The Bugg Report Magazine — Edition 46 by thebuggreport

FROM THE EDITOR

2024 TOY HOBBY & LICENSING FAIR Welcome to Edition 46 of The Bugg Report Magazine where we speak with Jazwares SVP of Global Licensing, Sam Ferguson about the continued growth of the Squishmallows brand. This is the final edition of The Bugg Report Magazine for 2023. With the 2024 Toy Hobby & Licensing Fair now being held from 11th — 14th February, we are busy working on our Bumper Print Edition to be available at the fair. If you would like to feature your products in Edition 47 at Toy Fair, please reach out to learn more about what options we have available. As we are sure that you are now aware, the 2024 Toy Hobby & Licensing Fair will have updated opening and closing times for February 2024, which are outlined below:

We take a look at the announcement from MGA Entertainment and Crayola who have announced a multi-year agreement for MGA Entertainment to produce and distribute Crayola-inspired dolls and licensed merchandise globally under its L.O.L. Surprise! Loves brand. Dean Salakas has written a follow-up Retailer's Diary column, which details his Shoppable Mirrors Trial and what he learned from it. Finally we have an update from The Toy Association has highlighted the Trends Driving Holiday Toy Sales.

Sunday, February 11 — 9am to 5pm Monday, February 12 — 9am to 6pm Tuesday, February 13 — 9am to 6pm Wednesday, February 14 — 9am to 1pm Speaking of this edition of The Bugg Report Magazine, first up you will find an update from Alice Sanderson about the upcoming Toy Hobby & Licensing Fair and regular columns from Ian Downes (According to Downsey) and Isabel Wu (The New Age of Digital). We then have an exciting release about Bluey’s World, a groundbreaking immersive experience which will open in August 2024, exclusive to Brisbane, Queensland.

Managing Director — Tony Bugg tony@buggsolutions.com.au Editor & Designer — Matthew Bugg matt@buggsolutions.com.au Published by Bugg Marketing Solutions info@buggsolutions.com.au PO BOX 491, Berwick VIC 3806

EDITION 46 — DECEMBER 2023

CLICK HERE TO SUBSCRIBE TO THE BUGG REPORT

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

INSIDE THIS EDITION WELCOME TO EDITION 46

NEWS UPDATES FROM THE BUGG REPORT

TAKING THE WORLD BY STORM! WE SPEAK WITH SAM FERGUSON, JAZWARES SVP OF GLOBAL LICENSING

2024 AUSTRALIAN TOY HOBBY AND LICENSING FAIR AUSTRALIAN TOY ASSOCIATION

ACCORDING TO DOWNSEY THE CHRISTMAS SEASON IS FAST APPROACHING

THE NEW AGE OF DIGITAL IN THE AGE OF DIGITAL, EVEN CHANGE IS CHANGING

WORLD EXCLUSIVE BRISBANE TO HOST BLUEY’S WORLD IMMERSIVE EXPERIENCE

MGA X CRAYOLA MGA AND CRAYOLA SIGN MULTI-YEAR LICENSING AGREEMENT

FROM KIDULTS TO SUSTAINABILITY HERE ARE THE TRENDS DRIVING HOLIDAY TOY SALES

SHOPPABLE MIRRORS TRIAL — WHAT WE LEARNED... THE RETAILERS DIARY www.buggreport.com.au

NEWS UPDATES FROM THE BUGG REPORT EDITION 47 DECEMBER 2023

GREAT SUPPORT FOR THE 2024 AUSTRALIAN TOY ASSOCIATION AGM Bugg Media attended the recent Australian Toy Associations (ATA) Annual General Meeting (AGM) on the 15th of November. It was encouraging to see that some 25 members attended on the day. This reflects a significant increase in attendance from other years. It should be noted that the excellent work Alice and her team perform, and the time given by the Board of Directors, significantly impacts the development of the toy industry. The ATA has had to deal with many challenges over recent years, however they have reported a strong financial performance for the past year. A successful Toy Hobby & Licensing Fair in March has set the scene for an even better fair in February 2024. As part of the AGM there were elections for the board. Three positions were on offer with five nominations. In a competitive vote, both Chris Loverso and James Thurlow were re-elected and Alan Ngov of Headstart International was appointed as an incoming Director. Given Alan’s passion and drive for the industry he will no doubt be a great asset on the board. The ATA is an important instrument for the industry as it provides direction and stability across the market. We encourage members of the ATA to participate where they can and hopefully make the time to attend next year’s meeting. READ MORE

THE KIDS' CHOICE AWARDS TAKE PLACE AT THE 2024 TOY HOBBY AND LICENSING FAIR This award is open to Toy Fair exhibitors only. Kids Choice Awards submissions must be received by Friday 25th of January. Products then need to be dropped off to the Organisers Office onsite at the Fair on Friday 9th February. To submit an entry visit the ATA website and download the relevant forms. READ MORE

