The Bugg Report Magazine — Edition 33 by thebuggreport

BLUEY™ and BLUEY character logos™ & © Ludo Studio Pty Ltd 2018.

FROM THE EDITOR Welcome to our new magazine. Since we last spoke to you in March a lot has happened in the world, but I am sure I don't need to talk about that. It would be safe to assume that you will have had no lack of news directed your way and in the end, enough is enough of the same thing. So let's talk about something different. In this edition you will find some updates on Bluey from BBC Studios and from Jasnor Australia. You will also find a really interesting and in-depth interview with Brett Clarke from Nitro Circus which is really worth the time to read. The sport is going from strength-to-strength. We also speak to Allan Hineman from HeadStart about the new Outdoor and Preschool play division that has just been announced by the Company. Looks good! We then move on the an update from the creators of Mizze The Kangaroo, who have come up with a range of toys that allow children to learn without compromising playtime. Richard Lloyd from Squatter details the new growth plan for the household favourite in Australia for nearly 60 years which look really interesting.

Sally Pseudonym is back with the latest retail insights and we have some great articles including 'According to Downsey' by Ian Downes, 'Only Watching for the Ads' by David Born, 'The Best and the Worst' by Kelvyn Gardner, 'Rise & Shine' by Peter Hollo, 'The Age of Digital' by Isabel Wu, 'Knowledge is Profit' by Christie Nicholas and 'Why Advertising Is More Important Than Ever By?' by Andrew Skinner and Corina Cosma. We also speak to Sam Arcadipane who has recently launched her very own brand of collagen-infused organic teas called FUSSPOT. We hear from Alice Sanderson from the Australian Toy Assocation, update you on the DC Fandome and speak to Jonathan Byrnes from Toy Networx about their new global partnership with Australian Geographic. And finally check out our series of nostalgic television commercials brought to you by Dependable Solutions. These light-hearted clips give you a feel for what advertising was like back in the 90s... just go to our website and search for nostalgia! Also please be sure to let us know what you think of the videos by commenting on our YouTube page as well. Hope you enjoy this edition

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THE BUGG REPORT NEWS ON RETAIL, BRANDS & 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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INSIDE THIS EDITION 06. There's No Stopping Bluey! 08. Jasnor Australia 12. Nitro Circus Delivers in Australia 20. HeadStart is set to shake up Outdoor Play 22. Mizzie The Kangaroo is Hopping Through 2020 25. Squatter Set to Fly with New Growth Plan 32. Sally Pseudonym 34. According to Downsey (Edition 10 - Recovery!) 36. FUSSPOT â&#x20AC;&#x201D; What is all the Fuss About? 38. The Australian Toy Association 40. Welcome to the Fandome! 42. How Licensing Continues to Build Across the Advertising Space 44. Will You Rise to the Challenge? 46. Rise and Shine! 48. The Age of Digital 50. Knowledge is Profit 54. Why advertising is more important than ever? 55. Toy Networx Partners with Australian Geographic www.buggreport.com.au

There’s no stopping Animated series Bluey continues to go from strength to strength in 2020. Produced under one roof in Brisbane by Australian production company, Ludo Studio, Bluey is becoming one of Australia’s most popular children’s brands. Following the successful launch of Bluey products in November 2019, BBC Studios has secured a number of exciting deals and major partnerships. The brand has also won awards in both publishing and toy industries, highlighting its mass appeal. A smash hit with families, Bluey continues to hold the coveted position of the most watched program ever on ABC iview*, with over 261 million program plays for Series 1, and Series 2 already amassing 43 million program plays since launching in March 2020**. Bluey is also enjoying success in its second window on CBeebies ANZ, with the pre-school channel picking up Series 1 in May 2020. Following a global distribution deal (excluding Australia, New Zealand and Greater China) between BBC Studios and Disney in 2019, Bluey is also winning the hearts of international viewers across the US, UK, Europe, Latin America and other territories. The series also received critical acclaim, winning an International Kids Emmy Award in the pre-school category in March. In publishing, Bluey was recognised by the Australian Book Industry Awards (ABIAs) in May, with Bluey: The Beach winning ‘Book of the Year’. It was the first time

a children’s picture book had won this prestigious award and highlighted how strongly Bluey has resonated with Australian readers and booksellers. In June, publisher Penguin Random House ANZ announced Bluey books had reached one million copies sold, with an incredible eight Bluey books in the Top 20 books on Bookscan. Toys are also proving to be hugely popular and BBC Studios was thrilled to accept ‘Pre-school Licence of the Year’ for Bluey at the Australian Toy Association (ATA) Awards in March, an incredible achievement as Bluey toys had only been in the market for four months. Global toy partner Moose Toys continues to delight fans with exciting additions to the range, including plush, figurines, playsets and games, as well as a range of children’s homewares, available across mass retailers and selected toy stores. The toys have now landed in the U.S. after Moose Toys and BBC Studios launched the eagerly awaited toy range in June. Bluey toys featured prominently across a number of Australian major retailor catalogues, including Big W’s annual toy sale, Toy Mania, with numerous media outlets listing Bluey among the

sale’s top brands. Proving to be hugely popular among fans are the Heeler Family 4WD (available now at mass retailers) and the Heeler Family Home (available at mass retailers from September). Compatible with all the Bluey figurines, these toys let kids unleash their imagination and bring the antics from the show into their own world.

Peter Alexander recently re-released the limited edition collection. Children’s mass apparel is also hugely popular among fans and BBC Studios are thrilled to share that there will more apparel releases for kids and adults, across Target, BIG W and Kmart, plus collaborations with other Australian retailers later this year.

Dropping into retailers from July is the Bluey and Bandit Skateboarding Figurine Pack. Included is a beach themed Bluey, ready for a day out in the sun as well as Bandit and a skateboard they can ride on together! Available from August, Bandit’s BBQ Playset features Bandit dressed in his BBQ apron and chef hat, ready for a cook out. This fun playset includes a BBQ grill, picnic table, two benches and three tasty looking pieces of food. Fans can complete the Heeler family plush set with Chilli (Mum) and Bandit (Dad) available at major retailers in time for Christmas – both are perfect for snuggles and cuddles at home or on the go.

The second half of 2020 will bring more Bluey fun with another six books to be published before Christmas, including My Dad is Awesome (available from August), a hilarious and heartwarming book making it a great Father’s Day gift and Let’s Play Outside, a fun-filled magnet book full of games. Perfect for Christmas gifting, Verandah Santa and Hooray, It’s Christmas! will be available from November.

The Bluey portfolio continues to grow in Australia with BBC Studios securing exciting collaborations with Pauls (custard and yoghurt pouches), Australia Post (limited edition postal stamps), Stuck On You (personalised kids products), Hunter Leisure (arts and crafts) and MJM (puzzles). Following the sell-out success of the Bonds collaboration in January, Bluey apparel continues to be a hit among parents and kids. In May, BBC Studios teamed up with Peter Alexander for a limited-edition family pyjama range, which became the fastest selling collection in the Australian pyjama brand’s 35-year history. Due to the high demand,

Bluey has summer covered with Wahu releasing a fun range of children’s learn-to-swim accessories and pool toys and Hunter Leisure will release kids’ bikes. For those days at home, MJM are adding more fun and engaging puzzles to their Bluey range and Universal Sony will release Series 2 DVDs and Series 1 Boxsets. More episode collections will be available to purchase on iTunes. Fans can also pick up the latest edition of the Bluey magazine. Available in selected retailers and online, the magazine has plenty of games and activities for the whole family to enjoy. There is no stopping Bluey! With eagerly awaited new episodes from Series 2 coming to ABC KIDS and iview later this year and fantastic products all coming to stores in time for Christmas, there are plenty of reasons to say Wackadoo! * Source: OzTAM VPM & ‘Begin Event’ data. ** Source: Oz TAM (Begin Event Play Data) 1.10.2018 - 7.5.2020

Stuck On You personalised kids products

BLUEY™ and BLUEY character logos™ & © Ludo Studio Pty Ltd 2018. Licensed by BBC Studios. BBC logo™ & © BBC 1996.

Jasnor Australia — 1300 881 940 | sales@jasnor.com | www.jasnor.com.au

As we reflect on the past seven months of 2020, we have experienced sadness, devastation and unimaginable change but we have also experienced kindness, resilience and now we are adjusting to our “new normal”.

Despite everything, throughout these challenging times, the Jasnor team has focused on delivering a stellar line-up for the second half of 2020. We continue to offer our customers the very best brands, the most exciting trends and award-winning products, as well as our top-rated service. Leading the charge are new ranges from Hot WheelsTM, the innovative new collectible range WOW! PODS, Re-cycle-Me — a range focused on sustainability along with pre-school favourites, such as The Wiggles.

WOW! PODS

HOT WHEELSTM

THE WIGGLES

Launching in August, WOW! PODS are unlike any other collectible in the toy market. They have a radically different play pattern to the traditional waves of collectibles, which kids collect but then tire of in time. WOW! PODS feature a unique ‘Swipe to Light’ function which reveals a mystery image either on the character or on the inside of its Pod. They also incorporate a smart interlocking system that allows collectors to construct incredible displays. Collect, connect, display! Kicking off the launch are fan favourite licenses Marvel, Wizarding World and DC Super Friends!

With the Hot WheelsTM Maker Kitz you do all the building but without the need for glue, scissors or batteries! Simply pop out the pre-cut panels and assemble the tough snap fit parts. The robust assembled cars are tough enough to survive the race and even the gnarliest of stunts. New additions arrive in August.

As we look ahead to the 30th Anniversary in 2021, Jasnor is excited to present new additions to our Wiggles collection including a new Fairy Emma 50cm Cuddle Doll and a fun and engaging interactive Puzzle Track Playset complete with motorized Big Red Car — designed to encourage children to have fun whilst learning and problem-solving with their favourite Wiggles friends. With 50+ different track combination possibilities, children can connect and play all day with this engaging toy! Also available in Hot Wheels and Peppa Pig designs.

In the lead up to what will be a very different Christmas season, we are focused on supporting our customers, our suppliers, our staff and community during these unprecedented times. Please reach out to find out how we can assist you to support your business in this challenging environment.

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NITRO CIRCUS DELIVERS IN AUSTRALIA Feature Interview â&#x20AC;&#x201D; Brett Clarke, Chief Commercial Officer at Nitro Circus The growing interest in extreme sports is no more evident than in the Nitro Circus brand. Developed by Travis Pastrana, a talented athlete in this field, Nitro has been thrilling audiences all around the world. This unique choreographed sporting platform has developed a strong following from kids and families from all backgrounds. Framed by their daring stunts and amazing diversity of FMX, Skate, BMX and scooter antics they have lit up stadiums and outdoor venues around the globe. Interestingly enough, many of the athletes in the Nitro family hail from Australia. As an outdoor loving country all of the above disciplines are readily accessible to kids of all ages. It is therefore not surprising that many of them have been able to perfect their craft and be drafted onto the Nitro Circus roster. Touring extensively, Australia has been a regular destination over many years now. The Bugg Report has been able to track down Brett Clarke who is the Chief Commercial Officer for the brand. Brett is an Australian and currently resides in California. We were able to speak with him recently to get an update for our readers on the current and forthcoming plans for the Australian market.

