The Bugg Report Magazine - Edition 31

EVERY

© 2019 Viacom International Inc. All Rights Reserved. Reserved.

EVERY AISLE. EVERYWHERE

NICK.COM.AU • NICKJR.COM.AU • MTV.COM.AU FOR LICENSING OPPORTUNITIES CONTACT: EMMA@HAVENGLOBAL.COM

EVERY

EVERY AISLE. EVERYWHERE head to Brand Licensing Europe with an ever-growing portfolio of brands and properties from Nickelodeon including SpongeBob SquarePants, Dora the Explorer, JoJo Siwa, PAW Patrol and Teenage Mutant Ninja Turtles. Joining the line-up is MTV and Paramount Pictures’ upcoming slate of new releases and back catalogue, in addition to the recently announced Blue’s Clues & You! and the newly acquired Garfield. Viacom Nickelodeon Consumer Product’s (VNCP) key strategy ‘Every Age, Every Aisle, Everywhere’ reinforces the company’s goal to deliver the best products across multiple demographics and retail distribution channels.

“In addition to our children’s TV series and movies, social media stars are a growing area for our audience and our business, and we are leveraging our expertise in this field to launch new stars across key markets,” says Mark Kingston, SVP, International Licensing VNCP. VNCP created a new model for how to approach influencer consumer products programs with JoJo Siwa. They amplified her popularity and built her into the number one live-action licensed property by incorporating her into Nickelodeon’s global eco-system.

“JoJo sells huge amounts of merchandise. She’s currently on a live tour in the US and her fourth range of JoJo’s Closet is selling even better than the previous ones.” says Kingston.

For Australia and New Zealand (ANZ), JoJo Siwa has been a great success story with retailers eagerly awaiting January 2020 where she will venture down under, bringing her D.R.E.A.M tour to Australian shores. During this time she will also support the launch of her brand new JoJo Perfume created by Game On Product Group and sold through Australia’s largest pharmacy retailer, Chemist Warehouse.

Nick Jr.’s #1 global preschool property, PAW Patrol, has crossed borders and cultures and proven successful across multiple product categories and markets in which it has launched. With no signs of slowing down, the series has been renewed for a seventh season, which is expected to air in 2020. Across ANZ, PAW Patrol once again teamed up with Paramount Theatrical to launch the latest feature, PAW Patrol READY, RACE, RESCUE across cinemas nationwide from October 3rd. Paramount implemented a major marketing campaign trailering on key kids movies since the beginning of the year, and increased their advertising reach from last year by 85%. There is a new PAW Patrol Live show set to tour in 2020 and an always-on content approach through digital, free-to-air and the Nickelodeon eco-system.

The consumer products range continues to grow with new deals across CPG including sunscreen, muffin bars and nappy pants. The VNCP and Haven licensing teams are working closely with retail partners to build new campaigns utilising the latest themes and style guides throughout 2020, to cement PAW Patrol’s position as the #1 preschool property.

Earlier this year Nickelodeon ANZ launched the brand new animated preschool series, Butterbean’s Café, on Nick Jr. The series whisks kids away on magical culinary adventures, while tapping into their love of cooking. To drive awareness of the new series and cooking as a passion point for kids, Nickelodeon ANZ partnered with local influencer and café owner, Morgan Hipworth, to make a short-form DIY doughnut making series.

The content, which aired across social, digital, and linear TV, was a hit with kids, driving publicity for the show. Following a successful launch, VNCP is excited to be working with our global master toy partner, Mattel, on a toy range launching in 2020 across ANZ.

This year has seen SpongeBob SquarePants become an ambassador for ocean conservation in Australia, as Nickelodeon ANZ partnered with Citizens of the Great Barrier Reef to launch Junior Citizens of the Reef, a pro-social initiative to raise awareness around the Great Barrier Reef and what kids can do to protect it. Aligned with SpongeBob’s 20 years under the sea, the campaign has been incredibly successful with influencers, media, schools and Junior Citizens, all helping to spread the word. In 2020 VNCP will remain focused on driving strong messages around sustainability heroing SpongeBob SquarePants at retail, delivering activations around World Ocean Day in June 2020 and in the lead-up to the third installment of The SpongeBob Movie: It’s a Wonderful Sponge, from Paramount Pictures in July. The movie release presents a year-long approach for SpongeBob consumer products at retail, giving each retailer their moment with SpongeBob SquarePants, with a particular focus on softlines and collaborations.

The highly anticipated Blues Clues & You! is slated to launch mid 2020 on Nick Jr. Australia. The modern take on the original series, Blue’s Clues, which was Nickelodeon’s first billion-dollar consumer products franchise, features CG-animation, a new host (Joshua Dela Cruz) and the return of fan favourites (Magenta, Handy Dandy). Reinvigorated for today’s generation of kids, the Handy Dandy Notebook will now feature video chat and email.

VNCP’s ever-broadening IP appeals to all ages in all territories, with Kingston affirming “We are moving beyond the television business to being a company that entertains our audiences through TV, movies, live events, digital and retail.” Whilst Nickelodeon is home to some of the worlds biggest kids’ franchises, the addition of MTV and Paramount offers VNCP the opportunities to create lifestyle programs for teens and adults.

Moving on to Nickelodeon evergreens. Teenage Mutant Ninja Turtles celebrates 35 years since Kevin Eastman and Peter Laird introduced the four pizza-loving brothers to the world.

Reinvention is in the franchise’s DNA, and Rise of Teenage Mutant Ninja Turtles enjoys all year round broadcast on both ABC Me and Nickelodeon, together with new digital shorts and clips being delivered weekly to keep fans coming back for more. Excitingly Paramount Pictures has a third Turtles movie in the works.

