The Bugg Report Magazine - Edition 10

buggtoysandlicensing.com Edition Editio i n 100

TM & © Cartoon Network. (s14)

+ Cartoon Network Feature Interview + Disney & Marvel Feature Interviews + Sanrio Feature Interview

Hong Kon Licensing g Sh SPECIAL E ow DITION

From the Editor Asia represents the singular biggest opportunity for growth on the planet.

With billions of people and now 230 million middle class Chinese people with meaningful disposable income it is a market that none of us can under estimate.

I have witnessed the year on year growth of the HKLS over the past 3 years. From a very small show with a very small footprint in 2010 to the Grand Hall show of 2013, the licensing story out of Asia has continued to gather momentum.

The 2013 version of the licensing show is now offering a powerful conferencing forum attracting in excess of 1,000 participants, and speakers from global organisations such as: Coca Cola, Warner Brothers, Saban Brands, Mind Candy, Sanrio and Ferrari.

It would appear that brands and licensing are becoming more important and more widely understood by the Asian markets as witnessed by the growth of exhibitors and attendance of the fair.

Along with the huge footprint of the Disney Corporation in Asia including their theme park and the growth of Cartoon Network as part of the Turner Corporation with their new theme park in Thailand licensing is buzzing in the region.

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Sanrio is another powerful organisation, with their signature brands – Hello Kitty and Mr. Men who command huge consumer awareness and following.

It is also interesting to note that the LIMA organisation continues to strengthen it’s ties with the Asian markets with high profile sponsorship arrangements with both the Shanghai licensing show and the Hong Kong Licensing show. LIMA will be hosting the first Asian licensing awards this year at the 2013 show.

Asia and South East Asia comprises of a wide variety of countries including: China, Thailand, Indonesia, Malaysia, Singapore, Cambodia, Vietnam, India, Korea, Laos, The Philippines and Burma, amongst others. They are home to millions of people from diverse backgrounds, however they are all consumers and more and more of them are seeking to associate themselves with brands.

We hope you enjoy our Hong Kong Licensing Show edition of Bugg Toys and Licensing.

Bugg Toys & Licensing has been compiled as a guide to Toys and Licensing. The views and opinions provided are based upon the views and opinions of its writers.

In no way is Bugg Toys & Licensing a factual guide to Toys and Licensing and does not take responsibility for how the information provided is used by its consumers.

Bugg Toys & Licensing PO BOX 491 Berwick, VIC 3806 Australia P: +61 3 9769 3963 E: info@buggtoysandlicensing.com

Contents

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Cartoon Network feature interview

05

Disney feature interview

08

Marvel feature interview

10

Sanrio feature interview

14

Uglydoll feature interview

18

2013 – year in review

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Cartoon Network in Australia has recently launched a toy line for Regular Show

Driving Cartoon Network’s franchises in Asia Pacific The emergence of the Asian markets in terms of licensing and associated consumer products continues to gather momentum. Bugg Toys and Licensing recently caught up with Melissa Tinker, Vice President of Cartoon Network Enterprises, based in Hong Kong.

The Cartoon Network business in Asia Pacific is currently experiencing significant growth and Melissa is charged with the task of leading licensing and consumer products, together with themed entertainment and destinations, across the region.

Have you found that your former roles with Chorion and Haven in Australia have helped you better understand the complex market place in Asia?

Those roles have provided me with wonderful opportunities, experience and great insight into the business overall. I have been incredibly fortunate to work with some of the best people in the business, and their guidance and knowledge has been invaluable to me.

Actually my first role in licensing was Product Manager, Asia Pacific, for Harley-Davidson.

This is where I initially gained insight into Asia and developed a passion for the region – home to some of the most dynamic markets.

It’s fast-paced and always evolving, and right now I couldn’t envisage myself being anywhere else. It’s a great part of the world.

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On balance there seems to be a growing understanding of licensing and brand building in Asia. What are your two biggest markets in the region? What are your most prominent brands in these markets?

For Cartoon Network, our largest markets currently fall within Southeast Asia Pacific and South Asia. Thailand, Australia, Philippines, Malaysia, Indonesia and India all play a big part in the consumer products business for us.

Licensing in the majority of Asian markets is still nascent by comparison to the West, with Asia only representing approximately 5% of the global market. It is the growth rates, however, that are most interesting. Global growth for the industry in 2012 was 1.6%, whereas the industry in Asia grew 6.5%.

I expect this trend to continue as more international licensors focus on the Asian region and the industry further develops.

Even now it’s a completely different scenario to 10 years ago, when there were far less international brands in the region.

In particular, Thailand has embraced Ben 10 like no other market and the franchise continues to build year-on-year for us. This market is also exceptionally strong by way of the wholesaler network, providing us with maximum distribution.

Cartoon Network Enterprises’ business in the Philippines and Taiwan has seen outstanding growth especially with the global comedy hit, Adventure Time, which recently scooped another award for Best International Children’s Program at the BAFTA’s. It’s Cartoon Network’s #1 show for Boys 6–11 primetime in Asia, but girls also love the show.

In Q2 2013, we organised the ‘Where in the Ooo are you?’ Adventure Time promotional campaign in Manila. More than 4,000 kids and families attended, breaking our record for an on-the-ground event in the Philippines. Our retail partners completely sold out their stock and even had to call for additional merchandise.

Network first aired in Asia in 1994, we’ve always had a solid commitment to producing local content and are constantly on the lookout for great ideas and concepts.

As you build merchandising programs across Asia are you fortunate enough to have global merchandise deals, which allow you to push into the market with greater impact?

How are your three flagship comedy shows: Adventure Time, Regular Show and The Amazing World of Gumball tracking in Asia? Do you have placement for merchandise in key retail space?

Absolutely, and this is particularly true in the toy category. Like any licensor we are reliant on our toy partners to capture the true DNA of the characters and story lines as well as bringing innovation to the product. In Asia, we are also reliant on the strength of their local distributors and pricing structure relative to our markets. Without this it is almost impossible to gain retail support and can prove extremely challenging.

Working with great partners such as Bandai for Ben 10 and Jazwares for Adventure Time and Regular Show who have a solid understanding of international markets and experienced local distributors makes it a lot easier indeed.

Does the powerful broadcasting platform of Turner Broadcasting, which includes CNN, Boomerang, Cartoon Network, TCM, truTV, QTV, MONDOTV, Cartoonito and Tabi Channel, assist you in developing your brands more effectively in the region?

The power of the network really does bring with it a lot of advantages and leverage for our licensing programs. We are able to invest in, develop and tailor campaigns for our retailers and partners to support their in-store investment and drive this across multiple platforms, on-air, on-line and OTG – thereby directly reaching millions of viewers and fans.

It is an incredibly powerful and valuable tool to support and drive retail initiatives.

We recently saw the announcement of a new TV series Exchange Student Zero, developed out of Asia Pacific for a global audience. What sort of commitment does CN have to producing local content?

The newly-commissioned Exchange Student Zero series and the Monster Beach TV special are great examples of how the network is harnessing the creativity and expertise from around Asia Pacific. But this is not a new development. Since Cartoon

What we’ll see increasingly more of is Cartoon Network’s development of local content that travels beyond markets like Australia, India and Malaysia to reach a global audience.

All our new shows are performing well across the Asia Pacific region, and have seen strong growth in key markets.

For example, Adventure Time reached more than 45 million viewers on Cartoon Network across the region in the latest quarter. That’s more than double the same time in the prior year.1 The Amazing World of Gumball continues to pick up awards so it’s a great time for our comedy portfolio.

Off-air, this is going to be another robust year for us at retail. For example, we have great partners such as the SM Store’s Character Shop in Manila and we’re expecting to build on this success for 2014 with Adventure Time in the Philippines. The shop has to be one of the best licensed destinations in Asia.

Cool new Adventure Time products include a Jake plush, a Lumpy Space Princess headset and a Finn phone cover

Another exciting development for us is a partnership with Toys”R”Us starting in Q2 and cover multiple markets including Singapore, Thailand, Hong Kong and Malaysia.

In Australia it also full steam ahead with a multi-tier retail program and new partners launching every quarter. Our toy program is building with Toys”R”Us who have been a supporter from day one, EB Games and Target and you’ll find our apparel at Jay Jays through to Big W catering to kids and young adults.

Cartoon Network has recently launched our Regular Show toy line in Australia – also with Toys”R”Us – backed by end caps in store, a dedicated TVC, online and catalogue support.

Together with home entertainment across all tiers, we are looking forward to expanding our licensee and retailer base this year.

