The Bugg Report Magazine — Edition 42

The

Bose,

was a

on who

ask.

For me, I know who Bose are but I don't (didn't) know who Gorillaz are by name (after listening to some songs I recognise the music). In my case it would be Gorillaz who would benefit most because I was not aware of the band but after listening to a few songs I recognise some of their tracks, and because I streamed them, the band will make some money from this...

I assume the collaboration was put together to coincide with the new Gorillaz "Cracker Island" album releasing in February 2023. For Bose it makes sense because fans can listen to the new album on the new QC Earbuds II and the artwork and branding of Gorillaz works so well for this type of collaboration. On the giveaway page you have to complete a puzzle before you can enter your details to go into the draw to win a pair, blending art with Gorillaz on the Bose website.

I think this is a great example of how this sort of collaboration can work when thought through and done to create a situation that is mutually beneficial. I bring this up because I think it is a great reminder of well thought out creativity, and in an industry like brand licensing the possibilities really are endless.

Now more then ever, it is great to see that people are still creating great things and working together to drive their respective art and businesses forward to create revenue, but ultimately deliver great work and products for their fans!

Thanks for reading!

Another Stellar year

All the latest updates from the world’s favourite little Blue Heeler.

Bluey updates have been coming in to the Bugg Report thick and fast lately, with the Australian treasure about to wrap up a stellar year of activity.

Earlier in 2022, Bluey already had plenty of success under its belt, with huge Colgate, Crayola, Hasbro and VTech deals, a pop-up Heeler house that came to life through Airbnb, and hot new toys hitting the shelves – including the Bluey Dancing Plush, which was nominated for 2022 Toy of the Year. Since June, Bluey has seen even more action, with a bevy of impressive achievements to further add to its portfolio.

Series Three

More incredible episodes rolled out this year, with 11 premiering on ABC Kids and ABC iview from June 13th Storylines featured grannies, puppets and long-lost siblings, and guest voices included musical theatre prodigy Lin Manuel Miranda (Major Tom in “Stories”), Mick Molloy (Sparky in “Tradies”) and Hollywood A-Lister Rose Byrne (Brandy – Chilli’s sister – in “Onesies”). The episodes were met with rave reviews and huge ratings, with “Granny Mobile” becoming the number one highest

rated non-sport broadcast on Free-To-Air TV in 2022. It was only just pipped at the post overall by the Ash Barty Australian Open Grand Final! Meanwhile, overseas, the first 25 episodes of Series 3 episodes aired on Disney+ worldwide, prompting USA Today to proclaim Bluey as “the most anticipated show of 2022”.

More episodes of Bluey Series 3 are currently in production and will air on ABC Kids and ABC iview.

Ratings

Arnott’s

Since launching in June, Arnott’s Bluey biscuits and crackers have been flying off the shelves and for good reason – the foodie geniuses at Arnott’s managed to create a lunchbox snack that’s not just tasty, but wholesome, with the crackers achieving a four-star health star rating and the biscuits, three stars – revolutionary for the biscuit aisle! “We’re so proud of this range, with parents able to feel confident they’re feeding their little ones wholesome snacks while the kids get a real kick out of Bluey and Bingo-shaped biscuits. And teaming up with another Aussie icon made so much sense,” says Kate O’Connor, Head of Licensing and Brands at BBC Studios.

Bluey hit

Publishing

In October, BBC Studios and Penguin Random House had reason to celebrate when Bluey hit 5 million books sales across Australia and New Zealand – a remarkable milestone for an Australian children’s brand. Since the first three Bluey books were released in November 2019 — The Beach, Fruit Bat and Time to Play — the series has been met with numerous accolades. The first books quickly became the second, fourth and fifth-highest selling Australian children’s books of the year. Now, a total of 41 titles from the Bluey franchise have been published in Australia and NZ, and have held the number one position in Nielsen BookScan’s official Australian bestseller charts for a total of 46 weeks — with more books to launch by Christmas!

Boost Juice

Anyone who watches the show knows Bluey and Bingo LOVE their fruit, so teaming up with Australian juice favourite, Boost Juice, was an ingenious choice. The fourweek campaign saw limited-edition, collectible Bluey cups in Boost Juice stores Australia-wide, each with a unique code leading customers to win prizes like Bluey toys, books, lunchware, games, vouchers and more. “Short term campaigns like this one are key to keeping the brand buzzing and the ‘Everybody Wins’ concept was incredibly wellreceived by fans,” says Kate.

US Tour and Macy’s Thanksgiving Parade

You know you’ve made it in America when you’re a Macy’s Thanksgiving Parade balloon….which is exactly what Bluey will be this November 24th! 50 million viewers across the US will bear witness to Bluey’s spectacular debut at the world’s most famous parade, which includes giant balloon models of the most iconic and celebrated characters from TV and film. Bluey’s 16-metre tall balloon was hand-painted by the Macy’s Parade studio team and took 189 litres of blue paint to create. It would certainly take quite a few spectators to play keepy-uppy with that balloon!