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From top to bottom, I’ve been thrilled with the way in which our team has adapted to the changing environment to create new opportunities and identify the core focus areas of our existing business. We have all faced significant uncertainty during the current global health challenges. How have you re-organised your business to remain relevant? It’s certainly been an interesting time, which is the understatement of the century. The first half of the year has thrown many curve balls in our direction that’s for sure. That said, after what has been a decade of exponential growth and expansion across all assets of our business, the pandemic and the subsequent shutdowns have provided us, as an organization, the opportunity to take a breath and review our business and reset our strategy going forward. We’ve been foot to the floor for many years now producing major events, tours, media content, new talent etc. and this ‘break’ has allowed us to sit up and identify where our focus should lie for the next five to ten years. That process has been quite enlightening and has really tapped into the creative and entrepreneurial spirit within the organization. From top to bottom, I’ve been thrilled with the way in which our team has adapted to the changing environment to create new opportunities and identify the core focus areas of our existing business. The Nitro Circus business also started as a media company in its infancy. Given the slowdown in live events, we’ve seen significant interest in our media division and have created a number of new media projects that have been picked up by the likes of ESPN, Quibi — Jeffery Katzenburg’s new media platform, Facebook and a number of international broadcasters. We’ve also doubled down on our short form and user generated content (UGC), with the latter providing a platform for our fans to showcase their skills (or sometimes lack of) to our social audience of over 25million fans. The success of this content has seen us launch our new Fan Club and UGC initiative, Daredevil Nation.

The initial success and metrics have been phenomenal with over 10 million content views and 25 million impressions in just three weeks since its launch. After a successful pilot event, we are also working with Walmart and partners such as Red Bull, General Mills, Bell Helmets etc. to create around 30-40 ‘retailtainment’ demonstration events at Walmart stores around the United States. This will see us take leading athletes to carparks and concourses in front of the stores to create demonstration events, autograph sessions, product displays/sampling and clinics for shoppers in these markets and a way to keep people entertained during the pandemic. We will offer both socially distanced audience spaces and drive-in options. We plan to expand this next year into 2021 to more doors and also with other global retailers, including Australia.

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We understand the recent Big W mid year catalogue saw some solid results for Nitro. Sales of the bike, helmet and scooter were all great. What does this tell you about the brand in Australia? Australia has always been a huge market for the Nitro Circus brand. We launched our very first tour in this market, many of our leading athletes are Australian, likewise many of the management team of the company are Australian. We feel we have a great understanding of the market and have seen continued success for a long time down under. Pound for pound, it’s probably our top global market. The recent success on the retail side is testament to our longevity and commitment to the Australian market. When you look at our social audiences of 25million globally, Australia sits in our Top 5 markets for fans. Our Australian audience on Facebook alone is larger than any of the Australian sporting franchises to give a sense of the scale and engaged audience in Australia for Nitro Circus. I also need to pay thanks to John Redenbach and the team at Big W. They have put great faith in our brand, in our licensees and I am delighted for all parties to see the success we are currently having. We were always confident of success at retail and we waited almost a decade to launch consumer products in the market – in just a couple of years, we have seen extraordinary growth and look forward to expanding SKU’s and product assortment in Australia.

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We recently learnt the Nitro Circus became a part of a new organisation called Thrill One Sports & Entertainment. What does this mean commercially for the brand? A number of years ago, we took on an investment from leading New York private equity firm, The Raine Group. Raine have had tremendous success with their investments over the years and we are fortunate to be one of the portfolio companies in their first fund. As part of our strategy, we wanted to combine the leading ‘thrill-based’ sports and entertainment properties together under one roof, this is where Thrill One Sports and Entertainment was born. The portfolio now includes Nitro Circus, Street League Skateboarding (the world’s leading skate league) and Superjacket Productions (Rob Dyrdek’s media production company). We plan to add more properties over time; however, we are ‘thrilled’ with the foundation brands we have under the Thrill One umbrella to start with. Obviously, Nitro Circus is a huge brand, however when you think that Street League Skateboarding is the official qualification pathway for skateboarding in the Olympic Games and Superjacket produces shows like Ridiculousness (which is responsible for 49% of MTV’s gross rating points and produces 160+ episodes annually) and the Dude Perfect Show; we have an enviable line up of properties and unequalled audience metrics in the industry. The future is definitely exciting.

We believe you are focused on developing the consumer products portfolio here in Australia. Can you tell us about some of the target categories? We have seen fantastic success in Australia with our initial product lines, primarily in the sporting goods categories – bicycles, scooters, skateboards, helmets, even pogo sticks. Some people laughed when we said we were launching with pogo sticks with our great partners at ToyMonster – they ended up being the best seller in our initial drop. We see many additional opportunities – toys, ride-on, remote control, backto-school, soft goods and apparel, video games, collectibles…the list goes on. The key message is, “Nitro Circus is open for business” – we want to collaborate and partner with licensees that can bring to life the excitement and energy of our brand. Our Australian audience on Facebook alone is larger than any of the Australian sporting franchises to give a sense of the scale and engaged audience in Australia for Nitro Circus. I also need to pay thanks to John Redenbach and the team at Big W. They have put great faith in our brand, in our licensees and I am delighted for all parties to see the success we are currently having.

Looking toward 2021, can you update us on your tour plans for this market? I wish I had a crystal ball — not only to see what live entertainment looks like, but also to see what the world looks like in 2021. We are building countless contingency plans for live events; however, I am confident we will be back performing in front of big crowds again next year. Australia is always going to be a market where we have a live event presence each year. For over a decade now we have achieved outstanding results in the market and hold attendance records at a number of stadiums and arenas in the market. I can’t say too much just yet, however we are working on a major event in Australia for Q4 2021. This will be the biggest event on the global action sports calendar and bring all of the biggest names in the sport to the market. This event will see a year-round marketing and activation campaign culminating in a major live event. This event will provide a huge opportunity to our partners to leverage across retail, live event, media, athletes, grassroots events and experiential in connection with the event. We’ve also partnered with Mattel’s Hot Wheels brand to lead their action sports strategy globally. This is a great partnership as it combines the world’s number one boys toy brand with our leading action sports platform to create the world’s largest youth action sports program. The partnership is focused on encouraging the challenger spirit in kids worldwide and creating pathways from grassroots to professional. We will be running a Hot Wheels Superchargers event in Australia at the end of 2020 and again in 2021, which presents opportunities for our partners to engage with youth athletes and their families on a fun and accessible platform.

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We believe Ryan Williams (who is an Australian) is becoming a more important ambassador for the brand. Can you tell us how his role will evolve into the future? Ryan Williams is a SUPERSTAR! There’s no other way to describe him. As Travis Pastrana said last year, “Ryan Williams is the best action sports athlete on the planet today” — high praise from arguably the greatest action sports athlete of all-time. Ryan is a genuine success story, he started out as a young kid on our tour, riding a scooter, which at the time was not regarded at the top of the action sports disciplines. He didn’t let that hold him back. His athletic ability, trick progression, charisma and humility put him on a fast track to his current status. He now has millions of social media and YouTube followers and is incredibly engaged with his audience, which is demonstrated through his content performance metrics. Back in the sports environment, Ryan took to BMX on top of being the world’s best scooter rider. His dedication and natural ability saw him win multiple Nitro World Games and X Games

championships. A two-sport athlete in action sports is very rare — to be the best in the world at both sports is unthinkable — in Ryan we have that superstar personality. Over recent years, we have worked with Ryan to develop his ‘RWilly’ and ‘RW’ signature range of products. We partnered with Greenover Scooters to launch a range of pro and replica models that have sold extremely well across the globe. We have also developed a replica BMX bike with Hyper Bicycles and a range of merchandise, which has been very popular with his enthusiastic fanbase. We feel Ryan has the personality and profile to expand his range in the future with similar success.

Ryan Williams is a SUPERSTAR! There’s no other way to describe him. As Travis Pastrana said last year, “Ryan Williams is the best action sports athlete on the planet today” – high praise from arguably the greatest action sports athletes of all-time.

How do you see the evolution of the extreme sport category over the next couple of years? We see an exciting future, which is evidenced by the Thrill One initiative. If you consider of all the new sports included in the Tokyo Olympics, 65% of the new sports are action sports based — Skateboarding, Surfing, BMX Freestyle, and even Speed Climbing could be considered an action sport. Broader than this, when you look at the metrics, action sports is a huge vertical: • 3 in 5 teenagers are action sports fans • There are 503 million action sports fans worldwide • The fanbase has been growing at 6% YoY since 2016 off a very strong base • Action Sports is the fourth largest vertical on social media platforms Facebook and Instagram — larger than American Football, Baseball, Rugby, Tennis Action sports is also core to most children’s lifestyles — BMX bikes, scooters and skateboards are present in almost every household across the country. This gives a sense of just how big the opportunity is to link the largest and most aspirational brand in this space with products that are so common within most family environments. We know that Nitro has been famous for coming up with outrageous stunts; can you give us an insight into some of the latest additions? We always like to say, “Be careful what you wish for, because Nitro Circus will give you the opportunity to do it” — creativity is at the core of what we do and often if you can think of it, we can create it — sometimes for better or worse. Whilst we do create highly entertaining contraptions, we have a mantra of

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‘progression with safety.’ Everything we do takes months of research, testing and development before the crowds see the contraptions or stunts brought to life. I think there’s a unique opportunity to use these contraptions in consumer product executions. We’re an irreverent brand and I think this brings out the ‘big kid’ in all of our audiences. We actually just launched a new TV show on Quibi, called “Life Size Toys” — in this show we created all of the famous toys and supersized them. Travis Pastrana and a number of our other athletes were then engaged to ‘play’ with these toys with hilarious consequences. From Stomp Rockets to Lego cars, Radio Flyer wagons to Duncan YoYo’s and Barbie Cars to a catapult version of the Velcro ball catch and toss game — we did them all. It’s a great example of how we can bring consumer products to life beyond sporting goods used in our shows. What is the current demographic of the audience for Nitro Circus? It's very unique in that our audiences vary depending on the platform we are talking about. I’m always mindful to say that we appeal to everyone, but we really do appeal to everyone. I recall my first ever show working at Nitro Circus at the arena in Sydney Olympic Park — I took my four year old daughter and my 80-odd year old grandmother and both of them had an equally good time. When we dig into our demographics we look at them by platform.

