Industry Roundtable: The Year Just Gone and the Year Ahead

New year message

Inset: The arrival of the Barbie movie this summer will be a huge ‘pop culture’ moment for consumers.

Marianne James Andrew Carley Jon Spalding Kate Schlomann

LSB chats to four senior executives – Marianne James, vp EMEA and Asia Licensed Consumer Products, Hasbro; Andrew Carley, director of global licensing, BBC Studios; Jon Spalding, head of UK consumer products and hardlines, EMEA, Mattel; and Kate Schlomann, evp brand management and content marketing, Boat Rocker – about the year just gone, the year ahead, retail opportunities, the challenges and the positives.

How was 2022 for your business? What were some of the key highlights?

Marianne: “2022 was a year of change and focus on our new Blueprint 2.0 strategy, emphasising fewer, bigger, better brands to generate meaningful consumer interest and deeper retail engagement, while putting purpose at the centre of everything we do and the products we deliver.”

Andrew: “Bluey continues to exceed all expectations. 2022 was Bluey’s first full year at retail in the UK and while the product range remains tight it’s driving very strong momentum. Categories across ancillary toy and apparel are beginning to build significant presence at retail paving the way for a very exciting 2023. 2022 also saw the launch of Bluey across almost all European markets, led by France, Italy and Spain, while the CP programme is in its second full year in the US. Hey Duggee also continues to command shelf space in a very competitive market – no mean feat for a 7+ year old property.”

Jon: “2022 was a transformational year for Mattel’s consumer products business - as a licensing business within a global toy company there are so many great opportunities to integrate as a business, across retail and marketing and as we move into 2023 we have an exciting new approach on how we bring our brands to life for the consumer. Our franchisefirst approach has accelerated with the announcement our first-ever theatrical live action Barbie movie (coming in July) which will be a huge pop culture moment for consumers, plus the return of Monster High with two new films and an animated series. As we move into 2023, we are excited to bring Barbie, Monster High and Hot Wheels programmes to retail and, of course, continuing our story on Thomas & Friends and Fireman Sam.”

Kate: “Overall, for Boat Rocker, it was a buoyant year. After going public we’ve seen a big leap in scale that has allowed us to expand our creative and commercial capabilities and we continue to enjoy rapid growth. It was a pivotal year for our ‘roarsome’ in-house hit Dino Ranch, while we also launched enchanting new show Daniel Spellbound globally on Netflix. We have a strong content development pipeline in place with some exciting projects due to be revealed in the near future.”

What properties will be key for your business in 2023?

Marianne: “In 2023, we’re focusing on Peppa Pig (as we gear up for the brand’s 20th anniversary in 2024) and My Little Pony (which is celebrating its 40th anniversary in 2023), along with Transformers and Dungeons & Dragons, which have star-studded films hitting the big screens with Transformers: Rise of the Beasts in June 2023 and Dungeons & Dragons: Honour Among Thieves in March 2023. We’re also excited for what’s next for NERF.”

Andrew: “Both Bluey and Duggee continue to remain key. Expectation around Bluey is significant and we will be careful to ensure the programme is carefully managed. The recent announcement that BBC has entered in a partnership with Disney for the production of the forthcoming series of Doctor Who is creating enormous interest and we will be working hard to build the licensing programme across multiple retailers for end 2023 and into 2024.”

Kate: “Dino Ranch is set to aim high and fly as it leads the charge of our international franchise expansion. Season two, which launches across Europe in the summer, includes Dino SOAR - a 22-minute flying tentpole special, further supported by four themed episodes. Phenomenally successful powerhouse show The Next Step, the reality dance drama for tweens, celebrates its tenth anniversary in 2023 and there’ll be some exciting activity to support the incredible milestone. New for 2023 from our Scripted division is Orphan Black: Echoes, a spin-off from our hugely popular series Orphan Black. International roll out will follow the US launch and licensing opportunities are in development.”

Do you see new retail opportunities opening up in 2023 for licensed product?

Kate: “As we start to see our push into scripted appear on screen, we are excited about the opportunities this offers us – allowing us to move into a more targeted retail space and explore digital opportunities. I think we will see an increase in the number of products that are available digitally and physically. E-commerce continues to expand and create new possibilities. It’s a fantastic way to connect directly with consumers and increase brand engagement, and new technologies are opening up exciting ways to create exciting immersive environments that take the idea of shopping to a whole new level.”

Jon: “As well as our strategic retail partners who are pivotal to our growth and consumer experience, we are excited by the rapid growth of Kidult category and the opportunities that this brings to our heritage brands.”

Andrew: “Retailers want and quite rightly demand a point of differentiation. It’s not only about the product, it’s about the end-to-end experience and brand owners have the opportunity to increasingly integrate into that process. It’s no longer about focusing on a single

Right: Dungeons & Dragons will have a new movie launching this year

Right: Dino Ranch will be leading the charge for Boat Rocker’s international franchise expansion in 2023.

element of the buying process, it’s about looking at the entire offering – in-store, digital, social, marketing and creating a narrative around that. For the brand owner and retailer there are increasing opportunities to bring content and narrative from the film, TV and online space into the consumer retail space.”