EDITION 46 — DECEMBER 2023

COUNTRY ROAD OPEN NEW SUSTAINABLE FLAGSHIP STORE IN BALLARAT We are passionate about brands and as part of our reporting we regularly highlight great examples of Australian brands that showcase excellence in their field. As part of a visit to the regional city of Ballarat, The Bugg Report was alerted to a brand-new flagship Country Road store located in downtown Ballarat. This great Australian brand founded in 1974 has been delivering contemporary clothing and homewares for almost 50 years! Architecturally designed by Ballarat’s Mick Moloney and located in the Heritage State Savings Bank Building, its focus is sustainability and the use of recycled materials. The store is aesthetically pleasing to the eye and demonstrates a sixstar sustainability rating. As part of a series, The Bugg Report will continue to identify great Australian brands and highlight their attributes and their ability to stand the test of time. READ MORE

2024 RISING STAR AWARD — DEADLINE APPROACHING! The Australian Toy Association wishes to alert the industry to the imminent deadline for nominations for the 2024 Rising Star. This year, the ATA are excited to introduce the new Mentor/Mentee program alongside this esteemed award, and the finalists will automatically be enrolled. The submission deadline is December 15th, 2023. To nominate a deserving individual, whether it's a standout employee or yourself, visit the link below. READ MORE www.buggreport.com.au

FEATURE INTERVIEW SQUISHMALLOWS WITH SAM FERGUSON JAZWARES SVP OF GLOBAL LICENSING

TAKING THE WORLD BY STORM!

WE SPEAK WITH JAZWARES SVP OF GLOBAL LICENSING, SAM FERGUSON ABOUT THE CONTINUED GROWTH OF THE SQUISHMALLOWS BRAND Debuting in 2017, the iconic Squishmallows brand features collectible plush with lovable personalities, a whimsical design, and ultrasoft feel. In more than 55 countries, the strong brand equity and popularity have resulted in multiple line extensions and cross-category collaborations. On the back of an award winning year for Squishmallows, The Bugg Report had the chance to speak with Jazwares SVP of Global Licensing, Sam Ferguson about the continued growth of the Squishmallows brand.

Sam Ferguson Jazwares SVP of Global Licensing

Thanks for speaking to us Sam! Can you explain why Squishmallows is so popular right now? We are fortunate to have such a passionate Squishmallows fan base all around the world making the brand not only a collectible phenomenon, but now an evergreen lifestyle property across many product categories.

Over 2,500 different Squishmallows have been launched so far and in 2022 alone, over 100 million units were sold around the world!

EDITION 46 — DECEMBER 2023

The iconic Squishmallows brand features unique collectible plush with lovable personalities, whimsical designs, and ultrasoft feel which our fans can’t get enough of. Over 2,500 different Squishmallows have been launched so far and in 2022 alone, over 100 million units were sold around the world!

Squishmallows has been on Australian and New Zealand shelves for over four years already and our fan base in the region continues to grow. We are seeing this connection with the brand via the growth of the core toy programme but also the success of our consumer products lines across all key retail accounts.

How are you engaging with fans in-person and online? Social media has been one key to the brand’s growth and we’re very pleased to say that the majority of coverage has been organic as many celebrities such as Kim Kardashian, Addison Rae and Lady Gaga, to name a few, are passionate Squishmallows fans!

We’re also connecting with fans with meaningful fan-ﬁrst experiences, including Squish Tour events this and last year, plus back-to-back viral activations at VidCon Anaheim. In 2022, fans experienced a oneof-a-kind Squishmallows Human Claw Machine, and this year fans got the chance to jump into a giant “Squish Pit,”. Both VidCon live activations were added to the Squishmallows on Roblox video game, bringing these inperson and viral moments to the virtual metaverse. On March 7th this year we held the first ever Squishmallows Day. This socially-driven, fan first campaign was celebrated across the globe with exclusive merch, product reveals, brand news and all day giveaways. CONTINUED NEXT PAGE www.buggreport.com.au

posters and giftware and Zak with lunch and hydration plus Hot Topic with health and beauty. We’ve partnered with Banter to manage the licensing roll out with the programme being spearheaded by John Vasta who has been consulting with the Banter business for a number of years. Can you tell us more about the plans for the Squishmallows brand in 2024 and beyond?