Our social media fanbase of over 25million fans is very millennial focused. Around 70% of our audience on our social platforms is aged 13-34 with a male/female split of 80:20. When you look at our live event audience, this changes dramatically. In our research we actually have a 50:50 male/female split. Almost 80% of our fans have children in the household with an average of 2.34 children per household. Our live events are very family friendly. We have designed our shows to appeal to families, so it has been great to see these trends continue to increase and families continue to enjoy the shows together. Merchandise sales on-site at our events have continually achieved outstanding results, comparable with leading music acts in markets around the globe. The average household income for our audience skews much higher than the national average. Our fan research has shown that our attendees rate the show an average of 9 out of 10 on a scale of worst show (0) to best show (10) they’ve ever seen. Equally important is that 95% state their intent to return the next time the show is in their city. Thanks for your time Brett. It looks like the Australian market will continue to grow with the Australian talent and strategic partnerships in this market to develop and launch cool products and promotions. www.nitrocircus.com

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Outdoor P lay

HEADSTART IS SET TO SHAKE UP OUTDOOR PLAY! Feature Interview — Allan Hineman, Business Development Manager at HeadStart International

During the global health scare, there have been some toy categories which have shown significant growth. As more families moved to work and operate from their homes, they have been searching for activities that can engage their children whist at home. One of these categories has been Outdoor Play. This has been a traditional play pattern which has seen swings, balls of all sorts, trampolines, motorised vehicles and bikes. We recently learned that Allan Hineman, an industry veteran in this field, had joined HeadStart to form a new division — HeadStart Outdoor Play. HeadStart has been very active and particularly innovative in the toy business over recent years and they take a committed position to everything they do. They are set to dominate this category with innovative new play patterns and products and The Bugg Report recently spoke to Allan to discuss how HeadStart will approach this new opportunity. Alan, this is a new venture for HeadStart. What is HeadStart Outdoor Play and what will it’s primary focus be? Hi Buggy — HeadStart Outdoor and Preschool play is a new venture drawing on the World Class Designers and Andrew Hendy's leadership at HeadStart. Like most things, a lot of invention is created by need and with Andrew having a young daughter, we saw a need to create an offer that not only encourages the kids to get active but also provides consumers an alternative to what has been in the cycle for the last 10 years. The Outdoor area has become a bit of a race to the bottom, but we want to provide an exciting range that encourages kids to get on their Bike (Pardon the Pun). HeadStart have become known for their innovation and domination of categories, what will be the main play patterns that you will be driving? Innovation is the key to most things we have in the pipeline, and certainly HeadStart’s ability to think outside the

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square will create products that are both innovative and educational at the same time. We want kids to have fun with the ranges we are doing and want them to play over and over again. The product designs are across a broad spectrum of play patterns and we are working on owning patents in areas where our design is groundbreaking. The experience gained by doing the Resoftables product line shows us that we can make an impact on an environmental front globally as well. Andrew is working in the background to provide us with some great news in this area. From a strategic standpoint what is the size of the market and how do you see the growth opportunities? Our growth will come from the innovation of product and with our ability to supply on a global basis, we see the need for educational and quality product in not only our backyard but more a global network. The Aussie intuition is alive and well and we can see a niche market

for product without batteries and sourced from recycled materials that stand up on a world stage. The potential size of the market is enormous, and we believe our creative juices coupled with our partnerships worldwide will lead to HeadStart product in most countries around the globe. The US Outdoor and Sporting market is a $4Billion USD market year on year. The category has not experienced a lot of change over many years now. How does the HeadStart team intend to use innovation as a tool to change the outlook of the business? We will not be competing in the low-end product ranges without innovation. The sticker slap is not where we want to be, we would prefer to compliment what is in the market and give consumers a better choice of product with interactive play that gets kids out and playing again. Our environmental message is important to us and we want to continue down this path as we discover new ways to have an impact.

www.headstartint.com Will you engage licensing where appropriate to drive product ranges and to tell a story to the consumer? Yes, we have already engaged licensors where it makes sense. Licensing plays an important role as part of our strategy, but it has to make sense and the partnership with the licensor is key to making this achievable. The HeadStart team has great relationships across the board with all our friends in the licensing game so it is really exciting to see some of the licensed product come to life. We are currently working on a really exciting project with an animated movie released mid next year which just works beautifully within the category. We have taken this out globally and the feedback already is fantastic. We have also signed with Universal to do Jurassic World ride-ons and the team has come up with an exciting version of a 12 Volt Quad bike that kids will love. The feedback is already very good on this product so watch this space. What are your short, medium and long-term goals? The short to medium term goal is create a range of product that retailers identify with as being different and value to their consumers. We want to challenge the market to produce innovative and environmentally friendly product at the right price where the consumers think

twice about what they are buying. The long-term goal is take HeadStart to a position where consumers identify and seek out our creative and innovative product worldwide. Outdoor and preschool goes hand in hand to create long term habits in kids being active. The sooner we can get our kids engaged at an early age to get outdoors the more active they become as they get older. Let’s face it — computer games are here to stay, however let’s give the kids a head start to being outdoors and having fun. Over recent times, there have been many smart companies who have played the role as disruptor in a particular industry, will HeadStart play this role with Outdoor Play? I'm not sure we will be a disruptor, but we intend on setting a standard and licensors are already reaching out to us, knowing we are not about doing the same thing that's already in the market. HeadStart are renowned for product that adds value to the brand. I have been around a while now and the thing that excites me about this role is that Andrew has a clear vision on putting the best product we can on the shelf. After years of doing the same thing with a different license, it is refreshing to sit down with the creative team and throw everything on the white board.

HeadStart's business is becoming more global every day. Will your outdoor division look to play on the global stage? Yes, we will and have already started reaching out to the global market. This certainly gives us the ability to bring the best possible product to our own backyard also. We have now warehouse facilities in the USA to also support our push into the North American market. Gary Coppen has done a brilliant job in establishing the relationships off-shore and now we can take advantage by adding this exciting new category to the mix. Allan, how will you communicate your capabilities to the market? The world has changed and I would love to think we could have a stand at some of the big trade shows and tour the world. But who knows, our guys have become very good at streaming our showroom to our customers and distributors, that’s a shame for our partners as I have a good head for radio... We are working feverishly to get tooling, samples and factories in-place to present later in the year. Then a hand over to Al Ngov and his terrific sales team locally to engage our local partners. What will your lead product be? Our own patented design Foot to Floor is something completely different and I think is one of the most exciting products I have worked with. I can see this as a standard setting item that kids will love. The global deal we have signed in sporting goods is a home run knowing what the first movie did on the world stage. We will keep you up-todate with progress on this one as I think it is the movie of the year. Thanks for your time. Now that the market has changed, it looks very likely that we will all be spending more time at home in the future. It's an ideal time for you to make a move into outdoor product. We look forward to the launch of your new ranges and hope to be able to cover your successes as they roll out. www.buggreport.com.au

Mizzie The Kangaroo Hopping

Globally Through the 2020 Challenges Mizzie The Kangaroo is the Award-Winning Home to Australia’s Original Natural Teething and Educational Toys. Mizzie was created to help little ones Develop Through Fun! From birth to the toddler years, every single Mizzie product is designed to help the youngest of bubs, learn through play. Mizzie and her team have created a range of toys that allow children to learn without compromising playtime! Through the ups and downs of 2020, Mizzie The Kangaroo has hopped out stronger in popularity, with tremendous transnational online recognition and engagement. Mizzie has shown to be the perfect way to help little ones continue to develop core skills from home in a fun, with parents showcasing their favourite Mizzie moments through social media. All Mizzie products are designed to support babies’, aged 0-3year, curiosity whilst stimulating the senses and developing other key age-appropriate skills.

Additionally, Mizzie The Kangaroo has gained momentum with the more environmentally conscious parents and retailers. Mizzie The Kangaroo has always taken great pride in doing its part for the environment. Mizzie products purposefully utilise minimal, recyclable packaging, natural materials and water-based paints. Mizzie’s freights also use recyclable boxes and tape, making it a point to not use plastic and consciously being sustainable for our environment. “We spoke to our retailers and determined the minimal packaging required for shelves, and we specifically design our products so they don’t use unnecessary materials that can’t be recycled, whilst making sure they look good on retail shelves” explained Founder Sandra Ebbott. “We know that our customers also want to do their bit for the environment, and buying our products makes them feel that much better, not only because their bubs learn with Mizzie, but also because they know that we are environmentally friendly.” ‘Mizzie’ is the friendly quintessentially Australian kangaroo character from Queenland, who was born in this world to develop little ones through fun. Her passion involves nurturing and guiding her little friends, like Cheeky Bella-Boo & Baby Hugo, through valuable life-long skills! The Mizzie World is about creating a fun and exciting environment for little

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ones to explore, discover and learn and all of our friendly characters are designed to support this journey. The Mizzie team are delighted to work with more partners through 2020 to bring the Mizzie World and purpose to life, on a global scale. Mizzie The Kangaroo is an Australian owned and operated brand, with products designed by Australian parents. The Mizzie brand started in late 2015 and has since expanded to be a global phenomenon,

distributing products across Australia, North America, the United Kingdom and Europe. The team at Mizzie The Kangaroo aim to be helping children all over the world by becoming the leading brand for Natural Teething & Educational Toys and expanding our reach into more global markets. For more information and partnership opportunities, visit www.mizziethekangaroo.com or email the Mizzie team at info@mizziethekangaroo.com

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’Mizzie’ is the friendly kangaroo from Queensland that develops children through fun – Globally. !repap delcycer %001 no detnirp neeb s’ti – drac siht elcycer esaelP www.mizziethekangaroo.com Follow us

Squatter To F ly with New Growth P lan Squatter's focus on sheep farming reflects the inextricable link between this industry and Australian history more broadly. Since 1797, wool has been central to Australia's economy, agricultural practices and to the collective consciousness of its people. Early settlers soon discovered that with its infertile soil and dry climate, Australia was well suited to the production of high quality wool. The fibre quickly became the cornerstone of Australian agriculture and the nation is often said to have "ridden on the sheep's back" as it strove for economic development. The Squatter boardgame, which has been a household favourite in Australia for nearly 60 years, offers players a rough simulation of life as a sheep farmer with all the daily trials and tribulations this entails.

Written by â&#x20AC;&#x201D; Richard Lloyd, Owner of Squatter

www.buggreport.com.au

2022 will see the 60th Anniversary of the Iconic Australian board-game SQUATTER… With in excess of 500,000 games sold in Australia, it is the largest selling Australian game of all time. This is something to be celebrated and has proven the longevity of its game play. The Squatter team have already begun the planning process for a special limited edition 60th Anniversary version of the game and they anticipate that this will be supported with promotional activities and given its heritage, strong media coverage of this event. Recent planning meetings have established a global strategy which will see the brand expand into other similar markets in Australia, which have strong primary producing industries including a commitment to agriculture. The plan focuses on the following: • • • •

Squatter — Traditional game & additional formats Squatter Custom Division Squatter Licensing and Collaborations Squatter International

This structure will form the basis for the on-going growth of the brand and the team are confident of engaging new generations towards the game and the brand, whist strengthening the aspect of the game's traditional teachings of how one would go about operating a sustainable business, not just in Agriculture. Most excitingly, the development and release of two new formats to be added to the Squatter family… SQUATTER MATES card game and SQUATTER COMPACT for people on the move are now underway. These new additions will allow the business to scale and broaden distribution concurrently. With new price points and innovating design and packaging, this will signal a much greater interest in the brand. Squatter is extending its appeal to younger and more mobile players. Squatter Compact brings all the features of the classic board game in a versatile edition for two-tofour players and is packaged to be travel friendly. Squatter Mates is a card game with a twist for players of all ages who like all the Squatter fun in a faster game. With these two new additions Australia's iconic game Squatter presents a more compatible format for retailers with products of a distinctly Australian flavour. As these new advances roll-out, the team have been busily recontacting both Government and primary industry organisations to secure additional re-endorsements for the game. This will provide added comfort to set a path for the game to be accepted into the schools system around the country as a learning tool for accounting methodology and sound business practices.