Following on from its successful Australian run, Bluey’s Big Play The Stage Show will also embark on a huge 118+ venue tour across the USA from November 19th. The actionpacked show will debut in New York in the Hulu Theatre at Madison Square Garden, which has hosted the world’s biggest entertainers for over 50 years. The stage show, which delivered 300 incredible performances across Australia, is the first theatrical adaption of the series featuring brilliantly created puppets, an original story by Joe Brumm, and new music by Bluey composer, Joff Bush.

Phew! Bluey’s had a huge 2022, and with the brand celebrating its fifth anniversary next year, fans can look forward to an action-packed year of surprises in 2023.

million

across Australia and New Zealand – a remarkable milestone for an Australian children’s brand

GROUP LIMITED

FOUNDED IN LONDON, BASED IN MELBOURNE FASHION DESIGN, BRAND ELEVATION & MANUFACTURING

RAW GROUP INTRODUCTION

RAW GROUP IS A GLOBAL CREATIVE STUDIO RE-IMAGINING GARMENT DESIGN AND MANUFACTURING. RAW IS THE BRAIN-CHILD OF TWO AMBITIOUS FRIENDS AND OUR WORLD-CLASS TEAM DARES TO BELIEVE IN A FRESH APPROACH TO THE FASHION INDUSTRY.

Through design-led consultancy, Raw’s experts energise high street brands with innovative solutions from concept to creation. And in-house, Raw are also growing our own authentic, visionary brands. Raw threw the spotlight on overlooked areas of fashion and sportswear, developing purpose-built products to stand the test of time.

Raw is committed to a culture of transparency, empathy, and ambitious solutions through our team of industry veterans with unrivalled design expertise and market knowledge from the UK, Europe, Australia and the USA.

With a team of fashion design and manufacturing experts, Raw push for original, innovative and creative thinking to find newer and better solutions. RAW’s unique combination of creativity and design expertise keep the Company ahead of the latest trends for our partners to take advantage of. Combining a world-class network of manufacturers and team of design and product development specialists, Raw takes an original view of the fashion supply process with finesse at every stage. Raw deliver creative solutions, proven commercial results and we are fashion design and manufacturing experts that help our partners to create and deliver ideas with impact.

RAW has three distinct elements to our business:

1. White Label — research, conceptualisation, design, development, manufacturing and brand elevation.

2. Brand Building — developed internal and customer facing brands that span multiple categories and customer types.

3. Licensing — work with brand owners to bring a commercially viable and design driven approach to the market.

Retailers and brands treat RAW as an extension to their design team given our proven track record, market knowledge and industry expertise to work commercially across multiple categories.

RAW GROUP INTERVIEW

Lynton, from an overall point of view, can you provide an overview of Raw Group, a little bit about what the Company does and it’s history?

Raw is a global creative studio re-imagining garment design and manufacturing across the whole supply chain. Raw has attracted some of the best and most experienced talent across the UK fashion industry to offer a best in class service. Raw’s in-depth knowledge and understanding of the supply chain allows us to optimise and finesse at every stage of the process to provide efficient and consistent results. Raw's long standing relationships with some of the most credible, compliant and forward thinking manufacturing partners in the world allows for sustainable and ethical growth while maintaining creativity and design at the heart of the business.

Adam Walsh — Managing Director and Co-Founder of RAW Group, knows the garment industry from the loom to the showroom.

"

Gareth Gillatt — Co-founder and CEO, the business genius behind RAW, is an entrepreneur who's already changed the way people shop.

Lynton Rice — Country Manager ANZ. Lynton Joined Raw in August 2022, with over 20+ years of retail design and business experience.

Can you explain the Raw OS (Raw Operating System) and how brands and retailers can use this?

Raw’s in-depth knowledge and understanding of the supply chain allows us to optimise and finesse at every stage of the process to provide efficient and consistent results.

"

The RawOS solution is essentially tech-driven, which sets us apart from our competitors (agencies). Raw is disrupting the business-to-business apparel manufacturing sector. End-to-end production can be managed through Raw’s platform with transparency and control with no need for sourcing managers to leave their offices, depend on multiple middlemen, and no scope for unannounced delays.

LYNTON RICE

NOW THAT WE HAVE BEEN INTRODUCED TO RAW GROUP AND WHAT THEY DO, THE BUGG REPORT SITS DOWN TO SPEAK TO ADAM WALSH (MANAGING DIRECTOR), GARETH GILLATT (CEO) AND LYNTON RICE (COUNTRY MANAGER ANZ) ABOUT THE BUSINESS AND THEIR PLANS FOR THE AUSTRALIAN AND NEW ZEALAND MARKETS.

Problem:

• Complex supply chain due to multiple middlemen and their manufacturers being thousands of miles away.

• Limited access to fulfilment options.

• Fragmented channels of communication.

Opportunity:

A 2020 McKinsey study found that 74% of brands anticipate the digitisation of product development and sourcing will accelerate.

Solution:

• Tech driven solution that provides an end-to-end solution (design to delivery)

• Vertically integrated software across a network of carefully vetted factories

• Allows brands to not only find manufacturers and place bulk orders, but analyse trends.

• Raw will track time and action calendars, a tool used to follow up on manufacturing milestones to ensure timely delivery.

• On the production side, Raw partners with factories to run its software stack, named RawOS, for tasks in sampling, inventory, and finance. The software tracks the lifecycles of garments and uses the data to train algorithms for matching brands with suppliers and predicting metrics like turnaround time.