Squishmallows appears to be appealing to a multigenerational fan base. How is that appeal translating into product launches? From our internal sales data, as well as our social media metrics, it’s clear that have a very wide fan base for Squishmallows. This multi-generational appeal has fuelled exciting cross-category collaborations in beauty, apparel, home decor, and much more, resulting in a diverse consumer products program. Within the past year the Squishmallows brand has partnered with contemporary fashion brands including Girl’s Crew for a jewellery co-lab and Nails Inc for polish and nail care. We’re also very excited to announce a street fashion co-lab partnership with PUMA which will launch in the first quarter of 2024. 08

EDITION 46 — DECEMBER 2023

We’re also very excited to announce a street fashion co-lab partnership with PUMA which will launch in the first quarter of 2024. These partnerships are a key to our on-going strategy, given the halo effect they create across the franchise. We’re laser-focused on fan-first product collaborations that celebrate the brand in a meaningful way, but most importantly are authentically Squishmallows. Can you tell us about your growing licensing business in Australia and New Zealand? Our licensed ranges have been on shelves for twelve months now in ANZ and sales are very strong. Key stand outs include our slippers, bags and sleepwear programmes with Caprice and our DTR stationery programme with Kmart. We have some exciting new launches coming for the end of 2023 from Hinkler with publishing (arts and craft), Impact Rock with

In 2024, we have a significant amount of activity planned to continue to grow the Squishmallows brand. We have extensive global marketing campaigns in place, but also localised ANZ activities to strengthen the connection with the existing fan base and continue expanding our reach. Earlier this year we were excited to announce our partnership with the East Side Games Group who is currently developing a Squishmallows mobile game. We have hundreds of new styles launching as well as a wide array of consumer products launches in key markets. We also have new territories coming on board with new CP ranges to launch within the next twelve to eighteen months. These activations will continue to grow the brand into 2025 and way beyond, so watch this space! www.squishmallows.com

www.buggreport.com.au

PROUDLY SUPPLIED BY

UPDATE THE AUSTRALIAN TOY ASSOCIATION BY ALICE SANDERSON — EXECUTIVE MANAGER www.austoy.com.au

REGISTRATION NOW OPEN

Australian Toy Association

2024 AUSTRALIAN TOY HOBBY AND LICENSING FAIR In February, the Australian Toy Association is gearing up for an exciting start to the year with the much-anticipated 2024 Australian Toy Hobby and Licensing Fair, to be held at the renowned Melbourne Convention and Exhibition Centre. HERE ARE THE DETAILS Sunday, February 11 — 9am to 5pm Monday, February 12 — 9am to 6pm Tuesday, February 13 — 9am to 6pm Wednesday, February 14 — 9am to 1pm Across four-action packed days more than 6,000 retailers, exhibitors, media and buyers will come together to buy, sell, witness new toy trends and network amidst a carnivallike atmosphere of colour and movement. Over 180 exhibitors are set to showcase their products to the trade and these include major players like LEGO Australia, Hasbro Pacific, Spin Master, Moose and so many more major and independent wholesalers, importers, manufacturers and brand owners of toys, hobby, nursery and everything in between. The excitement extends beyond the exhibit halls, as the venue concourse comes alive with activations from the toy industry's licensing partners, captivating both delegates and the general public throughout the event. As the doors close on the first day, the fun and excitement will continue on as we host the annual industry Gala Dinner taking place at Crown Palladium Ballroom from 7pm. 12

EDITION 46 — DECEMBER 2023

With over 600 guests expected to attend, the night celebrates the people, products and licenses that have made outstanding accomplishments in the industry as well as those products that are expected to wow consumers in 2024. It promises to be an amazing not to be missed networking evening for the industry. Day two opens the Fair to the media, attracting coverage from major channels, print media, and influencers eager to explore what's hot and new. That evening the ATA will host our 25 Year Club Function that recognises individuals who have worked in the industry for 25 years or more. Always a wonderful event that brings together the past and present industry representatives who make the industry the vibrant community that it is today. Alongside the Fair we also hold informative information sessions at the ATA Learning hub, this year will see the 2nd Women in Toys event on the Tuesday afternoon and of course Variety will attend on the Wednesday afternoon to collect product generously donated by Fair exhibitors, that will be passed onto children and families who are doing it tough. The 2024 Toy Hobby and Licensing Fair is set to be another fantastic event for the industry and we welcome all retailers of children’s products to attend. For more information, be sure to check out the ATA website

COLUMN ACCORDING TO DOWNSEY EDITION 20 — BY IAN DOWNES WWW.TWITTER.COM/STARTLICENSING

Ian Downes Start Licensing Ltd

According to Downsey

THE CHRISTMAS SEASON IS FAST APPROACHING The fast approaching Christmas season is dominating thinking in UK Licensing Industry and retail minds at the moment. Retailers in particular are hoping that Christmas will bring them the gift of sales this year, providing a welcome boost to them in what are still challenging times. In general terms, rights holders have got better at developing design resources that are fit for purpose on a seasonal and thematic basis. Christmas is a great example of this with brands developing style guides suited to the occasion and focussed on core areas like apparel. New traditions have emerged around Christmas product-wise, which have been a boost for licensing such as Christmas jumpers and t-shirts as Licensing plays a key role in these categories. It is interesting to see specific properties emerging from the pack at this time of year. At the moment a property that seems to have had a great Christmas sell-in is The Grinch. Of course, the acid test of success is that product sells out and sells through. 14