MTV is a true global youth brand with reach spanning over 500MM+ homes, 320MM+ social fans and nearly 180 countries. The channel has experienced seven consecutive quarters of growth, cementing its relevance in an ever-changing market. MTV successfully translates to several product categories, particularly fashion and lifestyle, and VNCP plans to expand the brand to categories to incorporate consumer electronics,

NICK.COM.AU • NICKJR.COM.AU • MTV.COM.AU FOR LICENSING OPPORTUNITIES CONTACT: EMMA@HAVENGLOBAL.COM

NOTE: THIS IS MASKING A COMPLEX VECTOR TEXTURE SHAPE BUT CAN BE MERGED DOWN WHEN FINAL

From the Editor EDITION 31 OCTOBER 2019 BRAND LICENSING EUROPE So here we are again at Brand Licensing Europe at the all-new venue at ExCeL London from 1-3 October 2019 for the 21st edition of the show. We have some great content in this edition of The Bugg Report as we move towards the end of 2019 and into 2020. As each year goes by we see more and more changes to the industry and the world at large. Technology has made many tasks, businesses and everyday life much more efficient however it has also made everything much faster and more hectic in many ways. I thought it would be interesting to look at some current trends that we are seeing across many industries and throughout the world.

• • • • •

We are living in the age of market disruptors (Amazon, Uber, Netflix) The licensing model is changing with the need to connect with new consumer shopping habits (lower master guarantees, more flexible royalty rates and vertical integration) People are purchasing less and expecting much more from their purchase (value) Consolidation of the market across the board (Disney, Universal, Warner Bros.)

Sustainability has become a very important consideration and especially for the younger generation (Piping Hot, Nespresso, Tesla)

We hope that you enjoy this edition of The Bugg Report and hopefully join us at the 2020 Hong Kong International Licensing Show in January, the Australian Toy Hobby and Licensing Fair in March and Licensing Expo Las Vegas in May. I think we will see more consolidation across the industry and I am sure that as the traditional licensing model changes we will see innovation across categories as well as more collaborations and the even greater emergence of licensing with fashion, art, corporate and gaming (Esports).

THE BUGG REPORT NEWS ON RETAIL, SPORTS, LIFESTYLE, TOYS & LICENSING www.buggreport.com.au Managing Director

Editor & Designer

Tony Bugg

Matthew Bugg

tony@buggsolutions.com.au

matt@buggsolutions.com.au

Published by Bugg Marketing Solutions

Advertising: bookings@buggreport.com.au

info@buggsolutions.com.au

Feedback: editor@buggreport.com.au

PO BOX 491, Berwick VIC 3806

Media: media@buggreport.com.au

The Bugg Report has been compiled as a guide to retail, sports, lifestyle, toys, licensing and/or other related matters. The views and opinions provided are based upon the views and opinions of our writers. In no way is The Bugg Report a factual guide to retail, sports, lifestyle, toys, licensing and/or other related matters and does not take responsibility for how the information provided is used by its consumers.

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Brand Licensing Europe - Edition 31

Inside this Edition 02. Every Age. Every Aisle. Everywhere.

08. Licensing Knowledge!

11. Your 3PL Partner for Startups in Australia 12. Born Licensing Turns Five in 2019 14. How Born Licensing is Helping JoyPixels 19. According to Downsey (Edition 6) 20. The Squatter Story 24. Independents Make a Statement in Australia 31. We Interview The World’s Strongest Man Mark Henry

Brand Licensing Europe - Edition 31

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Licensing Knowledge!

Interview with Marty Malysz, Dependable Solutions, Inc. Interview by Matthew Bugg, Editor at The Bugg Report

Dependable Solutions, Inc. (DSI) is a web-based software developer specializing in software applications that automate contract management, financial, royalty and creative operations for licensors, agents and licensees. DSI has offices around the world in the USA, U.K. Canada, Bangladesh and China. Over the past 15 years, Dependable Solutions became the leading software vendor for licensing organizations who require software to handle automated licensing, approval and financial compliance processes.

The Bugg Report had the chance to speak to Marty Malysz, the president of Dependable Solutions, prior to Brand Licensing Europe.

Marty is a passionate industry figure and over the course of 25 years he has successfully sold and managed 500 licensors, agent and licensees systems and served on the board of Licensing International.

I asked Marty about his overarching thoughts on software in general before we got into more specific details relating to licensing.

Marty mentioned, “People often think that technology for the sake of technology alone is always better. However, as we know, technology must have a practical innovation to what’s been done previously to make a real difference in the lives of each client. When it comes to traditional licensing businesses, the key is gathering information discreetly across all categories and share the relevant data with the brand owner to streamline the whole process. It is not a coincidence that brand owners are asking for more and better forecasts regularly these days because it allows them to see where and when their products are selling throughout the year and plan accordingly.”

Speaking to Marty it quickly became clear that a very important part of the process is to have the detailed information, which is required by the brand owner and the licensee, transferred into a database where it can be validated. In 2019 it is more important than ever for companies dealing with royalties to have the data in a ‘compliant’ format and accessible wherever necessary and terms such as GAAP, ASC606 and IFRS are now required standards which must be adhered to. Ironically, it is still the case that many companies work with manual data entry and systems often driven by a fear of the new and unknown.

Don’t spend money fixing something when you can easily spend less money and less time by planning something.

Marty explained this in relation to Dependable Solutions and their clients, “We still replace more manual systems than we do existing databases. Today, you can no longer do cash accounting. Accrual is king and it’s very important that your deals and contracts are compliant when reporting on sales figures and actual royalties. People may be mistaken to think GDPR doesn’t apply since they are not storing European customer data. Privacy protection now affects everyone in the world and if you don’t comply the fines are massive.”