Finally, amongst all of this, we are also launching our The Amazing World of Gumball line in Q4 across Asia Pacific.

We’re in the middle of finalizing our retail and partner plans as we speak, and we’ll be able to share much more on this soon!

1 Source: Turner Research (8 Peoplemeter): Cume Reach for Total Individuals (Q3, 2013 vs. Q3, 2012).

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TM & © 2014 Turner Broadcasting System Europe Limited & Cartoon Network

A Ben 10 retail corner

I notice that you are opening a waterpark called Cartoon Network Amazone. How does this figure in your strategy across the region?

Cartoon Network Amazone furthers Cartoon Network’s promise in Asia Pacific to animate kids’ lives via multiple platforms. The brand is available where kids are, be it via apps, online, TV or play station. Now, through a large-scale themed destination, kids and families will be able to star in their own adventures inside this vibrant world.

Cartoon Network Amazone in Thailand is on target for a mid-2014 opening. Our first ever waterpark currently has a team of 150 comprising architects, engineers, designers, ride manufacturers and contractors.

It’s a big project for Cartoon Network globally and we can’t wait for the opening.

All the slides are already constructed and assembled, and we are currently testing and commissioning. Once this phase is complete, we then complete our dressing and theming of the park and move to soft launch phase before a grand opening. If we reach our estimate of 1 million visitors in the first 12 months, it will place us amongst the top 20 water parks in the world.

A dedicated Ben 10: Omniverse area is just one of 10 themed zones. Fans will be able to fully immerse themselves in the brand, interacting with their favourite characters and content. This unique guest experience will be very much like our channel coming to life across 14 acres in one of the most idyllic spots in the world.

Not unlike the growth in the licensing industry, the waterpark industry in Asia is also looking very healthy with 109 million visitors in 2012, compared to 131 million in the US.

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With growing middle classes and higher incomes – as well as a high demand for entertainment and leisure – it is the perfect time for us to enter this industry. This is the first of many themed destinations for Cartoon Network, with discussions already underway on further projects.

Tying into these new episodes will be four themes leading up to the franchise’s landmark 10th anniversary of in 2016.

These will be supported by creative assets as an addition to our core Omniverse style guide, allowing us seasonal refreshes at retail across all categories and led by Bandai’s new line for release in Fall 2014.

Ben 10 laid the foundation for our licensing business and continues to be a top network priority for us

What are the key trends in licensing emerging from the region?

Does Ben 10 still remain the cornerstone brand for Cartoon Network in 2014?

Ben 10 definitely laid the foundation for our licensing business and continues to be a top network priority for us. Given the franchise has delivered us globally over US$6 billion at retail and our fans have created over 12 million games of their own, we are committed to continue the growth.

Here in Asia we have key retail placement across the region from Parksons in Malaysia, SM and Robinsons in the Philippines, Takashimaya and BHG in Singapore, Toys”R”Us (region wide), Toy Kingdom and Kidzstation and an established consumer products and promotional program in India.

In 2014, Cartoon Network will premiere new episodes and on-air promotions of the latest Ben 10: Omniverse series, in conjunction with OTG events and consumer promotions across the region.

Co-branding is particularly popular in North Asia, together with exhibition-led events. In fact we will soon launch our first Adventure Time exhibition in Taiwan. Fashion is also a key driver across the region as a whole and any soft-lines program should reflect that, and adapt to these trends to remain relevant.

Is there anything specific, which unites consumers in Asia given the diversity of language and culture?

The region is made up of very distinct countries with different cultures and beliefs – but actually we’re more alike than we are different. Kids, wherever they are from and whatever their upbringing, just love to laugh!

All of Cartoon Network content has to adhere to a certain ideal. For example, its humour is never mean-spirited and has relatable scenarios with layered comedy and character-driven storylines. That’s why series like Adventure Time, Ben 10: Omniverse or The Amazing World of Gumball are so popular – from Seoul to Singapore and Mumbai to Manila.

Bugg Toys and Licensing catches up with Mark Coleman – GM Retail and Licensing for South East Asia. Mark has been with Disney since 1994, working in Australia, New Zealand and then in the US based in LA. The Walt Disney Company (SEA)

His cross-country roles with Disney allow him to provide an interesting comparison into doing business is Asia. The Disney brand portfolio with the acquisition of both Marvel and now Lucasfilm is stronger than ever.

We speak to Mark about his roles with Disney, his new role and the complexities of developing a business in South East Asia.

Congratulations on your new appointment in South East Asia. Since 1994 you have been heavily involved in the Consumer Products/Licensing business for Disney.

What has been the most significant adjustment you have had to make in your strategic thinking to allow you to develop the Disney business in South East Asia?

Thanks Tony, great to catch up. We’re extremely fortunate to have the brand equity that Disney commands with families and kids in every part of the world and South East Asia is no different. It’s great news for us that our characters resonate but every market is slightly different when you consider the countries we operate in here; Singapore which has high disposal income per family, a growing middle class and connectivity in Indonesia, emerging markets like Vietnam and entertainment hungry Thailand. Our job here is to be in tune with consumer tastes and demands since they do differ market to market and being culturally sensitive.

Our role is to deliver on the Disney promise, to develop compelling, creative and quality products which fulfils and exceeds our consumer expectations. We are fortunate enough to own popular characters and stories that our consumers love and we are committed to being relevant in the various SEA markets, creating local programs and partnering with local companies to help us deliver the best products and experiences at retail.

As you have moved into your new role have you been able to take advantage of many global deals in terms of establishing key categories of consumer products?

Today, Disney continues to reign as the world’s largest licensor and having global partners such as Lego and Hasbro, there are advantages such as efficient resources, economies of scale and best practices. We are seeing an emergence of international retailers who now focus on the South East Asian market and these have created opportunities for us. Some of the global brands we work with that have large footprints in SEA include Uniqlo, Bossini, Giordano and Adidas.

Working in a newer more emerging market allows us further explore and push the envelope further into various product offerings so that we can deliver it in the way that local consumers want to engage with our stories. But of course every market is unique and South East Asia is an exciting and vibrant region that holds amazing potential for the company and it will take time and the collaboration of our local teams to grow our brands and franchises, product offerings and retail experiences.

However it is important that we continue to grow our local licensees too as they are doing a great job at complementing the offer of our more established licensees.

The knowledge they have of the local consumers is invaluable: their likes, desires and expectations, and are able to translate that into relevant, compelling product offers.

Has the fact that you have worked in a number of other countries for Disney, helped you understand the market in South East Asia more clearly?

Having worked with various markets, I believe I am better positioned to maximize the wealth of our great Disney content and look at it from an overall brand experience perspective.

Whether it be Disney, Pixar, Marvel or Star Wars, our fans universally have a high degree of awareness and experience.

Frisian Flag Mickey Mouse Milk distributed in Indonesia BUGGtoysandlicensing.com

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I notice that your role is quite diverse and includes Retail, licensing franchise management, product innovation, media and gaming, how have you had to prioritise these components of your business to grow the market?

that add value and are personal. They are connected to the media, love social networking and so recommendation and word-of-mouth are extremely important channels to be aware of. The growth of online and mobile will only continue as more retailers get organized and more international players continue to enter the market.

While it is diverse let me assure you it has a singular focus which is to deliver and exceed what our families, kids and fans expect from the Disney brand.

Is there something that unites consumers in the region?

For the team here, in 2013, the priority was to bring our licensing operations in-house so as to have a more aligned, systematic and focused business approach. There was also a need to develop and build strong relationships with retailers in all our markets. We also looked towards creating a more sophisticated approach on product development and ensuring the products we develop are relevant in terms of price/value, culture, age segmentation, channel segmentation.

Retail is fairly segmented in the region, dominated by some large players but also a lot of smaller operations. South East Asian consumers are demanding more than ever before and want experiences that add value and are personal. Online, mobile and social commerce continues to reshape the retail experience- and the march for international brands will only continue. With our brands filling all four quadrants of consumers – under and over 25 years, male and femalemeeting these needs will require all engines at The Walt Disney Company to be firing!

How do we make the transition as seamless as possible and build our core franchises, from theatrical, to in-home, to the retail shelf space, to online- and deliver what our fans want, when they want it.

It is generally acknowledged that Mickey and Minnie has always been very on trend in Asia, is this the case in SE Asia? If so what countries are these brands most popular?

Mickey Mouse and Minnie Mouse remain the most popular Disney characters in our markets. Together with Winnie the Pooh, they have driven core business for us in the past and will continue to grow in the years to come. In Indonesia for instance Mickey and Minnie Mouse are the most well-liked Disney characters among girls whereas understandably, boys tend to lean towards Disney/Marvel characters like Spider Man, Lightening McQueen and Iron Man and Mickey and Friends is the leading franchise in our retail landscape.