• Quicker factory onboarding to enhance their sourcing mix

• Sampling efficiencies — time & cost (Clo3d, etc)

• Flexibility (demand driven) — more reactive to specific sales and trends

• Cross costings — vast network to drive optimisation

• Transparency — for their business but also for consumers (ESG)

The Future:

Change the way goods are sourced and manufactured globally.

Sustainability seems to be a big part of what Raw does; how does sustainability fit into the culture and operations of the business?

Raw's understanding of sustainability is one of our key strengths, our in-depth knowledge of the supply chain from farming through to delivery of goods into the warehouses allows us to truly assess the impact of the processes involved. For Raw it isn't about using sustainability as a marketing tool, it's about education and realistic expectation, making small steps towards a circular manufacturing is our collective goal on a daily basis. We believe that creating a quality made garment that wears and washes to the highest standard is the most important contribution to making fashion more sustainable.

You have a network of factories across the world, how important is this when working with brands and retailers in terms of cost, timing and sustainability?

Every brand and retailer has different expectations and requirements, it's important Raw has the ability to offer flexibility of lead-times, MOQ’s, product category, price and duty benefits where applicable. That said, Raw has its own goals and targets working towards full transparency across our supply chain in order to allow our customers to make better choices and understand the reality of garment manufacturing while encouraging true sustainable partnerships between factories and retailers.

From solar and wind powered headquarters in London, to using recycled packaging to using trains and slow boats to move products, Raw seems to be very innovative across its operations?

Raw’s broad understanding of retailers and manufacturing gives us the opportunity to make better choices with a more holistic approach while being super realistic about the reality and fundamental challenges of manufacturing. The systems and processes across the garment industry are historically archaic and outdated, our aim is to work towards a more relevant and optimised business model.

RAW is now operating in Australia and New Zealand with Lynton Rice taking on the role as Country Manager. What is the goal for the expansion into ANZ?

The RAW expansion into Australia and New Zealand is to replicate the success to date in the UK and Europe, working with well established and respected brands and retailers, leading with world class creative, innovative design and product development paired with RAW’s exceptional and industry leading, global manufacturing partners to offer a fresh and transparent approach to fashion design and production. To become the market leader is our goal and based on the way that the RAW team is structured, we have a few different opportunities to get there and work with retailers and brands.

The RAW team is structured as below:

• RGG / White Label which is our private label business which researches, conceptualises, designs, develops, manufactures and delivers different tired products for the different retail sectors in our network.

• RAW Brands team are structured per brand and have developed internal and customer facing brands that cover different gaps in the UK, Europe, US, Australia and New Zealand and global market.

• License / License Brands — a dedicated team across design and commercial elevate and innovate brands through licensing deals to re-engage and reinvigorate brands globally.

What types of brands and retailers are you looking to work with across Australia and New Zealand?

We’re looking to work with like minded companies who have design, quality, sustainability and ethical sourcing that runs throughout their DNA.

• Big Box Retailers

• Discount Dept Stores

• Mid Tier Retailers and

• Luxury Dept Stores and

• Global Licensors

So Lynton, finally can you tell us how can Companies get in touch with you to discuss opportunities to work with RAW?

Contact

on

Our goal is to become the market leader here in Australia; based on the initial market response, we're very excited about the prospect of utilising our expertise to support and elevate a wide variety of brands and retailers.

LYNTON RICE

JASNOR AUSTRALIA

We are quickly nearing the end of 2022 which is a staggering thought. This past year has continued to challenge us on many levels however we, once again, rise to each challenge with the unwavering support of our dedicated team, loyal suppliers and, of course, supportive retailers.

Recently, Jasnor exhibited at the Melbourne Reed Gift Fair for the first time since February 2020. It was exhilarating for the Jasnor team to once again be in front of our customers and to share with them our new releases and display our core collection of over 50 iconic brands and characters! It was fantastic to feel a sense of normality in these trying times.

our range of over 400 new release items for second half, we are excited to share a few highlights.

Uncurl the cuteness! Off the back of a successful launch in the UK, Jasnor is thrilled to welcome Curlimals to their portfolio. These adorable interactive plush friends react to you! There are two woodland themed characters in the range, Higgle hedgehog and Bibi bunny. A third character named Popsy Mouse will be introduced in early December 2022. Each Curlimal has their own personality and sounds. They will delight and enchant children from the second they meet! Curlimals respond to touch — pat them on the head, stroke their nose and tickle their tummy for a completely interactive experience. When playtime is over, they will curl up in a ball of fur and fall asleep.

Miffy is Dutch author Dick Bruna's best known and most popular character who appeals to children all over the world, instilling a sense of safety. We are proud to present the new Miffy nursery range which includes three collections, Pink Rib, Green Knit and Fun at Sea. Featuring the iconic Miffy across a range of soft plush, ring rattles, comforters, activity toys and gift sets, these gorgeous products make wonderful gifts for babies and young children.

A Certificate of Authenticity is included in each box and each premium plush Peter includes a leatherette tag which is numbered and corresponds to the certificate, further driving collectability. With only 2000 pieces available worldwide, this stunning statement piece is being snapped up by retailers, so hop to it before they are gone!