EDITION 46 — DECEMBER 2023

Classic brands like The Snowman and The Elf on the Shelf naturally make strong showings at this time of year; but they are subject to more competition as other brands up their Christmas game. It is also a strong season for food and drink brands licensing-wise, particularly in the composite gifting category where brands such as Guinness, Jack Daniel's and Marmite do well. This category is managed by specialist suppliers like Beams and Kimm & Miller, who are experts at blending brands with gifting. This category allows brand owners to extend their reach beyond their everyday distribution and opens up opportunities for product sampling. Christmas is also a strong selling period for publishers with traditional formats like annuals coming to the fore. Annuals are a category where licensed brands play a key role and it is not uncommon to see Free standing display units (FSDUs) in retail dominated by licensed titles. Beyond product this is also the time of the year where many companies, and retailers in

particular, release their Christmas themed advertising campaigns. These days these campaigns go beyond just TV and will include other elements like social media. Advertisers use these campaigns as launchpads for their ranges but they have also become a focal point for PR campaigns and give brands fresh momentum. Licensing has played a role in some of these campaigns over the years providing themes and content. A good example from this year is clothing brand Barbour working with Aardman Animations to create a bespoke advertising campaign that features Shaun the Sheep. Aardman created new content for Barbour which focusses on the fact that Barbour jackets can have a long life and are durable; the Barbour brand and the messaging fitted perfectly with Shaun the Sheep, which has helped deliver a very engaging campaign. A great example of licensing helping to deliver a campaign message clearly in a cluttered market. Early signs are that licensing should have a good Christmas — it is a present I think the whole industry will welcome!

www.buggreport.com.au

COLUMN THE NEW AGE OF DIGITAL EDITION 9 — BY ISABEL WU WWW.METAMANAGEMENT.NET

T he New Age of D igital

IN THE AGE OF DIGITAL, EVEN CHANGE IS CHANGING With all the talk of digital transformations, the inevitability of AI, and adopting new ways of working, increasingly another discussion must be had: change management. At one level, “change management” is unnoteworthy. It is what it says: organisations change, managers deal with it. When management as a discipline was established, organisational psychologists, notably Kurt Lewin (1890 – 1947) an MIT professor considered the founding father of organisational development, provided evidence that workplace structures and processes had a direct effect on human behaviour (think Elton Mayo’s Hawthorne experiments between 1924 and 1932). Maintaining a good workforce meant disrupting people as little as possible; instead, management practice championed continuous improvement as a way to achieve change without change. There was no “change management” because managers managed for stability. After two decades of accelerating global change since the turn of the century, change management has emerged into a distinct discipline now worth US$2 billion. Its projected CAGR over the next two years is 14.93%, and is anticipated to grow in the following ten years to US$4.8 billion. However, it is a field of expertise that many organisations still do not realise exists. 16

EDITION 46 — DECEMBER 2023

Change managers follow a formalised process to steer people in an organisation through whatever transformation or upgrade is taking place. It deals with both the operational matters of change including resourcing and communications, and the psychosocial concerns including change readiness, change resistance and stakeholder impacts. It simultaneously front-runs the project to ready the business, and backs up the transition to steady the change as it establishes itself as the organisation’s business-as-usual. With the expansion of digitisation, change management is no longer just the concern of government and big business. For four key reasons, change management is now needed by any organisation contemplating change beyond the day-to-day operation: 1. Where change was once mainly procedure-by-procedure, most change today includes some form of digital which tends to impact more of the business in more ways at the same time. 2. Change is constant. A change requirement can be out of date even before the change effort is complete. 3. Changes do not happen one at a time. There are multiple drivers of change from within and outside the organisation that need to be considered, if not accommodated, at once. 4. The final key reason, and the most significant, is that the structure and purpose of change is no longer to return to stasis. Where once stability was the absence of change, now change capability is the source of stability.

Whoever’s number you see on the failure rate of change and transformation projects – 60% (PMI), 80% (Gartner), 97% (pwc), >50% (HBR) – the chilling prospect for any organisation preparing for major change is that the initiative will cost more, run later and even then, not hit all its objectives. Change management does not guarantee a project will run exactly as the plan on paper says it will, but is there to provide the data on what you need to do to take out risks and help you to implement the mitigation actions. Unfortunately, not knowing that change management exists, many leaders are still taking their teams into major change without the scaffolding that change management provides. In a Making Change Work survey, IBM found that organisations prioritising change management had at least 56% more projects that resulted in complete success. A benchmarking study by Prosci showed a 7X project success rate when change management was integrated into the change process.

