Picking Popular Licenses Proves a Guessing Game

Traditionally, kids reach for characters from popular TV shows, movies and comic books to extend play in those fictional realms. However, not every storyline transitions into a successful product line. So how do manufacturers and retailers predict hit licenses?

Anita Frazier, industry analyst for NPD Group, said, “Figuring out what makes an ‘it’ property is very difficult, if not impossible, to predict.” Imperative, she said, are creative elements that can be developed into unique items. “The premise, characters, etc. all have to resonate with kids as well. There has to be the perfect storm for a true merchandising hit.”.

And since licensed toys represents about 25 percent of annual toy dollar sales in the United States, according to NPD, it remains an important part of the toy industry.

Michael Riley, vice president of marketing at Bandai America Inc., said that much toy success depends on choosing the right licensor. “They can work together to create a seamless brand story that translates both to TV as well as at retail,” he said.

Jill Bazos, vice president of marketing for Sababa Toys, said that deciding which license to use encompasses many factors. The license must be relevant to the toy, have staying power and be well-received by the target group and the trade (though not yet hot or you’re already too late).

Anne-Marie Feliciano, director of corporate communications at JAKKS Pacific Inc., said her company looks at the target audience of the license and then whether it’s a book, TV show or movie.

“We look at licenses that speak to generations,” she said. So far that has meant working with such superhero licenses as Superman and Batman. And this fall JAKKS will debut a line of Rocky products to coincide with the release of the new movie.

In addition, JAKKS is banking on an edgy urban license with rap artist and music mogul Snoop Dogg. Dog toys, beds, leashes, apparel and treats in the line will ship later this year.

Cynthia Money, vice president of consumer products at VIZ Media, noted that like the Snoop Dogg products, “what makes our business so exciting is that every once in awhile a brand will come out of nowhere, built on consumer demand.”

Money suggested that retailers need to evaluate what their customers are interested in and work with the licensor to understand the brand. “Many times a brand may work at one retailer or channel of distribution and not another,” she said.

At both Toys “R” Us in Fort Wayne, Ind., and Wal-Mart in Bluffton, Ind., store managers said that while it’s still too early to know what licensed products will hit this holiday season, “Cars” items are all the rage.

“People are buying the die-cast cars now,” Toys “R” Us manager Steve told TDmonthly well before the June 9 film release date.

Wal-Mart toy department manager Ira Lautzenheiser agreed. “Normally the toys really move right after the movie is released,” he said. He also expects strong sales from “Superman” licensed products this summer.

The following is more information on popular and new licensed products.