Sluggish GDP growth and falling retail sales limited licensed retail sales in Japan to $10.1 billion in 2013, according to TLL’s International Licensing Report. That’s a very modest growth rate. And projections for 2014 are not expected to be a whole lot better. Here’s an overview of licensing sales performance in Japan by property sector.
Entertainment/Character: 39.1%
Some key subsectors of this vibrant sector, which makes up the largest share of licensed sales in Japan, include:
- New and classic anime/manga properties, both from the action realm, such as One Piece, Saint Seiya, and Smile Precure, and on the cuter side, such as Anpanman, Doraemon, and Studio Ghibli characters;
- Cute (kawaii) characters that originate as “fancy goods” from companies such as Sanrio and San-X, including Hello Kitty, Little Twin Stars, Rilakkuma, and Tarepanda;
- Classic properties from U.S. entertainment licensors, such as Peanuts, Sesame Street, Care Bears, and especially Disney characters;
- Classic book characters mostly from Europe, including Thomas & Friends, Paddington Bear, Very Hungry Caterpillar, Babar, Peter Rabbit, Maus, Maisy, Miffy, Cheburashka, and Moomin;
- Digital-origin characters from video games and, more recently, mobile applications, including LINE Friends, Nameko, Puzzles and Dragons, and Pokémon;
- Yuru-kara, such as Kumamon and Sento-kun, which are ubiquitous mascots representing towns, businesses, associations, prefectures, and other locations and groups;
- Tokusatsu, such as Ultraman, Godzilla, Kamen Rider, and Tomica Hero. These are live-action, special effects-heavy, mostly sci-fi and action series;
- Japanese book publishing properties, which are, for the most part, for children rather than young women, including Bears School (Kuma No Gakko) and Nontan.
Fashion: 28.7%
Global labels can do well in Japan, especially in boutiques and department stores. In addition, local Japanese designers have traditionally done well in licensed sales, both locally and in high-profile limited-edition collaborations with characters and brands from around the world. Collaborations and co-branding involving not just fashion but all property types are also popular in Japan.
Corporate Trademark: 10.3%
This sector, which generated $1.041 billion in sales, third highest of any property type is poised for growth. While some global trademarks have done well here, Japanese consumers have not historically embraced corporate trademark licensing as consumers in other parts of Asia have. Historically, most of the activity has been more lifestyle than brand extension-based, although this is starting to change. Thus, for example, Hershey, has had success with brand extensions such as chocolate pudding and novelty ices in Japan.
Sports: 8.2%
Although relatively small in Japan, the sports sector drove 8.2% of retail sales of licensed goods. Some executives believe that the 2020 Olympics, which Japan is scheduled to host, may help further this sector. Japanese domestic baseball and football/soccer leagues have significant licensing programs that are mainly fan-centric rather than lifestyle-based. The U.S. leagues, including the National Basketball Association and Major League Baseball, conversely, are in the market and positioned as lifestyle brands, available mostly in specialty stores.
Art: 5.4%
Art licensing generates a relatively small share of the Japanese licensing landscape, accounting for just $550 million in sales. Even so, the sector has been growing at a slightly faster pace than the rest of the licensing busi- ness. Examples of Japanese artists involved in licensing include The Artist Collection/The Dog, a photography franchise that has a global licensing program; Jun Ichihara, an illustrator who is best known for a picture book and animated series based on his original characters: Shinzi Katoh, whose images are on stationery, accessories, footwear, publishing, home goods, apparel, toys, jewelry, and other items sold through museum and department stores, as well as seven dedicated shops in four countries.