing. That’s good news for small brands that have every opportunity to make it big. However, having a presence on social media platforms means little unless the content presented delivers emotionally satisfying experiences and is formatted for mobile devices— since that’s the predominant manner in which content is being consumed.

EXHIBIT A: SHOPKINS Moose Brands’ superstar property, Shopkins, made Shoppies into media stars and a household name via its YouTube web series of animated shorts. Shopkins stories engaged young fans and drove them into retail stores to purchase. The brand wisely tapped into kids’ enthusiasm for collecting, an activity they can share with their friends.

A steady stream of Shopkins continues to come to market featuring engaging, fresh content that ignites kids’ imaginations. Yet, Shopkins represent mundane, everyday items found in grocery and retail stores—so, what makes them so hot? The three Cs: They represent consumerism, they’re collectible, and they deliver great content.

There is no doubt that word of mouth made Shopkins grow exponentially, which continued with media exposure on YouTube and the brand’s website. The engaging short webisodes made the property an international sensation very quickly. The huge popularity prompted Shopkins brand owners to seek out licensing opportunities. Since its launch in July 2014, the Shopkins brand sold hundreds of millions of units at retail worldwide with more than $1 billion in sales in 2016, according to an article in Brandchannel. Shopkins also had 210 licensees and 18 global agents during 2016.

By continuing its successful formula of storytelling, new character introductions, and new products, we’re sure that Shopkins will continue to be a force in the collectibles category.

FROM MEDIA STARS TO LICENSING LUMINARIES The world’s leading toy brands are media companies. LEGO, Mattel, and Hasbro developed strong fan bases for their many brands with powerful storytelling.

The content they create tells meaningful, emotive stories with which kids can connect, and is delivered in a manner that excites kids’ imaginations.

Whether we’re talking about Barbie, G.I. Joe, Transformers, or LEGO Ninjago, what gives these brands meaning and context is the compelling content that surrounds each property. Sharing backstories gives depth to

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the characters, and their ongoing adventures brings their young fans back for more. The brands’ richness enables their licensing program design teams to develop a library of brand-centric visual assets for consumer products and packaging that make a huge impact in retail environments, which brings me to my next point.

WHO SHOULD DRIVE LICENSING? We are very aware of the problems that arise when licensees drive the look and feel of consumer products and packaging rather than licensors. Unfortunately, licensees who generally lack the expertise to create licensing program design are likely to omit crucial assets—visual and verbal—that ideally represent the property. It is unfortunate because the brands’ fans won’t easily be able to pick out licensed products to which they would normally gravitate in retail stores. Low recognition equals low sales. Even for hot properties.

Licensing program design for consumer products and packaging should never be left to chance. We urge manufacturers that are venturing into licensing to take control of their properties in the marketplace, because it will actually help their licensees be more successful in selling their products. By standardizing the manner in which licensees deploy visual assets on consumer products, as well as putting packaging style guides in place, licensors actually demonstrate to their licensees that they are valued partners. When licensees succeed, so do brand owners. The goal of licensing programs should be to fully leverage the power of a property—to bring it to life and to essentially make it leap off the shelf.

LEEWAY ON PACKAGING We agree that licensors should give some latitude to licensees to accommodate consumer product packaging in wide ranging categories, but too much freedom leads to a lack of visual cohesiveness that is necessary to the success of every brand. The best approach that licensors can use is to reinforce with licensees that the style guide helps their products align with other licensees’ products ensuring greater brand recognition and sell-through. The key is to set up the style guide to give licensees a range of options so that they can envision their products within specific packaging concepts. This is helpful and supportive rather than restrictive. Best of all, it’s really an invitation from licensor to licensees to support the brand vision.

Effective style guides include examples of how the brand’s visual and verbal assets might be implemented on products and product packaging. They take into account that products will launch in many new categories with different packaging needs as new licensing deals are inked in the future. Style guides should allow licensees some leeway, while ensuring that the brand’s key visual and verbal assets remain fully in place. This puts the licensor firmly in the driver’s seat when it comes to managing their properties.