Dependable Solutions knows that education is a major part of the implementation puzzle rather than an afterthought. There is no point implementing a new system if nobody is sure how to use it or they don’t use it through fear of getting something wrong. The other part of the equation is ‘when’ the system is to be implemented, which means it may be because of new revenue regulations or integration with ERP systems. In many cases a client must get it done under challenging time pressures. “We thrive when the implementations are complex.”

Marty explains, “If you are not running your approvals in accordance with the contract terms, you are starting on the wrong foot. Approvals may start during deal memos prior to execution or continue after the contracts are expired and in sell-off. Systems are nice and direct, so they inform you when anything does not match up properly. The most important part of this process is to educate each client when the system is setup so they can run meaningful reports to make sure their brand licensing processes are always up-to-date and compliant across all deals. Software and systems provide the data along with important rules which educate the client on where their business is at today and tomorrow through forecasts. Systems also allow for better internal conversations as well as clearer communications with the brand owner, agent and licensee.”

Marty Malysz | President Marty is the president of Dependable Solutions, Inc. based in El Segundo, California. Over the past 25 years, he has successfully sold and managed 500 licensors, agent and licensees systems. Marty leads the sales and marketing efforts of DSI and Dependable Rights Ltd. (UK). He provides strategic direction in partnerships across all resources. Marty hails from University of California, Los Angeles where he earned a Bachelor’s degree in Economics Systems Science. He is a former LIMA board member and speaks at industry forums on the benefits and issues involved in licensing back-office systems.

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Brand Licensing Europe - Edition 31

Whether you are a brand owner, licensing agent or licensee, Dependable Solutions provide systems that work across the web, anywhere an internet connect exists. It works best when the brand owner sets up their system and provides their licensees with the ability to use that system for things such as royalty reporting, forecasting and approvals. The licensee doesn’t need software, they simply make use of the system that the brand owner has implemented. Dependable Solutions also ensures that their software can coexist with other software using APIs and that the data which is sent to the brand owner (such as Warner Bros., Marvel, Disney, NRL or AFL) in the format they require from a licensee.

As Marty expands, “BMW uses our software indirectly and only through their licensing agent, Brandgenuity. This allows data to be transferred eloquently without BMW needing to implement their own system and doubling up on the project cost and time commitments. Because our software is web-based, it allows each company to share the required information through a standard browser. Licensees can simply upload royalties, forecasts and assets directly to the brand owner’s system.

Human networking is also a huge part of the business. Dependable Solutions created an innovative new platform called the ‘Dive Social Club’ (DSC). Their company hosts sponsored events, which aim to promote lively and welcoming environments where colleagues can connect with like-minded licensing folks while enjoying a drink and some food in funky venues. Events have been run at locations such as Los Angeles, Manhattan, London, San Francisco, Vegas, Chicago and Hollywood moving to more locations all around the world. It is all about clients getting together and discussing their success and challenges with the goal of driving the industry forward. You can check out the intuitive, look at past events and what is coming up at www.divesocialclub.com.

As Marty says, “We’re very active in networking and have struck upon something brilliant with Dive Social Club events which allows people to get out, mingle and talk licensing and through real-life social networking learn how things get done. We are also very active on the web, across all the major trade shows and with our customer summits in Europe and the United States. We live in the age of connecting socially in person and on the internet and we are a big believer in Human-to-Human Marketing (H2H). Please check with us for an event near you.”

We Sponsor Events We sponsor events for businesses in the licensing industry as part of an initiative to increase the social scene in the field. Through these events we aim to promote lively and welcoming environments where colleagues can discuss and connect while enjoying delicious food and refreshing drinks.

Invite Your Colleagues Want to meet with more clients in an easy and fun atmosphere or reconnect with an old colleague? Send out invitations to anyone in your network and make your event a memorable one.

Find Locations We find dives, bars and restaurants all over the world that promote engaging energy and ensure a great time. Already have a place in mind? We’re always open for suggestions too.

- Join us October 24th at Joe’s Bar in Chicago! www.divesocialclub.com

Contact the Dependable Solutions sales team to set up an online demo and find a great solution for your business.

- United States: +1 424 213 6663 - United Kingdom: +44 203 882 3370 - Worldwide e-mail: SalesDSI@dependablerights.com - Web: www.dependablerights.com

Brand Licensing Europe - Edition 31

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The A.D.N. Mission Statement:

Always Meet Our Customer’s Expectations and Always Endeavour to Exceed Them

Your 3PL Partner for Startups in Australia Now that the market has moved to a global economy, companies and brands now see their opportunity to capture market share outside of their country of origin. Being able to understand and implement the optimal business model and partner with the right people is a challenge when you are not on the ground or familiar with the available options in other countries.

One of the more important considerations when looking to set up operations in a new country is a trusted and efficient logistics option. A.D.N. Logistics is a current and on going Licensing International member. They are available to discuss with off-shore organisations and brands that may be looking to set up in Australia. Their facility has been purpose built to provide a highly effective 3PL model that can offer flexibility and efficiency.

The major shareholder and owner, John Taylor has extensive experience in commerce and clearly understands the customer supplier dynamic. He has always been focused on the best experience and service and continually looks to improve and add value to his existing products and services. The company is strategically located in the northwestern distribution hub close to Melbourne.

A.D.N. offers clients a highly customised WMS 10.1 inventory management system, capable of interfacing with most client systems. Their freight options include their own fleet for local Melbourne deliveries and efficient contracted carriers depending on freight type for the rest of Australia. All connotes are generated internally and are tracked and traced via the web. Inbound sea freight, customs etc. handled through third party.

A.D.N. has had extensive experience in many and varied product categories including footwear, cosmetics, fashion, toys, dress up, pharmaceuticals and health and beauty.

They also have experience dealing directly with Licensors.

