The Bugg Report Magazine — Edition 41 by thebuggreport

From The Editor SOCIAL MEDIA AND TECHNOLOGY Many things have adjusted and changed forever over the past two and a half years. New channels, new methods and new thinking is required to navigate the emerging landscape of new licensing. What will the live B2B event schedule look like into the future, how will NFT’s, the Metaverse and Cryptocurrency play out and what will be their impact on the licensing landscape? What will emerging social media platforms such as TikTok mean to our industry and what new socials will follow into the future? As the industry continues to recalibrate between B&M retail and Omnichannel methods, what will become of the brands which have failed after years of success, only to be repurchased and re licensed under new strategies? As the options to capitalise on the growth of brands expands, brand owners no longer need to focus just on caps, t—shirts, and mugs to generate income. They now have many levers that can pulled to drive cross category revenues.

Experiential Retail Activation is another method which is yet to be fully unlocked and the emergence and growth of new industries is another which will offer new opportunity for those who think differently. Finally, technology is another existing medium which continues to evolve and provide more seamless solutions to the manufacturing and purchasing process. Personally, I am surprised that retailers in particular have not embraced technology more fully and used it to improve and simplify the shopping experience. To read more click here...

Managing Director — Tony Bugg

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tony@buggsolutions.com.au

Feedback — editor@buggreport.com.au Media — media@buggreport.com.au

Editor & Designer — Matthew Bugg matt@buggsolutions.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

Published by Bugg Marketing Solutions

upon the views and opinions of our writers. In no way is The Bugg Report a factual

info@buggsolutions.com.au

guide to retail, sports, lifestyle, toys, licensing and/or other related matters and does

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not take responsibility for how the information provided is used by its consumers.

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Inside this Edition The Wiggles — Authentically Australian

Sesame Workshop — Feature Interview

Centa IP — Market Wrap Updates

Toikido — Feature Interview

BBC Studios — Feature Interview

A Perspective from Australia — Feature Article

Mizzie The Kangaroo — Feature Interview

Industry Commentary — We Speak to the Industry

3 Tips from a Retailer — Feature Article

The Real Digital Revolution — Column

Getting Back on Track! — Column

Children's TV Show Production Plunged — Column

"Brands Can Change the World" — Feature

EDITION 41

FEATURE INTERVIEW LUKE FIELD GENERAL MANAGER THE WIGGLES

THE WIGGLES

AUTHENTICALLY AUSTRALIAN FEATURE INTERVIEW WITH LUKE FIELD

Leading into the Las Vegas Licensing Expo, The Bugg Report has been able to catch up with the new General Manager of The Wiggles — Luke Field. After a most difficult two years for live entertainment across the world, The Wiggles have just completed an arena tour of Australia (The Fruit Salad TV Big Show) and will soon embark on a brand-new regional tour of Australia (The Wiggles Superhero Tour). Now into their 31st year, they have stood the test of time, selling over 30 million albums & DVD’s, eight million books, a billion music streams & two billion views on YouTube. As the market looks ahead to more normal trading patterns, Luke was keen to update us on local and international plans for the group and their commercial business interests. We began by asking Luke about the most recent changes and new team members:

Luke, The Wiggles have successfully transitioned new members into the team over time. Tsehay is the most recent addition, what attributes does she bring to the yellow Wiggle role? Tsehay is the second female to be a member of The Wiggles and is a dancing sensation. She won the Youth Salsa Soloist at the 2019 World Salsa Championship, amongst many other titles. Tsehay has already brought her own unique touch to the yellow skivvy and will be a favourite with fans worldwide. The team will embark on a new tour in Australia shortly. Can you tell us a little about this, please? Performing live for audiences worldwide is what we love doing the most. We’ve just completed two tours since February — the Wiggly Road Trip and The Fruit Salad TV Big show. The new Superhero Tour will visit over 22 regional cities performing over 65 shows and features new Wiggles John and Caterina from The Fruit Salad TV specials. The tour will feature all your favourite Wiggles songs such as ‘Do the Propeller!’, ‘Hot Potato’ and ‘Rock-a-Bye Your Bear’, and new and catchy tunes like ‘Dippy Do Dinosaur Dance’ and Superhero song!

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With live entertainment returning, can you tell us a little about your international touring schedule for the remainder of 2022 and have you set plans for 2023? We will be going to New Zealand in August to do an arena tour of the North & South Islands. In September, we will head to North America, touring coast to coast in both the USA and Canada finishing in November. We have all seen the new OG’s Wiggles come to market over recent times. What has been the demographics of the audiences at the shows? Following the success of Triple J’s Hottest 100, the original line-up has accompanied The Wiggles on their tour around Australia, performing evening shows when our usual audience were fast asleep! The response to the tour was amazing with 10’s of thousands of 20 somethings rocking it in the aisles.

Performing live for audiences worldwide is what we love doing the most. We’ve just completed two tours since February — the Wiggly Road Trip and The Fruit Salad TV Big show.

The original material from the original members is still relevant and popular, do you have plans for more shows and albums and perhaps merchandise? Absolutely... The OG Wiggles tour was such a success we will be bringing it to New Zealand, the USA & Canada in some amazing venues. The OG Wiggles have just been announced to perform at Falls Festival in December and January, which is headlined by bands such as Arctic Monkeys, Lil Nas X and Jamie XX, which will be huge. There will be retailers attending the show (Licensing Expo) this year, what is your message to them in relation to supporting Wiggles merchandise? For over 30 years now, The Wiggles have provided children worldwide with their first experience at a live show. The love for The Wiggles now is exactly as it has been over the years and the reaction to our recent OG tour shows that this love is enduring. We understand that your new online "The Wiggles Shop" platform has now expanded Internationally, what's the latest news there?

The Wiggles have recently announced four new members of the team to cater for the gender-balanced & diverse cast aspect of the group’s activities. Can you expand a little on this?

The Wiggles Shop has been upgraded over the past year, enabling us to now service Australia and New Zealand and the USA, Canada, and most other places in the world.

Anthony (the Blue Wiggle and founder of the group) has always believed that all children should be able to identify with The Wiggles and see themselves represented on stage. Accordingly, we’ve tried hard to ensure that we provide a more balanced representation of gender and ethnicity with talented performers from around the globe.

How are your core Toy and Apparel products performing across the market?

Finally, what is the current makeup of your broadcast and streaming partners?

We have been working hard with all our licensing partners to ensure that we have had a smooth transition with the addition of Tsehay and other Wiggly characters. We now have product featuring the new line up in the market and are rapt with how it is being received.

The ABC are our global broadcast representatives. They have provided us with many opportunities both here in Australia and overseas. Amongst many other platforms, we are seen on Netflix globally as well as TVNZ (NZ) and Treehouse (Canada).

Can you provide and update for us on your latest commercial partnerships? Whilst we had some great partnerships through our 30th with the likes of Uber Eats, Tourism Australia and The Royal Australian Mint (amongst many others), we have recently had Brownes Dairy extend their agreement as well as many others, including St Johns Ambulance in WA, and Dreamworld.

After 30 years of great success, it seems logical that the Wiggles should be an automatic inclusion in commercial activities for retailers worldwide. Over three decades, the scale of their touring and interaction with audiences has seen The Wiggles as a trusted brand and household name. Luke, we really appreciate your time and look forward to the next chapter of The Wiggles. Thank you, Tony www.thewiggles.com EDITION 41

FEATURE INTERVIEW EVAN HUTCHINSON SENIOR MANAGER, LICENSING & BUSINESS DEVELOPMENT FOR ASIA PACIFIC, SESAME WORKSHOP

SESAME WORKSHOP FEATURE INTERVIEW WITH EVAN HUTCHINSON

The Bugg Report recently had the chance to sit down with Evan Hutchison, Senior Manager, Licensing & Business Development for Asia Pacific at Sesame Workshop. Evan spoke about a range of topics including an overall update from Sesame Workshop for 2022, live experiences, new collaborations, content and the ever-evolving world of content platforms.

How is 2022 going so far? What are some new and exciting things that can we expect to see this year? The first phrase that comes to mind is a line from a favourite movie: “it’s all happening!” We’re off to a great start. Sesame Street Mecha Builders, our new CGI-animated show that reimagines Elmo, Cookie Monster, and Abby Cadabby as robot heroes-in-training who use their STEM superpowers to solve wacky largerthan-life problems, is set to debut in Australia later this year. We’re also introducing Tango, Elmo’s adorable new puppy — on Season 52 of Sesame Street on ABC Kids this July. We’re continuing the important work of our Coming Together social justice initiative, to help children build positive and healthy senses of self. All this new content has fully integrated educational curricula, engaging characters, and a whole lot of heart – everything parents would expect from the makers of Sesame Street. The Covid pandemic was hard in so many ways (I can’t stress that enough, especially as a parent), but one positive spin is that I think we’ll look back at that time as a real period of ingenuity at The Workshop. One example: in February 2021, we managed to give away 2.6 million Sesame Street books to the children of Australia through Big W’s Free Books for Kids program. We also put out a line of 100% recyclable plush toys called ReSoftables with our Australian toy partner Headstart, the first-ever in our brand’s history. That was a real win on the sustainability front, and we hope to do more in that space.