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I think not just SE Asia, but globally our stories resonate and are timeless. I think the voracious appetite for quality entertainment is a constant and that presents so many wonderful opportunities for our brands. A growing box office, increased TV consumption and growing light-speed ownership of mobile devices only means more opportunities for quality branded content.

Winnie The Pooh collection by Bossini The key to Mickey and Minnie success is ongoing content coming down the pipeline.

You saw the Mickey Shorts debut this year on Disney Channel to great success, and the extension to mobile gaming, where many kids are experiencing our brand for the first time in ‘Where’s My Mickey’.

Moving forward, with focus on core franchises, we will also continue to build Disney Princess, Cars and our Disney Junior properties in particular, due the strong TV support in the market.

SE Asia is a vast area, which is defined by many countries, what are the most significant differences in consumers in Singapore v Malaysia v Indonesia?

The difference is in the way consumers in different markets access our franchises at retail. Singapore has a sophisticated modern retail landscape, while the Malaysian and Indonesian retail environment consists of traditional and (growing) modern sources with the presence of malls and markets for consumers to engage with products and brands.

Understanding these differences and the changing habits of our consumer and where they plan to be where is important as we constantly explore and enter new distribution channels to extend our reach among consumers. As I mentioned earlier, South East Asian consumers are demanding more than ever before and want experiences

What simple advice would you offer to Licensees looking to work in this market?

We are focused on continuing to grow our licensee base and working with ‘best in Class’ partners across our key product categories – where relevant, we are keen to find more partners that can operate across the region so we can use our resources most efficiently and benefit from economies of scale. We are also keen to work with partners that demonstrate a good understanding of who their consumer is and who can translate that into relevant, compelling product offers. With a deep portfolio from Mickey and Minnie and Pooh in our evergreen category, to the perennial girls favourite in Princess and the growing pie of Disney Junior’s stable of Sofia.

Doc McStuffins and Jake and the Neverland Pirates to integrating Star Wars and feeding the Marvel Universe, we are encouraged and buoyed by the depth and breadth these franchises offer.

How do you see retail being organized in SE Asia? Who are the key players in the region and what are they dedicating to licensing on their retail shelves?

Southeast Asia’s retail environment consists of traditional and modern sources, although we are started to see an increase in modern retail across all our markets. Our goal is have specific product, promotion, placement and pricing strategies which cater to all channels of distribution in organized trade (these include department stores, specialist stores, hypermarkets, supermarkets and convenience stores).

We currently work with regional players (there aren’t many regional players in SEA) and all the strong local retailers in each market. These include regional partners such as Toy”R”Us, 7-Eleven and local retailers such as Takashimaya, Parksons, Carrefour, Giant (and list goes on) and they carry products ranging from Toys to Apparel & Accessories, Stationery to Home, Consumables to Health & Beauty.

What are the three key trends in licensing that you see emerging from SE Asia?

The emergence of international retailers such as Uniqlo, Bossini, Giordano and Adidas who now focus on the Southeast Asian market. Southeast Asia is an exciting and vibrant region that holds amazing potential for any global company looking to grow its brand and business.

The importance of DTR (direct to retail relationships). Direct-to-retail deals allow companies to build long-term relationships with their retail partners, seeing many tangible and intangible benefits.

The explosion of the digital world and consumption on handheld device. At Disney, we are focused on making the experience even more personal and more engaging, seeking various avenues and platform to allow the reach of our expanding product offerings to today’s consumers.

What are Disney’s most successful franchises in the market?

Our classic characters like Mickey Mouse, Minnie Mouse and Winnie the Pooh have always been popular/successful in our markets. With the growing reach and popularity of our television channels, especially Disney Junior, we are starting to see our newer channel franchises such as Doc McStuffins and Princess Sofia being demanded by consumers in our markets.

I notice you have responsibility for publishing, as this category continues to change and contract in the written form, what do you believe Disney’s publishing business will look like in three years time?

The great thing about Disney publishing is that we are focused on maximizing the wealth of great Disney content and make it available on multiple formats so that we can deliver it in the way that consumers want to engage with our stories. Our publishing business is poised for growth across the core SEA markets (Singapore, Malaysia,

Indonesia, Thailand, The Philippines) and entry into new markets such as Vietnam, Cambodia and Laos as we are have been focused on unique storytelling, content localization and relevance, and reach and distribution beyond the metro cities. The growth in digital and e-books and the growing affordability of tablet devices enables us to imagine new and innovative ways our published products can reach the hands of our young consumers.

And finally, with the acquisitions of Marvel and Star Wars do these franchises have traction in your region?

We have been growing the Marvel business aggressively over the last few years and we find that characters do resonate with consumers, particular in The Philippines. There is also a wonderful legacy of the Star Wars brand in Southeast Asia and we are already building buzz with TV support around Clone Wars and of course, all looking forward to the much anticipated theatrical release of the JJ Abrams helmed Episode 7 in 2015.

Gillian Archer Regional Category Director, Retail and Licensing, SE Asia The Walt Disney Company (Southeast Asia) Pte Limited E: gillian.archer@disney.com T: +65 6692 7334

Iron Man figurines by Play Imaginative (Singaporean market) BUGGtoysandlicensing.com

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MARVEL Interview Bugg Toys and Licensing recently had the opportunity to speak with Ed Wright who is the franchise marketing lead for Marvel in Australia and New Zealand. With the emerging slate for Marvel in 2014 we asked Ed some searching questions about the business.

Ed, The powerhouse, which is Marvel, brings an exciting diversity of characters to the big screen. What is your favourite character and why?

The strength of the 8,000+ characters in the Marvel universe is that there is something for everyone and the characters are entirely relatable. Whether you are a fan of Tony Stark/Iron Man, or Dr. Banner/Hulk, it is indisputable that Marvel has the most exciting heroes and villains ever created! Like many kids then and now, I grew up with SpiderMan and he’ll always be my number one. It looks like we have a great match-up versus Electro in Amazing Spider-Man 2 next April.

Close second to my favourites is Rocket Raccoon. I first started reading about this feisty fella in 2008 – I’m so excited to see fans reactions to Rocket when he hits the big screen with his rag-tag team protecting the universe in Guardians of the Galaxy.

The recent free to air release of Marvel’s Agents of S.H.I.E.L.D. on 7 attracted some 1.3 million viewers and trumped the competition. What are the on going plans for SH.I.E.L.D. And do you have any merchandise aspirations for the franchise?

Marvel’s Agent’s of S.H.I.E.L.D. (MAOS) really is a phenomenal TV show, and not just because it’s Marvel’s first live-action series, but the ability for us to extend the franchise into TV provides even more ways our fans can connect with the Marvel universe.

We’ve seen MAOS own the title of the biggest network drama debut in the last four years in North America, matching the Australian excitement by becoming very successful on debut on Channel 7 and around the globe.

The show is definitely focused on our adult 18–49 years consumer and we have a tight program to support which will be seen through the specialty channels next year.

Marvel seem to have a very successful and powerful formula for their properties: • impactful theatrical release • followed by DVD/Blu-ray release • TV/animated series to broaden the appeal.

This has been particularly evident with the Spider-Man franchise. Have you seen

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evidence that this strategy has further engaged and broadened your overall audience?

Theatrical success has been the significant driver of product sales over the years and we continue to see a huge desire from consumers to learn more and engage deeper with the Marvel universe.

Marvel’s stories are renowned for interlinking narratives and placing entirely relatable characters in dynamic environments. We’re focused on delivering the most exciting targeted content to the broadest audiences possible, whether that’s our theatrical releases, gaming and digital or animated series’ Avengers Assemble, Ultimate Spider-Man and Hulk and the Agents of

S.M.A.S.H. airing next year. The box office contributes huge awareness en masse for the franchise and the 365–day presence on TV complements that, allowing us to speak to a wider audience. Adding to that mix, our delivery at retail with a broad range of products ensures that it remains a brand that is both accessible and aspirational: whether it be dressing up as THOR for young boys, or high-end collectible toys for adults.

Will we see new merchandise and promotional opportunities on the back of your next two Marvel instalments, Thor: The Dark World (already released) and Captain America: Winter Soldier in 2014?

At the box office, Thor: The Dark World has outperformed the original by over 20%, reflecting that ‘Avengers Effect’ and the anticipation is even greater for Captain America: The Winter Soldier next April.