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EXHIBIT B: BREAKING OUT The usual M.O. for toy brands is to work with licensees in predictable categories from apparel and fashion accessories to home décor. But smart marketers are extending their properties into new territory with fresh licensing ideas that appeal to adults, capitalizing on the memories and fondness grown-ups have of favorite childhood brands.

Crayola famously worked with Clinique to create a wonderful line of lipsticks last year shaped like their iconic crayons. Last fall, the company partnered with Sally Hansen to launch limited-edition nail polishes under the licensee’s Insta-Dri umbrella. Not only are the nail polishes featured in iconic Crayola colors, but the packaging itself is also reminiscent of crayons. The lid on each package mimics the top of Crayola crayons in shape and design with the iconic color squiggle wrap-around within a black box. The packaging looks simple, but it is obvious that Crayola, as the licensor, is driving its licensing program design and extending its brand in a smart manner.

If you have a small brand that needs exposure to gain visibility and desirability, think about creating compelling content via short webisodes, like Moose Toys did with Shopkins. Tell compelling stories that add richness and connectivity to the brand. When your property is ready, drive your licensing program in a way to make your licensees partners in your brand vision. Or, if you have a heritage brand that’s typecast within a specific category, but you want to leverage its equity in a fresh manner via licensing, think like Crayola and wisely set up partnerships with quality product manufacturers with clout. Think outside of the box and find categories that make sense for line extensions. No matter what, take ownership of the licensing design program to drive your business to new heights. How satisfying will that be—for you and for your licensing partners? ••••

Ted Mininni is president and creative director at Design Force Inc., a package and licensing program design consultancy to the consumer product and entertainment industries. The goal of Design Force is to establish strong emotional connections with consumers and create powerful visual brand experiences that engage, excite, entertain, inspire, and influence consumers’ decision to buy. Mininni can be reached at (856) 810-2277. Visit designforceinc.com for more information.

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OF COUNSEL

PROCEED WITH CAUTION TERMINATING ROYALTY AGREEMENTS

by ADAM STARR, shareholder, Markowitz Herbold PC WHEN A PARTY BREACHES A LICENSING agreement, the harmed party must make a decision to terminate the agreement or seek damages for the breach while continuing to perform under the agreement. But beware: Terminating the agreement is a high-stakes decision with significant legal and business consequences. Licensing parties are often unaware of the legal standards for justifying a contract termination.

A RECENT TOY INVENTOR’S CASE A recent case illustrates this complicated issue. A toy inventor sold his entire line of baby toy products to a large toy company in exchange for royalties on the future sales of his products. The royalty agreement, which spanned many years, contained separate royalty rates for different categories of toys, including a rate for toys that had already been commercialized by the inventor (“original toys”), and another rate for toys that were “derived from” these original toys.

Although the toy company paid royalties on the sales of many toys, the inventor claimed that it deliberately misclassified toys to avoid royalty payments. According to the inventor, the toy company was taking an overly narrow interpretation of whether toys were derived from the original toys so that it could exempt toys from the royalty agreement.

The inventor faced a choice: Sue for the past due underpayments (based on the misclassification of toys as non-royalty bearing), or terminate the agreement in its entirety and seek accelerated damages for the remaining term of the royalty agreement.

In this case, the inventor was concerned that even if he sued for past due underpayments and prevailed, the toy company would look for other ways to deprive him of his royalties in the future. Accordingly, he chose to terminate the agreement and sued to recover the future royalties that he would have earned under the royalty agreement if the toy company had not breached the agreement.

WAS THE BREACH SIGNIFICANT ENOUGH TO JUSTIFY THE TERMINATION? One of the first questions faced by the parties was whether the toy company’s breach was significant enough to justify the termination. In legal terms, the inventor must establish that the toy company’s breach was “material.”

Although the precise test for “material breach” varies by

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state law, in essence, the terminating party must prove that the breaching party’s failure is so fundamental to the contract that it defeats the essential purpose of the contract. This is a fact-rich and flexible analysis. Generally, the court will consider a number of factors in determining whether a breach is material, including: A. the extent to which the injured party will be deprived of the benefit which he reasonably expected B. the likelihood that the party failing to perform will cure his failure C. the extent to which the party failing to perform will suffer forfeiture D. the extent to which the behavior of the party failing to perform comports with the standards of good faith and fair dealing.