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As the world begins to come out of the Covid pandemic, there seems to be consumer demand for more live experiences. What is Sesame doing in this space? We’re so happy that our touring live show, the Sesame Street Circus Spectacular, continues to entertain and thrill children and their families across Australia. The 90-minute show features Elmo, Cookie Monster, Abby, Grover and other friends plus elite performers from around the world that will make your jaw drop. It’s a must-see; there’s nothing else like it. From Peter Alexander to the Wiggles to Under Armour x Curry Brand, Sesame Workshop has done some amazing collaborations these last few years. Can you tell me what else might be in the works? Yes, we’ve been collaborating with some top trend-setting lifestyle brands—each fresh approach reminds me how dynamic our brand is. And it makes my job so fun. We just launched another collaboration with Peter Alexander, Australia's leading sleepwear designer brand. Inspired by iconic characters and big dose of playfulness, the nearly 50 SKU collection features bold, colourful prints and snuggly, soft fabrics that make bedtime fun for the whole family. We have a great fashion collab with CottonOn, Australia’s largest global retailer, that has a fun, vintage 90s vibe, and recently launched a capsule collection with sustainable Aussie kidswear label Goldie + Ace.

We’re even doing our part to ensure that the furry members of your family can be kitted out with Sesame, too, through licensing with Bark! and Pablo & Co. We also have some great collabs in footwear and cosmetics in the works. We’re really proud of our local licensing program that caters to both children and adult fans. Our success in Australia and New Zealand wouldn’t be possible without our close partnership with our local representatives Haven Global, who bring tremendous passion and enthusiasm to their work on the Sesame Street brand. What’s the production/distribution strategy for the next 12-24 months? I’m so excited about the future of our content production slate and engagement opportunities. We’ve achieved what I like to call “the holy trinity” of distribution: you can now watch our content on YouTube, linear TV, and streaming. We’ve secured a long-term renewal to broadcast Sesame Street with ABC Kids, our home in Australia for over 52+ years. They’re also welcoming Sesame Street Mecha Builders to their channel, which caters to a slightly older preschool audience. There are additional Sesame Street seasons on Netflix, and Season 1 of Elmo’s new talk show, The Not-Too-Late Show, is streaming on Stan. Last but certainly not least, we’re also happy to see our content presence is growing in New Zealand, with TVNZ.

How is your content reaching children on various platforms and screens today? Our mission is to help kids everywhere grow smarter, stronger, and kinder—and we’re proud of all the ways we accomplish that across the globe. Whether you’re watching Sesame Street from an apartment in New York City or a farm in Australia—or viewing one of our local co-productions—from the Middle East and North Africa to Germany, the content is always tailored to meet kids’ needs, whatever they may be. We’re investing in short-form content on YouTube, We’re investing in podcasts. We know how maintaining healthy routines helps young children understand their world and feel secure—especially when we’ve all experienced so much upheaval and disruption. Last year, we launched Goodnight, World!, co-produced with the mindfulness and meditation experts at Headspace. And we recently debuted the second season of The Sesame Street Podcast with Foley & Friends on Audible. All that’s available in Australia and other parts of the world. In developing countries and areas of conflict, depending on the context, we regularly go beyond the TV screen to reach families through radio, print materials, digital media, mobile phones, handheld battery-operated projectors, and even WhatsApp chatbots. One top-ofmind example: as the ongoing war in Ukraine continues to fracture daily life for families who have fled and those who have stayed behind, we are helping children process what they are experiencing, communicate their feelings, and continue learning through Sesame Street content distributed digitally and through partners on the ground.

I’m so excited about the future of our content production slate and engagement opportunities. We’ve achieved what I like to call “the holy trinity” of distribution: you can now watch our content on YouTube, linear TV, and streaming.

As a parent to a toddler, I’m now hyperaware of the impact a show like Sesame Street can have. I come to work feeling extremely proud of the ways we reach and teach children every day. www.sesameworkshop.org EDITION 41

MARKET WRAP CENTA IP POCKET.WATCH

Pocket.watch CENTA IP’S RELATIONSHIP WITH LICENSOR POCKET. WATCH GOES FROM STRENGTH TO STRENGTH AS THEY BUILD ON THEIR HUGELY SUCCESSFUL PORTFOLIO OF YOUTUBE INFLUENCERS RYAN’S WORLD AND LOVE, DIANA. Launching later in 2022 in Australia and New Zealand is EK World — the sister brand to Ryan’s World. Join Ryan’s 5-year-old twin sisters, Emma and Kate, as they share their very special world with fans everywhere. With a dash of glitter and a splash of confetti, EK World celebrates sisterhood and the magic of imagination. Through the clouds and across a rainbow, you’ll meet Combo Panda’s little sister, Coco Panda, and Emma and Kate’s best friends, Rosie and Daisy, the sweetest kitties in the world. In EK World, the girls invite everyone to dream, learn, and play together! For 2023, Pocket.watch and Sunlight Entertainment have teamed up with the legendary Toei Animation studio to create Elemon, a new anime series from Ryan's World filled with dramatic kid-friendly battles, comedy, and learning STEM! When Elemon are threatened by Team Ninja, Leo and his friends, Ella and Ryan, must use their Elemon — Aquro, Saltias and Silica, to work together to protect and defend the Elemon from falling into the wrong hands. Then, looking at a launch in 2024 is Toys and Colors: Kaleidoscope City. See things from a new perspective! Starring YouTube’s #1 kids ensemble, Toys and Colors, friends Jannie, Alex, Emma and Eric travel to the colorful and cosmopolitan Kaleidoscope City. In this incredible immersive world, built in the Unreal Engine, our four friends wander the Kaleidoscope City market, where they meet goo-fiend Dax, pancake-purveyor Matcha, and the adorable Baby Rainbow. When the friends have a disagreement, they visit Baby Rainbow’s kaleidoscope shop, where his magical kaleidoscopes help them to see their conflict from a new perspective. For more information on these properties and licensing opportunities please reach out to Gail Mitchell at Centa IP using — Gail.Mitchell@centaip.com

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MARKET WRAP CENTA IP KUNG FU PORK CHOPPERS

Kung Fu Pork Choppers CENTA IP APPOINTED EXCLUSIVE GLOBAL LICENSING AGENCY FOR THE HIT ANIMATED TV SERIES KUNG FU PORK CHOPPERS! Get ready to go hog wild with the all-new animated series guaranteed to bring home the licensing bacon — KUNG FU PORK CHOPPERS! Based on characters derived from the Chinese hit series GG BOND, the 104 x 11-minute series introduces the team of interstellar super-swines of the Universal Hero League that includes Glorious P.I.G., Pigcasso, Hampton, Swinstyn and LaPuerca aka the KUNG FU PORK CHOPPERS, who battle fun and funny foes for the all-powerful “Splaxis” — the one slime to rule them all! “This is a very PIG deal”, says Al Kahn, Founder and CEO of Crane Kahn and the mastermind behind the mega licensing phenomena of POKEMON, YU-GI-OH!, TEENAGE MUTANT NINJA TURTLES and CABBAGE PATCH KIDS. “We completely redid the series to build a show and a universal brand with global appeal aimed at boys 4-8. The mix of martial arts and out-of-the-world gimmicks and gadgets mirror a proven play pattern to create a world that kids will relish and have lucky licensees laughing all the way to the piggy bank”. The new KFPC show debuted on Chinese TV in the summer of 2021 and achieved a new milestone when it hit 200 million plus views within the first five days, ranking #1 and topping both PAW PATROL and PEPPA PIG in its ratings. The second season continued the success of the first in China generating over a combined 720 million views both online and on national TV stations. Launching globally on YouTube/SVOD platforms and linear/terrestrial channels in the third quarter of 2022, there will be a total of 208 episodes available by Q3 2023 to ensure continuity of the brand online and on streaming platforms to keep its target audience engaged and smiling. Written by the same creative team that wrote both POKEMON and TEENAGE MUTANT NINJA TURTLES, with its broad-based humour and fun storylines, KUNG FU PORK CHOPPERS proves it is not just the underdog that wins the day, but the underpig can triumph above all odds to win the day ... and save the universe too. With their arsenal of amazing devices and vehicles they take on the wackiest alien invaders ever. So, get ready to strap on your Splaximal Fight Pack because it’s time to get “piggy with it” and Kung the Fu! Gail Mitchell, CEO at Centa IP said “KUNG FU PORK CHOPPERS is filled with characters from the heroic to the diabolic, familiar to alien, brilliant to bungling, and everything in between. Everyone we show this to just gets it! This is the ultimate comedy adventure and we’re sure kids will love it!” Centa IP is currently in negotiations for global licenses including master toy and publishing. We already have ANZ, USA and UK/EU actively pitching. For more information on KUNG FU PORK CHOPPERS and the global licensing program, please contact Gail Mitchell at Centa IP using — gail.mitchell@centaip.com

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INTERVIEW DARRAN GARNHAM FOUNDER/CEO TOIKIDO

WE SPEAK TO DARRAN GARNHAM PT. 2 INTERVIEW BY MATTHEW BUGG, EDITOR AT THE BUGG REPORT

Toikido is a new kind of toy company that launched in 2020 from Founder/CEO Darran Garnham. Toikido are a London based entertainment company at the cutting edge of digital design and toys. With a global reach Toikido have an ecosystem across licensing, gaming, music and entertainment. Passionate and knowledgeable with a culture and structure to move fast. The Bugg Report last spoke to Darran in November 2021 and recently had the chance to speak to Darran again to check in on all things Toikido. Hey Darran! Thanks for chatting to The Bugg Report again. We trust that everything has been going well at Toikido since we last spoke to you back in November? Wow! It's been 6 months. We have been flying, which in the face of the worlds issues, we feel extremely grateful. The team has grown and we brought on Gary Vaynerchuk on to the board as a strategic investor (instagram.com/ garyvee). I'm phenomenally proud of the team and our partners and looking forward to a many launches we have in the coming months.