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An important pillar in the growth plan will also be to work toward the appointment and partnership with key professionals in international markets, including the United States, Germany, France and the United Kingdom. Squatter hopes to develop a footprint for the brand in these markets initially and as other markets emerge, duplicate the plan. Another key activation to the plan will be the establishment of a Custom Division. This will allow for the development of special editions of the game, including limited edition versions such as ON THE LAND… Squatter will look to partner with organisations on a collaboration basis where the Squatter brand can assist in enhancing like-brands and together create a powerful marketing tool. Squatter, a favourite with Australian families for decades, is a board game with enduring appeal. Players enter the world of sheep farming, battling droughts and wild dogs, winning at the stock sale and wool market and they experience the ups and downs inflicted by the Tuckerbag. Squatter brings cheers and fears to be fondly remembered for generations.

An important pillar in the growth plan will also be to work toward the appointment and partnership with key professionals in international markets â&#x20AC;&#x201D; including the United States, Germany, France and the United Kingdom.

Australiaâ&#x20AC;&#x2122;s Classic Farming Game

For more information: Richard Lloyd richard@squatter.com.au +61 (0) 419 135 581 squatter.com.au

www.buggreport.com.au

The Far Side Wall Calendars

THE FAR SIDE® THEME-A-MONTH 2021

THE FAR SIDE® AFTER HOURS 2021

OFF-THE-WALL CALENDAR

WALL CALENDAR

After two interminable decades, the all-time bestselling calendar is back with 365 days of irreverent, brilliant cartoons from The Far Side® and a fresh theme featured each month.

The Far Side® After Hours 2021 Wall Calendar is ready to grace the world’s vertical surfaces with witty, never-before-seen artwork by bestselling cartoonist Gary Larson.

PEERLESS PROPERTY: With over 40 million books and 77 million calendars sold (let’s just round up to a bajillion), The Far Side® is an unprecedented cartoon phenomenon.

ALL-TIME BESTSELLER: The Far Side® Off-The-Wall series was the bestselling calendar in the world for 18 consecutive years.

BRILLIANT-NEW ARTWORK: The 12 original pieces of art offer a look at Gary’s new digital painting style, making it hugely appealing to legions of loyal fans.

TIMELESS APPEAL: Popularity of The Far Side® has surged again following the launch of TheFarSide. com website in 2019 — which saw more than one million visitors in the first week — bringing the cartoon into the digital age and presenting Gary Larson’s work to a new generation.

Order via phone on 03 9384 7100 or email enquiries@browntrout.com.au

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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!

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Sally P seudonym

Sally Pseudonym is a guest writer focussing on what’s going on in the toy industry and gives you some general information about the ups and downs in the toy business. Column written by — Guest Writer for The Bugg Report

Sally Pseudonym as at 29/06/20 What a half we have had! The uncertainty of the pandemic resulted in many opportunities in toys and wheel toys There was panic buying for many categories, particularly games and puzzles, as well as bikes, bike helmets and accessories With gyms closed, people found alternate ways of keeping fit (even repairing old bikes that had sat in the shed for years!) It was the same around the World and Australia mirrored the rest of the World with the exception of the UK which was in lockdown and only commenced trading around June 22nd The year commenced with a tough start however as the pandemic grew the toy business ended up almost 10% up on last year for the first half once the pandemic and the buying hit Most of the growth was concentrated in May and June As usual the categories had winners and losers (mostly winners!)

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The half-to-date by category looks something like this: Arts and crafts up 40 % (the pandemic and children at home fuelled the growth) LEGO up 30% (LEGO Masters continued to push the brand to new heights) Dolls up 7% (L.OL. down... from a huge base and Barbie surges) Pre-school up 18% Games and puzzles up 60% Kids electronics up 80% driven by VTech) Action figures down just over 6% YTD (no new hot movies such as Toy Story and Trolls and Minions deferred until September and June respectively) From a supplier perspective the top 10 were:

✅ LEGO ✅ Mattel ✅ Hasbro ✅ Spin Master ✅ Hunter Leisure ✅ Moose Toys ✅ MGA Entertainment ✅ VTech ✅ HeadStart ✅ Hunter Products

The top brands were:

✅ Barbie ✅ Hot Wheels ✅ LEGO Creator ✅ Disney Frozen ✅ LEGO City ✅ L.O.L. Surprise! ✅ Paw Patrol ✅ Star Wars ✅ Marvel Universe ✅ LEGO Technic ✅ VTech Baby ✅ LEGO Friends ✅ Nerf ✅ Bluey ✅ DC Universe ✅ LEGO Star Wars ✅ Crayola ✅ Toy Story

We are really blessed in this industry that the suppliers and studios keep coming up with new content — as we all know, new sells!

Treasure X Aliens

The best newcomers to the period were:

Pokemon and The Wiggles just missed out on a top 20 spot however their growth deserves an honorable mention! The only brand significantly down was Toy Story which is understandable given the strength of the brand and the movie last year (down 50%) Great job by Moose and Bluey with the release of this much anticipated range Amazing job by Mattel with Hot Wheels and Barbie up almost 20%

✅ Barbie Dream House ✅ Barbie 3 in 1 Camper ✅ Colour Reveal Barbie ✅ ANYTHING Bluey! ✅ ProjeX Projecting Game Arcade ✅ Laser X Revolution ✅ ANYTHING LEGO... the brand just keeps growing!

✅ L.O.L Spring Bling (in Autumn!) ✅ Fisher Price Crawl Around Car ✅ Treasure X Alien Hunters

Frozen just keeps getting bigger (up just over 350%)

hype around these)

Thomas appears to be in hibernation

✅ Miraculous on ABC, iView and

Beyblades and Transformers are having a rest

Special mention however to Trolls and Minions as they were without the movies and Universal did a great job driving their properties hard

✅ Minions — June next year ✅ Jurassic — June next year ✅ Mech Strike — June next year ✅ Snake Eyes GI Joe — June next year ✅ (June is a bit crowded!) ✅ Rons Gone Wrong (Disney — April) ✅ Paw Patrol Movie September ✅ Harry Potter 20th Anniversary ✅ (there should be some

PJ has fallen away in favour of Paw Patrol

Not surprising to see many LEGO categories in the sales.

On the radar next year:

Wiggles 30th Anniversary

Hasbro... another great job on Nerf up 20%!

L.O.L was slightly down however given their huge base last year MGA Australia are doing a great job

Barbie Dream House

Netflix) no product as yet

ProjeX Projecting Arcade Game

Look out in the future for:

✅ Trolls (again) in September given

how the toys have gone without a movie this property should be great

✅ Cocomelon... may be some toys by the end of the year

✅ Spirit ✅ Blues Clues and you (already airing

✅ Power Players on Channel 9 (no product as yet)

✅ Peppa Pigs new series (season 9 on ABC next year)... introducing Kylie The Kangaroo

✅ Ricky Zoom — Easter ✅ Power Rangers Dino Fury — July ✅ MLP movie — September Sally —Signing Off

with no product available as yet)

www.buggreport.com.au

ACCORDING TO DOWNSEY Edition 10 - Recovery! Like the licensing business worldwide, the UK industry has been severely challenged by the economic and social impact of Covid-19. The country has been in Lockdown for many weeks with a gradual easing of restrictions currently underway but we remain a long way from a return to business as usual. Column written by — Ian Downes, Director at Start Licensing

Companies have been severely tested. The apparel category seems to have been particularly impacted with lots of stock stuck in the distribution chain and question marks over future orders. For the bulk of Lockdown retailing has been limited to essential shops only with other non — essential shops being forced to close. So familiar names in licensing retail such as The Entertainer, John Lewis and Lakeland have been shut. Grocers like Tesco , Asda and Sainsbury's have remained open but their primary focus has been on selling essential goods rather than thinking about licensed ranges. It is difficult to point to high-points in such a challenging period and there is no question the licensing business in the UK is facing a real crisis. After all we are an industry that relies on people shopping and buying things. There have also been closures in areas like theme parks and theatres meaning 'live licensing' has been severely curtailed. There are some glimmers of hope though. There has been a much heavier use of digital marketing by rights holders to support their IP and in turn licensees. Our client Aardman has been working with licensees to create a series of campaigns on Twitter, Instagram and Facebook to push licensed lines in coordinated campaigns with licensees and selected online retailers. Aardman are being rewarded for investing in this area over recent years. They have an expert team in house Aardman worked with retailer and have built up a great knowledge of their Olive & Sage on a promotion consumers. One example is that we linked with licensee Primus to promote their Gromit garden statue in tandem with a specialist online retailer who held stock and could despatch goods to consumers. Hopefully rights holders will continue to invest in this sort of marketing. They can track ROI which is useful. Other online sellers such as Truffleshuffle, Moonpig and of course Amazon have provided a sales channel. Categories like games, puzzles, arts and crafts have done well. This may lead to more opportunities for rights holders in these categories as manufacturers seek out more content.

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Personalised product companies such as Super Socks (pictured above) seem to have done well as they have given consumers an easy way of gifting fun products to friends and family. Personalisation is a category that looks set to grow and licensing should have a prominent role to play in it. Trust in online services like personalisation is growing. There has been a lot of money raised for charities during Lockdown and a lot of attention given to 'good causes' most notably the charity associated with the National Health Service. We are all a little bit more aware of 'good causes'. Some charities have seen income decline as the NHS Charity has been the focus of fundraising in recent months and I think we will see more activity from charities in the licensing sector as they embrace new fundraising methods. I also think companies will look to use licensing more in promotions. Licensing can add value and some brands will be looking to push on promotionally. Clearly we are facing a tough time but this is the moment for licensing to go back to basics and talk up licensing. Show a united front across the industry.

A well chosen license creates a call-to-action and brings an audience to create momentum.

With over 50 years experience in the Toy Industry, here at MJM Australia, we are category leaders in puzzles and games. As a proudly Australian owned company, we continue to grow and evolve our ranges in both generic and licenced products. Located in Melbourne’s South East, MJM Australia is headed by brothers Jacques and Marcel Levy, who pride themselves in being ‘hands on’ in the business, leading a team focused on

Category Leaders in Puzzles, Games, Arts & Crafts.

providing quality product to a wide range of customers. At MJM Australia our commitment is to continually be category leaders in our industry, provide quality products, excellent customer service, maintain our ever important relationships with our valuable licensed partners, and provide a collaborative, fun and rewarding environment for our dedicated staﬀ.