What is important to remember about the sequencing of the Marvel films is the continued narrative and connection they have to one another and fans will be seeing some fantastic products hitting retail through 2014.

We understand your biggest focus for 2014 will be The Amazing Spider-Man 2. Will we see Hasbro release new toys behind this movie? And where to for Spidey from here?

We’re excited about the next film in the popular Spider-Man franchise. Hasbro continue to bring innovation and energy to Spider-Man year after year with their amazing product through role-play to action figures.

Spider-Man is a truly holistic franchise – animated & theatrical content, coupled with the ability to engage the youngest of wannabe super-heroes. All lead to that evergreen status at retail that most franchises

can only dream of – we are extremely fortunate to have Spider-Man in our portfolio and every year, look forward to a new generation of fans sharing in his stories.

We understand the next big thing for Marvel in August 2014 will be Guardians of the Galaxy. Who will lead the merchandise program in Australia?

Leading the charge, consumers are going to see some absolutely phenomenal product coming through from Hasbro, Lego and Rubies Deerfield. We feel extremely positive about Guardians of the Galaxy and the initiatives are already in place to deliver excitement at retail and maximum Marvel fan engagement. The depth and breadth of the story behind Guardians of the Galaxy really does make it appealing right across the board for our partners.

With over 8,000 characters in the Marvel Universe, do you have any plans In the pipeline to delve deeper into the character mix with movies and TV? The most exciting thing is watching the response from our Marvel fans and the countless ways they engage with the franchise – and Marvel fans are some of the most passionate! Kids and fans are accessing their entertainment in so many ways, and our job is to ensure that we are ready – day 1 – to be where they are looking and playing. Social media and mobile platforms are really allowing us to engage with our fans in a deeper, richer way; the notion that fans today are reading or watching Marvel content via TV or traditional comics isn’t always the case. We have seen that with the success of the Facebook game Marvel Avengers Alliance and Marvel

e-comic books on tablets. The Marvel universe combined with the numerous points of entry allows us the flexibility to develop content and tell wider stories in a deeper and more engaging way – which includes constantly exploring newer characters and Marvel storylines.

Ed, you must really enjoy your role at Disney managing the Marvel business.

Where do you see the development of the Portfolio over the next three years?

It really is a dream role – being involved with anything that Marvel creates, is a blessing.

Coming in the next three years, fans will experience exceptional movie-making with our Marvel titles, deeper engagement across all platforms: mobile, social, online, and new stories and characters. We are extremely fortunate that the storytelling capability of the franchise is limitless and we are eager to share that journey with our Marvel fans.

Ed Wright – Franchise Marketing Manager. Marvel, Lucas Film and Live Action – ed.wright@disney.com

Wednesdays TV free to air Marvel’s Agents of S.H.I.E.L.D. on 7 October 31st Thor: The Dark World Theatrical release April 3rd Captain America: The Winter Soldier – Theatrical release April 17th The Amazing Spider-Man 2 – Theatrical release August 1st Guardians of the Galaxy – Theatrical release

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Sanrio via Hello Kitty is a powerhouse brand across Asia. Along with the acquisition of the Mr. Men and Little Miss franchise these brands will continue to attract greater popularity amongst consumers of all ages.

Bugg Toys and Licensing recently had the opportunity to speak with Sandrine de Raspide – Senior VP Licensing Sanrio Global Asia.

We notice that you are now based in Hong Kong. Given that Sanrio’s origins lie in Asia does this allow you to get closer to the opportunity to develop the brand?

Hong Kong is an ideal hub for our industry from both a logistical and international standpoint allowing easy access to several regions and countries. Also, the people of Hong Kong with their great ethics, education, and creativity make for an environment wherein your business can bloom. This city is an ideal cosmopolitan environment that is conducive to amazing projects, as well as a fantastic place to live with your family.

Working in the Sanrio family, Hong Kong gives quicker access to Tokyo – our headquarters – with its vast pool of extraordinary talents and characters. Not only is Sanrio the home of superstar Hello Kitty, but we are focused on developing significant global strategies for our other properties like My Melody, Chococat, Keroppi, Little Twin Stars and the recently acquired Mr. Men and Little Miss. Tapping into our headquarter’s resources, especially creatively, enables us to groom our existing characters locally while staying true to their roots. It also allows us to take our newly acquired characters to an entirely new level while respecting their DNA. This is exactly what we are doing with Mr. Men & Little Miss – and Little Miss Hug, in particular.

To exploit these proximities, my subsidiary, Sanrio Global Asia, was formed in Hong Kong in 2012. We handle the licensing activities of Hello Kitty and other Sanrio

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Classic characters in several territories, and are spearheading the Mr. Men & Little Miss licensing program on a global basis.

How has the acquisition of Mr Men and Little Miss impacted on your business?

I suspect the vast audience in Asia has embraced the brand?

Sanrio is a family-friendly, nurturing company that looks after its characters long term. For example, Hello Kitty will be celebrating her 40th Birthday this year. So when Sanrio acquired Mr. Men & Little Miss in December 2011, we did not take this decision lightly. We knew we could commit all of our resources to this property and add value to it, both from quantitative and qualitative standpoints.

One of the challenges we have embraced is to grow this brand on a global scale. The brand is very well known in the UK, but is seeking a revival or yet to be discovered in other parts of the world. As a case in point, we are fully committed to making Mr. Men & Little Miss a success in Asia, which, as you know, is one of the strongholds of Sanrio as a group. We are getting quite active there, even beyond licensing, especially in terms of events and promotions. The consumer seems

to appreciate both the heritage and the new product designs. The simple, joyful, colourful, and family-friendly patterns have been very well received; whereas you’re looking at Fashion (we’ve worked with Chocoolate in Hong Kong), Promotions (we engaged Broadway at the end of last year, and will work with McDonald’s this year in Hong Kong), Publishing (we’re launching a whole collection with Children’s Fun in China this year), Mall Events (as we just did in Singapore over Christmas), and also with Gifting, which is a category where Sanrio originated hence our corporate motto: ‘Small gift, big smile’ – the gifting category is very strong for Mr. Men & Little Miss, which is a fantastic area where both this recently acquired property and Sanrio’s forte meet. Last but not least, you’ll see the first products from Japan popping up there from the 2nd quarter – our Japanese Licensing team has been assembling some top-notch companies to work on Mr. Men & Little Miss; and we will also have our Mr. Men and Little Miss characters appearing in our Sanrio stores. This year is going to show a lot of Sanrio creativity!

process caught fire, quick and passionate – everyone got it, and got inspired: Yamaguchi, our head creative in Tokyo came up with the adorable design, while Adam Hargreaves nailed the perfect story and started to draw this new character… the Mr. Men way!

We lost Mr Tsuji a month ago, very suddenly.

Little Miss Hug is one of many projects our visionary COO created, but didn’t get a chance to see come to fruition – it will be one of the many ways in which we will honour his memory.

Sandrine, moving to Hello Kitty now, we understand that you have been focusing a fair bit of attention on the market in the Philippines? We see that you have recently launched an extensive shopping Centre promotion entitled Hello Kitty around the World? Can you tell us a bit about the theme of the promotion?

We believe that Sanrio is planning to launch a new character as part of the Mr. Men range for 2014? Can you tell us who this will be?

2014 is the 40th anniversary of Hello Kitty – our corporate communication will be around ‘Arigato’ or ‘Hug You’, which represents Hello Kitty thanking all her fans and friends. Hello Kitty is also going to introduce a new friend, Little Miss Hug. Little Miss Hug will have her own book and licensing program in the Mr. Men classic world. However, you’ll see some initiatives here and there alongside Hello Kitty. All of the artwork related to Little Miss Hug has been developed with our Tokyo office, so you’ll see a very nice little twist to our classic Little Miss look. Very refreshing.

Now that Mr. Men is part of the Sanrio family we believe that this new character is the very first collaboration between Sanrio in Tokyo and Adam Hargreaves. This is a very important development, can you tell us a little bit about how this came to be?