Our work with Gary and the Vee Friends team has been amazing. While I can't say too much as the partnership will come to life later this month at Vee Con in Minneapolis. I can say it's something very special.

— Darran Garnham

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When we last spoke there was some huge positivity around Among Us and Gang Beasts... can you give us a breakdown about what's been happening with these so far in 2022? AmongUs continues to power on. We are live all over the globe and have some amazing new lines coming out in 2022 + 2023 with innovation into feature products and playsets. The game has developed and expanded onto new platforms with Xbox, Nintendo DS and a recent VR game. We launch Gang Beasts later this summer across a range of figures, plush, costumes and collectibles. The range catches the fun and playful essence of the game. We will support with TV, character costumes, digital media and with the game roadmap showing years of new content this is going to be a really fun journey.

You mentioned during our last chat that Toikido would be announcing a new IP project (Smashlings?) and the opening of Toikido Studios... how are things progressing on that front?

Toikido will be producing merchandise for Cool Cats across the Cooltopia NFT ecosystem. Sounds awesome! Can you tell us about this project and how it will work in with NFT.NYC?

Smashling has indeed developed and we have signed a master deal, a trading card deal and expanding plans and partnerships now. We will be supporting with animation, with the same team that worked on LOL and Shopkins, unique characters available for retail promotions, TVC and major TikTok / YouTube unboxing campaign and finally a game development on Roblox!

We love this IP. One of the major breakouts from the NFT space, its like Hello Kitty for web3. We are not only supporting the team at NFT NYC, with some exclusive SKUs, but launching the wider range online. Later in 2022 we will bring products to retail. The creative process on this one is fantastic with the Cool Cats team taking a 2D NFT to plush, apparel, collectibles, stationery, animal toys and more. I see that you have partnered with Gary Vee for his Vee Friends NFT project. I understand that Toikido will be producing the Toys for the Vee Friends library of characters? Our work with Gary and the Vee Friends team has been amazing. While I cant say too much as the partnership will come to life later this month at Vee Con in Minneapolis I can say it's something very special.

www.toikido.co.uk

www.twitter.com/toikido1

EDITION 41

FEATURE INTERVIEW KATE O’CONNOR HEAD OF LICENSING AND BRANDS BBC STUDIOS, ANZ

BBC STUDIOS

BIRTHDAY BASH CELEBRATIONS FOR BBC STUDIOS!

The Bugg Report speaks to Kate O'Connor, Head of Licensing and Brands at BBC Studios Australia and New Zealand. 2022 marks the 100th Birthday for BBC Studios and there is plenty to be excited about with the BBC Studios brands in the future!

2022 is a big year of celebration for the BBC — what do you have in store for BBC Studios brands for the 100th Anniversary? Yes it’s a huge year for the BBC, and BBC Studios is excited to celebrate! Officially the BBC’s 100th birthday is 18 October, when it was founded. The UK will lead on a jampacked year of celebrations in the lead—up, where we look back on our history, and forward to even more genre—defining shows and brands. BBC Studios is really proud of its BBC heritage and its role in showcasing British creativity to audiences around the globe. It’s amazing to think we started distributing content globally in the 1950s, and now produce around 2500 hours of content a year, and are recognised as the biggest distributor of TV content outside of Hollywood and Bollywood. We’re always looking for innovative ways to extend our fan favourites into the real world, and this has led to the set—up of our hugely successful brands and licensing programme, with Doctor Who, BBC Earth, Top Gear and Bluey at the helm of it in Australia.

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Yes it’s huge year for the BBC, and BBC Studios is excited to celebrate! Officially the BBC’s 100th birthday is 18 October, when it was founded.

Internationally, we will mark the centenary and the role BBC Studios has played in taking bold, British content to the world in ways that resonate with our local clients and audiences. So fans should keep their eyes peeled for special events and programmes this year. There’ll be special editions of some of our biggest shows, like Doctor Who, Masterchef and Top Gear, and plenty of other initiatives to delight fans. The BBC 100 website is already up and running, which takes a fascinating look at our timeline, as well as “100 Objects” and “100 Faces” of the BBC. The British Film Institute has also already published a special celebratory list of 100 game—changing BBC shows and there’s some real pearlers in there that needed to be added to watch— lists if you haven’t already seen them, like Blue Planet and The Office.

Another major milestone is Doctor Who's 60th Anniversary next year — how will this be celebrated?

It’s amazing to think that Bluey will be celebrating its 5th Birthday next year also – what are you proudest of from the last few years, and what can we look forward to?

Doctor Who is a beloved show with an incredible fanbase — you don’t get more devoted fans than Whovians! In its 60 years onscreen we’ve seen this show constantly reinvent itself, and with the brilliant Russell T Davies returning to the helm as showrunner and Ncuti Gatwa announced as the new Doctor, 2023 is going to be an absolute thrill ride for fans. We’ll also have commemorative products to complement this amazing milestone. We’ve just announced that the 60th Anniversary celebrations will feature scenes with Catherine Tate and David Tennant — fan favourites who last appeared as the Doctor and his companion in 2010. So while saying farewell to Jodie Whittaker in a special episode later this year may be bittersweet, fans are very excited about what’s to come.

It may be a young show compared to the likes of Doctor Who but we can hardly call Bluey a baby anymore — in just a few short years it’s turned into a global behemoth screening in over 60 markets, with numerous global partnerships including Moose, Colgate, Hasbro and Penguin Random House. It’s success really speaks to the heart, humour and beauty of the show – there’s just no other preschool show like it and it’s popularity continues to soar. As for proudest moments so far? One is the Colgate partnership — we were the first Australian brand to partner with Colgate, which is both mind— blowing yet also understandable, as we know how beloved the brand is. And another is more a moment than a deal or partnership; it was seeing the faces of the little ones light up in the Australian tour of Bluey’s Big Play The Stage Show. It really hit home how much Bluey means to people, and how much joy it brings to children’s lives. And there’s so much more to come this year; there’s new episodes being broadcast on ABC from 13th June, Bluey’s Big Play The Stage Show will tour the US in November, and there’s more major Australian deals to announce — including a major one within the FMCG space that’s just around the corner. We’re so grateful to our fans, across all our brands — they’re the best on the planet! www.bbc.com EDITION 41

FEATURE ARTICLE CASE STUDY A PERSPECTIVE FROM AUSTRALIA

CASE STUDY: A Perspective from Australia The Bugg Report takes a look at Australia and all-thing brands and licensing!

At time of writing, Australia has elected a new Labor Government and ushered in a number of new independent candidates, whose sole focus is on climate change. Directly connected to this cause is energy provision and how we generate and deliver this to markets all over the world. Coal, nuclear and renewable methods are now being fiercely debated, however there is no denying that climate change is becoming more important to a growing part of the population. Australia is a high-profile market for the brand licensing business. This is evident in the investment many global and local brands place behind their operations and activities in our market. The Bugg Report reports on the market from an Australian perspective. We identify opportunities and provide an independent commentary to allow our readers to make a balanced judgments on where they might invest. The media continues to play an even greater role in influencing both politics and business. This is no different for the licensing business. The graphic on the right is a snapshot of how the Australian media landscape is assembled: Many things have adjusted and changed forever over the past two and a half years. New channels, new methods and new thinking is required to navigate the emerging landscape of new licensing. What will the live B2B event schedule look like into the future, how will NFT’s, the Metaverse and Cryptocurrency play out and what will be their impact on the licensing landscape? What will emerging social media platforms such as TikTok mean to our industry and what new socials will follow into the future?

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As the industry continues to recalibrate between B&M retail and Omnichannel methods, what will become of the brands which have declined after years of success, only to be repurchased and re-licensed under new strategies? As the options to capitalise on the growth of brands expands, brand owners no longer need to focus just on caps, t—shirts, and mugs to generate income. They now have many levers that can pulled to drive cross category revenues.