What is the Fuss All About? Sam Arcadipane has recently launched her very own brand of collagen-infused organic teas — jumping into the wellness space and the popular interest in collagen, her newly launched brand — Fusspot Collagen Beauty Tea, with its distinct hot pink irreverent branding has, taken the market by storm. Interview — Sam Arcadipane, Fusspot Collagen Beauty Tea

Sam Arcadipane is a veteran of the brand and marketing space and highly decorated educationally, with a Bachelor of Business in Marketing amongst other advertising and public relations qualifications. Sam initially held key positions in many brand and consumer goods organisations in the 2000’s including Mattel, Hanes, CoverGirl Cosmetics and Hallmark Cards. She also held a National Marketing Manager role with Kmart and then moved back into licensing for nearly 7 years with Haven, managing both the Nickelodeon and Sanrio brand portfolios across Australia & New Zealand, which gave her the freedom to develop mass-market brand portfolios across multiple retail partners. Sam then moved back into marketing (and e-commerce/ digital marketing) with roles in the capacity of Head of Marketing with retailers in the furniture industry, motor cycle industry and with global companies like Cotton On and PETstock, before adapting her skills to provide senior strategic consultancy services within various industries over the last 18 months. After The Bugg Report learned of Sam's new brand, Fusspot Collagen Beauty Tea, via LinkedIn, we spoke to Sam about her new venture.

The Bugg Report Magazine

Sam after all those years of big corporate roles, what was the catalyst for you to take the decision to commit to your own business? It really wasn’t a hard decision, it was more about what the business could be and when to take the leap… I had wanted my own brand, my own business, for some time, but just didn’t have a solid idea that resonated with me to be both in-demand by the mass market and to be profitable. After starting several business plans and doing a lot of research and deciding these ideas weren’t going to ‘cut it’ — I continued researching until I found something I both loved and believed in, that was in demand, and that I could stand behind. Once the idea came to life — it was all systems go!! What led you to investigate and settle on organic teas infused with collagen as your chosen field? I had been reading a lot about hydrolyzed collagen peptides and was extremely curious, we’re all getting older and I was doing a lot of research into this space, and being an avid tea drinker — the idea popped up one morning and then I started to investigate the feasibility — and once I had researched and found the incredible benefits of tea for both your skin, your health and your wellness, well, it just stemmed from there… but that was the easy part — then it was “how am I going to make this happen?”

SamCo Brands has a cool logo and suggests that there may be more to come? Yes… I wanted a parent company because I have heaps of plans — there is a pipeline of other ideas in the making — but Fusspot Collagen Beauty Teas was the starting point and the first brand or cab off the rank — stay tuned for more though!!! I am interested in your packaging and colour palette, what was the thought process behind bright PINK? That was easy!! The packaging had to reflect it's point of difference — this is not just another ‘tea’ — this is a hybrid beauty product — a “Beauty Tea” — as it’s infused with hydrolyzed collagen peptides and are specifically formulated tea blends that have been developed with a Tea Master to support your beauty and health from within — they’re all rich in polyphenols, antioxidants and flavonoids, so I wanted this brand to really stand out, and not be another ‘tea-brand’ but to be marketed as a ‘beauty-brand’!! If you’re after a basic tea, go to your local supermarket, because this is a premium beauty/tea/ supplement ‘hybrid’ product and it’s the first in the world! I also wanted to ensure that I had environmentally friendly teabags, so that was also a challenge as they had to be biodegradable, compostable and to minimise micro-plastics — it’s important all brands do this and it was important to me, especially being an Australian brand and business and caring for the planet! Packaging is just so important — it’s impactful and tells a story, so I’m hoping the bright pink also will shout out that “I’m different and check me out!!” As you continue to develop your brand, have you given any thought to engaging an influencer or celebrity to endorse your product? We’re being contacted regularly now from influencers and collaborators, which is fantastic — we only launched 15 weeks ago so it all takes time to become discoverable, but we’re getting a lot of interest and working with those that we resonate with and who are actual tea lovers, who are into wellness and beauty, who are interested in antiageing and who will actually drink the tea! I’d love to have a celebrity endorse the brand so let’s keep our fingers crossed!!! Will you engage all of the social media platforms to assist with your growth plans? Yes, of course! My background over the last 20+ years has always been retail and driving consumer awareness, and the last 10+ years I’ve mainly worked in eCommerce and digital marketing, so the channels to drive growth and consumer purchasing has moved from TV, print and radio and funneled far more heavily into the digital/social world — so we’re right across all of the social media channels and focusing there to drive awareness and interest! Today, most retailers and brands are very heavily focused in the digital and social space, so it’s pretty saturated, but you’ve got to be there to be in the game! It looks like you have chosen to sell your product direct from your website. What was the process you undertook to make this decision? That was always the intention to be an online brand! I’m constantly doing web integrations and will continue to do so... with an exciting eCommerce deployment happening in the next few weeks on www.fusspottea.com which I believe our customers will love! I really enjoy the eCommerce space and running an online business was what I set out to achieve — less overheads, adaptable, dynamic and you can control your messaging almost instantly!

Will you entertain the concept of working with retailers to sell your brand? Yes of course! I’ve had some wholesale enquiries and orders so far including a yoga retreat, a few beauty salons and I’m in discussions with an independent chain at the moment, but they have to be a good fit for Fusspot Tea as well... I’m happy to discuss opportunities across any retail industry as long as it makes sense! What work went into the formulation of the product? I travelled overseas, went to trade fairs, met with multiple suppliers, did a lot of discovery and research, for months and months, and really did my due diligence to find the best partners to work with and collaborate with! It was quite the journey as it was pretty challenging to make this happen once I got the idea! But determination and perseverance, a lot of trials and eventually you land where you want to get to! I wanted to have a choice for my product offering — with loose leaf blends, teabags and trial a few powders (chai and matcha) as Collagen Beauty Tea is a very new concept, to see where consumers would choose with their money and so far, all 11 blends are all kind of selling at the same rate! I notice that you are shipping the product all over the world. What are your biggest markets to date? New Zealand and Canada are probably the biggest so far, but that’s only after 15 weeks since launch, so let’s see where it goes! I’ve even had an order from Switzerland! The Editor — Sam, this is a fabulous story and as I said to you, we always knew you would be famous. All of that studying and hard work, learning and application has certainly paid off. As you progress a little further into the development of SamCo Brands we would love to check in with you again. Congratulations on your achievement, you should be very proud. You can find out more about Fusspot Collagen Beauty Tea on the website at www.fusspottea.com www.buggreport.com.au

The ATA serves the industry in many important ways. The annual Toy Fair is the premier Toy industry event in Australia and members of the ATA benefit from a generous discount to exhibit. The fair which sees over 5,000 people through the door attracts both international and domestic visitors, all with the aim to do business and network over the 4-day event. The coveted ATA Industry awards are also presented at the Gala Dinner which is held on the first evening of the Fair. Exhibitors are provided the opportunity to enter these awards which are judged by independent industry professionals. The ATA’s other initiative’s such as the ATACF Charity Arm and the Value of Play program are also important areas that the Association focuses on. The ‘ATA Charitable Foundation’ was developed through the industry’s commitment to all children, especially those in need. Through special fund-raising events and donations, the money raised goes directly to the causes supported by the ATACF with the Association meeting all administrative costs. The Australian Toy Association is an independent, financially strong and well-resourced body. We were established in 1983 with our roots in the Toy Industry, however these days, with an everchanging society, membership has diversified across a larger number of products including toys, hobbies, nursery, clothing, confectionary, games including electronic and video, books, collectibles, car safety, furniture, sports, lifestyle and licensed products. With such an extensive product range represented, the Membership of the ATA has developed and grown to not only include products for children and family leisure but also learning, entertainment and information services. Alice Sanderson Executive Manager

For further information on ATA membership please feel free to contact the team at admin@austoy.com.au

The Bugg Report Magazine

All children have the right to education and play, no matter their background. The promotion and communication of the Value of Play (VOP) is therefore high on the agenda and we consider this especially important in the age of digitalisation. The VOP website and social media channels are a support to parents and professionals in encouraging play for all children and this message has been particularly helpful at this time of COVID 19. They provide a great resource through these difficult times and offer valuable tips for families spending time together. Play is about allowing our children to develop physically, emotionally and intellectually and toys are the tools to assist this. That is why the compliance of products our industry provides, is imperative to ensuring the safety of children while they do this. ATA plays a key role in this area as we supply a free compliance query service to our members as well as represent the industry on both national and international standards committees. Our aim where possible is to align standards globally as this reduces barriers to trade for our members. Alongside our compliance query service, we have also developed a Compliance App that assists our members in identifying the requirements for their product. Once these have been determined, the end report provided by the app can then be supplied to manufacturers, testing houses and their customers. ATA’s major objective is in delivering information and providing services that extend the performance of our industry. We regularly communicate through our monthly newsletters, regular EDM’s and informative webinars. We provide industry reports to assist businesses in identifying statistics and trends. We have also developed a sustainability committee to identify methods in producing, reusing and recycling the products the industry provides and we are continually evolving to ensure we remain relevant and able to support our members.

ATA Membership The Business of Toys The Australian Toy Association (ATA) is the peak body for the Toy Industry in Australia and represents and services Australian industries specialising in products for children & family leisure, learning and entertainment. With all these benefits, Membership is a must for anyone in the business of toys!

Discount exhibition rate for the Australian Toy Hobby and Licensing Fair; the premier event in Australia

Free safety and standards compliance query service.

Access to: • Industry Reports • Safety & Compliance information • Webinar Archives • Exclusive Member Benefits & more

Regular and relevant electronic commmunication with updates and compliance changes

Access to our export network via the ATA stand at the Nuremberg Toy Fair Discount Service partners in areas including legal, financial, travel, networking and a host of other commercial resources dedicated to expert advice

State and national representation on government regulation and participation in submissions

For more information please contact the ATA on 03 9320 2600 Australian Toy Association ABN 92 002 682 493 PO Box 7061, Melbourne VIC 3004 Fax 03 9320 2622 E: admin@austoy.com.au www.austoy.com.au

Welcome to the DC Fandome! A MEGA, 24-HOUR, IMMERSIVE VIRTUAL FAN EXPERIENCE Save the date and prep your cosplay! On Sunday, August 23, starting at 3.00 a.m. AEST, Warner Bros. will welcome fans everywhere into the DC FanDome — a free virtual fan experience where no badge is required. Imagine all the Super Heroes and Super-Villains you’ve ever loved finally coming together in one place to celebrate DC’s past, present and future. Accessible for 24 hours at DCFanDome.com, the global event will immerse fans into the DC Multiverse, with new announcements from WB Games, Film and TV, and comics, as well as an unprecedented opportunity to hear from the casts and creators behind your favorite feature films and TV series, including: Aquaman, The Batman, Batwoman, Black Adam, Black Lightning, DC Super Hero Girls, DC’s Legends of Tomorrow, DC’s Stargirl, Doom Patrol, The Flash, Harley Quinn, the SnyderCut of Justice League, Lucifer, Pennyworth, SHAZAM!, The Suicide Squad, Supergirl, Superman & Lois, Teen Titans GO!, Titans, Watchmen, Young Justice: Outsiders and, coming this fall to theaters worldwide, Wonder Woman 1984.

EXPLORING THE DC FANDOME

The DC FanDome is the place to hear highly anticipated announcements and the latest news, see exclusive footage, and venture into themed worlds designed to entertain everyone from movie and TV superfans to gamers and readers, to families and kids. With special presentations to engage fans in every time zone across the globe, you’ll have the opportunity to have an experience that’s all your own. Inside this virtual world, fans will also get access to localized events, featuring the faces and voices from countries around the world in their local language. No matter where you live, your age or your level of fandom, there is something for you.