To commemorate Peter Rabbit’s special 120th anniversary this year, we are thrilled to showcase the Numbered Limited Edition Peter Rabbit boxed plush. Beautifully wrapped in printed tissue paper and sealed with a gold foil embossed sticker, this collectable plush is giftable and is sure to be treasured for years come.

The brand new Wiggles My First Remote Control, is the perfect toy to help promote learning and listening skills, while children can enjoy real life pretend play! Featuring a realistic design with multiple channels and a volume control button with fun sounds, along with three fun Wiggles tunes — “Dippy Do Dinosaur Dance”, “Hot Potato” & “Rockabye Your Bear”, pre-schoolers will love to sing along with their favourite Wiggly friends! This electronic learning aid will make the perfect stocking stuffer for this Christmas season!

With the new year fast approaching our team is already busy preparing our exciting 2023 line up, including some fabulous new faces and fun new formats. You can continue to rely on Jasnor to find latest trends and hottest new properties, along with the popular evergreen properties, cementing us in the industry as the home of iconic brands and characters.

ABC Licensing

BEEP AND MORT

The world of Mollyvale comes alive in all its wonder, charm and fun with Beep and Mort on ABC Kids.

Based on Windmill Theatre Company’s award-winning theatre show, this puppet-based television series follows the action-packed adventures of Beep, a robot from the stars and Mort, a cuddly creature from Mollyvale. Although they come from worlds apart, they’re the best of friends, as the show balances a joyful reverence for the natural world with an excitement for new technology.

Head of ABC Children's Content, Libbie Doherty says, "From the minute Windmill pitched the series to us, we immediately fell in love with these two new preschool stars — the unique and incredibly cute Beep and Mort. Designed for the youngest ABC audience this whimsical series will gently ignite their minds and warm their hearts."

With new episodes airing weekdays at 8.10am on ABC Kids, ABC iview and ABC KIDS iview, Beep and Mort is sure to become a firm favourite in the hearts of ABC’s youngest audiences, and ABC Licensing is thrilled to be managing the merchandise rights.

WORKING

Muster Dogs

Five Kelpie pups, all from the same litter, became the stand-out hit for viewing last summer on Australian television with Muster Dogs the ABC’s top non-kids program on both broadcast and ABC iview with a total audience of 1.83 million viewers*.

An original format created by Ambience Entertainment and the ABC, Muster Dogs tells the authentic stories of remote and regional farmers as they meet the challenge to train a Kelpie puppy in just 12 months.

ABC Licensing is excited to explore the merchandise opportunities for this hugely popular show, and with Border Collie pups confirmed for season 2 it is sure to continue to be a family favourite.

The Deep

The aquatic animated adventures of the Nekton family returned to ABC ME for a fourth season of The Deep earlier this year. The program follows a family of underwater explorers who live in a state-of-the-art submarine named the Aronnax as they investigate the mysterious depths of the ocean.

Head of ABC Children’s Content Libbie Doherty said The Deep was an iconic ABC ME series. “Our loyal fans have been patiently waiting for the next adventure full of non-stop thrills, amazing marine life and, of course, the inimitable spirit and humour that The Deep is famous for.” she said.

ABC Kids

Our favourites Play School and Bananas in Pyjamas are still very much-loved ABC Kids shows that continue to reach over 50% of pre-schoolers each week. We always welcome enquiries from licensees to work on these wonderful properties. And be sure to look out for Reef School narrated by Emma Watkins coming soon to ABC Kids.

For more information on these properties and licensing opportunities please contact: Wendy de Thame at ABC Commercial, dethame.wendy@abc.net.au

Bugg Media have recently concluded a new partnership with The Australian Toy Association (ATA) for The Bugg Report and The Toy Universe to become the Official Media Partner for the 2023 Toy Hobby & Licensing Fair (TF) in Melbourne, Australia.

Bugg Media will host a Meeting Lounge to cater for our partners and those wanting to use the lounge during the fair with a Lounge Pass. We also endeavour to bring back the Tuesday morning Retail Breakfast Event with the support of the Industry, so stay tuned.

Yes, it’s back! It's been nearly three years since we have been able to experience a physical face-to-face TF in Melbourne, and we are sure that the greater Industry is excited by the opportunity to return to Melbourne in March. There has already been significant planning going on behind the scenes by the ATA, and the 2023 TF will see new innovations which include:

• The launch of a new ATA Presentation Precinct

• Market Alley for emerging companies has been repositioned closer to the Meeting Place

• The famous Gala Dinner will return bigger and better than ever in 2023

• The introduction of a new award called "Environmental & Sustainability Award"

• The introduction of a new award called "Judges Choice Kidult Award"

The Bugg Report, which turns 15 years old in 2023, will sponsor the prestigious Licensing Awards which will form part of the Gala Dinner evening.

Proudly sponsored by Hasbro, the 25 Year Club will also return and provide the opportunity for old friends to meet and enjoy the evening once again during the TF.

Bugg Media encourages retailers of all shapes and sizes to connect with the event and make the effort to attend in March 2023. The show is also an ideal opportunity for promotions companies, FMCG companies, Theme Parks, logistics providers, and those who have a vested interest in Toys, Hobbies and Licensing.