They have seamless connections to all major retail DC’s and also deliver direct to store nationally. A.D.N. also offer a B to C service for online sales. A.D.N. is a modern mid sized 3PL specialist. Their hand on Owner and CEO constantly seeks new initiatives that enhance customer experience.

Contact John Taylor to learn more: johnt@adn.net.au +61 419 394 672

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Born Licensing Turns Five in 2019 Interview with David Born, Born Licensing Interview by Matthew Bugg, Editor at The Bugg Report

We hear that Born Licensing is celebrating their 5th anniversary this year. Take us back to how it all began and how the Australian licensing industry prepared you to start your own agency?

The idea to open a licensing firm with a focus on the use of intellectual property (IP) in advertising and marketing was years in the making. I started my licensing career at the ripe old age of 21, working as FMCG & Promotions Coordinator at Haven Licensing.

It was a great introduction to the licensing world and being part of the FMCG & Promotions team allowed me to understand the opportunities outside of traditional product licensing. During four years at Warner Bros. Australia I had the opportunity to work with advertising agencies that licensed properties such as The Mentalist, Dallas and The Wizard of Oz in their campaigns. Warner Bros. was probably the leader at the time in the business of licensing their IP for advertising, and I remember thinking that other Licensors could create an additional revenue stream by doing the same. That thought stayed with me throughout my time at Cartoon Network while Head of FMCG & Promotions across EMEA. I managed the licensing of Powerpuff Girls in a Volkswagen campaign and working with the advertising community during that time once again allowed me to see how big of an appetite there was for licensing IP. Finally, in 2014 my entrepreneurial spirit got the better of me and I decided to move back to Melbourne from London to start the company. The Australian licensing industry

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played a really important role in preparing me for the rollercoaster ride involved with starting a company. It’s an industry that has ups and downs, with a persevering nature and hardworking attitude. It’s bursting with incredibly talented professionals in all corners of the industry, from Licensors and agents to Licensees and retailers. One of the things Haven and Warner Bros. had in common while I was working for each was their innovative approach to the licensing business. Both had created an environment that celebrated out of the box thinking and encouraged fresh ways to approach licensing opportunities. The time I spent in my roles gave me the tools and the confidence to start Born Licensing.

Now based in London again, I look back on all of my previous roles as great learning experiences that allowed me to start a successful company, and I remain super appreciative of the opportunities I was given.

How have you grown since launching in 2014?

For the first four years we were solely focused on licensing in the advertising space, and that continues to be our main focus. However, in 2019 we announced that we would introduce 2 other areas to our business; Consumer Products and Innovation. The consumer products business is dedicated to our role as master global licensing agent for emoji brand JoyPixels. We formed a relationship with them in 2018 when we started representing them in the advertising space. We signed a raft of deals for them and we’ve since seen JoyPixels emojis appear in campaigns across

Brand Licensing Europe - Edition 31

telco, retail, financial services, FMCG, QSR, government and other advertising categories.

Based on this success, we expanded our relationship with JoyPixels to include consumer products and we’ve since signed on with 6 licensing agents to cover over 20 markets, with more to be announced soon.

Our innovations business reflects another passion of mine that I’ve been wanting to pursue. We’ve set up a business model where we can help facilitate deals for innovative companies who have never experienced licensing before. This is a new area for us and we think this part of our business will grow slowly on a mostly reactive basis as we continue to focus on driving our advertising and consumer products businesses.

What have been the most defining moments for Born Licensing over the last five years?

I’ll never forget our first deal. I started the company in August 2014 and after a lot of pitching and presenting we finally signed our first deal in October 2015. Australian home builder Simonds Homes had decided to license Hasbro’s Transformers in their biggest campaign in the 65-year history of their company. The campaign launched on AFL Grand Final Day and looked great! This was a very exciting time because it legitimised Born Licensing as a real business and gave me the confidence to continue down the path I was on. Another defining moment was in September 2017 when we launched the MoneySuperMarket campaign across the UK starring Master of the Universe’s He-Man and

The Bugg Report had the chance to speak to David Born, Founder and Director at Born Licensing prior to Brand Licensing Europe. David provided some insight into his time in the Australian Licensing Industry, the launch of Born Licensing, his experience throughout the global licensing industry and the power of licensing IP in advertising.

Skeletor dancing to Dirty Dancing. We had worked on quite a few advertising campaigns at that point, but this campaign really put us on the map. The 2 minute ad went viral and was seen by over 27 million people in a matter of days. At one point it was generating over 35,000 tweets an hour and was voted one of the best ads across the UK that year. It really was one of the best nostalgic mash ups ever seen and was a brilliant example of how powerful the use of IP can be in advertising when given to great creative talent.

We’re currently working on a campaign which I think will be another defining moment for us.

We can’t share too much at this point, other than to encourage everyone to keep an eye out for our next big campaign!

What do you think Born Licensing has contributed to the global licensing industry?

At a time when retail is more challenging than ever, I think Born Licensing has highlighted the revenue opportunities that exist when the licensing community looks outside of the traditional categories. When starting Born Licensing the goal was to open up opportunities for Licensors in the advertising category and deliver to them incremental revenue. We’re proud to have done just that, creating millions of dollars in licensing fees which we’re certain the Licensors would not have otherwise booked. In addition, the campaigns we’ve worked on have collectively generated a marketing spend of over $100 million. This no doubt boosted properties licensed in the campaigns, supporting brand efforts and creating additional revenue

opportunities for Licensors. We’ve signed deals for Licensors with major brands such as British Airways, Barclays, Just Eat, Subaru, MoneySuperMarket, booking.com, MINI, Tesco, T-Mobile, Virgin, Sky Mobile, Kellogg’s and many more.

What do you think the future holds for Born Licensing and licensing in general?

Looking into the future, we hope to continue doing what we’re doing now but on an increasingly bigger scale. Our focus will always be fixed on creating new revenue opportunities for the Licensors we work with.