In the 1980s, companies realised the importance of a qualified finance function to the health and sustainability of their business. In the 1990s, they brought on qualified professionals in human resources for the same reason. As the 2020s roll on, and organisational rethink of operating models, ways of working, systems and technology is needed more often, the newer concern of change management is there to help them through the age-old issue of people’s fear of and capabilities for change.

www.buggreport.com.au

PRESS RELEASE BBC STUDIOS WORLD EXCLUSIVE BRISBANE TO HOST BLUEY’S WORLD

World Exclusive

OPENING AUGUST 2024 • Brand new Bluey immersive experience is coming to Brisbane, capital of Queensland, Australia, in August 2024. • Housed in the 4,000 square metre ‘Northshore Pavilion’, Bluey’s World will be a unique experience celebrating the beloved hit TV show Bluey. This is Bluey – for real life. • Fans from around the world will be delighted and captivated as they are invited to step into Bluey’s world.

BRISBANE TO HOST BLUEY’S WORLD IMMERSIVE EXPERIENCE Bluey’s World, a ground-breaking immersive experience will open in August 2024, exclusive to Brisbane, Queensland. Visitors will journey through a recreation of Bluey’s renowned home via impressive (for real) life-size sets, interactive play and a mesmerising soundscape, inspired by much-loved Bluey episodes. From Bluey and Bingo’s bedroom to the living room and kitchen, fans will also get to play beneath the shady branches of the Poinciana tree in Bluey’s backyard. There will be so much to love about this one-of-a-kind experience, including the option to book a birthday party at the coolest party venue! Visitors can also explore and enjoy a cafe, gift shop and playground following their interactive guided experience. Housed in its own purpose-built, state-of-the-art, 4000 square metre venue - ‘Northshore Pavilion’ - Bluey’s World will be located in Brisbane’s newest arts and entertainment precinct, Northshore. 18

EDITION 46 — DECEMBER 2023

Annastacia Palaszczuk, Queensland Premier said “Our Government has backed Bluey from the very beginning. Brisbane is at Bluey’s core and now the show is a global sensation, we want to invite fans from around the world to come and experience Bluey’s home.

“This is a huge win for fans and

“Queensland is a world-class place to live and play and I truly believe that is a big part of why Bluey has captured fans around the world.”

Adrian Schrinner, Lord Mayor of

Stirling Hinchliffe, Queensland Tourism Minister said Bluey was a Queensland icon.

“Bluey is a homegrown Brisbane

“Brisbane and our great Queensland lifestyle are the obvious choice for the world debut of Bluey’s World. The world-famous Brisbane-based Heeler family has taken global TV and streaming by storm with many embedded animated references in the show to the Queensland capital’s landmarks and lifestyle. “Bluey’s World is where Australian and overseas families can connect with their favourite Heeler household and explore Queensland’s worldclass visitor experiences.

tipped to be a huge success for Queensland tourism operators too with Tourism and Events Queensland predicting Bluey’s World will generate up to $18 million in visitor spending.”

Brisbane said the exclusive Bluey’s World experience pays homage to the city’s most beloved export.

superstar who has captured the imagination of families worldwide. With an audience that spans more than 60 countries, Bluey's World is a unique and significant tourism offering that will draw people to our city from around the globe while giving residents more to see and do here in Brisbane. “We’re proud to support this worldfirst event, which will create local jobs and inject millions into our economy, with our restaurants, hotels and tourism experiences benefiting from the influx of excited Bluey fans.”

Fiona Lang, General Manager, BBC

play, with a touch of theatre — get

Studios ANZ said: “BBC Studios is

ready to step inside Bluey’s home,

thrilled to announce the launch of

and immerse yourself in the joy of

Bluey’s World, a groundbreaking

this beloved TV show.”

immersive experience that will transport fans into the heart of Bluey. “Bluey's World is not just an experience; it's a celebration of the heartwarming moments that make Bluey so authentically Australian and that bring to life the joyful simplicity that can be found in families around the world. Join us on this one-of-akind adventure, where the world of Bluey comes to life in real life.” Andrew Kay, Producer, HVK Productions said: “Set to open in August 2024, Bluey’s World promises to delight audiences of all ages. From life size sets and interactive