Finally, technology is another existing medium which continues to evolve and provide more seamless solutions to the manufacturing and purchasing process. Personally, I am surprised that retailers in particular have not embraced technology more fully and used it to improve and simplify the shopping experience.

We will take a look at these emerging and varied methods from an Australian lens and provide you with some food for thought:

Image source: www.acma.gov.au

Disney Australia’s Local Content Slate

NFT’s Out of Australia

Brand Realignment

The Walt Disney Company in Australia and New Zealand recently unveiled a slate of nine new Australian original films and series. These represent the company's biggest wave of local content commissions and acquisitions for Disney+ and will launch on the platform in 2022-23.

The concept of an NFT is still very new. Many of us may still not fully understand what it is: an NFT is a digital asset that represents realworld objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos2.

During more recent times, we have seen the demise of many global brands only to be acquired and re purposed for licensing in alternative methods. A good example of this is Reebok which was acquired by Authentic brands for a reported 2.5 billion dollars. They intend to maintain the DNA of Reebok as a brand; however, they will repurpose it through strategic partnerships and collaborations to reinvent its popularity.

The line up reads: Drama —The Clearing, The Artful Dodger, The Last Days of Space Age. Doco’s — Fearless: The Inside Story of the AFLW, Matildas: The World at our Feet, Shipwreck Hunters Australia, Chasing Waves. Lifestyle/Fact — Donna Hay Christmas, What’s Your Toy Story?1 Plans are in place for a second wave of content which is said to bring another 15 offerings from Australia and New Zealand.

In Australia we have learnt of a really cool listing called Aussie Mates. It’s founder Bianca Musico has built her concept on helping a mate and based it on improving mental health after the extended pandemic. She and her brother have fashioned the theme on an Aussie Kangaroo Character where your reward is not necessarily monetary based, but you can win travel both local and internationally. They have also aligned the idea with a charity called LIVIN.

Live Events

TikTok

After the enduring Pandemic, Tourism Australia will launch a new campaign, "Event Here This Year" Campaign both locally and internationally. Business eventing delivers 36 billion dollars to the Australian Economy each year.3 The broader international campaign will target the UK, North America, Europe SEA, China and New Zealand.

TikTok is the latest social media platform to emerge into this space. Since 2010 it has systematically gown to a reported 1 billion users behind Instagram and Facebook. It is a short video platform allowing users to express themselves through this medium. According to the annual report, TikTok now has 7.38 million Australian users over the age of 18, with a reach of 37%. 55.3% were female and 44.7% male.4

Image source: www.aussiemates.io

In Australia we have seen similar re organisation of brand Australian brand ownership from foreign companies back to Australia. The best example of this is with Bega Cheese. This company has embarked upon buying back many Australian brands including: Bega Cheese has bought out umbrella brand Lion Dairy and Drinks, which includes Dairy Farmers, Farmers Union, Yoplait, Big M and Daily Juice. The acquisition means the brands will return to Australia after almost a decade of international ownership.

Bega acquired Vegemite in 2017 from Mondelez in the United States, and also owns the nation's most successful peanut butter brand. Bega has set a course to develop a merchandise program around Vegemite, which is one of Australia’s most iconic brands.5 Vegemite has recently entered into a special collaboration with Volley to launch a range of footwear. They have also expanded into the Pet accessory market. Bega continue to innovate with their brands recently launching Baked Beans and Vegemite.

Image source: www.volley.com.au

EDITION 41

Experiential Retail Activations

Technology

As the B&M retail space becomes more challenging and competitive, retailers are having to come up with methods to entice consumers to come to their stores. The better the experience the more successful the outcome.

Kmart Australia and New Zealand will put a robot called TORY into every store. Tracking apparel inventory to a 95 percent accuracy level. Kmart has revealed plans to deploy an inventory tracking robot called TORY into every one of its physical stores in Australia and New Zealand over the next 15 months. By December 2021, Kmart expects to have 271 stores across Australia and New Zealand. It presently has 187 stores. Each is in line for a TORY robot under the project. The TORY robot, made by MetraLabs, will roam stores during quiet times — mostly overnight — triangulating exactly where apparel and homeware items are and how much stock is left. It does this by scanning for radio frequency identification (RFID) tags that are attached to the labels on products (known as stock keeping units or SKUs in retail parlance).7

The McDonald’s Restaurant is a household name, however there is one particular McDonald’s that once you see it you will never forget it. It’s in Sydney Airport’s Terminal 1. The Kitchen is enclosed in a yellow-tinted glass cube that seems to float above the counter. In the magical yellow glow, you’d think the workers were alchemists if you didn’t actually see them assembling Quarter Pounders. After they prepare the orders, they clamp the bag into an ingenious Rube Goldberg contraption — it’s like a chairlift for Happy Meals — that transports them from the kitchen to the counter.6 As the world moves more and more towards virtual reality, having physical interaction with people seems more important as ever. Physical stores and restaurants are a key component to this problem. The opening of this McDonald's store certainly created much hype!

Image source: www.echochamber.com

The Pet Business

Image source: www.itnews.com.au

GAMING Already one of the world's largest and fastest-growing entertainment sectors before COVID-19 hit, the digital games industry further expanded during the pandemic. Worth $240 billion globally in 2020, the market is set to reach $294 billion in 2024. Australia is home to a growing games industry. In 2021, the sector contributed $226.5million in revenue, an increase of 22 per cent on 2020, and 83 per cent of revenue is from overseas markets. These numbers are set to boom further, thanks to the introduction of generous federal and state-based tax incentives. The Digital Games Tax Offset (DGTO), coming into effect in 2022, will allow studios to claim 30 per cent of eligible expenditures. State-based programs complement the DGTO, with South Australia, Victoria and New South Wales offering an additional 10 per cent and Queensland offering 15 per cent. Tax offsets are a tried and proven mechanism that has allowed countries like Canada and the UK to grow their digital games industries exponentially. With incentives now at a minimum of 40 per cent, Australia will emerge as a serious global player in game development. The local industry has already seen investments worth more than $270 million since late 2020 and has the potential to grow into a billion-dollar industry within the next ten years.8

Over 60% of Australian households own at least one pet, with nearly nine million dogs and cats kept as pets. A trend towards pet humanisation has encouraged households to increase their expenditure on their pets over the past five years, purchasing goods such as human-grade pet food, designer outfits, harnesses and toys. Health and wellness trends have affected Australia's increasingly pampered pet population, with owners taking a more holistic approach to their pets' health and wellbeing. Dietary supplements and preventative healthcare medications are increasing family pets' life expectancies and contributing to the rise in expenditure per pet... Market research suggests that there is very little licensing taking place in this space, however with the right brand and the right strategy, there seems to be significant upside to develop well thought out branded programs for both B&M retailers and online. • $3.3. Billion Pet and Pet Supplies Retailers in Australia Market size in 2022 • 4.3% Pets and Pet Supplies Retailers in Australia Market Size Growth in 2022 • 4.9% Pets and Pet Supplies Retailers in Australia Annualized Market Size Growth 2017–20229

Image source: www.amazon.com.au

Australia leads the way in many of the innovative techniques being used to grow, improve and develop new ways of establishing and growing brands.

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1. themusicnetwork.com 2. thebrag.com 3. www.tourism.australia.com 4. www.forbes.com 5. www.dailymail.co.uk 6. www.morningbrew.com 7. www.itnews.com.au 8. www.dfat.gov.au 9. www.ibisworld.com

Giving little ones the best start in life.

Books

Baby Toys

Toddler Toys

Become part of the story! Home of Australia's Original Natural Teething Toy® and Educational Toys. www.mizziethekangaroo.com Get in touch - info@mizziethekangaroo.com

FEATURE INTERVIEW SANDRA EBBOTT FOUNDER AND MANAGING DIRECTOR MIZZIE THE KANGAROO

MIZZIE THE KANGAROO AUSTRALIA'S OWN MIZZIE

FEATURE INTERVIEW WITH SANDRA EBBOTT Mizzie The Kangaroo is Home of Australia’s Original Natural Teething Toy ® and Educational Toys. Australian owned and designed by Founder Sandra Ebbott, Mizzie was born in Queensland and is currently taking on the world. Starting with its iconic natural baby teething toy in the shape of a Kangaroo, Mizzie aims to give newborns the best start in life, empowering their parents with the right fun learning tools — Mizzie’s range of fun educational toys for 0 to 3+ years old. Sandra conceived this idea from observing her own children and then initially developing a cool teething product to help little ones develop in a fun way.