The way we do that will evolve as we discover new areas to play in. On the advertising part of our business, we’re certain that advertisers continue to embrace characters and clips more and more. We want to see characters used in advertising as much as celebrities and music - which is a lot!

As for the industry as a whole, I think everyone will agree that we’re at an interesting time, with a lot of consolidation going on (Disney, Fox, CBS, Viacom, AT&T, Garfield etc. and almost certainly more to come by the time this is printed). There is a question of how the big Licensors that continue to acquire properties will be able to dedicate the attention needed to get the best out of all in their portfolio. At the same time, it opens the door for new IP to come into the picture. IP has evolved a lot over the last decade or so as we see toys, emojis and influencers competing with traditional character licenses.

As the way consumers live their lives changes we expect to see IP continue to evolve too.

Finally, who has helped you to get to where you are today?

I’ve been incredibly privileged to work with some enormously talented people who have been generous with both their time and wisdom. Starting my licensing career at Haven allowed me to really understand how the industry works and observe some brilliant licensing professionals in action led

by Tom and Yvonne. Working at Warner Bros. played a big part in giving me the confidence to start Born Licensing. Our MD Preston Kevin Lewis was an inspirational person to be around every day without fail.

He created an environment that encouraged personal growth and demonstrated leadership that I really admired. Cartoon Network in London gave me the opportunity to engage with licensing professionals from all over the world, including colleagues, agents and Licensees throughout EMEA. Maria Rosaria Milone was my direct report and she gave me the support needed to understand the landscape of new markets.

When I launched Born Licensing I was really quite overwhelmed by how supportive the industry was.

Those that believed in our vision early on include teams from Nickelodeon, Sony Pictures, Hasbro, FremantleMedia, 20th Century Fox and many others. We’re super grateful to all of those that helped us get to where we are today, and see our success as very much a team effort with everyone in the licensing community that has supported us. bornlicensing.com

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How Born Licensing is helping JoyPixels and their emojis explode onto the Licensing Scene Article by David Born, Director at Born Licensing

This time last year during Brand Licensing Europe week I found myself having lunch in London with Marcie Kubik, Head of Licensing and Business Development at JoyPixels Inc. We had been working together for a few months since Born Licensing had been appointed agent to manage licensing deals for JoyPixels emojis in the advertising category.

A month later I was in Las Vegas at JoyPixels headquarters meeting the team, headed by CEO Rick Moby. Over the course of the day it became clear to me that the entire JoyPixels team and business model were in line with my experience with Marcie. Collaborative, enterprising, passionate and a clear focus on delivering exceptional emoji assets with a customer service to match.

We had enjoyed some immediate wins and started to build a portfolio of great campaigns which licensed JoyPixels emojis. Little did we know that 12 months later that portfolio would be bursting with fun and creative campaigns for major brands such as Sky Mobile, booking.com, MINI, Kellogg’s and Just Eat.

In January this year Born Licensing signed on as master licensing agent for JoyPixels. We worked closely with the JoyPixels team to create a strong packaging styleguide, mood boards, brand decks and everything else needed to engage with the licensing industry.

The biggest question we were faced with was ‘why are JoyPixels emojis different to others on the market?’. The licensing community had indeed already experienced a number of different emoticon related brands, so that was a perfectly reasonable question.

What struck me most about Marcie during those first few months of working together was her ambitious and enthusiastic approach to licensing the JoyPixels IP. She was focused on ensuring their assets were best in class and that the Licensees were provided with an exceptional experience. Speedy responses, fast contracts, turbo charged approvals and reasonable fee expectations were strength areas for them.

Our companies had great chemistry, so as soon as Marcie mentioned the possibility of expanding our relationship to the consumer products space, I knew it was something to seriously consider.

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One of the unique ingredients of JoyPixels emojis is their connection to Unicode, the computing industry standard of coding.

JoyPixels is the only true Unicode-compliant emoji brand available to license. Millions of daily active users across digital Licensee platforms engage with JoyPixels emojis, giving them an authentic edge over other emoji brands. Major digital brands that have licensed JoyPixels emojis across their platforms include TikTok, PlayStation, Nintendo, Spotify, Adobe Photoshop, Slack, Dropbox, Telegram and Grammarly.

We recently appointed 6 sub-agents to help us grow JoyPixels consumer products business around the world, including WP Brands in Australia. At the time of appointment Lim Mi-Kyoung, MD of WP Brands, said “We are very pleased to become part of the JoyPixels family! Our world is now very digitally driven and JoyPixels is a perfect platform to convey our thoughts and feelings through awesome icons. We will certainly have some fun with this brand!”

In other Australian news, JoyPixels emojis have entered the small screen. We’ve signed a deal with Fremantle Australia to include emojis in a visual clue segment of Network 10’s Celebrity Name Game. From mid-September the popular game show will include contestants guessing answers as indicated by a series of emoji clues.

Additionally, JoyPixels are members of the Unicode Consortium which allows them access to upcoming emojis being considered.

For that reason, they’re always ready to have the newest emojis developed and available to license.

The JoyPixels library consists of every official Unicode-compliant emoji that exists, each with a best in class design. They also have developed a range of exclusive asset packs, taking the most popular emojis into themed collections such as the ‘Sweet and Sassy’ collection consisting of 40 unique designs packed with rainbows, sparkles and sass! They’ve also created a range of collections around popular emojis such as the mermaid, the pile of poo and the avocado. A series of new and exciting asset packs are currently in development.