Little Miss Hug is Sanrio’s way to welcome the Little Miss and Mr. Men characters into the Sanrio family. The idea arose from a conversation with the late Mr Tsuji, in Bangalore, as we were waiting for a plane to Mumbai. We were talking about infusing some marketing, the Sanrio way, into our new properties, as we were casually sharing a couple of snacks and water. We came up with Little Miss Hug, as a name and a concept for a character. From there, the whole creative

We initiated an extensive partnership with the ShoeMart group in 2012, which allowed us to increase the marketing of our brand very significantly, working closely with ShoeMart malls. We launched a ‘Hello Kitty Around the World’ promotion, decorating six malls in the colours and skylines of famous cities and regions: New York, Venice, Paris, Moscow, Bavaria, and London. Two of the themes were set up outside Manila in Cebu and Davao, which has been highly appreciated by customers in the provinces. Nationwide and for the duration of these Christmas events, we created a full range of customized event merchandise; as well as a huge promotion with Toy Kingdom, in which we distributed Hello Kitty Around the Worlds pins for every $10 purchased (of any product, Sanrio characters or not). In parallel, we organized extensive character appearances, which led to many smiles. The response has been tremendous.

We’re very thankful for our partnership with ShoeMart and Honeybarn, which have enabled us to initiate some grassroots marketing campaigns steeped in Sanrio values. In 2014, we’re looking forward to continuing this partnership in many different ways, and, also, engaging the Red Cross in the relief efforts, to hopefully bring even more smiles into this country.

In terms of retail in Asia, is the online platform playing a significant part in driving sales of your brands?

The Sanrio Classic characters rely on Sanrio stores for communication, new merchandise,

and marketing. This is were it all started, and where the motto “Small gift, big smile” was born. So far, the online platform has not been a high priority. However, thanks to our strong products and stores, our fanbase have created strong online communities that extend our marketing reach.

On the other hand, for the Mr. Men & Little Miss characters, we have engaged the online platform since their acquisition – also in publishing, where we’ve been quite active with e-books, offering not only our classic book range, but also launch specific titles (Mr. Mo this year in the UK). We have branched out promotions into this space for additional activities, such as our upcoming Evian water launch this month (in some European territories). And we’re developing some interactive books and Learn & Play apps for this year. Of course, there is a lot more we should be doing there, and we’re steadily exploring this space while staying true to the Mr. Men & Little Miss values.

I know that you already have Hello Kitty retail sites, have you considered opening Mr. Men and Little Miss stores?

We do not have plans for stand-alone Mr. Men & Little Miss stores at this time. Rather, we will have a gradual approach as next year will see the introduction of some Mr. Men & Little Miss merchandise into Sanrio stores. You might even see some of these characters take part in the Sanrio character competition that takes place every year in Japan... Let’s see!

What is the single most influential trend in Asia in relation to licensing?

Asia is not a homogeneous region – however, there, as in many areas of the world, happiness and family friendly properties seem to be thriving with the characters carrying values like friendship, kindness, innocence, etc… I think, if Little Miss Hug is being so welcomed this year, it may indicate the needs that many are feeling for comfort and kindness. We may all really need a hug and a smile.

For further information contact sandrine@sanrio.com.hk

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UGLYDOLL Feature interview Bugg Toys & Licensing recently sat down with Alita Friedman (Chief Ugly) to continue our interview from earlier this year in February. We discussed everything from the UGLYDOLLS KISS range, to DC Comics, the UGLYDOLL displays at the Galeries Lafayette Beijing, all the way to the much anticipated UGLYDOLLS iPhone app due in Q1, 2014.

Firstly, thank you again Alita for taking the time to chat with Bugg Toys & Licensing!

Can you give us a brief update on how UGLYDOLLS have been going since we last spoke in February of this year?

We believe that you’re showing the UGLYDOLL KISS range to retailers in January/February 2014. Can you tell us about the range and how excited you are to be launching?

In January, UGLYDOLLS will celebrate the Chinese New Year by taking over ALL of the windows at Galeries Lafayette Beijing!

Can you tell us about this and how it came about?

Wow, can hardly believe almost a year has gone by. We’ve been incredibly busy starting with Toy Fair where we introduced Double Trouble UGLYDOLL characters and showcased our dolls with Food (think pizza, pretzels and cookies), a Tai Kwon Do Wage and Babo’s Bear, which has become a favourite this year. At the San Diego Comic Convention, we designed and exhibited an entire UGLYDOLL + Hello Kitty booth selling our collaborative merchandise and literally sold out of every exclusive doll, phone case, tee shirt, collectible pin and Funko figure.

Subsequently we retailed four versions of the Hello Kitty UGLYDOLLs currently in stores.

Our series of UGLYDOLL comic books were introduced through Viz Media’s Perfect Square division in July. We held author and illustrator signing events with free posters in NY and San Diego Comic Cons. During September, UGLYDOLL became the official READ poster and bookmark printed by the American Library Association; a total honour! Woman’s Wear Daily highlighted our new Bath and Beauty license deal with Boldface Group, oh yes bath and body coming soon. By October all Apple Stores worldwide carried our iPhone and touch cases. Throughout 2013 we experienced sales to new retailers in new countries, contracted with a few International Licensing agents and signed licenses in a variety of new categories (there will even be UGLYDOLL character house keys).

We are SO excited for these KISS UGLYDOLL characters to launch. Most of us at Pretty Ugly grew up rocking’ out to the band and meeting Gene Simmons has been a pleasure. The range will begin with four plush UGLYDOLL characters completely dressed as the KISS band members. Gene surprised us at the Licensing show and we discussed this mashup. A week later he had the sketches and here we go. What an unbelievable story, maybe we’ll get the cover of the Rolling Stone!

Absolutely! Last year we met with the fantastic team launching the brand new Galeries Lafayette store in Beijing. They have been fans of UGLYDOLL for many years and reached out about doing something wonderful with UGLYDOLL. We were so honoured to be chosen among the super luxury brands that are carried at Galeries Lafayette. We discussed many options and when the store opened in October our dolls, the shirts and accessories were selling out.

We were asked around the holidays to create window concepts for the Chinese New Year and we’re rushing to make this happen as we are having this interview. We WILL make this happen, lots of last minute calls and emails and packages flying overnight. Launching our brand in China through this opportunity with Galeries Lafayette has been a remarkable experience. Now we hope to launch in their other stores and I hope we get to visit too!

We also plan to explore co-branding for limited exclusive programs with some of the luxury designers. The Wall Street Journal featured UGLYDOLLs clipped to a Louis Vuitton bag during Fashion Week in NYC last fall. Luxury + UGLYDOLL = Awesome. It’s just all about fun!

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In addition to the KISS range, we believe that you are doing a DC based Robin UGLYDOLL and a Wonder Women UGLYDOLL. Can you tell us about this and when we can expect to see these on shelves?

DC has an incredible range of characters and we introduced our co-branded Superman and Batman plush just this past fall. They sold out immediately and we’re rushing them to stores for the holidays. 2014 will bring Batman’s sidekick Robin, a fun new colour way of Batman, Green Lantern and my favourite Wonder Woman! All are UGLYDOLL characters such as Tray, Babo, Ice-Bat and the gang dressed as their favourite Super Heroes! By the way, Tray has three brains so of course she gets to be Wonder Woman!

Expect to see some exclusives at Comic Con in plush and other formats.

Speaking of China, are you able to shed some light on where UGLYDOLLS have been the most popular throughout the world?

We’ve had great success in the UK, Korea, Canada, France,Germany, Italy , Japan, but of course we’re most popular in the US as we’ve had 12 years here. So many new territories are on the cusp of launching UGLYDOLL, including Australia, expansion in China and Taiwan, Brazil and others. It takes time and focus to make this happen. Asia will definitely be a strong focus for us for several reasons. We also have Licensing Agents in these regions to manage our programs with their local expertise.

UGLYDOLLS have become popular based off your range of plush dolls, however do you have any plans to move into the digital space and online?

We are in a strategic partnership with the digital team at NBC Universal and are working on games and applications. It’s an incredible experience to work with experts who had millions of downloads on their summer game.

Obviously the iPhone app revolution has taken the world by storm. There are rumours of an UGLYDOLL app coming in Q1, 2014. Can you tell us about this?

By the end of Q1 I expect that we will have announced and launched an exciting app with a leading company. Sorry that’s all I can say now. And that your phone will be completely ugly on the inside and out.

Wild Pumpkin have recently been appointed to represent UGLYDOLLS here in Australia. Can you tell us about what you’re working on and the future plans for UGLYDOLLS here in this market?

Australia is a very important market for us.

Especially since Hugh Jackman tweeted out from our UGLYDOLL branded store in Seoul on his visit there. It’s finally time to launch and build UGLYDOLL down under.

Wild Pumpkin has a vibrant team of people who are so passionate and excited about UGLYDOLL. I know they will find both amazing licensees and terrific retail partners to work with. They are really investing and strategising to get it right. We hope to solidify a retail presence in 2014.

We spoke to you in London last year at the Brand Licensing Show, can you tell us about any exciting news from the show?