It’s a story of determination, passion, and perseverance. I met Sandra some 2 or 3 years ago. It was early on in her development of the Mizzie brand which she launched to the retail trade market in 2016. Along the way she has encountered many challenges and also some great wins for this innovative product. Her vision is for Mizzie to be a household name for mums around the world and for her products to be widely available at B & M retail and online. Approaching the Las Vegas licensing show, we had the opportunity to meet with Sandra and find out a little more about her evolving brand, her vision and the journey so far. In the beginning we asked Sandra about her background:

It’s hard to launch and build a brand, where does your determination and passion to succeed come from? Launching a brand from scratch most certainly has its challenges. We took 2 years of research and development before launching, we made sure we understood the market, but especially that we understood our customers. Mums, babies and retailers love our products, and our market is truly global. So, as much as it’s not an easy journey, I see the love of our products through the remarkable customers and retailers’ feedback, I see the global opportunity, I am passionate about creating purposeful toys for children to learn in a fun way. All of these put together is what keeps me driven to succeed.

Sandra, to begin, can you tell us about your background and how it’s assisted you with the launch and development of Mizzie? I have held senior marketing roles at large global corporations such as at BMW’s Global head office in Germany (for the global launch of MINI), at Pepsi Co UK / Ireland, as well as at Reebok Europe. These roles were global, and they have given me the insight into building a strong brand, and how to adapt it to its relevant markets. They have also given me the confidence and experience to think beyond our borders, and as such, the vision for Mizzie has always been to be a global brand, loved by babies and mums all over the world.

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We took 2 years of research and development before launching, we made sure we understood the market, but especially that we understood our customers.

Since your launch in 2015, what’s the most satisfying aspect of your journey with Mizzie so far? And what has emerged as your greatest challenge?

The "Mizzie The Kangaroo" brand revolves around storytelling for young families, has this resonated with your audience?

There have been so many gratifying moments throughout the journey so far and we celebrate every single small win along the way. From first orders, to seeing Mizzie on shelves at large global retailers, the most satisfying is seeing and hearing that we can indeed have a major positive impact on a baby’s life and development, as well as the greater community, with the minimal environmental impact with our purposeful ways of doing business. In terms of challenges, we most certainly have been faced with our fair share. If we reflect over the last couple of years, we were firstly hit quite hard by the start of the pandemic. We had to re-think and flip our business model to be more direct to consumer, something we had never done. Our products were still in high demand, however we had to reach our customers in different ways. In the end, we saw a significant growth here in Australia, as well as in our international markets, especially in the UK.

Absolutely. Our audience wants to feel connected and take part in the story, Mizzie becomes a companion for life for babies, from soothing, comforting, to entertaining and teaching skills. Parents embrace being able to offer their little loved one a strong start in life, and Mizzie’s ways become part of their own story.

Most recently, we unfortunately lost the majority of our inventory as our warehouse flooded during the devastating Brisbane floods. Although we are still recovering from this as we speak, the overwhelming support we saw from our customers was what kept us strong and reminded us to focus on all the remarkable positives currently happening with Mizzie. All in all, we ensure that these out-of-control challenges don’t define us, they merely become part of our story.

We see that you have a cool Ambassadorial program for Mizzie, can you expand upon this a little for us? This has been a natural evolution over time. At first, it was a mere shout out on our socials to get mums involved, and through the years, it’s evolved into global brand ambassadors, twice per year. We select from the hundreds of applications (a very difficult choice) and these amazing Mums and their bubs and toddlers become an integral part of our team, a part of our community and our Mizzie family, wherever they are in the world. We speak to them daily, we listen to them, and above all, we watch and learn with how their little ones love playing and learning with Mizzie. EDITION 41

Product is king, we notice that you have recently grown to include gift packs in your range and three new themed jigsaws, has this resonated with the consumer? Our core purpose is to develop little ones through our fun educational toys, staring with our Hero product Mizzie’s Naturual Rubber teething toy. It’s a natural evolution to keep creating products that will help little ones learn through fun with Mizze. Our teething gift packs have been a huge success as our teethers are a perfect gift for a new bub. Our touch and feel tactile books and sound books help discover the love of reading from an early age, as well as help with their sensory development. Our multi-level puzzles and memory match games are a perfect way to teach patience and visual memory whilst having fun. Our customers see the value of having Mizzie take little ones on a fun learning journey from birth to the toddler years. How important is the core Mizzie the Kangaroo teether to the program? Mizzie The Kangaroo’s Natural Rubber Teething toy will forever be our hero product, and the perfect entry point into our brand and product range. Once Mizzie wins the hearts (and sore gums) of babies, she truly becomes their fun learning companion for their early learning years. From a commercial standpoint it looks like the Brisbane Council has seen the merit in Mizzie and provided you with some important exposure and assistance, how important is this for a new emerging brand? We have been very fortunate to have seen great support from local Brisbane government. As an emerging brand, every support, encouragement, and exposure has the ability to make an impact. As we grow, we create more jobs and opportunity, which benefits all. We have the ability to put Brisbane on the Global toy map, and ahead of the 2032 Brisbane Olympics, we are sure to look at making this happen.

Our core purpose is to develop little ones through our fun educational toys, staring with our Hero product Mizzie’s Naturual Rubber teething toy.

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What’s the verdict on your Pop up Store in Brisbane during the recent pandemic? Originally offered to us as a trial by Brisbane City Council, we have now embraced it as our Global HQ and flagship ‘pop up’ shop. It’s a great place for us to showcase our products and speak to and learn from customers in person, daily. You addressed your distribution model recently and appointed Bensons as your Distributor for the Independent channel, has this delivered for you? We have formed a great partnership with Bensons. They are very well regarded in the industry and more recently also in the preschool space with some of the amazing brands they distribute nationally. In the short time that we have been working together, throughout the years of lock downs, they have managed to open some great new doors for Mizzie and increased our retail footprint across Australia. This is sure to grow as we see retail landscape regain stability and positive momentum. Sandra, can you update us on your progress with the Major Retailers across Australia? Mizzie is now available through a growing number of larger retailers nationally, with the likes of Myer and Kidstuff, to name a few. Medium to high-end retailers are best suited to carry Mizzie The Kangaroo products as they are where our customers shop. How is your expansion into the international markets progressing, I believe that you recently launched in Quebec in Canada? Last year we expanded into the UK and we are now available at large department store John Lewis Partners nationally. We recently expanded into Canada including Quebec and we are available at Toys R Us Stores across the country. We are in talks with other major retailers in exciting new markets, and we look to further expand into the USA later this year.

Sustainability has always been at the core of Mizzie, as we aim to have maximum positive impact on children’s development, with minimal environmental impact.

Mizzie has been fortunate to receive a number of awards, what has this meant to the brand?

Sustainability is a key initiative in the toy business now, where do you see this fitting in with Mizzie?

We are overwhelmed with the amazing awards that we have been awarded over the last 3 years, both in Australia, as well as most recently in the UK. These awards have given us the extra credibility for our customers and industry partners, which is significant for us as an emerging brand.

Sustainability has always been at the core of Mizzie, as we aim to have maximum positive impact on children’s development, with minimal environmental impact. From having minimal recyclable packaging, to using natural and recyclable materials including recyclable tape and environmentally friendly non-plastic ‘bubble/eco wrap’, we make conscious decisions at every part of the process on making the world a better place. We will soon be announcing a new and exciting recycling program that will be a world first. Please stay tuned to find out more.

We saw Mizzie giving back by engaging disability workers to assemble the first Australian made Mizzie product. Can you tell us a little more about this fabulous initiative? This was by far one of the most satisfying product development projects. We were so proud to be launching our first Australian-made product, but even more so with the fact that we were giving employment opportunities to people living with a disability. The team at the not-for-profit organisation The Makeables assembled our Queensland printed Memory Match cards, and the pride that they took in their work, knowing that these were games were going to help children learn, was truly remarkable. We also donate part of the proceeds of every Mizzie Sound Book sold — ‘Sing with Mizzie Nursery Rhymes’, back to the Brisbane School Eagle Junction SS whose choir sung in the book. We at Mizzie aim to give back whenever we can, whether to the environment or to organisations and schools that can benefit from our offerings.

So Sandra, you are 6 years into your journey, what’s your goal for the coming 12 months? The next year will be full of surprises. We have big global expansion plans, and we have some great products and partnerships in the pipeline that are sure to delight both customers and retailers. The next few years will be monumental for Mizzie and in further crafting her positive and impactful story. Mizzie has achieved a great deal over the past 6 years, We urge retailers around the world to look carefully at Mizzie as a sound inclusion to your pre-school ranges. It has already proven it’s appeal to the market and the program is now well established. We thank Sandra for thorough insights into her journey so far and wish her and Mizzie great success into the future. www.mizziethekangaroo.com EDITION 41

Industry Commentary WE SPEAK TO KEY LICENSING EXECUTIVES

QUESTION:

After two and a half years of adapting to doing business alongside a global pandemic, what green shoots do you see on the horizon for the Brand and Licensing business and in particular your own business?