The Bugg Report (Licensing) and The Toy Universe (Toys) will be delighted to cover your news in our magazines. Both magazines will be available at the TF and digitally so don’t miss out on the opportunity to feature your business!

The 2023 TF will open on Sunday 5th of March at 9am and continue through to Wednesday the 8th of March. We hope to see you all there. Come and enjoy the fun!

The 2023 Toy Hobby & Licensing Fair and Bugg Media

“The ATA looks forward to partnering with Bugg Media in 2023, and as the only publisher dedicated solely to the Toy & Licensing industry in Australia, it just makes sense.”

Alice Sanderson, Executive Manager of The Australian Toy Association

PLAY POUCH AUSTRALIA

KATE

Hello Kate and Kate! Can you tell us about yourselves and how you ended up here, running Play Pouch Australia?

We met each other in 2008 through mutual friends over a coffee with our toddlers in tow. Having children the same age and shared interests & passions we quickly became the best of friends. In 2011 Kate C had tried to locate a vintage toy bag and mat she had as a child to assist with the LEGO® that was overtaking her home before the arrival of her 3rd child. When it was nowhere to be found on the market and nothing was available after searching online, she called Kate O with her idea who was also pregnant with her 3rd child. Before the babies arrived, together we set about re-designing the concept to make a more functional, stylish & durable version for families of today. Kate O dusted off her sewing machine and many prototypes were made until the design was perfected! Our first product, the Play Pouch, was born.

I believe that Play Pouch started off with product using your own designs and has now evolved into the licensed products business. What was the driving force behind transitioning Play Pouch into licensing?

Yes this is correct. We have designed all products ourselves and continue to create our own designs for our speciality/premium range. After experiencing exponential growth in the Australian market, we quickly learned that partnering with brands would help open doors to mass retail on a global scale and allow us to own the category and reach new markets. We continue to nurture our speciality B2B and direct customers who have been the backbone of our business, however securing licenses for our products with some of the biggest toy brands in the world has been our greatest achievement yet and is instrumental to scaling our business.

Can you tell us about the Play Pouch concept and how the products fit into the toy category of products?

The Play Pouch is the ultimate play mat and toy storage bag in one and really is an extension of play! The natural synergy between the branded play scenes on the inside of the Play Pouch supports the matching branded collectible toys that inspire self-guided play for children. We are delighted with our partnerships, and we are so pleased that our licensed Play Pouch range will help encourage young children to further explore the themes of role play, imaginative play, teamwork and self-expression. Parents also love the Play Pouch for its portability, quick pack up and compact storage it provides.

"

The Play Pouch is the ultimate play mat and toy storage bag in one and really is an extension of play!

KATE AND KATE

"

KATE O'DONOGHUE

POUCH IN

TO CREATE A FASHIONABLE, PRACTICAL AND SUSTAINABLE

ORGANISE CHILDREN’S TOYS. NOW, FROM SELLING SIX

POUCHES

A

IS NOW

AND

KATE AND KATE

In terms of licensing, can you give us an overview of your current licensing program and what you are looking for as you expand your licensed range offering?

Our first licensing partnership has been with Mattel and we’re fortunate to have partnered with such loved evergreen brands that translates beautifully into our product. With Barbie, Thomas, Hot Wheels, and Little People we have a Play Pouch offering for kids of different ages and interests. We’re also really excited about our partnership with leading preschool brand PAW Patrol. The PAW Patrol Play Pouch inner features a gorgeous interactive scene of Adventure Bay allowing for hours of play with the PAW Patrol toys. Brands with an element of collectability and imaginative play align perfectly with Play Pouch and this is certainly true of our existing licensing partnerships. Just in time for the Australian summer we are extremely proud to have secured the Surf Life Saving Australia license for our Aqua Pouch. The Aqua Pouch is the ultimate waterproof mat and carry bag in one! Partnering with Australia’s peak coastal water safety, and rescue authority and the SLSA community is a perfect alignment for the Aqua Pouch. 2023 will see an expansion of our existing partnerships into new product categories as well as new partnerships — watch this space!

From a retail point of view, how do you manage this and are you currently looking to expand your network of stockists?

We manage our existing business in Australia ourselves but have been fortunate to partner with Imagination Entertainment in the USA who are expanding our business throughout the territory. We also have fabulous partners in China, Japan and Korea. We are always looking to expand our stockists locally and internationally and are currently seeking a mass retailer in the UK market.

We look forward to speaking to you both around March in the lead up the 2023 Toy Hobby & Licensing Fair in March. Will you be attending the show in Melbourne?

Absolutely! We are very excited to be attending our first trade show post the pandemic. After two years of selling in via zoom calls, we realise there is nothing like connecting through face-to-face meetings. Our stand is across three stands — D34, D36 and D38, so we welcome you to drop by and say hi and check out our latest licensed products. Please also feel free to contact us prior for a meeting via the details on the right!

Sales: Kate Campbell Pouch Australia 0412 172 174 kate@playpouch.com.au

Media: Kate O’Donoghue Pouch Australia 0412 564 425 hello@playpouch.com.au

Kate Campbell (left) and Kate O'Donoghue (right) — Co-Founders & Managing Directors of Pouch Australia Pty Ltd.