BLE was so energizing! I loved both being in London and meeting with folks from around the globe. My schedule was packed with meetings with agents for all over Europe, Latin America, South America. We are now evaluating opportunities to sign agents in a number of countries.

Can you tell us about any other major events on the UGLYDOLL calendar for 2014?

Toy Fair will be exciting with new product launches and I think we’ll be announcing further collaborations. There is something very special about taking 20 and 50 year old very established brands and melding them with our artist created unique brand. Really makes things pop in an unexpected manner which is exciting for retailers and ultimately the fans and collectors.

Thanks so much for talking with us and we hope to see you in Australia sometime in the future!

Can’t wait to take the trip over or shall I say under! Thanks!

For more information on Ugly Doll in Australia, please contact Wild Pumpkin Licensing International on +61 3 9274 2900

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MAXIMISING YOUR FOOTBALL CLUB’S REVENUE OFF THE PITCH Football, ‘the beautiful game’, is big business.

Matchday revenue, broadcast revenue, and commercial revenue, including merchandise, are the cornerstones of every club’s income stream. But licensing processes can be difficult to manage, especially with the extreme changes in revenue that can occur when a team is in a championship.

‘Naturally, team performance on the pitch has a direct impact on licensing activity, says Mark Bell, of Chelsea Football Club. “We are always very busy at Chelsea FC, but the days after a major trophy win see a massive increase in new enquiries and new product submissions. It is vital for us to be on top of our licensing game, to respond quickly and professionally to these new opportunities.

Speed to market is imperative.”

Any club licensing department’s work ebbs and flows, depending on the club’s performance, having solid procedures in place to manage the ups and downs in paperwork is critical. It will prevent any disruption in the licensing process, from product development to royalty collection.

Sales of club merchandise have grown exponentially in the past few years. Club merchandise sales are an even more important source of income with the new UEFA Financial Fair Play break-even rules.

The regulations, which came into effect in the

2011-2012 season, require clubs to spend less than they earn. Merchandise sales help clubs offset against expenditure.

“Working with a global football brand – Real Madrid CF – brings great responsibility, says Carolina Linares of Adidas, which oversees Real Madrid’s licensing programme.

“Managing a large range of licensed merchandise developed with licensees around the world requires great attention to detail. Moving to an automated system with Dependable Rights Manager enables us to work efficiently in managing the licensing business, ensuring critical deadlines are not missed and improving communication with our licensing partners.”

It is important to encourage sales through the stadium store and general retail by differentiating ranges and products, and many clubs have multiple brands in the marketplace all running at one time. Merchandise, especially if competition-specific, often has very tight development lead times, it is vital to not miss a launch date.

“It is very important for us to keep track of authorized products and be able to readily identify items that have not made it through the approvals process, says Christina Kilkenny of Liverpool Football Club.

“Managing approvals with DRM has helped us tighten controls on the approval process;

the system automatically cross-checks products on the royalty statements and has picked up on items that did not follow the correct procedure.”

Having an automated licensing management process in place can greatly help a club’s merchandise programme reach full potential in a variety of ways. Web-based solutions facilitate communication between clubs’ internal departments, their licensees, and with agents in other territories. This exchange of information speeds up and improves accuracy in royalty processing and product approvals.

Please visit dependablerights.com for more information on how to keep on top of your workload and improve your club merchandise programme using Dependable Solutions Inc.’s automated brand management tools.

Denise Penn, DSI, London

Los Angeles (Corporate HQ) Dependable Solutions, Inc. 2121 Rosecrans Ave, Suite 3355 El Segundo CA 90245 USA +1 424 277 5200 London Dependable Rights, Ltd. Pantiles Chambers, 85 High Street Tunbridge Wells, Kent TN1 1XP United Kingdom +44 (0) 1892 506 883

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AUSTRALIAN LICENSING INDUSTRY – 2013 IN REVIEW 2013 has been another volatile year in the licensing business in Australia. September saw a change of government, which has instilled a degree of confidence into our economy. Retailers are hoping for a strong Xmas trading period as a result of better consumer confidence.

The online space is well up on last year and continues to grow at a greater rate than traditional bricks and mortar. It has showed double-digit growth however is still only around 6% of traditional retail spending.

All reports appear to suggest that Amazon will also arrive in Australia in the not too distant future.

The Brands

Retail The continuing changing face of retail has also contributed to a pretty tough year for those who play in the licensing industry.

Kmart pretty much out of licensing, however they have now created a brand of their own with sleek colourful catalogues and a high profile advertising campaign. We need to find a way to engage Kmart with a brand strategy for 2014. Target is still working through major re structuring of their business, however they have been engaged as the mass partner for AFL merchandise. Big W has played the key mass retailer role in licensing in 2013.

Aldi has emerged as fledgling opportunity for licensed merchandise with 300 plus stores in Australia. There evenhanded treatment of suppliers has attracted strong support and they are showing signs of moving into the business of brands.

The Department stores Myer and David Jones continue to fight hard to maintain their customer base and are focused on offering greater in store experience.

Peter Alexander continues to develop his sleepwear ranges in association with key global brands including Hello Kitty and Mr Men and Little Miss There is increasing downward pressure on pricing with Kmart trading heavily on everyday low prices without any sign of a sale!

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In terms of the brands and programs, which resonated in Australia, some of the stand out included: Turtles, Lego, Monster High, Peppa Pig, Iron Man 3, Paul Frank, Dr Who’s 50th, including their Pop Up store program, Barbie, Superman and Hello Kitty.

Equally there were some stand out brand focused consumer products programs which included: One Direction, Planes and Despicable Me. Cut through promotions in our market included the NAB Bank’s Less/More campaign utilizing WB characters, Tom and Jerry and Wizard of Oz. The Good Guys also launched a brilliant campaign to drive sales using Star Wars character luggage as an incentive to purchase a range of TVs. Couple of key crazes in Australia in 2013 included a new sleepwear concept called Onsies and a brilliant item from Funtastic called Chill Factor.

The Licensing Industry Mattel announced the appointment of Mark Scott as Director Licensing Consumer Products. Mark has beefed up his team and plans to play a leading role in the business.

Disney continue to build momentum with the acquisition of Lucas and the launch of Infinity and Warner Bros headed up by Preston Kevin Lewis have embarked upon an aggressive push into clip licensing using their huge portfolio of characters as ammunition.

It’s been a big year for the BBC with the 50th anniversary of Dr Who, Merchant wise have enjoyed the spoils of Peppa Pig and after a slow start the Despicable Me franchise is powering along for Wild Pumpkin.

Haven has acquired the Cartoon Network portfolio and has enjoyed a strong year with Paul Frank at Big W and Turtles has been a market leader across many product categories. They also celebrated 20 years in the business.

The Fusion Agency has been the beneficiary of DreamWorks acquiring Classic Media and looking to re focus their brands and market activities across 365 days of the year.

For the first time ever in Australia, VBM and partners conducted a very successful sports licensing show at the Crown Palladium in Melbourne. The event attracted over 80 exhibitors and was supported by a strong Conferencing program. The event is planned to run biannually in the future.

Melbourne is also host to a very special James Bond global exhibition at the Melbourne Arts Centre until February 2014.

Movies 2013 saw a number of blockbuster movies released in Australia. The number one movie for 2013 was Ironman 3, which delivered a box office of AU$36 million.

The top 10 saw three Disney movies, IM3, Monsters University, and the new Thor movie Dark World.

Number two was Despicable Me 2 from Universal followed by Catching Fire at No 4 and Man of Steel at No 8.

Concerts Without a doubt Pink takes the prize for the best concert tour of Australia in 2013.

She played 45 shows across the nation and sold in excess of 500,000 tickets.

She is universally loved and her on stage demeanour resonates with her audience with a combination of song and warm interaction.

Pink also launched a Pink Pop up Shop in Melbourne and Sydney, which also was a huge success for her merchandise.

Best new introduction 2013 saw the launch of a new online business called Black Milk. In a word Black Milk is an innovative clothing/leggings manufacturer/marketer, which was founded from very humble beginnings by James Lillis. He was advised that his online concept would not work. Well he now has a thriving business with products featuring, Harry Potter, Adventure Time, Star Wars and Sesame Street.

This is another success story that has grown from one mans vision and persistence.

And now to 2014 2014 will present more challenges as the retail landscape continues to change on a daily basis. We need to think carefully about new distribution channels and specifically how we can ad more value to the propositions we take to retail. We need to be careful not to erode the value of our brands and work hard to maintain price whilst offering value for money.