SARAH YOUNG The global pandemic was a time of highs and lows, in the end, the best thing to come from this was the way everyone worked together to keep going and support each other. During this time, we continued to look for ways to drive business and deliver products that would support consumers and their needs during such a difficult time. We can’t thank our licensees and retail partners enough for their support and achievements over the last few years. As we look to the future, we can see that there is a fantastic opportunity for consumers to engage in live experiences and events, whether this was visiting the Nerf Zone at the Australian Open in January, or the recent partnership between Sea life Aquariums and Peppa Pig. Apparel and Homewares have become even bigger category opportunities for Hasbro, and a recent example of this was the successful launch in March of a gorgeous Peppa Pig x Adairs Bedding and Home collaboration. We are also very excited about two key Movie releases in 2023, the first being Dungeons and Dragons: Honor Among Thieves releasing in March 2023, followed by Transformers: Rise of the Beasts in June 2023. As we see consumers going back to cinemas, we have a chance to excite and engage current and new fans with a great new range of products, including Collectibles, Apparel, Home, and Publishing. Nostalgia is a continuing trend, and we are excited to celebrate 75 Years of TONKA during the second half of 2022. My Little Pony also celebrates its 40th Anniversary in 2023, stay tuned for an exciting year with great product from existing and new licensees with fashion a key element of the My Little Pony Brand. With all new content continuing to launch via Netflix and YouTube, My Little Pony is set to be around for many more generations to come. Sarah Young — Director, Licensed Consumer Products, Pacific Hasbro Australia Ltd

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JO PASCOE Hi Tony, the last 2 years have been tough for everyone both personally and professionally, but it is incredible to see people out again and at in-person trade shows like this one! At Universal Brand Development, we have the highly anticipated Jurassic World Dominion and Minions: The Rise of Gru movies launching in cinemas June, supported by some of the biggest retailer programs we have ever seen. The breadth and depth in these mega franchises have allowed us to not only sustain, but to grow our everyday business and set us up for Jurassic Park’s 30th anniversary in 2023 and Illumination’s Despicable Me 4 in 2024. Not only are we nurturing our established franchises, but we are also building new IP like our latest pre-school property from DreamWorks Animation, Gabby’s Dollhouse. This show is on and consistently reaches the #1 kids show in Australia on Netflix during new season drops. The retail programs are just rolling out and we expect big things from Gabby and her kitty friends. Looking ahead into 2023, we will be celebrating Jurassic Park’s 30th anniversary in an all-year-round nostalgic campaign, launching a brand-new film in partnership with Illumination and Nintendo on the iconic Super Mario Brothers, Fast & Furious will have its 10th instalment on the big screen, Trolls 3 will be back for more hair-raising adventures, and we will continue to diversify our pre-school, kids and adult portfolio of franchises. Jo Pascoe — Vice President, Consumer Products — Australia, New Zealand, Southeast Asia, and India Universal Brand Development

EDITION 41

ANDREW BROMELL At Warner Bros. Consumer Products, we’ve had to adapt our business in many ways; from communicating with our partners virtually to navigating all the pressures that Covid brought upon us, our licensees and retailers. We were faced with new challenges but with the support and collaboration amongst our teams at Warner Bros., as well as our partners who we value tremendously, we have pulled through this period successfully and look forward to a bright future. With our recent merger with Discovery to form Warner Bros. Discovery, this is truly an exciting time for us as we begin to build out the next chapter; two legacy teams with some of the most cherished stories, brands, and franchises coming together, bringing an unmatched portfolio of movies, television, news, lifestyle, sports, and games. From a theatrical point of view, we kicked off our biggest DC theatrical slate, starting with the blockbuster and box office hit “The Batman”. We’ll have three more major DC titles later this year, including our animated film, “DC League of Super-Pets”, followed by an epic feature film based on antihero, “Black Adam,” both starring Dwayne “The Rock” Johnson, and finally the return of Billy Batson with "Shazam: Fury of the Gods.” In 2023, we’re looking forward to “Aquaman and the Lost Kingdom”, “The Flash,” and “Blue Beetle.” Also in 2023, Warner Bros. will be celebrating the iconic Studio’s 100th birthday and its unmatched legacy of a century of storytelling. For ANZ, this will mean many exciting campaigns across our products and experience business that our partners can leverage. The Game of Thrones franchise will also be expanding this year with the highly anticipated prequel House of the Dragon coming to Australian screens the same time as it launches in the US on Monday August 22 on Foxtel. Based on George R.R. Martin’s “Fire & Blood,” the series, which is set 200 years before the events of Game of Thrones, tells the story of House Targaryen. The hype is building on this one, and we know our fans are very excited about it! And finally, E-commerce and online has also become a clearer focus throughout the pandemic and we know there are some more opportunities to explore here for our business. We also plan to launch new exhibitions and experiences in 2023 that we know will excite our fans. All in all, there are so many green shoots and opportunities on the horizon for Warner Bros. Consumer Products to explore and we’re looking forward to the years ahead. Andrew Bromell, Vice President, Warner Bros. Consumer Products ANZ

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GAIL MITCHELL In many ways we were insulated from the effects of the global pandemic as a result of working with two categories of IP which thrived during that time — heritage brands and YouTube influencers. As an example of a successful heritage brand, Miffy has gone from strength to strength. Whether it is our fantastic partnership with Cotton On globally, our worldwide Interflora program, our local toy relaunch with Jasnor, or the just-signed direct to retail program for 2023; business is strong. As the world adapted to doing business via Zoom, global borders blurred and almost disappeared. Being based in Australia was no different to being based in the US or UK as we all connected online. As a result, the “green shoots” for us are the addition of global representation vs the localised focus we used to have. We have come out lockdown with a positive outlook and some very exciting opportunities. We are heading off to Las Vegas with two brand new, amazing properties for which we have global rights — Kung Fu Pork Choppers and Nastya Animation. We have meetings with toy, apparel, publishing, and promotional specialists to allow us to roll these properties out globally. We are very excited to be heading to the US and not only meeting with potential partners, but seeing our own US and UK team members for the first time in over two years face to face! Gail Mitchell CEO Centa IP

EDITION 41

FEATURE ARTICLE DEAN SALAKAS — CHIEF PARTY DUDE RETAILERS DIARY EDITION 1

I'M A RETAILER

HERE’S 3 TIPS TO GET MORE PRODUCTS IN MY STORE We get about 10 emails a day from overseas suppliers, wanting to pitch products and about 2-3 per day from local suppliers. I also get about 10 emails a day from supplier EDM’s on what’s new or what’s trending. I’m the CEO, so you can imagine, my buyers inbox is even more cluttered with suppliers wanting to get products into our store.

They are typically catalogue style emails with something along the lines of “you need to have this, it will sell great in your store”. Its very fatiguing and yes sure, we scroll through them, but not a lot of care is taken to really consider what’s on offer because we just get so much pushed at us. We are looking for things that stand out. If you're doing this then a small tip is to make it easy for the buyer to get all the information without cluttering the page. So imagery is good with some small description at first and maybe more detail in a table at the end (e.g. pricing, dimensions, etc). Attachments just wont get opened unless you have grabbed me in the email. The biggest tip with this method of emailing would be to personalise the email. Start out by saying “these products will be perfect for your customer because XYZ” and ensure the product really does suit the business. This approach tells me you have thought about my business/brand and how this fits in well with my offering. If I really think you have thought how the products suit my offering, I am more likely to take it seriously and better still, each time you email me I am likely to remember you as they guy that pitches me good stuff (even if I haven’t bought previously). Don’t send your whole catalogue, leave your website for that, just send me a curated snippet of what you believe is good for me. IF you tailor your email, its more likely to get cut through. In addition to tailoring your communication, there are some major factors that impact a pitch that really get me to push everything aside and do a proper review of the pitch. Here are my three main tips;

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1. Best Sellers I get frustrated when the suppliers tell me “this is hot right now” when they have just launched a product and haven’t had any reorders. What this tells me is that retailers are trying it, but it doesn’t mean it's selling. Much of the time its not actually hot and the supplier clears it weeks later. Certainly they get it right a lot of the time too but I just don’t believe them when they say “this is hot” anymore. So talk to you retailers about reorders not initial orders when determining what is hot. Ideally if you can tell me your top selling lines I don’t stock, this is a great report that will get me thinking about taking on a few extra products. Do this by category so that you can show the best sellers I don’t stock in each category for even better results.

2. Sell Or Return

3. Consignment Stock

This is by far my best strategy that is usually a win-win for the retailer and the supplier. This works best when the idea is that the supplier can get more range into the store (or trial more range) and the retailer doesn’t have the stock risk. This is not consignment so the retailer still needs to pay for the stock on normal terms however if it doesn’t sell, they can send it back. I have had many products I told suppliers wouldn’t work and then we did them anyway on sale or return and well, I was wrong and they sold well. If the supplier truly believes their products are going to go well, they should employ this strategy. I have generally kept on range about 90% of the items I have done like this so the suppliers are definitely happy with the strategy and this is obvious by the fact they continue to expand the SOR (Sell Or Return) program and do as much of it with me as we have space for.