DC WatchVerse: Here’s where you grab a seat, sit back and join our virtual audience and become completely engrossed in hours of must-see content from around the world. Everything from panels and exclusive screenings to neverbefore-seen footage, featuring cast, creators and behind-the-scenes crew from across DC Films, TV, Home Entertainment and Games.

Ann Sarnoff, Chair and Chief Executive Officer, Warner Bros., said, “There is no fan like a DC fan. For more than 85 years, the world has turned to DC’s inspiring heroes and stories to lift us up and entertain us, and this massive, immersive digital event will give everyone new ways to personalize their journey through the DC Universe without lines, without tickets and without boundaries. With DC FanDome, we’re able to give fans from around the world an exciting and unparalleled way to connect with all their favourite DC characters, as well as the incredible talent who bring them to life on the page and screen.”

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The epicenter of the DC FanDome is the Hall of Heroes, where you can experience special programming, panels and content reveals from a wide variety of films, TV series and games, available in several languages, including Brazilian Portuguese, Chinese, English, French, German, Italian, Japanese, Korean and Spanish. From there, navigate deeper into the DC Multiverse, exploring five additional satellite worlds, each with its own localized content and unique activities and one world fully devoted to our younger fans:

DC YouVerse: Venture into this world where the FANS are the stars to see the most amazing user-generated content, cosplay and fan art from around the world, including, perhaps, your own. DC KidsVerse: Need a way to entertain your kids for hours on end? We’ve got you covered inside a special world, which can be accessed directly at DCKidsFanDome.com. This area features a broad range of family-friendly activations for our younger fans.

* Each competition is subject to its official rules available at create.DCFanDome.com, which include eligibility and entry requirements, judging criteria, and an explanation of how sponsors may use your submission.

DC InsiderVerse: This creativity-based world contains a centerpiece video featuring legendary artist and DC CCO/ Publisher Jim Lee, President of DCBased Film Production Walter Hamada, and creator of the DC TV Arrowverse, Executive Producer Greg Berlanti, welcoming fans with a 101-style introduction to the DC Multiverse. From there, go behind the scenes with the master artisans who bring DC to life in all its forms, from comic books to games, TV, movies, theme parks, consumer products and more. DC FunVerse: Take your DC FanDome experience and gather cool shareables; check out our comic book reader; DIY cool WW84 Golden Armor and Batmobile kits; plus digital giveaways and a store filled with merchandise, including some limited-edition exclusives.

PULL UP TO THE BLERD & BOUJEE HOUSE

Talenthouse, DC FanDome today launched a call for your best DC Fan Art & Fandom displays. Show us your cosplay, makeup, tattoos and even your own Batcave! Be sure to submit your best at create.DCFanDome.com for a chance to be featured inside this virtual world event, and demonstrate to people in your home country and across the globe that you are the ultimate DC Super Fan. Selected artists on the day of our event will be voted on by the community in each of our two competitions in order to help our judges pick selected artist winners. Selected artist winners will receive part of a cash prize pool courtesy of DC and Talenthouse.*

Where my Blerds at? The second annual celebration of Black nerd culture returns with the all-new Blerd & Boujee House at DC FanDome, bringing Blerds, LatinxGeeks and all nerds “party-with-a-purpose” vibes. As anyone lucky enough to get into the first- ever Blerd & Boujee boat party (featuring DJ D-Nice) at San Diego Comic-Con 2019 can attest, fans will not want to miss connections and conversations designed for the culture.

Be sure to check back at our official site, DCFanDome.com, frequently for additional updates on what will be happening inside the DC FanDome, including exciting new content on our new blog, the Daily Star, which kicks off with a welcoming note from Jim Lee himself. Also, follow the social channels below for frequent updates about participating cast members, creators, writers, artists and game developers you can expect to see.

CALLING ALL FANS!

#DCFANDOME

There’s nothing more important to DC than our fans, and we want to showcase you! In partnership with

facebook.com/dc/ instagram.com/dccomics/ twitter.com/dccomics

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ONLY WATCHING FOR THE ADS

How Licensing Continues to Build Across the Advertising Space

Super Bowl is the biggest advertising event of the year. A few months ago Super Bowl LIV was watched all or in part by 148.5 million viewers. Naturally, the cost to advertise each year increases and this year a 30 second slot cost advertisers an eye-watering US$5.6m (AU$8.08m). Or US$186k (AU$269k) per second! Column written by — David Born, Director at Born Licensing

“I’m only watching for the ads” is commonly heard from Americans tuning in to the Super Bowl coverage with no interest in the game itself. In fact, according to WARC almost a quarter of viewers (24%) consider the commercials as the most significant part of the Super Bowl experience1. On top of the enormous amount of people watching the adverts live, the best ads of each year are also generating a lot of press and attracting a shockingly large amount of views across the globe online. For example, Facebook ran their first ever Super Bowl campaign this year and scored a whopping 274 million social media impressions according to AdAge2. Born Licensing managed the licensing of thematic elements from the Rocky film for the campaign which starred Sylvester Stallone and Chris Rock, and the big investment in media, production, licensing and star power seems to have paid off for them with the second most digital share of voice with 8.05%. The number one spot was also a licensed campaign with Jeep’s Groundhog Day spot, achieving an impressive 14.58% share of voice. Facebook’s ‘Rock’ themed spot wasn’t the only Super Bowl ad which licensed characters, clips or entertainment IP in one way or another. This year we counted more than ever – ten in fact. With 77 advertising slots this year that equates to almost 13%, which is significant indeed.

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If we were to look at all advertising spots in any given year around the world, I would say we would find less than 0.001% involve use of characters, clips or other entertainment IP (not including music). So why are so many Super Bowl advertisers embracing licensing? I think there are a number of reasons. Firstly, it isn’t cheap to license IP and bigger budgets around Super Bowl creative make it much more feasible. There is also a very real need to cut through the Super Bowl ad clutter and create something that resonates with a very broad audience. Tapping into entertainment brands is a great way to target viewers of different generations, backgrounds, values and socioeconomic status. Incorporating characters, clips or IP into an ad campaign can generate fame in an extremely competitive environment like Super Bowl. At Born Licensing we’ve been contacted more in the last 12 months than the entire first 5 years of our existence by advertising agencies interested in incorporating IP into their work. I’m sure the hard work we’ve been doing to raise the profile of licensing in the advertising community has contributed to a part of that, but I think this increased volume is also a reflection of a growing appetite.

1 www.warc.com/newsandopinion/news/super-bowl-consumer-spending-will-dip/38105 2 www.adage.com/article/special-report-super-bowl/top-10-super-bowl-2020-commercials-digital-share-voice/2233646

Direct Line x Donatello vimeo.com/396122151

Direct Line x Bumblebee vimeo.com/396123315

Direct Line x RoboCop vimeo.com/396125220

Earlier this year we launched a new campaign with UK insurance firm Direct Line. We worked with them and agency Saatchi & Saatchi London for 12 months, exploring over 150 different characters that fit the brief. We finally landed on 3 that would each star in their own 60 second advertising campaign. RoboCop was featured in an action-packed spot for Direct Lineâ&#x20AC;&#x2122;s business insurance. Bumblebee starred in an impressive cinematic ad involving bursting through a wall and jumping over a moving train for Direct Lines car insurance. Donatello appeared in incredible CGI form, shooting out of a sewer onto British rooftops for Direct Lineâ&#x20AC;&#x2122;s home insurance. All three campaigns were high profile and a huge success, celebrated by consumers, the advertising industry and the licensing industry. Advertising of this level which features well known licensed characters is a huge boost to our efforts towards encouraging the advertising community to consider licensing. These major campaigns demonstrate the value characters can add, and how incredible it can look when done well. The more impressive campaigns there are out there the more the advertising industry sees them, and the more inspired they are to find ways to leverage characters or other elements of IP in their own work.

Facebook x Rocky vimeo.com/389221195

www.bornlicensing.com

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THE BEST AND THE WORST Will You Rise to the Challenge? I recently Tweeted to the effect that COVID-19 would reveal the best and the worst in businesses around the world. The virus has clearly produced problems for all business owners and while some have risen to the challenge to support their customers, suppliers and affiliates, some have behaved appallingly. Column written by — Kelvyn Gardner, Asgard Media

I’m happy to say that the licensing industry has, on the whole, responded positively to all these difficulties. As a consultant working mainly for manufacturers, I have seen first-hand the vastly different fortunes of diverse licensees as they deal with lockdown. Those companies in the grocery/food and drink sector have tended to fare best here in Europe, as the supermarkets and other food outlets have been the only ones to remain open during March, April, May and June. Almost all other retail has been closed down in Europe. Our client, Yoplait, has traded positively throughout, though I don’t underestimate the challenges they had with most of the management working from home. This is probably due to the fact that food is all people have had the chance to spend money on, and healthy treats like Peppa Pig fromage frais have been required by families even more as the kids haven’t been in school. In fact, in France, Europe’s biggest single market for dairy desserts, Yoplait even went ahead with a new product launch on 9th April: Paw Patrol fromage frais in a selection of pack sizes. In an entirely different section of the food and drink business is another client, The Harrogate Tipple, a craft gin distiller based in rural Yorkshire. We brought this company into brand licensing for the first time last September with the launch of Downton Abbey gin and whisky. As premium brands these spirits are sold through department stores, wine merchants and the like, and a small number of ‘upmarket’ grocers, so almost all of their retail customers have been closed throughout. No sales to be made. Like the fleet-footed entrepreneur he is, though, Harrogate’s founder Steven Green contacted his MP to get a couple of local laws amended so that he could shift production to much-needed hand sanitiser. This has produced desperately needed revenue, work for his employees and an opportunity for long-term PR.

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Steven certainly attracted a great deal of press attention — take a look at this YouTube video on how a gin distillery stopped production to make hand sanitiser: https://bit.ly/HarrogateTipple

Harrogate have found time during lockdown to complete the development of a new Downton Abbey Rhubarb Gin of which, as I write, the first order for Australia is currently in production, so look out for it. While all this has been going on, we have had Virtual Licensing Week; a new platform by Informa and Licensing International to fill the huge hole in the licensing calendar caused by the inevitable and unavoidable cancellation of Licensing Expo (2020). The organisers deserve congratulations for putting this entirely new platform together in around eight weeks from scratch – no mean feat. What was evident from many of the panels, especially those featuring licensees, is that the existing financial structure of licensing deals needs urgent addressing. It can’t be tenable, when retailers are so fragile, to continue to insist that royalties are paid on uncollectable accounts. Minimum Guarantees agreed upon in the world of 2019 now look vastly inflated in the post-COVID-19 future we will return to. Advances that looked fair last year are now onerous to the extent of potentially bankrupting licensees. However, agents too are at risk if their businesses depend on some staged payments coming in. That cannot be fair, either. I do detect a willingness on the part of licensors to come to terms with this and that is very good news. COVID-19 will, I restate, reveal the best and the worst of business practices and I very much hope that our very own licensing industry falls entirely into the first category.

www.asgardmedia.com

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Rise and Shine! Column written by — Peter Hollo, Ph - International Consultants

I have been doing human resources consulting and recruitment marketing on an international scale for many years now and there is this one question that I hear quite frequently. Probably quite surprisingly, it comes from both employers and job seekers in equal shares and the question is, how can I find the perfect match? The best advice I can give you is to be yourself. Whether you are on the employer side or looking for a new job, don't desperately try to meet expectations by twisting and deforming yourself into something you feel the other side wants to see. This will not only kill your soul sooner or later but it will also teach you a lesson about your own incapabilities. Especially in western societies, there is this narrative of you can be everything. Sorry to shatter your dreams but no, you can't be everything, even if your mum always said so.