Innovation is the key to prosperity. We need to encourage product and service development and innovation to engage the consumer. Recent reports highlight the lack of new products and services on offer and suggest many people are gravitating to Gift Cards and the like in the absence of a better product option.

What is it that we can do for Retailers of all persuasions with a licensing solution for 2014?

2013 was a great year for Merchantwise, with strong growth coming from most of our licensed brands and properties, particularly the extraordinary Peppa Pig which has become the hottest preschool brand in Australia. While the retail market remains challenging, there are signs of optimism and the best licensed brands and properties will continue to be strongly embraced by consumers of all ages.

In 2014, we are expecting continued growth from all segments of our portfolio, including preschool, children’s, teen and adults. Some highlights include the following: • From the makers of Peppa Pig comes Ben and Holly’s Little Kingdom, the No 1 rating show on ABC-TV. A major licensing program will launch through ABC stores and other retailers from 2014, including toys from Character Options and Big Balloon, as well as a variety of other categories.

• Gorgeous new US preschool brand Daniel Tiger’s Neighborhood has quickly shot into the top two preschool toy brands at Toys”R”Us in the US. Here in Australia, the show has been airing on ABC-TV since April 13 and getting a great response.

First Australian partners will soon be announced.

• The relaunch of Australian’s best loved classic Blinky Bill is gathering incredible momentum, with exciting new toys, ticketed live shows and character appearances, books, clothing and other categories. The new CGI film starring Ryan Kwanten, Barry Humphries, Toni Collette, David Wenham and others is due in Jan 2015. This property generated over $30 million from 60 licensees in the nineties, so now is the perfect time for a comeback.

• Evergreen girls’ classic Strawberry Shortcake will also enjoy a big revival from 2014, with a great new toy range from The Bridge and Funtastic, as well as a wide array of other categories.

• 2014 will mark the 50th anniversary of The Beatles famous visit to Australia and we are celebrating with a major exhibition at the Powerhouse Museum and Melbourne Arts Centre and a great range of apparel and other products at all levels of retail.

• We are building a strong apparel and sporting goods range for the 2014 FIFA World Cup – featuring the national teams for the host nation Brazil, England, France and The Netherlands.

Alan Schauder | Managing Director Merchantwise Pty Ltd T: +61 3 9520 1000

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For Disney, over the next 12 months our Licensing and Consumer Sales business will build on our strong 2013 results. We see tremendous opportunities in 2014, particularly with our strength in both franchise and content with great new product coming from Marvel with the release of Captain America: The Winter Soldier and Guardians of the Galaxy and Spider-Man (The Amazing Spider-Man 2), the Disney Princess franchise with the release of Frozen and later in the year Palace Pets, our on-going success with our flagship pre-school brand Disney Junior (Jake and the Never Land Pirates, Doc McStuffin and Sofia The First), the resurgence of Mickey and Minnie and our exciting plans around the Star Wars franchise with fantastic television support with the new program Star Wars Rebels.

Pixar’s Toy Story continues to be a favourite amongst Australian fans, and continuing the success of the new TV special titled Toy Story of Terror (aired Channel 7, November 2013), major promotions are planned around the DVD release of the title in 2014.

With Disney’s Planes fuelling the growth of #1 boy’s property, World of Cars, a new feature titled Planes Fire and Rescue will be released in Sept 2014. The opportunities with World Of Cars include collaborations with V8 Supercars, the Junior GP Challenge at the Grand Prix and Mack the Transporter and Lightning McQueen continuing their tour around Australia.

We will continue to work closely with our licensees to build out great retail programs, new and innovative product and focus on maximising and anticipating opportunities.

Peter Bird, VP and GM, Licensing, Retail, Theatrical The Walt Disney Company, ANZ

Someone told me back in 2010 that I couldn’t have picked a worse time to open a Licensing business. What they didn’t tell me was that our market would continue to be tough and that three years later I would still be waiting for that turn-around and reprieve that would allow us to take a deep breath and take the pressure off for a while. It’s been tough, but 2014 is shaping up to be a great one for Fusion.

We have some high-profile activity in Q1 to get the year rolling and the new DreamWorks Animation team have stepped up and are delivering on their promise of a fresh, new ‘franchise’ approach to their business. We have some fantastic Classic Media properties with the all essential new content required to make them work. Moshi Monsters have their first movie in Feb and a DVD in April, right in time for Easter. Tickety Toc has shipped and hopefully our retailers will allow the brand to build as preschool must.

We have some new, exciting properties for 2014 which are being locked down now and have bought Jane Chodziesner in to the team to manage our brands out of Melbourne.

There is an optimism and a positive feel to 2014. We are excited about the activity we already have locked down and the potential for new business and new endeavours. Let’s hope the drought is indeed about to break!

Gail Mitchell | Managing Director The Fusion Agency 02 9439 5511

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Licensed Consumer products is a critical business division for BBC Worldwide ANZ and the future is looking bright. Moving forward our focus will be on Doctor Who, an incredibly important brand for us.

The Doctor Who 50th anniversary was an extraordinary success for all our licensees and retailers around the world and through a series of live events, pop-up shops and cinema screenings in territory it allowed us to see just how passionate and committed fans in Australia were. The brand’s exposure has never been bigger with extensive merchandise collections and retail promotions further strengthening its loyal fan base, as the show looks to maintain its momentum and begin the journey toward another 50 years.

The key to the brand’s enduring popularity and its accolade as the longest running Sci-Fi show ever, is its unique formula. Allowing the main character to regenerate his look and personality has kept the series fresh, with 11 actors to have played the role of the Doctor so far, and the Doctor’s TARDIS, which can travel anywhere backwards or forwards through time, offers endless possibilities for adventure. Another key feature of the program is its family appeal with our hero the Doctor, using his intelligence to save the day rather than his physical might.

Next year we are looking forward to the highly anticipated new season featuring Scottish actor Peter Capaldi as the Twelfth Doctor, as well as refreshing the product range and adding more SKUs to give us the ability to build new audiences and appeal to broader demographics.

Elie Mansour Licensed Consumer Products Manager – Australasia BBC Worldwide 02 9744 4544

Despite a challenging retail environment and a highly competitive marketplace, Mattel Consumer Products achieved double digit growth in 2013 driven by its classic brands Barbie and Hot Wheels and the continuing explosive growth of the Monster High franchise – now a billion dollar brand globally. Fisher Price, a quality and trusted infant and preschool brand, also had incredible growth particularly in travel goods and apparel and is widely supported across both the mass and independent channels.

We were delighted to join LIMA Australia this year and support our industry peers in driving the licensing business across Australia and New Zealand. We celebrated our success with the Mattel Brand Summit in August where The Five Mile Press took out Mattel Licensee of the Year for their ongoing publishing success particularly with Barbie. MJM won Product of the Year for their Fisher Price wooden puzzles and a number of licensees won outstanding achievement awards including Hunter Leisure, Designworks, Caprice (Wildcard), CNP Brands, Goldie Marketing. We truly appreciate all of our partners efforts in 2013.

2014 will be an exciting year as we integrate the Thomas and Friends consumer products business into Mattel.

Thomas is the number 1 preschool brand for boys and we are delighted to now

manage this Mattel-owned brand as part of the Hit Entertainment portfolio. Get ready for Tale of the Brave tentpole in the second half. ‘We are Monster High’ campaign will ensure this juggernaut brand continues to grow with Halloween 2014 expected to be a massive retail activation opportunity.

We will have some fast and furious news to share in early 2014 on the Hot Wheels brand with the launch of our new remote control range, including Morph Stunt Racers from Goldie Marketing. Barbie Live is coming in 2014 which will be a key driver for our flagship brand. In 2014, anything is possible with Barbie.

Max Steel continues to dominate the ratings on Go! And Cartoon Network and the momentum in toys, books and apparel is building. It is well ahead of where Ben 10 was performing at the same time in its life cycle so Max could be the breakout licensing success story of 2014. Mattel will also unveil the next brand success story for girls in the second half with the launch of Ever After High which is being talked about as another billion dollar global brand for Mattel.

Come and create the future of play with Mattel brands in 2014.

Mark Scott | Mattel Australia/ New Zealand Director, Licensing/Consumer Products +61 3 9425 5333

Bugg Marketing Solutions is a boutique Licensing consultancy with 25 years experience in the Australian market.

If you are an organisation based in Asia or International Company who is looking to connect with the licensing industry in Australia, we can help you.

We are an independent consultancy with strong contacts into: • Rights Owners • Agents • Promotional organisations • Retailers • Licensees • Distributors.