What are the key challenges facing your business and the licensing industry in general in 2023?

Marianne: “Challenges we anticipate for this year include the macro economy and the retail landscape, as we are focusing on value in response to the economy. There’s also a constant need for innovation, so it is an ongoing challenge delivering on those fronts, while continuing to deliver purpose-driven values and products through multiple touchpoints and omni channels.”

Andrew: “I am sure we see some consolidation across the industry – particularly at retail where there will be a focus remaining committed to the tried and tested and less inclination to move into the unknown. It’s going to make it difficult to build new brands and sustain tertiary properties. That being said, the drop in oil prices and shipping rates going back to pre-Covid rates means the initial price inflation across consumer products may not be as acute as first thought and there will flexibility to address possible consumer spending pressures.”

And what are the positives? What impact could the cost of living crisis potentially have on the licensing business? Are we already seeing this impact?

Jon: “It’s a challenging time in the market place at the moment, whether you are a licensor, licensee, retailer or consumer. However, with licences and content, you have an opportunity to give consumers an escape and immersion experience and this is something that we will be focusing on next year.” Marianne: “We have a lot to look forward to at Hasbro, including the following brand highlights we’re activating our Blueprint 2.0 strategy around. We are celebrating the 20th anniversary of Peppa Pig in 2024, and we have new exciting content planned through 2027; we are also celebrating the 40th anniversary of My Little Pony in 2023; the highly-anticipated feature film Transformers: Rise of the Beasts releases in June 2023, and we are working towards a July 2024 release date for a feature-length Transformers animated film; Dungeons & Dragons will have a new movie in March 2023; while PJ Masks was renewed for a sixth season to be aired in 2023 as well.”

Andrew: “As we go into 2023 there is ongoing excitement around Bluey with much of the fanfare built in the US in November and December shifting into the UK and Europe. Plus, the confidence around Hey Duggee as a solid evergreen stands the brand in good stead in a period of uncertainty.”

Kate: “We are definitely already seeing an impact with consumers being more cautious in their spending on non-essentials. Christmas activity felt late and quieter last year. In response we continue to explore different price points that make our products accessible.”

Trends such as immersive experiences have really come to the fore over the past couple of years - how important are these types of initiatives to your business now?

Marianne: “Experiences are critical to expanding your business, as consumers get the opportunity to connect and engage beyond the shelf as they want their favourite characters to connect with them on all levels. With the economic challenge, immersive experiences are also a way of experiencing and coming together as a family in a more cost-effective way.”

Jon: “Yes, these are important to our long-term plans. In 2023 we have the Hot Wheels Monster Trucks Live experiences, as well as expansion to our Thomas theme park experience and a Fireman Sam Musical immersive experience and this will be expanded with other brands in the future including theme parks, as well Barbie expositions across the globe.”

Kate: “They’re increasingly important, enabling fans to engage even more closely with their favourite shows. We’re really excited about our Dino Ranch live show, in partnership with Fierylight and Terrapin Station. The Next Step has also forged a hugely successful partnership with Pineapple Dance Studios that covers themed dance workshops and co-branded apparel. The sell-out workshops feature music and choreography from the series and the classes available both in person and digitally boost sales of tie-in product and generate strong social media activity.”

Can the global licensing industry enjoy a year of growth in 2023 in your view?

Andrew: “While there will be challenges, there are multiple major events coming out of the major studios and other brand owners that will inject excitement, newness and creativity into the industry. At the same time advances across digital and social will build new opportunities.”

Jon: “Yes, I think we are seeing a new era of licensing with the emergence of gaming, music and social media all adding to the weight of theatrical and video content. It’s an exciting time to be working in licensing.”

Finally, what’s your hot tip for 2023?

Kate: “Sustainability is increasingly important in all areas of life and it’s also key and a major focus for Boat Rocker. Streaming services are becoming more prevalent to our business and our future plans for new shows and we are extending our strong relationships with the streaming platforms. The rise in POD and e-commerce gives us the opportunity to launch programmes with niche fan bases and use this success to build into a bricks and mortar programme.”

Jon: “As well as our own brands which of course I am tipping to have an incredible year - from Monster High, Barbie and Hot Wheels - I think Wednesday will be a good kidult brand following the Netflix series, plus look out for Ken in the Barbie movie… he will be one to watch. I also think sustainability will be an important area, there are unique opportunities for licensors and licensees to draw on each other's strengths and make a difference.”

Andrew: “Sustainability will be an increasing focus. Those businesses that can demonstrate they are committed to this and are making a difference will be well placed for the future.”

Below: There is ongoing excitement around Bluey as we enter 2023.