If sell or return isn’t going to work, consignment is an even bigger enticement to get me to stock more of your products. This deal certainly favours the retailer who doesn’t have to pay for the stock until it sells so the risk and cash flow impact all sit with the supplier. It is however a huge benefit to the retailer to engage this type of deal and so if you cant get Sell Or Return to work, try offering consignment. It's certainly a show of confidence from the supplier that they back their products to sell. With any strategy a key issue is trust, and it's important that suppliers are trusted by their retailers or at least the retailer trusts the sales rep. If you’re a new supplier, this can be difficult to build and so certainly Sell Or Return or Consignment is a great way to get your foot in the door. If you can develop a great trusting relationship, then you can get creative with deals and work on a true partnership that ultimately gets a win-win for both sides selling more. Happy Selling! 2018 Retail Leader Of The Year & 2020 Top 50 Small Business Leaders List

www.thepartypeople.com.au

EDITION 41

Introducing

From our humble beginnings, BMS Brands has come from supplying promotional products and remainders to developing and distributing key brands in educational products and toys to a variety of retailers, in Australia and globally. Our Mission & Vision To provide a platform for children to explore the world around them whilst developing themselves through imaginative play and learning. Our goal is to provide high-quality products that children want to create, build and play with. We are committed to developing product brands that inspire creative thinking and interaction, whilst encouraging children to be curious and inventive and to see the world around them through fun eyes and with limitless potential and opportunities. Our Aims Our aim is to develop quality products that are fun, affordable and educational for children around the world as well as continuing the development of our core brands to a global consumer market. We aim to build long term lasting relationships with our customer base to exceed service expectations by actually listening and reacting to our customer needs and not focussing purely on the sale.

Latest Developments

With our global partnerships we are proud to announce the launch of Play Doh Airclay coming this July. We also have many new projects in the pipeline, some of which being the release of our new Construct it Buildables range, and our new Lenticular 300pc Jigsaw Puzzles range just to name a couple. For further information please contact us and we will be happy to send a catalogue for review. Contact us: sales@bmswholesale.com.au Phone: (02) 9634 7224

Puzzle J igsaw Puzzles

I AUR CENT

LAB

COLUMN THE NEW AGE OF DIGITAL EDITION 7 BY ISABEL WU

This column is written by Isabel Wu from Meta Management and covers all things digital www.metamanagement.net

THE NEW AGE OF DIGITAL The Real D igital Revolution

Technology is continuing its progress in leaps and bounds. Even decades’ old technologies, like video conferencing, QR codes and ecommerce, are finding new markets and new uses. For organisations operating through the past two years’ constant disruptions, the availability of low-cost, easily deployed technology has been a godsend. Without it, many would have struggled to keep their operational wheels turning. Therein lies the danger. In using technology to maintain business as usual, we may miss the real digital revolution. Every new application of artificial intelligence, every new automated machine, every physical interaction shifting to cyberspace, every sensor taking care of (or out) a once-analogue process, and every additional function we perform using our digital devices, we advance a digital skills revolution. Industrial revolutions are only revolutionary when they are enabled by a change in work. The First Industrial Revolution saw the advent of the factory system. In the Second, the moving production line and standardised processes saw work organised into bureaucracies. The Third Industrial Revolution shifted work from production lines to depend on individual knowledge holders. The Fourth Industrial Revolution is no exception. Work is again changing. Production is increasingly intangible and that makes this revolution unique. Whereas the earlier revolutions relied on mechanising labour and classifying knowledge, digital technology requires the reverse: it needs workers ‘human skills’ to realise its value to business. The skills revolutions begin with skills shortages as it takes time for old skills to be replaced by new ones. In the past revolutions, training and education provided the solution to skills mismatches. However, the lack of adequately skilled workers persists today despite more of us spending more time being trained and educated than ever before. All studies agree that, without decisive action, our current skills shortage has years to run. If recruitment is painful now, what will it be like in the next few years when only half the workforce1 has the right skills for the jobs we need filled? The issue is not a shortage of training; it is our reliance on the wrong training. Unless we broaden our view of skills from task-based to humanoriented, no number of vocational training places, or incentives to retrain older workers, or any other recycled government funding promise will do.

1. www.weforum.org

2. www.grandviewresearch.com 3. Image source: www.unsplash.com

The Fourth Industrial Revolution gives the toy industry an unexpected role. It is well-accepted that through the make-believe, game design, tactical manoeuvring and role switching that are fundamental in play we develop essential life skills. Only now the benefits of play are not just in preparing people for jobs. They are the job, sought by the corporate world with descriptors such as creativity, conceptual and abstract thinking, agility, curiosity and empathy. It is perhaps no coincidence that toy sales for adults have been increasing in line with the changes in how we work. Of the projected growth in global toy spending from $141.08 billion in 2021 to $230.64 billion by 2028, the adult market is expected to make up the largest segment at 49.65%2. The more organisations are adapting to the digital revolution, the more they seek workers who are advanced in the sorts of skills developed through toys, games and hobbies. Looked at another way, as adults spend more on toys, employers will only benefit. With this in mind, how well are toy industry employers adapting to the digital skills revolution and the skills shortages that impact their own industry? Are we transforming our workforces and preparing ourselves for continued change and disruption? Indeed, are we taking advantage of the very skills we have so much hand in developing?

EDITION 41

COLUMN ACCORDING TO DOWNSEY EDITION 16 BY IAN DOWNES

ACCORDING TO DOWNSEY Getting Back on Track! This column is written by Ian Downes, Director at Start Licensing in the UK www.twitter.com/startlicensing

Post the COVID-19 Lockdown, like all industry sectors, the licensing market in the UK is looking to get back on track and return to ‘normal’. Encouragingly, benchmark events like trade shows are taking place regularly, companies are returning to their offices and licensing networking is back on the agenda. Talking of networking the BELLAs Brand & Lifestyle awards recently took place. A very positive demonstration of the licensing business being back on track.

They have recognised that tapping into brand licensing can give them a competitive advantage and use the pulling power of brands in their shops to engage with consumers. In many ways Iceland is a good role model to share with other retailers to show what licensing can do for them. In competitive and challenging times licensed products can offer a point of difference to retailers and help them connect with their consumers.

That said it is unlikely that things will return to how they were prior to the Lockdown. Ways of working have changed, methods of meeting have changed and business has been re-shaped. I think we are emerging into the light blinking our eyes and seeing a changed licensing landscape. This change is both a challenge and an opportunity. There are some exciting new opportunities for licensing that have emerged — a good example is the growing success of eCommerce and ironically given the last two years more dynamic developments in the ‘live licensing’ arena. A significant challenge is the current position of the UK retail market particularly in regards to the high street, department stores and shopping centres. These sectors are under huge pressure financially. One example of this is that well known convenience store group McColl’s, which has 1,100 stores on the high street, went into administration recently. Encouragingly at the time of writing it seems supermarket chain Morrison’s is going to buy McColl’s out of administration. This should see McColl’s carry on trading but probably with changes. What we are seeing is a re-shaping of the traditional retail landscape. Licensing can play a part in this but will also have to think about what part it can play and how to play that part.

As noted earlier eCommerce is becoming an increasingly important part of the licensing mix. It was good to see Blu Goblin launch their eCommerce platform. Blu Goblin are part of the Louis Kennedy Group and have developed a platform to sell special edition and limited edition products. Products are developed with brand owners and a nominated charity so there is a cause related element to the business. Their first launch was a range of Limited Edition Japanese Art Prints developed with The Ashmolean Museum. Further evidence that heritage brands have licensing firmly on their radar these days. It is good to see Blu Goblin launch, not least as they have recognised that there is a gap for bespoke products developed with fans in mind. The fan market is definitely one that licensing can serve well. As eCommerce companies like Truffleshuffle have shown if you understand licensing, eCommerce and fan culture there is good business to be developed.

Against this backdrop it is encouraging to see licensing being used in imaginative and effective ways. The BELLAs showcase examples of licensing from the Brand and Lifestyle sectors. These are two categories of licensing that seem to be in growth. Some of the products nominated are a great indicator of how licensing is moving in new directions. The winner in the Health & Beauty category was a Van Gogh Museum Sunflowers fragrance range from Floral Street Fragrances. A really good example of how a heritage license can make a difference in a competitive sector. One of the features of this product was really good in store displays. This is a great example of how licensing can make a positive impact at retail. Another interesting winner at the awards was that Iceland the retailer picked up the award for Best Supermarket for Licensed Brands and also a product award for a range of TGI Friday’s frozen appetisers. It is interesting to see a retailer that is predominately a food retailer winning the supermarket award but this is a measure of how important licensing has become to Iceland.

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We are in changing times but in my view licensing can change with the times. I think there will be good opportunities for licensing but they will be ones that will best delivered in a strategic, creative and responsible way. Licensing postLockdown will be increasingly about developing, preserving and nurturing partnerships.

COLUMN WIDE EYES NEWS FROM THE TUBE SUBSCRIPTION VIDEO ON DEMAND

Wide Eyes News from the Tube is written by a leading industry expert and is focused on providing a quick snapshot of the best opportunities in the television & animation market.