We’ve already seen how incredible JoyPixels’ emojis translate onto product through our existing Licensees, with product already launched at retail in the UK. We look forward to working with our agents, Licensees and retail partners to offer emoji fans product that they’ll love. With over 6 billion emojis sent every day, we know that they’re now well and truly part of our culture with a fanbase from all corners the world. www.joypixels.com

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ANNIVERSAR Y

One of the world’s most loved children’s books

Over 10 million books sold globally Licensing for the first time EVER! Visit Coolabi at BLE stand C222 info@coolabi.com | +44 (0)20 7004 0980 Text © Purple Enterprises Ltd, a Coolabi company. Illustrations © Guy Parker-Rees 2019.

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Read us on issuu

According to Downsey Edition 6 - The State of the Market Article by Ian Downes Director at Start Licensing Limited www.startlicensing.co.uk

It is a time of uncertainty in the UK at the moment with much of our conversation dominated by Soft and Hard Brexits. It can be quite wearing. It can also be hard to do business against this backdrop. There is no doubt uncertainty around Brexit, coupled with trading conditions in the retail sector, mean the business of licensing is as tough as it has ever been. Throw corporate mergers into the mix and the picture is quite hazy. Start Licensing has been up and running for 16 years now and I can’t remember a time when day-to-day business was tougher.

But I am actually optimistic for the future. In challenging times the potential for licensing to add value to a business shouldn’t be underestimated. Licensed brands of all types generally come with significant consumer followings, media support and a calendar of activities. Many businesses can benefit from some licensing fuel – this includes retailers. UK toy retailer The Entertainer is a really good example of a specialist retailer that has embraced licensing well but hasn’t come to rely on it entirely. They run a mixed economy. The Entertainer features a good mix of licensed ranges tending to use FSDUs (Free Standing Display Unit) and other focussed display areas to highlight licensed ranges. A good example is their in store commitment to Funko’s Pop! Vinyl figures.

The Entertainer have taken time to get to know the business of licensing.

At a smaller scale GOSH Comics located in London’s Soho district sell a broad range of comics and graphic novels but also stock

toys, wall art and gift lines tapping into fan culture. Fan culture is an area in which licensing does well. GOSH tap into the fan market well and are aware of what is going on in the pop culture space. Licensees sometimes overlook this specialist sector – it is one that offers fresh potential. But it has to be managed in a dedicated way. Another retailer that is using licensing well is the bookseller Waterstone’s. Whilst books are at the heart of their offer Waterstone’s has widened their pitch to embrace other product categories. A good example are boardgames. They feature a number of licensed boardgames including licensed versions of established brands like Trivial Pursuit through to standalone licensed boardgames based on cult properties. A good example is a Jonathan Strange & Mr Norrell board game. Talking to shop staff it is clear they know their customers and feed back to their head office buying teams – great consumer insight. It is also encouraging to see national retailers like Sainsbury’s using licensed promotions to

engender customer loyalty. A Disney Heroes trading card collection created by Brand Loyalty launched in Sainsbury’s in August linked to in store spend. A vote of confidence in the pulling power of licensing.

Another cause for optimism is the response we are getting to licensing opportunities from new to licensing companies. We recently licensed a company called Jardinopia to develop a range of Shaun the Sheep and Wallace & Gromit ‘pot feet’.

These are feet used to help pots stand up off the floor in the garden. These are part practical, part decorative and part gift.

Jardinopia have a strong business already but felt licensed characters would give them an extra selling point, new distribution outlets and a way of outpacing the competition. Their product will be showcased at specialist events such as GLEE – a garden industry trade show.

Working with a new licensee can be challenging and time consuming, but it is also rewarding and a way of breaking through the market malaise.

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The Squatter Story

The Fun, Sheep-Farming Business Game This article was written by Richard Lloyd for the family that invented Squatter Game

G’day, My father, Bob Lloyd, was born at Hampton in 1926 (actually Dad was born on the kitchen table in the family home). Hampton is a Bayside suburb of Melbourne, and he spent most of his life in the environs of Melbourne.

However, my Dad always had a deep love for the Australian countryside and bush. He said it was in his genes. His own dad was born at the National Bank, Hamilton, Victoria where his grandfather was the manager. Hamilton is known as the wool capital of the world. Dad recalled his favourite childhood memories included camping out under the stars when he was seven and again camping out with the 1st Hampton Scouts.

Dad’s daily responsibilities, was to ride around the sheep on horseback. Subsequently he joined the staff of Dalgety and Company Limited, Melbourne, where he served for fourteen years.

After eight years, Dad was appointed Country Representative for Dalgety’s Station Supplies department and travelled all over Victoria and southern New South Wales extensively for five years. Dad loved, with a passion, the wide open spaces of Victoria’s Wimmera and Mallee Districts and southern Riverina in New South Wales, and the warm, open friendliness of country people.

Dad passed these passions to me during the many times we went away on camping and fishing trips. When Dad came out of the Army in 1947, his fiancée’s father, Miles McCabe, offered him a job on the McCabe’s pioneer sheep farm, “Coorumbene”. For two years, one of

During the time he was travelling, he read the book, “A Man Called Peter” by Catherine Marshall. It had a dramatic impact on him. Often staying in a different hotel each night, he read and re-read this book.

Dad described that when reading the book it felt as though God was speaking to him through it. He said that he did a lot of thinking and praying as he drove the long dusty miles from country town to

www.squatter.com.au

Below: Richard Lloyd

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Brand Licensing Europe - Edition 31

Australia’s Classic Farming Game

country town. He felt that God wanted him to leave sales work and get a job where he could help people. Without qualifications for welfare work, Dad was concerned about disadvantaging his wife and children as he expected to drop salary by changing vocations.

Dad prayed a great deal about this problem. Then one morning as he was driving past sheep farms in the Wimmera district and praying as he drove, he looked out the window and saw the sheep grazing and suddenly got the idea of inventing a game about sheep farming. Arriving home seven nights later, he set down on paper the basic design of the playing board, and the major concepts of SQUATTER®. By 2am that morning he had all the features for SQUATTER® written down. These first notes, and the original design sketch are now part of the SQUATTER® collection at the National Wool Museum in Geelong, Victoria.