Created by Joe Brumm, Bluey is produced by Emmy® Award-winning Ludo Studio for ABC KIDS and cocommissioned by ABC Children’s and BBC Studios Kids & Family. A global phenomenon, the show follows the adventures of Bluey - a loveable, inexhaustible Blue Heeler dog - who lives with her Mum, Dad and her little sister Bingo. Bluey uses her limitless energy to play games that unfold in unpredictable and hilarious ways bringing her family and the whole neighbourhood into her world of fun. The show is now broadcasting and streaming in more than 60 countries and is beloved the world over by both parents and kids

for its heart, humour and relatable family moments. Ludo Studio said: “Ludo Studio are excited to work with the talented teams at HVK Productions and BBC studios to create an extraordinary experience which will give fans a unique opportunity to explore Bluey's house for real life in her hometown of Brisbane.” Bluey’s World is produced by BBC Studios and HVK Productions, and supported by the Queensland Government through Tourism and Events Queensland, and Brisbane City Council via Brisbane Economic Development Agency, and features on the It’s Live! in Queensland events calendar. www.blueysworld.com www.buggreport.com.au

PRESS RELEASE MGA X CRAYOLA MULTI-YEAR LICENSING AGREEMENT TOYS AND LICENSED PRODUCTS

MGA x Crayola MGA ENTERTAINMENT AND CRAYOLA SIGN MULTI-YEAR LICENSING AGREEMENT FOR PRODUCTION AND DISTRIBUTION OF TOYS AND LICENSED PRODUCTS UNDER THE L.O.L. SURPRISE!™ BRAND MGA Entertainment (MGA) and

MGA Entertainment and Crayola also

With this new Crayola partnership,

Crayola have announced a multi-year

will be sub-licensing the designs of

MGA Entertainment is proud to bring

agreement for MGA Entertainment

the Crayola-themed doll line into a

to produce and distribute Crayola-

full cross-category program including

L.O.L. Surprise! Loves Crayola to

inspired dolls and licensed

children’s apparel, accessories, home,

merchandise globally under its L.O.L.

beauty, and party available beginning

Surprise! Loves brand. Terms of the

Spring 2024 across retail channels.

deal are not disclosed. “We are thrilled to partner with

kids and collectors with one of the most creative brands in the world. In its first seven years, the L.O.L. Surprise! Loves brand has embodied hundreds of unique characters that express different trends, styles, and

“We are excited to bring two

MGA on the L.O.L Surprise! Loves

iconic brands together that kids

Crayola product assortment

and parents love,” said Isaac

that colorfully encourages self-

Larian, Founder and CEO, MGA

expression,” said Rich Wuerthele,

Entertainment. “The Crayola

Crayola President & CEO. “The

brand challenged the L.O.L.

integration of iconic Crayola colors

Surprise! team to design new toys

with L.O.L. Surprise dolls is sure

that would engage kids’ creativity

to inspire creativity and spark

expansion of the L.O.L. Surprise! Loves

and provide a new colorful way to

imagination at playtime.”

brand in a new and colorful way.

play with the dolls.” Beginning early 2024, MGA will create a line of L.O.L Surprise!™ Loves Crayola™ toys that will combine outrageous fun, surprise, and creative expression with kids’ favorite dolls themed around iconic Crayola color names. The L.O.L. Surprise! ball collection will feature nine unique Crayola color-themed dolls, and the capsule collection will feature eight unique Crayola color-themed dolls including crayons to design the dolls’ fashionable looks. 20

EDITION 46 — DECEMBER 2023

personalities in genuine, cute, and surprising ways. The brand combines all of this with globally recognized and loved brands to create a whole new way to collect and play. This new line of toys with Crayola continues the

ICONIC DC SUPERHEROES EXQUISITE 3D CAR EMBLEMS WE AUSTRALIANS LOVE OUR SUPERHEROES Especially classic superheroes like The Batman and The Flash. Fans are always keen for new ways to celebrate them. WE ALSO LOVE OUR CARS Australia has around 21 million registered vehicles and most of them are passenger vehicles. That means most of your customers drive, and lots of them are DC fans. FAN EMBLEMS ARE DESIGNED TO SUIT ALL VEHICLES But fans stick them to all sorts of things - laptops, tablet covers, gaming consoles, toolboxes, wheel toys, luggage, furniture, windows, doors, glass, metal, etc. AVAILABLE IN VARIOUS PRICE POINTS They’re great impulse buys, ideal for counter displays. PROUDLY AUSTRALIAN MADE AND OWNED A popular gift and souvenir idea. They’re lightweight and compact, perfect for mailing. AFL FAN EMBLEMS SELL EVERYWHERE If your customers drive, stock DC Fan Emblems. www.fanemblems.com

RETAIL AND PROMOTIONAL ENQUIRIES: Mark Weavell • P: (03) 9721 4200 • E: sales@fanemblems.com All DC characters and elements © & ™ DC Comics. WB SHIELD: © & ™ WBEI. (s23)

UPDATE THE TOY ASSOCIATION™ JENNIFER LYNCH WWW.TOYASSOCIATION.ORG

From Kidults to Sustainability HERE ARE THE TRENDS DRIVING HOLIDAY TOY SALES

The Toy Association™ works throughout the year to identify the toy trends that influence shoppers, meeting with toymakers of all sizes to track what’s new and next, and gathering insights from adjacent industries impacting toys like youth entertainment, fashion, technology, and others. This year, this work culminated in the unveiling of the top toy trends of 2023 in March followed by a Q4 trends update on the hottest trends of the holiday season presented during Toy Fair® 2023.