WIDE EYES NEWS FROM THE TUBE Children's TV Show P roduction P lunged in Australia After Quotas Were Abolished

Television started broadcasting in Australia in 1956 and most of the programs that were broadcast at the beginning were either from the UK or the US, with the exception of local news & current affairs programs and live variety shows. However, by the early 1970s minimum quotas of Australian produced TV programs had been introduced for Australian TV broadcasters in order to help support the local TV production industry compete against cheap programs bought-in from overseas.

So the question is does it really matter that other than the ABC, no other TV broadcasters operating in Australia have to produce or broadcast Australian children’s TV programs? In a word YES it does. Eighteen months after Australia’s federal government abolished kids’ content quotas, the effects of this decision are clear.

A quota system ensuring the production of locally produced children’s programs by commercial broadcasters was put in place in 1972 but in February 2020 the Federal government legislated that free-to-air TV networks were no longer bound by the requirement to air at least 260 hours of children’s programs and 130 hours of pre-school programs annually, as part of a government shake up of the TV regulatory system.

• Seven kids’ tv shows went into production in 2020/21, compared to fourteen in the previous year: a drop of 50% and this continues to decline dramatically.

While 55% of the programs TV networks broadcast between 6am and midnight still have to be locally produced content, the new quota system meant that each network’s level of Australian content could be a mix of drama, reality, children’s content and documentaries with no obligation to produce a minimum level of any one of these genres.

• The number of hours of kids’ animation produced declined year on year, from 55 hours to 13 hours.

Also under the new legislation, whilst the commercial networks Seven, Nine, and Ten — will still have to continue broadcasting 1,460 hours of Australian content each year on their multi-channels, there is no minimum requirement to produce or broadcast Australian produced children’s programs. The streaming networks Netflix, Stan, and Amazon Prime have no obligation to produce local content and the new legislation halves the existing local content spend applying to subscription TV businesses such as Foxtel, reducing the requirement from 10% to 5% since 1st July 2021 and is not specific to the production of children’s TV shows. The upshot of the abolishment of minimum quotas for Australian TV children’s production and broadcast has been the demise of children’s content on commercial TV, leaving the ABC as the only producer of Australian children’s TV content.

• Only two of those shows were animated: Bluey (season three) and The Strange Chores (season two), both of which were financed by the ABC — that is down from eight titles in 2019/20 and a five-year average of six animated shows.

• No children’s co-productions — live-action or animated — began production in the past year. This is in contrast to an average of at least one per year starting production over each of the past five years. Thousands of jobs have been lost with a lot more to follow with the production of Australian children’s content falling by more than half. Less and less Australian stories are being told to our children and fewer Australians have the opportunity to learn how to make children’s TV shows especially in the animation business. Both of these are major losses to the culture of Australia, and it is a sad indictment on the last Federal Government that instituted these changes that impact so badly on our children and the Australian TV programs that they can no longer watch. Let's hope that the new Federal Government supports our local children's TV production industry and the Australian stories they tell.

EDITION 41

FEATURE PRODUCTS OF CHANGE "BRANDS CAN CHANGE THE WORLD"

PRODUCTS OF CHANGE: "Brands Can Change the World" Products of Change is a global educational hub aimed at driving sustainable change across consumer product markets and beyond.

This month Products of Change shines the spotlight on two of its global network members: the licensed stationery specialist greenre and Australia’s own Piping Hot to highlight the power and influence of today’s biggest IP. Greenre and Piping Hot are two companies headquartered at the extreme ends of opposite hemispheres. One’s a Canadian licensed stationery specialist while the other is the Australian manufacturer of licensed and non-licensed surf and swim wear. On paper, the two are quite literally poles apart. Except, both greenre and Piping Hot find themselves undeniably connected by a shared momentum to initiate and drive change in the consumer products market for the benefit of the planet by utilising the power and influence of brands. Operating out of its headquarters in Ontario, greenre has been rapidly expanding across the North American market where it currently works with some of the biggest names in the character and entertainment sector. We’re talking Marvel, Disney Princesses, DC Comics, Harry Potter, MGA Entertainment and a whole lot more. Its most unique selling point however, is through the power of these brands and its own innovative developments in material use and systems, greenre is perpetuating ideas around the circular economy and, in very real terms, placing sustainability directly in the hands of children. By utilising waste streams, eco-design, and understanding end of life of its products and packaging, as well as building in a treeplanting initiative as part of its everyday operations, greenre has become a mass-market licensing partner that — by its own accord — has achieved ‘unprecedented carbon off-setting effects’ that are outpacing even its own expectations. And in doing so, it’s setting its own barometer of a licensing industry standard. “Getting to a circular economy means going past the standards that are being implemented by the market players and looking at all the product materials to ensure we are not applying any environmental pressure,” greenre’s CEO, Keith Loiselle tells Products of Change. “It’s not easy, but we are seeing results in our efforts and are excited to further our commitments in the space.”

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If the company’s gradual expansion across the North American retail space isn’t measure enough of greenre’s success to date, the team has recently been named a part of the United Nations Compact and its UN Climate Accelerator Programme, not to mention that — and something Loiselle takes great pride in — the manufacturer is now “calculating in the negative.” This, to unravel the terminology a little, means that greenre is “by far contributing to carbon extraction more so than the business is creating.” In essence, greenre loves planting trees, loves showcasing scalable sustainability to the world, and loves that it’s the biggest brands in the entertainment space today that are helping the outfit achieve it all. “Coming back into manufacturing after being away for a handful of years, I wanted to do things differently. I wanted to be purposeful and feel good about what I was doing. It was clear that we were heading to a tipping point for the climate and we just want to be a part of the solution,” says Loiselle. “And we believe, as fans ourselves, that brands can change the world.” He’d be right, too. Let’s look towards Australia’s own Piping Hot for another example. It wasn’t too long ago that the team landed on its own revelation to do better by the environment through its surf and swimwear business. In the battle between industry and supply chain status quo and its balance with the planet, stewardship of the world’s ocean won out and in July 2021, Piping Hot had made the ultimate switch. It now boasts a portfolio of products, all 100 per cent made from sustainable materials.

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But Piping Hot’s mission went further than simply this. To truly be effective, the team realised that its sustainability had to be scalable. And that meant affordable. “We’re on a mission to help families save money and protect oceans,” Piping Hot’s brand and marketing director, Amy Low, tells Products of Change. “We’ve taken a systemic approach to implementing change — all tied into the ocean.” Over the past couple of years, Piping Hot has made good on its commitments to use low-impact materials, save water and energy, and conserve resources whose depletion threaten ocean health. In fact, all its products are now made with materials that are recycled, recyclable, renewable, or biodegradable. What’s more – and quite possibly its biggest feat — Piping Hot has also eliminated virgin polyester from its supply chain. “We come to a point in business where we recognised that we were contributing to ocean pollution and needed to take action to protect it for future generations,” says Low. “It was an incredible effort to achieve our goals without losing focus on making sustainable solutions affordable for families, but by repurposing single-use plastics into recycled polyester, we’ve diverted more than 15.5 million plastic bottles from landfill and waterways.” It's through its retail partnerships with the likes of Target Australia and Walmart Canada that Piping Hot enables accessibility to its products at an affordability for families. But price isn’t the only factor at play in hitting that mainstream market.

The business has very recently launched its Heroes for the Ocean label, developed to be a collaborative platform through which licensing partnerships can promote ocean action. It’s under this umbrella its partnership with Marvel for an officially-licensed and fully-sustainable range of surf and swimwear for kids and adults was formed. “With the ocean in crisis, we need everyone to become heroes for the ocean. The Marvel team loved our purpose, our mission, and the designs featuring the iconic superheroes from the Marvel universe on our sustainable swimwear,” says Low. “With the success of our Marvel x Heroes for the Ocean range, we want to expand into other co-branded offerings to really drive the message among consumers.” The part that brands have to play cannot be underestimated. The platform and elevation they can lend to this sustainability movement is one to be utilised at full force. Success found at greenre to date has fuelled further development of circular models within the massmarket consumer products space, while Piping Hot is a team now expanding its operations on a global scale. Not only that, but it’s now investing in innovative biomaterial research to develop a new sustainable textile made from seaweed — a pioneering development that “could transform the sustainable textile industry and offer a global solution for clean oceans.” There’s certainly something to be said for licensing partnerships that fuel these kind of regenerative business models. As a business centred on storytelling through product, licensing has the incredible potential to influence the narrative of a generation. No matter the distance between us.

INTERESTED IN LEARNING MORE ABOUT PRODUCTS OF CHANGE? Products of Change is a membership community and educational hub with the mission of driving positive, sustainable change across the consumer industries. www.productsofchange.com

EDITION 41

Sydney Mid-Year Preview 6 & 7 July

Rydges Parramatta 116-118 James Ruse Drive, Rosehill NSW 2142

Exhibit

Attend

Melbourne Mid-Year Preview 12 & 13 July

Amora Hotel Riverwalk 649 Bridge Road, Richmond VIC 3121 For more information email toyfair@austoy.com.au or visit austoy.com.au