If you own a product, service or a brand, we can advise you on making the most commercial connection in Australia.

The Australian licensing industry is a vibrant competitive business with opportunity for innovation and entrepreneurial brands, products and services.

The licensing industry in Australia is fortunate to be home to all of the major rights owners and also many Agency based organisations.

Disney, Warner Brothers, The BBC, Mattel, Hasbro, Lego, Fremantle Media, Haven

Licensing, Wild Pumpkin, Merchantwise, Fusion Agency form the nucleus of our industry in Australia.

We can review your product, brand or service and advise you on the perfect connection into Australia.

Bugg Solutions are the experts in licensing in Australia What sets us apart from other operators is our independence. We pride ourselves on being able to provide a balanced appraisal on the industry at large.

To further strengthen our offer we can also advise you on the best licensing software packages directly from Dependable Solutions.

One of the most important components to a successful licensing program is the accounting process. We can make this work for you.

Our team consists of: • Tony Bugg – MD • Matt Bugg – Marketing Manager.

See us at stand number GH G10

Tony Bugg Managing Director Bugg Marketing Solutions +61 3 9769 3963 | +61 418 321 837 tony@buggsolutions.com.au Matthew Bugg Marketing Manager Bugg Marketing Solutions +61 3 9769 3963 | +61 407 700 267 matt@buggsolutions.com.au

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Over 15 years Artist Jamie Cooper has developed the rare talent of being able to bring together the entire history of an organisation, sometimes spanning several generations, into one dynamic artwork. Through the team at JCAP AUSTRALIA these iconic images have been brought to the public through high quality licensed reproductions that celebrate sporting culture with the respect and attention it deserves.

In 1984, Australian artist, Jamie Cooper realized a childhood dream by reaching the pinnacle of Australian professional sport.

He made his senior AFL (Australian Football League) debut with the Fitzroy Football Club, where he played four seasons, before retiring to develop his creative talents.

In 2008, the AFL celebrated its 150th year as Australia’s greatest game. The job fell to Jamie to capture that rich and intricate history in one enormous 5 x 2.5 metre image. This pictorial novel contains over 300 figures and took another year of Jamie’s life.

He left Australia to work as a commercial artist in London, painted public murals in Greece and was employed as a political caricature artist for a Danish national newspaper in Copenhagen.

Cooper’s star continues to rise on the international stage as he has just delivered a painting of the New York Yankees to Chicago where it went under the hammer for US$24,000.

Jamie’s career as a professional sports artist began in 1998 when his distinctive oil paintings had their first release under the AFL memorabilia license. Since then, Jamie has become the creative force behind the highly successful ‘Team of the Century’ and ‘Dream Scene’ paintings, producing major historical works for most of the professional Australian sporting clubs.

youtube.com/watch?v=e3TNGs-rf9E This unique combination of artist and elite athlete has been the feature of several TV, radio and print editorials over the years and has now gained international recognition.

This makes for a well-rounded talent who can articulate his work’s ideas and themes to a broad audience.

Cooper has developed the unique art of synthesizing historical figures from across multiple generations into a cohesive singular work. They interact, they connect, they commune with each other. They practically live and breathe and walk among us.

By the early 2000s, Cooper’s reputation as the countries premier sports artist was well entrenched and the value of his work began to soar. Prices at auction for his life size portraits of contemporary AFL champions made headlines, reaching AU$120,000, and were a testament to his coming of age in this field.

The Australian Olympic Committee commissioned a piece to celebrate the Sydney 2000 Olympic Games.

In 2009, Jamie has made a grand entrance into the US sports art scene with the completion of a 14 x 4 foot oil painting, ‘Phillies Dream Scene’ depicting twentysix legends from the Philadelphia Phillies baseball team. The painting is now displayed in the entrance to the exclusive Diamond Club at the home of the Phillies, Citizens Bank Park in Philadelphia.

youtube.com/watch?v=QvlyNhZVMUA

50 metre reproductions were displayed on the ground at the Melbourne Cricket Ground (MCG) on AFL Grand Final day 2008, opening the pre match entertainment and beamed live around the world to millions of viewers. See link below youtube.com/watch?v=G7z9Y0khQGo

Jamie believes that his experience as a professional athlete has given him a unique perspective as a sports artist. “During my days as a player I was exposed to many fantastic moments and images, seen through the eyes of both an athlete and an artist.

Now I can use those experiences to highlight the history, emotion and passion of sporting culture through my art.” jcap.com.au +61 3 9431 2002 +61 407 655 428 jamie@jcap.com.au

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Dreams on Canvas

www.jcap.com.au

ICONIC IMAGES spanning SPACE and TIME See us at stand number GH G06

See us at stand number GH G08

CODA

DesignArt

The whole is greater than the sum of its parts This truism applies to both Francesco Turco (Frank, Coda DesignArt) the artist and also to his work.

From his teenage discovery of the power of graphic imagery in the form of comic book art, to his current exploration of computer generated design and photo montage, Frank’s love of technical precision, bold colour and disparate visual elements is apparent.

In the good old bad old days of the 1960s and ’70s Frank found his earliest inspiration in comic books as diverse as the familyfriendly Marvel stable of superheroes and villains to the darker, edgier Heavy Metal magazine with its graphic mix of grim Science Fiction/Fantasy and weird erotica.

As a tertiary year graphic arts student, the work of major Surrealists such as Rene Magritte and Salvador Dali suggested new visual directions in which to aim Frank’s pens, pencils and brushes, where a first look – or, indeed, a second or third – would not only prove deceiving but slightly disturbing.

Perhaps unsurprisingly for a young man, Frank was also drawn to Patrick Nagel’s highly stylised Playboy magazine illustrations.

But it was not simply the erotic subject matter that was compelling; the clean linear forms, the bold use of colour and Nagel’s nod at ancient Japanese woodblock prints all proved to be influential.

At about the same time, innovative Science Fiction and Fantasy movies were breaking new ground and Frank was drawn to this brave new world of big screen cinema. The mind-boggling themes visualised by Stanley Kubrick in 2001: A Space Odyssey suggested that absolutely anything was possible. All one had to do was imagine it!

But Frank’s major influence was neither cinematic nor artistic. It was literary.

Long before Peter Jackson put New Zealand on the map, J.R.R. Tolkien’s vast and vastly detailed Fantasy novel The Lord of the Rings fired Frank’s imagination. His earliest pencil renderings feature soaring towers, ominous horsemen and mighty, winged dragons, executed with a fine technical precision that became Frank’s hallmark.

Completing his Dip. Design, he applied his graphic design skills professionally and was soon operating his own company, Optimum Design, designing company logos, corporate livery, books, magazines, stationery, brochures, packaging design and diverse advertising material for agencies and marketing departments.

For 30 years, as Designer, Art Director and freelancer, Frank applied his imagination, passion and skill in the service of his corporate clients.

Today, Frank applies his imagination, passion and skill in the service of his heart and his art.

His fascination with photo-montage, digital illustration, graphic design, traditional brush and airbrush painting is revealed in a diversity of themes and styles that have taken him from the world of advertising and commerce to this juncture of pure, seminal inspiration and deeply personal exploration.

Man and machine, the human form, birds in flight, earth, wind, fire and water, the animate and the inanimate, darkness and light, all unite in a visual dance of often disconcerting components which the viewer may not manage to disentangle but will nonetheless be drawn back to, again and again.

Look closer at Francesco Turco’s iconic imagery.

There is more here than meets the eye. codadesign.com.au codadesign@bigpond.com

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Hybrid pieces from parts Iconic visual compositions with an underlying theme of the fantastic.

Studio Coda DesignArt, highly detailed digital photo-montage works. Compelling images with strong, dynamic visual impact.

CODA www.codadesign.com.au codadesign@bigpond.com +61 438 344 928

BUGG MARKETING SOLUTIONS IS NOW THE REGIONAL REPRESENTATIVE FOR THE LIMA ORGANISATION IN AUSTRALIA WHAT DOES LIMA PROVIDE? Standard of professional conduct Ø Recognition of achievements Ø Standards of ethical conduct Ø Recognition of excellence Ø A source of information Ø A forum for networking Ø A source of education Ø

LIMA MEMBER BENEFITS: Connect with international members Ø Attend LIMA events and functions Ø Access to Licensing seminars Ø Major trade show benefits Ø Learn about Licensing Ø

FOR MORE INFORMATION ON LIMA AUSTRALIA, PLEASE CONTACT: Tony Bugg, Managing Director Bugg Marketing Solutions +61 3 9769 3963 +61 418 321 837 tony@buggsolutions.com.au