Ask yourself these questions • What do I expect from (business) life? • What am I willing to do? • What am I able to do? • What will be the consequences?

Sounds pretty harsh and far away from mainstream, right? Well, the good news is, you don't have to be everything either and that's the other side of the coin. In a society where everyone is told they can be everything, what used to be a promise of social advancement now is a relentless norm, or shall I say a threat? Because anybody who does not achieve everything automatically becomes the loser, or some kind of failure in a society based on productivity only. So once again, be yourself!

Be aware that everything that you do or don't do has consequences, for you and for others. Before you decide, always take your time to think about the consequences with an open and unbiased mindset.

Even capitalist market economies and societies need artists, free spirits, dreamers, inventors or people caring about others. This will probably not make you rich, but it will make you happy and create this deep satisfaction of not having to act against your own personal nature. Being 56 now, I personally have learnt two things especially that I really did not understand as a young man. The first one is that money does not make you happy (although crying in a limousine is more convenient than in public transportation, this I have to admit). And the second is that you will regret the things you haven't done much more than the things you did.

Okay, I will stop this now. I can see questions arise while you are reading this. I can see the question; "so you, as a recruitment marketing expert, tell us to be hippies from now on?" No, I don't! All I say is that you need to recognize who you are and then act accordingly. If you're a hippie, be a hippie! If you are a doctor, be a doctor! If you are a controller and checking and adding up the last post decimal positions makes you happy, go ahead! If you want to be a star, shine! If standing in the limelight makes you feel uncomfortable… no one expects you to expose yourself. Be a part of the blurred masses! But don't distort your nature!

Find out who you are and don't desperately try to meet expectations. This requires a lot of courage and from time-totime, debunking the most dangerous and persistent lies; the lies you tell to yourself...

Having understood this, you can be everything, everything you want to be… not what others see in you, or demand. This will make you the true master of your (business) life so give your true self the opportunity to develop, to rise and shine.

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About Peter Hollo — International Consultants Very early in his life, Peter started to think about economic ethics and about the sociological and psychological aspects in companies and organisations and developed a consulting approach, focusing on people. People and their norms and values, attitudes and beliefs. Their actions and interactions and the sometimes complicated web of human correlations. What could be more obvious than establishing a consultancy of his own some day. Focusing on people to create change. Helping companies to recognize and apply their potentials to grow. But things started completely different. Born into a rather uncommon family, his childhood and his youth were influenced by constant worldwide travels. Having the invaluable privilege to grow up in the savannahs of Africa, at the beaches of the Caribbean and in the rainforests of Southeast Asia, besides his family's home in Southern Germany. As Peter Hollo decribes it, "and I owe a lot more to this family. My father gave me his courage, his sense of duty and his persistence and my very political mother, who was a feminist, way before it was hip, her pragmatism and propensity to have an opinion. Not to adapt myself at any price but to stand up for my convictions." In the 1980s his professional career started in nonfood retail. At a very young age he took over responsibility for the 300 shops store network of the Eurobike Group in Düsseldorf. In the 1990s the Eurobike Group was at the pinnacle of success, being market leader for motorbike-clothes and motorbike-accessories. For more than 11 years he worked for Müller in Ulm, originally a drugstore chain with, at that time, roughly 600 stores in Europe. He was responsible for international sales and procurement of toys and seasonal items. In the year 2010 his fantastic team accomplished market leadership in Germany, which was a great success. It was under his leadership that Müller installed a very successful imports and private label business, establishing a Hong Kong office of their own. In the year 2012, he left corporate Germany as a member of the board of a stock company, located in Berlin. A chain of 100 retail shops for baby equipment, children's fashion and toys. By the end of 2012, he finally founded Ph-International Consultants. Starting capital was selling his Harley, a clear concept, a strong belief in himself and a great deal of madness. "A step in my career, I have never regretted", he proudly says. Since then he counsels the majors amongst the German and International toys, licensing and entertainment industry in various projects on an executive level. Being one of the major movers in the industry and being an edgy and unconventional influencer in front of and behind the scenes. www.peterhollo.net

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The Age of D igital If there was still any doubt, we are well and truly in the age of digital: technology is now a part of our solutions to every problem. Column written by — Isabel Wu, Managing Director of Meta Management Solutions

An Age of 3 Digital Phases (so far)... Since the internet first launched 30 years ago, we have speculated on and feared for a world run — if not ruled — by robots and algorithms. With each wave of new technology, the worst of our fears failed to materialise, but we did benefit from better tools like emails, mobile devices, cloud storage, GPS and virtual assistants. That lulled us into a pattern for responding to digital change: initial [attention/interest/panic] (select your preferred response), then back to business as usual, albeit with better tools. Digital tools improved business processes but left organisational models largely untouched. It was Harvard Business School professor, Clayton Christensen, who alerted us to seeing digital technology as more than tools. Through his book, The Innovator’s Dilemma (Harvard Business Review Press, 1997), we became aware of the digital age’s next phase: disruption. Digital disruption, spearheaded by startups, hit industries where they were most vulnerable: their organisational complacency. Layers of hierarchy and rigid departments may have been efficient, but the model was inflexible and change too slow and reactive. Digital disruption forced traditional organisations to accept more collaborative, adaptive and user-centred ways of working. Then, just as they were getting comfortable with methodologies with names like Agile and Lean, the digital age’s third phase arrived: digital augmentation. New technologies, such as artificial intelligence, Internet of Things, quantum computing and machine learning, push our human abilities beyond our existing physical boundaries. Tech has become our autonomous co-workers, freeing us to do work that requires our unique humanness: emotions, relationships, beliefs and values, creativity, spirituality, and so on. This phase is often referred to as the postdigital era because the advantage is not the technology, but what the technology enables people to do.

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A collective focus on the future Times of massive change tend to magnify our weaknesses, but they also highlight our strengths. The licensing industry has grappled with a retail industry that has had an uneven approach to investment in digital technology. Too much focus on the mechanics of channels came at the expense of sustained customer relationships. Netflix offers an instructive case study as cofounder, Marc Randolph tells it: “…one of the things we did very well, is recognize very early on that if we were going to be successful, we had to come up with a premise for the company that was delivery agnostic. But if we [had said], ‘This is all about downloading or streaming,’ [that would have been] disastrous. So we had to come up with a positioning which transcends the medium.” On the flipside, the licensing industry’s collaborative approach is a strength. Where most industries struggle, this capability is built into licensing’s DNA. Creatives, agents, product managers, distributors, and others – a mix of the right assets contributing to further the collective agenda. Even more advantageous is the importance the industry places on connecting with brands’ emotional equity. It primes us for the digital augmentation — human-centric — phase that is currently upon us. Implementing digital tools is no longer a competitive advantage, but an operational imperative. Collaborative approaches will be more significant for business success today, as long as skills, adaptivity and innovation continues for the world ahead, not the one gone by. As much as things keep changing, meeting the needs of consumers and understanding their sentiments will always be a constant. To paraphrase Netflix’s Marc Randolph, the opportunities are in the value technology enables us to deliver, not how it enables us to deliver it.

About Meta Management Meta Management is a consultancy specialising in helping its clients with the organisational assets that drive effective digital transformation and create value in a hyper-connected, constantly changing world. www.metamanagement.net

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Knowledge is P rofit WHAT THE LICENSING INDUSTRY NEEDS TO KNOW ABOUT MUM SHOPPER HABITS TODAY There are over 6 million mums in Australia and they largely hold the cards to household discretionary spend. Based on previous ABS data, this is a total weekly amount of $1,425 per household. Discretionary spend by default includes within this amount all the core categories within the licensing industry including: food, FMCG, home products, clothing, personal care, everyday products for children, recreation, education and more. Column written by — Christie Nicholas, Chief Growth Partner at Mumpower

The Covid-19 aftermath meant Mums’ shopping habits changed instantly. And as a result, raised more questions about what it will now take to shape an impactful marketing plan. Many companies have discovered that the era of planning 12, or 24 months ahead has temporarily disappeared. The world events has presented so much unpredictability, that planning 3-6 months ahead is more realistic. From May 25th — June 1st 2020, Mumpower conducted a Market Research Survey with 508 Mum Shoppers to uncover how her changing habits will impact the economy moving forward and to identify trends and growth opportunities for Mum-centric brands. Today, Christie Nicholas, head of Mumpower Shopper Insights explores 5 key questions any brand in the licensing industry needs to be across to feel informed and make decisions with certainty.

" 50

1. Is discretionary spending halted across all product and service categories? There have been many financial lessons and realisations. The robust spending bubble that consumers enjoyed pre-Covid has certainly burst – or putting it mildly, changed shape. For half the audience, household spending has been tightened and there are plans to save more where possible. Spending will not stop altogether, but Mums will be a lot more careful about what they are buying. Based on the feedback, Mums intended to spend more for products within the following categories: 1. 2. 3. 4.

Supermarket/FMCG Health/Wellbeing Home Baby/Children’s Products

The recent events has accelerated Mums movement towards online buying and enabled mums to overcome any resistance that previously existed with buying online.

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2. How much influence does the Mum Shopper have on discretionary spend?

5. What are 3 key opportunities this research reveals to brand marketers in the licensing space?

A lot. New Mumpower Shopper Insight figures reveal that 72% of Australian Mums are largely responsible for the household discretionary spend. Followed by 27% of Mums who equally share decision making for the household budget with her partner. This is significant. While children and partners needs and wants shape Mums decision making, ultimately its mainly Mums who decide what products enter her home and her family’s lives. Building a relationship with Mums is critical to growth.

1. Mums have increased interest in products for children as well as for the home. The opportunity for brands in this space is to understand and map out the real motivators behind her interest. Only then can brands reframe brand messages in a way that demonstrates empathy, foster emotional connections, and provide solutions to what she cares about most. And in the meantime - Maintain a brand dialogue to stay top of mind to be the brand of choice.

3. How has the online versus in store shopping experience been impacted?

2. Working with Influencers will deliver more results – but there’s a catch. Brands have been investing in Influencer marketing for many years now because it works, and it’s a proven way to facilitate a third party endorsement, which is believable, relatable and important part of Mums decision making process. However, brands will need to go beyond reaching out to random names and short lived transactions that are less effective in maximizing consumer engagement and brand story telling. Brands who enjoy success with influencers will spend more time identifying and validating best fit, value-aligned influencers, customizing campaigns according to the influencers strengths and audience preferences, producing a complete variety of content types and making sure this content is leveraged across multiple touchpoints. This extra effort will deliver premium results.