“While families may be watching their budgets amid

The Toy Association’s holiday trends report was supported by new research that gauged 1,000 U.S. parents on their attitudes toward toys and play and the factors influencing their toy purchases.

ensure hours of extended playtime. In fact, adults

EDITION 46 — DECEMBER 2023

a continually uncertain economy in the U.S, toys and play will still be prioritized this holiday season,” said Adrienne Appell, executive vice president of marketing communications at The Toy Association™. “Parents want bang for their buck and toymakers are answering their calls with budget-friendly options as well as feature-rich products that will want to get in on the fun, too, with 89% reporting they’ll be toy shopping for themselves and the other adults in their lives this holiday.”

HERE ARE THE KEY TOY TRENDS TO WATCH THIS HOLIDAY SEASON Cool to be a Kidult: Adults, not just kids, are adding toys to their wish lists, with 89% of parents toy shopping for grownups this holiday. This trend is also creating new opportunities for toymakers catering to both ends of the "kidult" age spectrum, from tweens to grandparents. Conscientious Consumers: While children often seek out toys that reflect their identities, parents now recognize the importance of fostering diversity and inclusivity in their children's toy collections. Sustainability is also a priority, with 45% of parents under 40 prioritizing eco-friendly considerations when making buying decisions.

Playing it Smart: Acknowledging the crucial role of play in kids' learning and development, 81% of parents are highly likely to ensure they purchase at least one toy with educational value. Whether coding their own robot, engaging in role play in the kitchen, or taking on caregiver roles, children have numerous opportunities to learn through play. Pop Culture at Play: Toys continue to have a lasting impact on pop culture and vice versa, bridging generations and evoking feelings of nostalgia. Against the backdrop of a successful year for blockbuster toy-related movies, 38% of parents express interest in purchasing toys inspired by movies and popular entertainment franchises. Anime, 90s/Y2K, and nostalgic toys are currently enjoying a significant moment. The Toy Association’s full Q4 Toy Trends report and additional information on industry trends can be viewed here. www.buggreport.com.au

FEATURE ARTICLE DEAN SALAKAS — CHIEF PARTY DUDE THE RETAILERS DIARY EDITION 3

Shoppable Mirrors Trial - W hat we Learned... The Party People have the largest range of party supplies, theme decorations, balloons and costumes in Australia. Dean Salakas (Chief Party Dude) writes a regular column for The Toy Universe and is passionate about parties, retail, fishing and sharing his business hacks with others. This is the follow-up column to Edition 2 of The Retailers Diary featured in Edition 6 of The Toy Universe Magazine.

PEOPLE BEHAVIOUR IS NOT WHAT WE THINK... On day 1, We had a great looking professional pop-up site with the mirror facing outwards for people to see as they walked past. We had an engaging initial screen, we had pull up banners and the screen said “try for free”. Customers simply didn’t see it. Hardly anyone used the mirror and in fact people walked past like they didn’t even see it. People coming to meet me even walked past it. Kids did seem to notice while walking past, but their parents were oblivious. It was almost like people were in a trance and conditioned not to see our pop-up and looking straight through us. Maybe it was because the screens looked like shopping centre screens, or maybe because it looked like we were selling something, I am not sure. The same issue then persisted on day 2, so on day 3 we made many changes to the look of the pop-up and the initial screen. We focused on making the site less professional and more fun and engaging with lots of Halloween decorations, sample costumes and balloons. The difference was instant and we had many people seeing us as they walked past and we caught their attention drawing them in to try our Augmented Reality Try On.

EDITION 46 — DECEMBER 2023

THE USER EXPERIENCE Initially following website methodologies, we setup how the mirror was to be used in a way that seemed simple and intuitive for us. How wrong we were. People were eager to use the mirror but struggled to use it. I sat in a coffee shop every second day and worked from there as my office and watched interaction to provide feedback to the dev team and we rolled out 5 different deployments which reworked the customer experience. The use of gestures to select items and buttons on a shoppable mirror is foreign to many people. Selecting items and clicking buttons might seem intuitive on a website but using gestures on a device like the mirror requires a different way of thinking about User Experience.

The use of gestures helps the mirror stand out as a fun and novel experience for people but like all new experiences, we had to guide the user because they were learning and exploring the idea of using gestures to select buttons on the fly. The number of things we learned will take longer than we have in this story, but just as an example we had to locate buttons in areas away from the middle of the screen where your arm rests by your side because that is interpreted as resting on a button to select it. Certainly we had to start from scratch, watch users, implement changes and repeat to refine the user experience for what is a new way to interact with a screen for most people that don’t have a Nintendo Wii at home.