WHAT'S ALL THIS STUFF ABOUT THE METAVERSE

All the buzz & hype these days seems to be around the Metaverse, non-fungible tokens (NFTs), cryptocurrencies and blockchain. But what does it all mean and do I really need to know about it? Well, here’s my two cents worth on what it all means and yes you probably do need to know about it, given that you must be interested in the industry as you are reading The Bugg Report. And credits where credits are due: I read a lot of articles researching this article so I’m sure I have picked up some other people’s phrases along the way, so thanks to them for that, the sentence describing Second Life was lifted off their website and I paid a fee to Dreamstime to use the pictures that appear in the article.

A metaverse is a shared, immersive virtual world in which users, via their computer, smartphone or a virtual reality (VR) headset, can interact with one another, create in-world environments containing virtual land, places and objects and have experiences similar to those in the real world, like going to concerts and live events. Metaverses have their own economies and currencies, with which users can buy, sell or trade a range of items including digital real estate, digital products including artworks and collectibles, clothing & accessories for their avatar, and tickets to attend the virtual concerts and events. This so-called Metaverse has been an ongoing development for the last 20 years, with the original metaverse being an online virtual world called Second Life launched in 2003. Second Life was a first-of-its-kind online world which had a creator-based virtual economy where users could make, buy and sell virtual goods between one another, earning tokens that could then be exchanged into real world money and deposited into a bank account.

The myriad of online digital metaverses that have launched in the last couple of years such as Decentraland, Sandbox, Axie Infinity, My Meta MMO, Bloktopia, pax, Somnium Space and many others are more like stand-alone metagalaxies, operating in total isolation from each other rather than being a part of one overarching Metaverse. We are not going to see the emergence of one overarching Metaverse any time soon, or if ever at all, as it is not in the interest of any individual company to share its metaverse or its users of a metaverse with its competitors. As with everything else in our modern world, we will end up with a few big players dominating the sector with their proprietary virtual worlds, with lots of smaller players offering their own unique boutique digital worlds around the dominating majors and new upstart game changers and disrupters with new technologies regularly upsetting the existing players’ digital apple carts. There will be a number of big winners who will come to dominate the online world of metaverses and you can be sure that Alphabet (Google & YouTube), Meta (Facebook & Instagram), Amazon, Apple and Microsoft will end up somewhere at the forefront of this, along with or in partnership with the leading online games companies with the techno know how like NVIDIA, Epic, Roblox and Unity.

NON-FUNGIBLE TOKENS (NFTs), DIGITAL CURRENCIES AND BLOCKCHAIN

Metaverses are individual online virtual worlds wherein people can create a digital persona or avatar for themselves and interact with other users in each virtual world. In each metaverse a user is able to spend digital currency to buy, sell or exchange a range of items including digital real estate, digital products including artworks and collectibles, clothing & accessories for their avatar, and tickets to attend virtual concerts and

events. And it is inside these metaverses where non-fungible tokens (NFTs), digital currencies and blockchain technology come into play. Non-fungible tokens (NFTs) are digital products that have their own unique or individual characteristics which can be bought, sold or traded in a metaverse, using a digital currency that is accepted within that metaverse which are managed through a decentralised digital banking system using an accounting ledger technology called blockchain. Blockchain operates just like eftpos in the metaverse world and replaces centralised banks and national currencies with a decentralised banking system that is safe, fast and inexpensive to use and provides irrevocable digital certificates of ownership and authenticity for products that exist within each metaverse.

It is called blockchain because the technology consists of blocks of unique data stored in a connected chain that verifies every transaction conducted within a metaverse using the computers of all the users for transactional verification, rather than a centralised banking system. All this business that is transacted inside each metaverse is done using a digital cryptocurrency which can be either a digital currency unique to that metaverse or can be a broader cryptocurrency used in multiple online environments such as Bitcoin or the cryptocurrency most often used in metaverses, Ethereum. Whilst the two largest cryptocurrencies are Bitcoin and Ethereum, there are hundreds of other cryptocurrencies and each metaverse uses one specific cryptocurrency to conduct all the transactions within that metaverse. Once a metaverse has been

WIDE EYES NEWS FROM THE TUBE A REGULAR COLUMN BY A LEADING INDUSTRY EXPERT WHAT'S ALL THIS STUFF ABOUT THE METAVERSE ANYWAY?

METAVERSE ANYWAY?