It was Dad’s firm belief that those flashes of inspiration, and the idea for a game based on sheep farming, came from a loving, caring God, who provided for his family. The royalties from SQUATTER® enabled my sister Anne to attend St Leonards and Shelford schools and my brother Simon and myself to attend Haileybury College.

Shortly after SQUATTER® was first published, Dad commenced working for the Brotherhood of St Lawrence, a Christian welfare organisation. Dad continued to work in the field of welfare for the next twenty-six years, until retirement. During that time he was the Director of the Anglican Immigration Department for about 10 years and had opportunity to welcome and offer assistance to many Australian immigrants.

It was amazing how life’s experiences gained on the McCabe’s sheep farm, and with Dalgetys, helped Dad to produce a game based on real life sheep farming and sound sheep husbandry methods. Being involved with shearing, footrot treatment, the lambing season, lamb marking, drenching, and stock sales whilst working on “Coorumbene”, provided invaluable background information.

Coorumbene became one of the sheep stations on the playing board. Likewise, the years at Dalgetys, when he attended seminars by experts in wool, stud breeding and pasture management, together with the time travelling Victoria, provided the necessary resource materials for Dad to develop SQUATTER®.

Over the next 4 years, Dad and our next door neighbour Jack, played SQUATTER® over and over, testing and refining the rules, often into the wee small hours. It took a further two years of countless phone calls, letters and interviews, and finally with a letter of commendation by the Australian Wool Board, SQUATTER® was published in September 1962 by John Sands Pty Ltd of Sydney.

Often when Dad was working on SQUATTER® in the early hours of the morning, and after he had been praying for help with it, he would receive a flash of inspiration, that he described as “beyond my own abilities”.

Commended by Woolmark. Unparalleled in its educational value. Squatter provides a genuine insight into real life farming. Squatter has been commended by the Royal Agriculture Society, The Minister of Agriculture and the Woolmark Company for it's contribution to the Sheep and Wool Industry. The Woolmark Company, which replaced The Australian Wool Bureau, has approved the use of the Woolmark logo because of the relevance Squatter has to the wool industry.

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Squatter Game Promotions Pty Ltd Richard Lloyd e: richard@squatter.com.au m: +61 (0) 419 135 581 squatter.com.au

Australia’s Classic Farming Game

H O ME OF A US TRA L IA’S O RI GI N AL N ATU R A L TEE TH I NG TOY A ND EDU CAT IO NA L TOY S To explore global distribution and retail opportunities please contact: Sandra Ebbott sandra@mizziethekangaroo.com www.mizziethekangaroo.com

Independents Make a Statement in Australia

Kidstuff in Chatswood, Sydney

The current and emerging makeup of the retail distribution model continues to provide uncertainty for consumer products businesses around the world. We have already seen the evidence of thousands of bricks and mortar stores close in the US, UK and in Australia. In terms of how this plays out in the future the jury is out. It has become obvious that with new demographic groups such as Gen Y and Gen Z taking up a greater share of the population base that shopping habits have moved significantly. From our research it would appear that everybody has underestimated the on going impact of the online platform. Along with portals such as Catch of the Day, The Iconic and many

others, there are many categories that continue to show strong growth. With the loss of the Toy’s R Us business in the Australian market, there has been capacity made available for other toy retailers to increase their market share. Interestingly enough in the post analysis of the TRU business, it became clear that their customer offer and store experience had not altered for many years. A toy retailer in todays market must offer the consumer a super-engaging store experience and at the same time make an empowering offer for them to buy. There seems to be a trend back to the Independent toy retail model where service, engagement, experience and range have become more important.

Selling based on lowest price has it’s limitations and eventually has no where to go. We have seen the emergence of a brand new toy group called Toymate. They now have 22 stores and the model they have adopted is heavily focused on store energy, theatre and experience. The feedback from the market has been positive and they continue to expand. Additionally, another independent group called Kidstuff, who have 61 stores, has also built its reputation on similar values. Kids want to experience fun and excitement when they visit a toyshop. Ambiance, movement, and activity are all key ingredients in the business of play. Toyworld is Australia’s largest and best-known network of

Article by Tony Bugg for The Bugg Report

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independent toy retailers. The number of independent retailers (currently around 150 stores) is recognition of the strength and security of this iconic Australian brand.

There are many long-standing sound operators within the group including Chris Mc Gaggis, Darren Neil and Scott Mills. They have been able to thrive, by offering a point of difference, store experience, personal service and a national store network.

Families trust the Toyworld brand. It has not been easy, however they have stuck to the task. There are a number of other smaller players in the field who are also putting a huge effort into developing toy and related businesses that offer the consumer a reason to travel to their stores, they include: Games World, Toys and Tales, The Toy Workshop and Store of Requirement. Finally Australian Geographic has been feeding curious minds since 1991.

They have been a leader in innovation and STEM during this journey. They currently have 66 stores through out Australia. A trip to an Australian Geographic store is a great experience. They pride themselves on engaging product displays and the ambiance and customer service is a feature of their model. With the challenge for shelf space in a small market, these retailers have an opportunity to increase their market share. At the same time they can offer the industry an alternative platform to connect product to the consumer. This group of retailers number in excess of 300 stores around the country. It is anticipated that they generate in excess of 200 million dollars in retail sales. Based on the current market size in Australia they represent around 10% market share. Kids and parents will always continue to buy good toys; the opportunity for these retailers to increase their market share is significant.

TRU used to be known for its depth of range. They offered toy companies of all sizes the exposure for new and emerging brands. This is now where the independent trade can become the leader in this most important responsibility to make sure kids gain access the very best toys available.