PARTNERING AND THE POWER OF COLLABORATION With the right partners, anything is possible. The project would have cost over $150k but ended up costing me nothing. I had to find what the partners wanted from the project, and try to form a mutually beneficial arrangement. Some wanted a guarantee of future incomes because they believed in the project, some wanted publicity and some wanted simply to be involved because they wanted to be part of something fun, cool and what could be the next new retail channel. Stockinstore was instrumental in providing us with inventory into the mirror, click and collect management & ship from store management. They also went above and beyond to provide advice and assistance with other areas. Shopexp provided technical expertise and hardware enabling Augmented Reality to be used as a try on feature. Starshipit provided us access to multiple shipping providers especially 2 hour delivery with Uber. Uber was also instrumental in providing a great service so people could order on the mirror and get it delivered before they returned from the mall. OTHER LEARNINGS

KEY BENEFITS

The placement of the mirror in the shopping centre was critical and we really didn’t get that right.

We only generated a handful of transactions on the mirror, however we generated 20-40 in-store sales per day as a direct result of the mirror. We tracked the sales with a 10% discount coupon to be used at the store. This was a blessing and a curse. A blessing because of the sales and a curse because it deterred transactions on the mirror.

1. Foot traffic was not the highest where we were located. 2. Internet / Wifi was poor in the area hampering users ability to checkout and users were forced to “hot spot” to complete a transaction and so walking 200 meters to the store proved easier. Having at least all 4g networks work at the location of the mirror is critical to transactions occurring before installation. 3. Proximity to a store will impact if the mirrors purpose is for driving in-store traffic or generating direct conversions. 4. Natural lighting, lights from other stores and reflective elements make it hard for customers to use the mirror and see their reflection in the glare. 5. The say never have a list with an even number so just adding this based on that advice.

The exercise generated a huge amount of awareness for The Party People store located in a tucked away corner of Campbelltown, with minimal passing foot traffic. More importantly it provided the perception to customers that The Party People is the coolest, most fun and best party store in the area which is highly competitive. SUMMARY In the planning, locating the mirrors near one of our stores seemed like a great idea because it provided for easier management and more instore sales but this was to the detriment of sales on the mirror itself.

It was a great result to generate so many sales but to prove the concept of a shoppable mirror as a stand alone store, it was not ideal and was certainly not helped by poor 4g and WIFI in that location. When we started this exercise we knew that at worst it was going to be a great marketing exercise, and at best we would be rolling in extra sales. All up it is an amazing result for the business with a huge amounts of customer awareness and sales generated and exceeding our expectations. WHATS NEXT Since starting this project I have been contacted by a number of parties to explore opportunities; • Retail property groups • Retailers in fashion, toys and beauty about using the technology in-store • This includes pureplay interested in doing pop ups • Execution on hoardings before stores open • Use in shop windows • Use as a shoppable screen on front of the store • Use in stores change rooms to help people find more styles and offer somewhat endless isle capabilities • Tech providers to further expand the project including one company who can integrate us to make a vending machine The project team remains together and is working towards our next execution on hopefully one or multiple of the above. Additionally The Party People is looking at the use of the mirrors for more executions next Halloween so stay tuned! www.ThePartyPeople.com.au

www.buggreport.com.au

ian Football League

Few sports have a history as unique, rich and colourful as Australian Football. The fans identify with the heritage of the game. It is the history and its roots which fuels their passion.

RETRO LOGO DECAL

AUSTRALIANS SURE DO LOVE AUSSIE RULES Over 8.9 million people support an AFL club, an astounding 35% of our entire population. (Roy Morgan research July 26, 2022)

WE ALSO LOVE OUR CARS Australia has around 21 million registered vehicles Most of them are passenger vehicles. That means most of your customers drive, and over a third of them are AFL fans. FAN EMBLEMS ARE DESIGNED TO SUIT ALL VEHICLES But fans stick them to all sorts of things - laptops, tablet covers, gaming consoles, toolboxes, wheel toys, luggage, furniture, windows, doors, glass, metal, etc. AVAILABLE IN VARIOUS PRICE POINTS They’re great impulse buys, ideal for counter displays.

PEEL-N-STICK TO CAR

S, CARAVANS, BOATS,

LAPTOPS, MOST SMOO TH

SURFACES

PROUDLY AUSTRALIAN MADE AND OWNED A popular gift and souvenir idea. They’re lightweight and compact, perfect for mailing. AFL FAN EMBLEMS SELL EVERYWHERE If your customers drive, stock AFL Fan Emblems. www.fanemblems.com

RETAIL AND PROMOTIONAL ENQUIRIES: Mark Weavell • P: (03) 9721 4200 • E: sales@fanemblems.com