created with its chosen cryptocurrency and a blockchainbased banking system is in place, the buying, selling or trading of digital products can be conducted within that metaverse. Products with their own digital characteristics that are sold within a metaverse are often referred to as non-fungible tokens or by the acronym “NFTs”. A good way to understand what is non-fungible and what the word fungible actually means is to think of gold. Any product, like gold that can be traded as a commodity is called a fungible product — other fungible products include commodities like crude oil, company shares and country currencies like the US dollar or Euro. Pure gold in its metallic state is traded at a universal prevailing gold rate, so due to its interchangeability across all markets it is a fungible product. However, when you make a necklace out of pure gold, the gold necklace stops being a universally tradable commodity and is now a product not just worth its weight in gold, but is now worth what someone is willing to pay for its unique properties rather than just tradable at a fixed given rate. This value-adding or value-subtracting uniqueness means the necklace is no longer universally tradeable, so it is now non-fungible. A digital product in a metaverse, which has its own unique or individual characteristics is referred to as a non-fungible token (NFT). The most common NFTs that are traded are digital collectibles and artworks, videos, in-world items such as digital clothing & accessories for avatars and even virtual real estate within a metaverse. When an NFT is sold in a metaverse, the sale of the NFT is recorded in a data block stored in the metaverse’s blockchain banking ledger which allows for NFTs to be registered to an owner and then sold or traded by the owner to a new owner as an asset in its own right. The market value for NFTs has been on a roller coaster ride in recent months and this unpredictability is likely to continue for some time into the future. If the selling prices of NFTs crash more than they boom, companies selling digital products in metaverses will start to distance their digital products away from the currently trendy name of NFTs and their products will be sold just as online digital products in their own right. In this sense, digital products that are traded in metaverses will have a growing longterm value as more people choose to spend their time in online virtual worlds enjoying experiences and owning assets that are not necessarily available or affordable to them in the real world. So, whether they are called NFTs or just called digital products in a virtual world, NFTs will be with us for now and the ever after and will be as real as any other asset left in our will when we pass away.

BY ISABEL WU

THE NEW AGE OF DIGITAL Racing to the Post-Digital Age

This joke, which did the rounds in the early 2000s, takes its humour from the juxtaposition of the same information in different contexts. Change the context and the descriptor becomes pointless. For business, it serves as a useful reminder against making assumptions that information has the same value in different contexts.

What else is business if not the constant adjustment to changing contexts?

How we do business today is greatly different to the industrial age when “computers” were people hired to perform calculation tasks. With advancing technology, economies were able to derive greater value from knowledge and services than mass produced goods. We would soon call the machines "computers".

In the new digital context, organisations needed a new way to manage. With the work of notables, such as Peter Drucker, Michael Porter, Peter Senge and Gary Hamel, strategic planning, workforce and talent management, business process reengineering and system upgrades moved forward from their predigital approaches.

Our attention has been mostly focused on the transition from industrial to digital age. The significance of the transition from digital to post-digital is often overlooked. An era enters a “post” phase when a defining phenomenon so transforms the period that its presence is a given. The post-COVID era, for example, is not one where there is no COVID but means the responses to COVID are part of the norm, COVID or not.

In that vein, the post-digital age is one where digital is no longer remarkable. The assumption of digital is often referred to as “digital first”. In the new economic context, is your organisation’s strategic planning, likewise, post-digital or still grappling with the transition to digital? Do you use the word “hybrid” with “workforce” or assume distribution of workers is just one of the many factors in workforce management? Are you reengineering business processes for digital first or are your business process plans still separate to your digital strategies?

Digital transformations are the pathway to post-digital. Those that moved early on digital transformations were handed with competitive advantages, enabling them to significantly out-earn their industry peers in the same or less time. With global uncertainties increasing — notably with pandemics, wars, environmental disasters and political conflicts — digital solutions cannot be anything but digital first.

Data indicates many organisations are underprepared for the post-digital age. Research1 from 2022 shows barely half of (56%) of organisations globally have made digital transformation a priority.

As of 2021, spending on digital transformation totalled 1.5 trillion. That figure is set to jump to 6.8 trillion by 2023.

A 4.5 times increase in spending on digital transformation is both heartening and worrying. Worrying because the expenditure will not be even. The already advantaged will make up the bulk of spending creating greater unevenness in the playing field.

That’s the context problem. Strategic planning, workforce and talent management, business process reengineering and system upgrades may be happening but not only are many of them not sufficiently post-digital, many are barely post-industrial. Thus, the rate of digital transformation failures remains at 70%.

Digital transformations must be designed for post-digital to work. Organisations cannot rely on their knowledge of the past. Post-digital not only needs new approaches; it needs managers with the humility to accept things have changed.

Knowledge workers enabled the transition from the industrial to post-industrial age. Digital connectivity enabled the transition from the post-industrial to digital age. Digital transformations are enabling the transition from the digital to the post-digital age. Or should that be “transformations” — the “digital” is a given.

“What do they call Chinese food in China? Food.”

This column is written by Isabel Wu from Meta Management and covers all things digital

BY IAN DOWNES

ACCORDING TO DOWNSEY

The Return of Trade Shows!

It has been trade fair and awards season in the United Kingdom (UK) over recent weeks (September, 2022). Events have included Brand Licensing Europe (BLE), The Licensing Awards and trade shows such as the Autumn Gift Fair. These have all been held against a backdrop of a change in Prime Minister, the passing of Queen Elizabeth II and the Lockdown legacy. All of these events have combined to make business more challenging but overall there seems to an air of optimism in the licensing industry in the UK. The consensus seems to be that things are challenging but licensing offers businesses and retailers an opportunity to be visible and competitive whilst engaging consumers. This is a message that Licensing PLC (Public Limited Company) needs to reinforce at the moment. Licensing can make a real impact for brands, retailers and manufacturers. We are in an added value business.