I like Toyworld because it has a strong brand image and I am part of a strong buying group that is up-to-date with current toy trends and has an effective and wellplanned catalogue campaign.

Having access to close outs and specials at competitive prices is also very important.

-- Toyworld (Bendigo & Ballarat, VIC)

Toymate in Chatswood, Sydney

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The Brand Licensing & Market Specialists As the leading independent Brand Licensing Specialists & Market Intelligence Agency in the business, we pride ourselves on being connected to Brands, Agencies, Retail and emerging trends and we are the go-to organisation to provide you with balanced, researched and up-to-date market intelligence.

We are the perfect conduit to the market for small to medium businesses that are not in a position to hire a full-time marketing or licensing manager.

Let us seamlessly connect YOU to brands & distribution channels at a fraction of the cost of a full-time employee!

CALL OR EMAIL TONY BUGG

WWW.BUGGSOLUTIONS.COM.AU

0418 321 837

TONY@BUGGSOLUTIONS.COM.AU

Cost Effective Design Services logos / business cards / corporate brochures / print advertisements digital advertisements / magazine layouts / general design services Bugg Marketing Solutions can produce simple, fast, easy and cost effective design work.

Get in touch to start the conversation and find out more about what we can offer...

CALL OR EMAIL MATTHEW BUGG

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SUBMISSIONS NOW OPEN! Tickets on sale at www.licensingaustralia.org Yes, it’s on again! The licensing event of the year – Licensing International Australian & New Zealand Licensing Awards. Voted on by industry experts, our awards recognise excellence in the licensing industry, where retailers, licensees and licensors are rewarded for outstanding products and services. And we’ll be celebrating a special member of the licensing community for their long term contribution to the industry by inducting them into the Licensing International Hall of Fame.

Venue: Sandringham Yacht Club Location : Jetty Road, Sandringham VIC Date: Thursday 28th November 2019

We Interview The World’s Strongest Man Mark Henry WWE LIVE Returns to Australia this October Mark Henry was in Australia last week on a media tour and The Bugg Report had the chance to speak to Mark about all things WWE and about the 2019 WWE LIVE Tour. Mark is a former World Heavyweight Champion; ECW Champion; European Champion and the 2018 WWE Hall of Fame Inductee. Mark also holds the incredible distinction of having been a World’s Champion in three sports: Powerlifting, Strongman and Wrestling.

I started off by asking Mark about the WWE now and the differences he sees in the business nowadays: “The main change is that there are more people who come from developmental wrestling that are at the top. I was the first developmental wrestler and then The Rock came and moved in with me but the company didn’t expect for us to be heard from for three years, they wanted us to just go and learn. When I started, guys hated me for coming in and being trained to wrestle because they thought that you should start on the independent circuit and work your way up. But that way is no more, if you want to see nostalgia then you should go on the WWE Network because you’re not going to see it like that anymore.

These days it doesn’t matter if you’re the best looking, the best wrestler or the best entertainer, the people who will succeed will be the best combination of all three.”

Mark was keen to point out that the mindset of the talent these days needs to be all about how they can make the product better because that is what ultimately makes the business thrive. I asked him if he thought that the storytelling aspect of the business had taken a back seat to the entertainment through matches however Mark was adamant that it will never not be about storytelling:

“You have to captivate people, you gotta take over. Sometimes its big vs small, good vs evil or fast vs slow but at the end of the day you gotta make people jump up out of their seat because they are so happy that you won. That’s storytelling.”

Ensuring that the talent is always improving their craft is a key to the success of the WWE and this is an area that Mark is passionate about as well as with talent development. As an ambassador for the WWE Mark sends a lot of time looking for the people who can own the room when they arrive because as he says, they can work on looks and skills later but they can’t teach ‘something extra’ that some talent has.

“Dusty Rhodes said it the best, “I have wined and dined with kings and queens and I’ve slept in alleys and dined on pork and beans.” That mentality is what makes wrestlers wrestlers and that’s why The Rock is The Rock and John Cena is John Cena because they own the room. When Buddy Murphy comes back home he’s not going to let anybody on this card beat him, and I don’t mean wins and losses, I mean that when he walks into that area it’s going to explode.”

It is interesting to see which wrestlers become the mega stars like The Rock, John Cena and Seth Rollins and what makes

them different and I asked Mark about this.

He pointed out that it really evolves and that someone like Seth (Rollins) is just hyper-competitive and at the end of the day these guys are wrestling and that they are paid to wrestle and their careers don’t last forever. Mark himself sees that his 20+ year career in wrestling was probably too long and took a toll on his body.

“If you look at the card you realise that 80% of the card is young people and that is what the WWE is now, it’s a family oriented show and that’s what having young people does. The WWE is building the future of pro wrestling. I think that with the three shows we have the potential to see a breakout person like a John Cena and in my option I believe that Charlotte Flair is the best wrestler in the world, so it’s not just the guys. I think that Charlotte will tear it up here in Australia.”

Talking to Mark about the hectic schedule of the WWE these days and it is clear that he sees the regular programming of shows throughout the week as a positive development for wrestling fans.

“I call wrestling on SiriusXM on a show called Busted Open which plays here in Australia now and if you look at the shows that are available it is heaven for wrestling fans. I think that now more that any time we ever had is tailor made for the fans so you need more people (wrestlers) because you have more shows. You just can’t expect this card (the card for WWE LIVE in Australia) to perform all these shows all year long.”

This October WWE LIVE returns to Australia with a jam-packed card of WWE Superstars set to wrestle at events in Sydney, Brisbane and Melbourne. The 2019 WWE LIVE Tour will be hosted by TEG Dainty and presented by 2K to promote their launch of WWE 2K20.

For tickets to WWE LIVE Australia visit: premier.ticketek.com.au

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