The purpose of this heightened standard of materiality is to avoid a total termination based on trivial breaches. It is understood, particularly in administering royalty agreements, that mistakes and disputes will occur. The courts do not want to give one party an unfair advantage due to the types of minor mistakes and disagreements that regularly occur between long-term partners, such as licensors and licensees.

But can there be a material breach where the licensee is accused of underpaying royalties (as opposed to withholding all royalties)? At times, underpayment of royalties justifies a termination, but other times it does not. There is no bright line rule. Some New York cases, for example, suggest that withholding even 75 percent of royalties due, alone, is not grounds for termination of the agreement. In the inventor’s case, he justified his decision to terminate the royalty agreement on a number of grounds, including the large percentage and dollar amounts underpaid. He also argued that the toy company deliberately set up a scheme to avoid paying him royalties, which was evidence of its bad faith, as well as the toy company’s refusal to correct what he contended were the erroneous classifications for royalty purposes. Moreover, in the inventor’s case, there was no risk of “forfeiture,” since the toy company retains the right to use the intellectual property even on termination of the agreement.

SEVERE CONSEQUENCES The terminating party, which considers itself harmed, may actually create significant liability for itself. When a licensor terminates a royalty agreement, the licensee

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CONTINUED FROM PAGE 18 Your time, budget, and products are valuable.

Sending unrequested product to influencers is the equivalent of throwing money out the window. While reaching out to creators may seem like more work, in the end you will have a way better campaign and it will all be worth the effort. may suffer damages and expenses. For instance, if the terminating party revokes the licensee’s right to use its intellectual property, the licensee may have to pull products off shelves. If the licensor’s initial termination was not justified, the licensor may be on the hook for the licensee’s damages. In the inventor’s case, the toy company countersued for breach of contract, in part based on what it claimed was the inventor’s improper termination of the contract.

One way to mitigate the uncertainty surrounding the right to terminate a royalty agreement is to include a “termination provision” in the agreement, specifying the cause or standard for termination.

Courts generally enforce termination clauses. The termination provision may require only a “breach” of the contract, as opposed to a “material breach.” This can eliminate the need to prove “materiality” as a condition to termination, but leaves the parties vulnerable to contract termination for even minor breaches.

Depending on the type of royalty agreement and the issues of importance to the parties, the termination clause can specify particular types of conduct or events that justify termination, including underpayment of royalties, failure to comply with an audit, or certain misuses of intellectual property.

The termination provision ought to also explain what happens to the intellectual property on termination of the agreement. Does the intellectual property immediately revert back to the licensor? Or, as in the case of our inventor, does the intellectual property remain with the licensee?

Wrongful termination of a royalty agreement can have significant consequences. A well-counseled party to a license agreement must carefully consider whether the wrongdoer’s conduct rises to the level of materiality before terminating a royalty agreement or otherwise meets the royalty agreement’s termination provision standards. ••••

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Adam Starr is a commercial litigator at Markowitz Herbold PC, specializing in complex business and intellectual property disputes.

Starr has extensive experience in California, Oregon, and Washington state and federal courts, and in all stages of the litigation process, including trial.

GETTING STUCK IN LONG-DISTANCE RELATIONSHIPS Long-distance romances often fail because they lose their spark. Similarly, working with influencers using generic email templates coupled with shipments of new product on a regular schedule yields content that feels sterile and lacks a certain spark. Consumers respond positively to that spark—that true love between a creator and a brand or product—and they often gloss over content that feels rote and sterile.

While you may not ever get the opportunity to meet all of your influencers in person, there is a device called the telephone, which can yield amazing results.

Having conversations over the phone gives you the opportunity to connect with your influencer partners.

As you get to know them and they get to know you, their content becomes more authentic and heartfelt, and consumers will sense that.

EMBARKING ON A JOURNEY WITH NO DESTINATION Many influencer campaigns begin because “we need to start using influencers!” Lists are developed, products are sent out, communication takes place, content is created, and then… what?