The recent events has accelerated Mums movement towards online buying and enabled mums to overcome any resistance that previously existed with buying online. As a result, over half the shoppers continue to buy online more than they ordinarily would have. The overall online shopping experience is now more important to the shopper, increasing the pressure on brands to deliver and optimize the experience. The growth in online has meant that the instore shopping experience has become less important to just under a third of the shoppers. However, there is still a preference to shop in store by consumers, with one in 5 shoppers stating the instore experience is even more important now. There is a role an instore experience plays in the overall buying journey that must be capitalized across all instore buying touchpoints to convert customers. Given Mums will continue to buy more online, e-tailers are encouraged to address these 3 critical factors that Mums said will make or break a transaction including: 1) Offer competitive pricing, deals and added value, 2) Deliver a website that is simply awesome; this includes images, branding, easy to buy, and 3) Provide free delivery.

4. What are the most influential sources of information that consumers turn to before buying? When similar research was conducted into shopper habits a few years back, it was 50% online touchpoints that influenced Mums decision to buy, versus 50% offline touchpoints. Now, we discover that it is 58% online touchpoints and 42% offline touchpoints that influence a sale.

3. Be more Customer centric than ever before in order to thrive. Customers have tightened their spending and have become more conscious consumers. They think very carefully about what they are buying to justify if it is worth it. Brands that gather an indepth understanding of the exact customer, her buying motivators, brand perception, sentiment across competitors and a thorough understanding of her buying journey are the brands who will gain a clear picture around the exact trigger points and leveraging points to influence and empower more Mums to make informed buying decisions for their brand over their competitors. If you want to start building for the future, be across these latest insights. Contact Mumpower to find out more about the 42+ page Mum Shopper Report; The habits shaping the economy to access over 147 key current insights.

www.mumpower.com.au

There’s also been a significant change to the reliance and consideration mums place on: word of mouth recommendations, online research, brand to consumer communication. Licensed brands that have a strategic plan to leverage these touchpoints will benefit.

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#screenfreetime Our Crystal Creations projects are super fun and easy to make! From glittering hair accessories, to magical unicorns, to secret diaries! Just follow the simple step-by-step instructions, applying the crystals one-by-one to create a glimmering masterpiece.

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Cha rew satis of ji

Hink of s adu fam arch gar

Make your own Curious Craft – Make Your Own kits are packed with hours of fun and #screenfreetime. Each kits comes with everything you need to complete an entire project of activity from making your own Robot racers, paper planes to designing your own bracelets and creating your own painting pouring rock pets, plus more!

allenging, relaxing, frustrating, warding and ultimately sfying – this is the world igsaw puzzle games!

kler publishes a large range stunning jigsaw puzzles for ults with images that include mous cities, towns, landmarks, hitecture, castles, maps, rdens and animals. ABN: 43154846929 Phone: +61 3 94602277 Address: Unit 4 - 87 Newlands Rd, Resevoir VIC 3073 Australia Website: www.toynetworx.com.au

Why advertising is more important than ever? COVID 19 is changing the way we shop, the way we evaluate the things we buy, the time we spend deciding if we really want to buy and what we buy.

More than ever before, how we connect and engage with the consumer will have a direct impact on the success of our business. More than ever before the brand positioning, awareness and value will sway the consumer in the battle of â&#x20AC;&#x2DC;To Buy or Not To Buyâ&#x20AC;&#x2122;. The multichannel approach is the only one that will deliver positive numbers in brand awareness and healthy returns on investment. Research tells us that to convince a consumer to buy our products we need to touch them between 7 and 13 times by at least 3 marketing channels. The modern media mix is a complicated science with broadcast, digital, radio, point of sale, public relations all working together and supporting each other. Different mediums facilitate different user behaviour and the psychosocial effect of a medium on the audience is higher than the message. We need to have a very clear understanding of the relationship between the media channels and consumer reaction.

During the lockdown we saw TV ratings skyrocket and come back to normal post lockdown. Social media was heavily used and continued post lockdown with people celebrating the return to the new normal. As we read this article Victorians will probably use the social media again to stay in touch with friends and relatives in the other states as our borders are closing in on us. Another big change due to the pandemic is the rise of online shopping across all age groups. The struggle of department stores has become more acute and moving forward eCommerce should keep most of us awake at night. It is still not too late to jump on the bandwagon but wait no longer! What is really notable in the midst of all these changes is that the role of each channel has not changed. TV is still the King of media delivering mass reach, engagement, positive brand association and action. And digital should continue to be the supporting channel for TV, delivering on reach extension and not expected to deliver what only TV can. The fragmentation we observe is higher than ever before and this is the perfect time to take advantage of it. High fragmentation of the TV landscape has opened the door to more brands as the entry cost is now more affordable. And with the right data, deals and industry knowledge the campaigns can deliver healthy returns on investment. The toy industry is a unique ecosystem and we need to be highly specialised to understand the most valuable consumers and how to engage and more importantly entertain them. We have worked together for over a decade helping emerging, established and iconic toy businesses become stronger and stronger and helped them navigate the digital economy. Column written by â&#x20AC;&#x201D;

Andrew Skinner, Founder at Skinner Ads Corina Cosma, Client Partner at Ikon Communications Melbourne

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Toy Networx

TOY NETWORX TO PARTNER GLOBALLY WITH AUSTRALIAN GEOGRAPHIC Feature Interview â&#x20AC;&#x201D; Jonathan Byrnes, CEO at Toy Networx

Off the back of a very successful rebrand, Toy Networx announces a global toy partnership with Australian Geographic (AG). In this changing world and without bricks and mortar stores, Australian Geographic have secured a partnership with Toy Networx to develop, market and distribute their toy product around the world. This relationship provides both brands with an exclusive partnership and allows for planned and significant growth. CEO Jonathan Byrnes along with co-owner Ben Bliss and team have been hard at work developing exclusive relationships that will assist in securing the business in the new world. Earlier announcements highlighting partnerships with both Toy Monster and Hinkler are further evidence of their growing profile in the market. We were fortunate to make contact with Jonathan recently where we were able to frame some questions to him in relation to recent developments and some emerging opportunities. Jonathan, you recently announced that Toy Networx had been selected to represent Australian Geographic for toys globally. Can you tell us more? It is really significant for us as a business. We are specialists in this area and perfectly positioned to release a great range of new product to our existing customers and also new accounts & channels. It essentially puts us on the map as a supplier to the trade for new and innovative product. Some are staple lines and some completely new. With a focus on environmental and sustainability synonymous with the brand. For AG we provide a catch all solution to innovate and supply exciting new lines to a large unique customer base far and wide. Can you tell us a little about who might be your key retail partners etc? We are in discussions with all manner of retailers. However, we see this brand as perfectly positioned to the independent trade, and smaller chain/ group stores in the first instance. We are working very closely with the team at Toy Monster to bring some great ranges and new products to the independent market. Our focus is to ensure the independent trade is looked after with good margin lines as well as new and freshness to the categories.

This announcement comes on the back of your Hinkler and Toy Monster partnerships. How are they developing? We are now a full 12 months into the Hinkler partnership program and it has been a really successful move for both businesses so far. We have been very careful to create a nice tight range and with the guidance and assistance from the amazing team at Hinkler we are really starting to see some significant traction across this part of our business. We are working very closely with the team at Toy Monster to bring some great ranges and new products to the independent market. Our key focus here is to ensure the independent trade is looked after with good margin lines and new and freshness to the categories. Toy Monster are exciting to work with because they always seem to be able to supply product that is unique, well priced and exceptionally well designed and packaged. We are also being very conscious of our market and ensuring the products we offer have a strong independent focus where the smaller stores can buy similar lines from the range but with a point of difference to what is supplied to other larger retailers.

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In these new and evolving times, we understand that you are innovating by developing a brand-new virtual showroom to showcase you ranges. Can you expand on this a little? Yes Tony. I see a big shift to remote and online connection during this COVID crisis and beyond. We have spent a significant amount of time and energy creating a platform where we can run a virtual showroom. We have set up our showroom at the office to accommodate all of the new and existing ranges and are gearing up for our first large format presentation next week. We expect over 400 participants in each session, and are running multiple sessions showcasing some of our new lines in development among other things. We saw your new Melbourne Toy Fair booth. It looked to be very busy. How was this event for you? We had an exceptional Toyfair. We worked really hard and created the new stand using our existing resources. We basically built everything ourselves in house and had a lot of fun along the way. I even taught Ben how to paint which was amusing to say the least! Dave was in his element painting and building the floor although I am worried our landlord won’t be so happy when he sees all of the white paint splattered everywhere in the warehouse! From a business perspective we had some great feedback on the ‘new and improved Toy Networx’ although unfortunately we were hit with COVID soon after, and had to shift our focus to other issues. The investment has proved to be mainly a marketing exercise rather than translating to any significant sales at this stage. I am confident we will have a strong Q4 as we launch and release a large number of new lines across our core ranges. How have you seen your rebrand? Essential. We are basically a new business but still holding strong to our customer base (although increasingly expanding this on a daily basis). It has taken some time for things to change internally, but we are certainly in a much better position than we were 12-18 months ago. We are half way through our turn around and have some great new things in the pipeline. The re-brand was an integral part of this turnaround strategy as it allows us to reset and re launch as a new business. I am really looking forward to seeing our new branding on the back of products in the near future as we release some of our new developments later this year. There is an immense sense of pride for me on this, and for our small team as well. It is going to be so nice to see product with our logo on it in places like Toy World, Woolworths, newsagencies and many other locations around the country and abroad later this year. Our internal systems have had a massive overhaul also, and we are innovating and changing each and every day as the demand increases for our function in the market.

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We are basically a new business but still holding strong to our customer base (although increasingly expanding this on a daily basis). It has taken some time for things to change internally, but we are certainly in a much better position than we were 12-18 months ago. We are half way through our turn around and have some great new things in the pipeline. The re-brand was an integral part of this turnaround strategy as it allows us to reset and re launch as a new business. I am really looking forward to seeing our new branding on the back of products in the near future as we release some of our new developments later this year.

Can you enlighten us on some of your more active brands within your current range? Sure, in the current environment we have seen a huge uplift in sales of games/puzzles/craft and books. We have not been able to keep enough stock of items such as school zone from Hinkler, Jigsaw puzzles (thanks Sco-Mo!) craft and our absolute stand out of late has been Star Model. Star Model has out performed pretty much everything else we sell apart from puzzles and books. It is actually really nice to see the buying patterns skewed towards families spending time together and obviously doing the basics together again. Are there any further developments that you can update us on? We are very busy in the product development phase right now. I am really looking forward to the relaunch and updates of our Sprouts products into the market later this year. We have expanded the range and as part of our Aus Geo relationship innovated this line to include things such as soy printed recycled packaging, biodegradable components among other things. Keep a look out for this later in the year! We are also finalizing packaging on our new game we have coming Q4. Likes, which is a cross between Tinder and Cards against Humanity. Very fun! And we are also in development of a new book. Something to do with Bogans... apparantly I don’t qualify just yet? Jonathan, you have certainly been active over the past 12 months on creating opportunities for the Toy Networx business. During these changing times it seems the organizations that can think outside the square and drive innovation can be very successful. We look forward to checking in with you again, once things return to a more normal cycle. Thanks for your time Tony. As always I really appreciate the chat.

www.toynetworx.com.au

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