The team behind Brand Licensing Europe should be congratulated for delivering a show that was well attended and expertly curated. The show reflected the variety and breadth of the European licensing market well with brands from all key sectors exhibiting including entertainment, sports, heritage, design and corporate brands. It reinforced the point that licensing is no longer just about character licensing. Licensing opportunities are emerging from a range of sectors these days. That said there seemed to be a renewed enthusiasm for classic and evergreen brands. Licensees seem to like brands that have a well crafted timeline with forward plans. One phrase I heard more than once was that licensees and retailers are seeking brands that are ‘always on’ meaning brands that have multi platform activity and are accessible to consumers in multiple ways.

I know from my work with Aardman and Asterix that brand owners are more tuned into plans and developments that incorporate activities such as digital marketing, live events and experiential opportunities rather than just rely on one media platform.

Hopefully the enthusiasm and energy exhibited at BLE will carry the industry through the challenging months ahead. Judging by the efforts made by rights owners and agents at BLE, there is no lack of investment in the future.

This column is written by Ian Downes, Director at Start Licensing in the UK

PRODUCTS OF CHANGE

PRODUCTS OF CHANGE

"Probably' the Most Important Event for Our Industry in Decades"

Products of Change is a global educational hub aimed at driving sustainable change across consumer product markets and beyond.

Delivered by Products of Change, the Sustainability in Licensing Conference made its triumphant in-person debut at the Royal Geographical Society in London on October 18th. Here’s what got the world’s licensing sector excited…

Unsurprisingly, Alan Moore delivered the goods when the Sustainability in Licensing Conference finally made its in-person debut on Tuesday, 18th October at the Royal Geographical Society in London.

An author and business innovator, and an individual we have made mention of before in our regular slot with The Bugg Report, Alan put it into the words we were all thinking. ‘To change everything, everybody must change.’

It was an invitation to audiences there in the auditorium and to the many tuning into the live stream from across the world, to take a long, hard look at the systemic change that needs to take place if sustainability is going to be achieved.

Challenging attendees to be ‘activists and to be unreasonable’ Alan referenced his books Do Build and Do Design, published titles that hammer home a clear new message for businesses operating in 2022; that by placing ‘beauty’ at the centre of what you do, a business can deliver on purpose, for its people, for the planet, and turn a profit.

And that was pretty much the theme of the day. How do we, the industry, begin to shift from talking about sustainability to implementing it? How do we move from recognising and acknowledging the waste in our current linear state, and start unlocking the value of it? And how do we take that message far and wide, across the licensing sector, from the top down?

“Business models need to be on the table,” suggested Mart Drake-Knight, the founder of the circular fashion experts Teemill whose mission it is to bring 100 million items of clothing back ‘through the loop’ by 2027.

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It was an invitation to audiences there in the auditorium and to the many tuning into the live stream from across the world, to take a long, hard look at the systemic change that needs to take place if sustainability is going to be achieved.

PRODUCTS OF CHANGE

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"PROBABLY' THE MOST IMPORTANT EVENT FOR OUR INDUSTRY IN DECADES" SUSTAINABILITY IN LICENSING CONFERENCE

Left to right: Jakki Brown, SiLC Director; Robert Hutchins, Products of Change Editor and Community Manager; Ian Hyder, SiLC Director; Helena Mansell-Stopher, SiLC Director, POC founder; Rob Willis, SiLC Director

Rob Hutchins, editor and community manager, POC; Helena Mansell-Stopher, founder, Products of Change

“Once you start realising that waste is opportunity, you start seeing it everywhere. You see opportunity everywhere,” Mart told Sustainability in Licensing Conference attendees. “It seems crazy to me that if you’re selling water — for example — you sell it in plastic that you give to your customer to throw away. It gives you no choice but to go buy that plastic again.

“I might be naïve, but I’m pretty sure business is meant to make money, not throw it away.”

Delivered and curated by the team at Products of Change, the Sustainability in Licensing Conference went on to comprise insight and research on the relationship both the consumers and the high street has with sustainability right now, inspirational talks from some of the keenest pioneers of circularity, as well as key updates and ambitious targets from leading retailers George at ASDA, Primark Cares, Walgreens Boots Alliance, and Tesco.

“SiLC 2022 was a thought-provoking conference and probably the most important for our industry in decades,” said Richard North, ceo of Wow! Stuff who took to social media to share his thoughts and his company’s own relationship with sustainable development in toys.

“Connecting in person has taken SiLC to a whole new level; the event blew me away,” said Helena Mansell Stopher, founder of Products of Change and director and curator of the Sustainability in Licensing Conference. “The energy, passion, and empathy in the room was electric with people connecting, swapping contact details, and openly sharing their sustainability journey.

“What SiLC 2022 highlighted more than ever is the desire to learn and the openness to share, both physically and digitally with hundreds connecting across the digital platform. Friendships that were formed [at the event] will be the foundation of the industry’s sustainable transformation… how cool is that?”

Products of Change will deliver the Sustainability in Licensing Conference again in 2023 when it will return for the Royal Geographical Society in London on Wednesday, 8th November to document the industry’s journey with sustainable development.

If you want to catch the action from SiLC 2022, you can register to view the day’s On Demand content simply by purchasing a SiLC 2022 ticket from: www.sustainabilityinlicensing.com

Helena Mansell-Stopher opens SiLC 2022 with her keynote on driving change together

The Wombles Orinoco and Great Uncle Bulgaria bring Wimbledon to Kensington at SiLC 2022