You need a clear idea of what you want to accomplish. Are you trying to raise awareness of a new product, increase sales, or grow your own social media footprint? Choose a specific goal for one activation.

While you may show gains in multiple measurable areas, having a specific goal in mind will help you hone your influencer strategy skills.

Influencer marketing is a marathon, not a sprint, and it will traverse all types of terrain over the years. Avoiding these five most common mistakes will help you to create long-term partnerships with influencers and together you can navigate the twists and turns successfully. ••••

Melissa Hunter is better known in the YouTube world as Mommy, the co-host of Mommy and Gracie Show, which she shares with her 14-year-old daughter, Gracie. In 2014, she launched Family Video Network, an influencer consulting company that works with the top toy brands and social media personalities in the kids and family space.

The Licensing Book • 65

MARKETING MEMO

KEEPING IT ON BRAND

How to Create Effective Video Content

by PABLO GARRAHAN, WIT member; founder and executive producer, Fiction Films FOR YEARS, BRAND TEAMS HAVE PROMOTED their products with TV commercials, direct response ads, sizzles, shelf-talkers, instructional videos, and digital spots for social media. But in today’s multimedia, multi-platform, and image-on-demand world, the opportunity to outperform and outsell by using video as a key selling medium is booming.

The ability to effectively engage and target market your audience is directly correlated with how well you can promote and sell your products online. According to a Sparks & Honey report, the new generation of consumers can multitask across at least five screens daily, and spends 41 percent of their time outside of school with computers or mobile devices, compared to 22 percent 10 years ago.

Videos can be an effective vehicle to announce and promote new product lines across your company’s social media channels, and on your website. They can also be an interactive part of press releases. What does it take to produce effective content?

late feedback often result in costly overages. Be smart and take the extra few minutes to plan out your vision.

BE PREPARED Know your demographic and make your creative brief as detailed as possible, then prepare digital assets that can be passed on to the production team. It’s best to keep your timetable in mind—know the delivery date, by when it needs to be completed, and when your product is available for shooting.

CONFUSION KILLS The most effective stories are simple and reiterate a core message over and over. Instructional videos have proven to be very successful for brands that need to demonstrate the intricacies of their products. They also cut down on customer service call volume.

BE REALISTIC The average commercial can range from $50,000 to $150,000 to create, depending on the creative and production needs. Sizzles and digital spots will start around $7,500 and top out around $45,000. These estimates include cameras, sets, permits, on-camera talent, visual effects, voice-over, and music. Keeping this in mind, make sure your expectations align with your budget.

BE PART OF THE PROCESS In the new economy, many companies are turning to an in-house creative team that outsources its production work. That’s good news for many smaller companies trying to compete. The traditional agency model is in place mostly for large corporations, which means brand teams and production companies are now working closely together.

Make yourself available to the production team during the process. Quick and definitive feedback ensures that you get what you want, while re-direction and

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REPURPOSE Repurposing your video can prove beneficial in many ways. As a traditional sales tool, it can run at trade show presentations and sales reviews. It can also be compressed and sent via email to sales affiliates and retailers who missed the event. Additionally, you can show it on a loop at a retailer or in your showroom. You can also repurpose the content to be part of your digital marketing strategy, and post on your company’s social media channels, website, and at PR launch events.

THINK EVERGREEN Consumers and retailers alike look forward to the next evolution in the brand’s life. Consider how you can start building brand equity in your first video and follow it up with others that continue to drive your positioning statement home. Here are other notes to keep in mind:

DIGITAL SERVICES Use your production company to maintain your media or create a central location within your company to keep both digital and hard copy files.

MAINTAIN OWNERSHIP Ask for all your files to be returned, and make sure to get generic file forms (edits without graphics, so you can repurpose them in other languages), as well as master files.

Creative content for your product should be innovative and effective. Videos are a platform that can leverage your product in the marketplace while helping you to define and shape your brand’s positioning. ••••

Pablo Garrahan is founder and executive producer of Fiction Films, a WIT member, and an avid supporter of Women in Toys, Licensing & Entertainment. He creates videos that capture stories of WIT and its members.

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