Digital Is Everywhere
Digital’s presence was in evidence even before Expo officially began during the pre-conference Licensing University which, for the first time ever, included a Digital Media Licensing Summit panel of experts to discuss the influence of digital media and celebrities on millennials and other consumers. The takeaway: Building a digital brand requires the same elements necessary to build a traditional brand—a compelling story and the ability to relate it to consumers.
The next day, it got personal when Bethany Mota, the face of digital celebrity success in the licensing realm, delivered the keynote speech. In 2013, the then 18-year-old vlogger with more than 10 million followers (mostly teenage girls) on YouTube, Instagram and Twitter, broke into licensing by teaming with teen retailer Aéropostale on a personally branded lifestyle product line (the store also created a parallel brand for young men with Internet celebrity Nash Grier). The success of the line, which ranges from apparel to wall hangings and was recently expanded to décor and fragrance, demonstrated that digital celebrity can make the cash registers ring. During her presentation, Mota outlined her formula for success: Make extensive real-time use of social media to engage followers, gather and act on their feedback and, in so doing, give them a personal stake in the product.
In addition to the staged events, digital loomed large on the Expo floor. Record numbers of digital attendees roamed and set up booths, including first-time exhibitors YouTube and its content partner AwesomenessTV, Amazon Studios, Nintendo of America and World of Warcraft owner Blizzard Entertainment.
The number and variety of digital properties and products on display was also impressive. Examples include Grumpy Cat, the Internet sensation with a licensed product line extending from apparel to coffee, and Saban’s Emojiville online series, as well as the usual contingent of electronic games and apps. A number of companies also unveiled app product extensions like GBI’s clever new Baby Genius Sing Along app, available worldwide as a free iTunes download.
In wandering the floor, it became quickly apparent that digital properties have changed not only the licensed merchandise mix but the very business model. “It’s totally upside-down now,” mused one Expo veteran pointing to the Electronic Arts booth. “They used to come here to find properties to license for their games; now they’re developing games as brands that they can license out.” The analysis applies not just to electronic game franchises like Halo and Skylanders, but to online games like World of Warcraft and apps like Angry Birds and Fruit Ninja. As if to drive home the point, during Expo, Mind Candy announced a new partnership with Sony Computer Entertainment Europe to bring its World of Warriors franchise, which started as an Android app, to the PlayStation console.
Old Brands Are Made New Again
While digital may represent licensing’s future, Expo 2015 was also a showcase for its past. Continuing a trend we noted at February’s Toy Fair, during Expo a number of vintage product revivals were either announced or on display. Examples:
Property | Owner | Relaunch Plans | Licensing Partners |
---|---|---|---|
The Powerpuff Girls | Cartoon Network | 2016 TV series | Spin Master (toys), Penguin Young Readers Group (books), Disguise Inc. (costumes, accessories). |
Teletubbies | DHX Brands | New TV series to launch on BBC in 2015 | Spin Doctor (toys in the U.S., Canada, Germany, Benelux), Character Options (U.K., master toy), Egmont (U.K., master publishing), Bon Bon Buddies (U.K., confectionery), Amscan (U.K., partyware), Worlds Apart (U.K., furniture), Character World (U.K., bedding), Posh Paw (U.K., bags). |
Jem and the Holograms | Hasbro | October 2015 movie (Universal) | Sephora (cosmetics), Shopbop (apparel, accessories, jewelry), IDW Publishing (comics), Manic Panic (hair dye), Integrity Toys (dolls) |
Bratz dolls | MGA Entertainment | Dolls, app and digital content launch summer 2015 | VFiles (apparel, dolls exclusive for holidays), Mighty Fine & Accessory Innovations (apparel, accessories for Target), Blues Clothing (apparel), Character World, Kinnerton Confectionery Co. (confection), MV Sports (clothes), Sambro (toys/games) |
Sailor Moon Crystal, Dragon Ball Super (anime properties) |
Toei Animation | New series on Japanese TV | Toei currently lining up licensing partners. |
Colorforms (vinyl toy) | Colorforms Brand LLC | Available at Toys ‘R’ Us July 2015 | Licensors include Disney (incl. Frozen), Pixar, Marvel, Minions, Daniel Tiger, etc. |
Growth of the Global Contingent
According to The Licensing Letter’s Annual Licensing Business Survey, worldwide retail sales of licensed goods reached $158.8 billion in 2014 (up 2.0% from 2013). So it is hardly surprising that Expo continues to attract licensors and properties from outside Canada and the U.S.
Most of the foreign exhibitors at this year’s show were Expo veterans. But their booths keep getting bigger and better each year. “Foreign exhibitors looking to get into U.S. markets are focusing on their best properties rather than trying to present all of their wares,” according to one observer. The aisles were flocked with dress-up mascots representing big-time foreign properties, mostly from entertainment, including Peppa Pig from the UK (Entertainment One), Masha and the Bear from Russia, Larva from South Korea (TUBA n Co., Ltd.), and, of course, The Smurfs from Belgium (I.M.P.S.s.a.).
As in previous Expos, many countries set up their own multi-business pavilions including China, South Korea, Japan and Brazil. But many of this year’s national pavilions were noticeably larger. There were also new pavilions from Mexico and India, as well as a British Heritage Pavilion featuring exhibits from U.K. museums and performing art companies.
Who Did & Didn’t Come
As usual, most Expo exhibitors came from entertainment. Disappointingly, none of the major U.S. sports leagues were there. But the NFLPI and MLB players’ union had a substantial presence. The former sent union head DeMaurice (“De”) Smith to signal its commitment. “The players have the potential to not only match but exceed League licensing revenues by directly connecting with our fans,” De told The Licensing Letter Editor Glenn Demby during an interview. “The only limit to growth is our clients’ imagination.” Much of the sports contingent was made up of foreign soccer teams and leagues.
The fashion/lifestyle, art and magazine publishing sectors were slightly better represented this year, according to Expo veterans, with the latter including first-time exhibitor Maxim. Corporate brands were prevalent, both among the exhibitor and attendee contingent. The growing food/ beverage segment was particularly noticeable. Coca-Cola, Mars Retail Group, Gummy Bear International and for the first time, Fatburger, hosted booths. Food, candy and beverages—both soft and adult varieties—also featured prominently in many licensee and licensing agency booths.
And let’s not forget the retailers. Although they did not set up their own booths, the retail people were out in force, including representatives of Walmart, Sears, Target, Hot Topic, Toys “R” Us, to name just a few. “They’re here not as exhibitors but exhibitees looking to cut deals,” one exhibitor explained.