Product Type: Market Research Report
Published by: Mintel International Group Ltd.
Published: March 2006
Product Code: R560-1976Description Licensed toys represent one of the most important segments of the character licensing industry. In fact, licensed toys typically represent about 25%-35% of all annual toy sales. Sales are significantly driven by movies, with the two biggest licensing properties in 2004 being Spider-Man 2 and Shrek 2.
Food tie-ins are another lucrative channel for character merchandising license holders. Two examples of agreements include Burger King’s promotions using Spider-Man 2 merchandise, and Baskin Robbins offering Shrek’s Swirl Sherbet.
With the proliferation of Hollywood in the marketplace, the opportunities for character licensing are continually increasing. The population of pre-schoolers is on the rise, and retailers are looking to character licensing and merchandising to drive sales.
For the purpose of this report, Mintel defines character-merchandising as the use of popular children’s characters to promote the sale of consumer goods. Characters themselves typically derive from television, film, toys, books, comics, and computer games. Children (especially the “under tens”) are the key audience for character merchandising, although adults are the principal purchasers. Thus, character-merchandising is used by manufacturers to trigger a response among children, who then implore their parents to buy on their behalf.
This report includes the whole gamut of merchandised goods embracing media-led items as follows:
- media (books, magazines, films, videos, DVDs, computer games)
- greetings cards and other stationery
- furniture
- toys
- cycles and cycling accessories
- jewelry
- character timepieces
- oral hygiene items
- clothing and accessories
- bags, pencil cases, and sporting goods
- home furnishings and housewares
- mobile phone accessories such as covers;
- food and drink
Excluded from this report are celebrity endorsements and theme park admissions.Table of Contents - INTRODUCTION AND ABBREVIATIONS
- Introduction
- Other relevant reports
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
- EXECUTIVE SUMMARY
- A struggling market where the fittest survive and thrive
- Children drawn in, moms want to please yet nurture
- Electronics and music segments thrive; toys, gifts and food dives
- Multifaceted diverse group of companies as leaders
- Dubious parent; triumphant kids
- Classic characters and superheroes have the greatest staying power
- Innovation on many levels needed for future growth
- MARKET DRIVERS
- Popular culture and media
- Hollywood movies
- Figure 1: Going to see movies, by gender and age, May 2003-April 2004
- DVD rentals and sales are a key component
- Figure 2: Forecast of US DVD rental revenue, at current and constant prices, 2005-10
- Television a dominant force
- Video games popular among kids
- Figure 3: Ownership of video game players, by gender and age, May 2003-April 2004
- Kids’ books crossover
- Figure 4: Types of books read, by gender and age, May 2003-April 2004
- Comic books spawn characters
- Figure 5: Kids’ readership of comic books and newspaper comics, by gender and age, May 2003-April 2004
- The Internet: a growing exposure option
- Figure 6: Time kids spend on the Internet, by age, Fall 2005
- Tried and true titles dominate
- Threats from music, celebrities and sports
- Figure 7: Sales of licensed goods, by property types, 2003 and 2005
- Demographic picture: More younger children equals more product sales
- Figure 8: US population projections, by age, 2000-10
- Figure 9: Population, by age, race, and Hispanic origin, 2005
- Reaching kids through moms
- Figure 10: Influences on moms’ purchases of products for their children, 2004
- The nagging factor
- Figure 11: Opinions towards products with characters, agree summary, October 2005
- Purchasing power of children
- Food-related purchases
- Figure 12: Fast food restaurant visits by kids, by age, May 2004-May 2005
- Figure 13: Attitudes towards fast foods and fast food restaurant visits, by topline and race/ethnicity, May 2004-May 2005
- MARKET SIZE, SEGMENTATION, TRENDS AND DISTRIBUTION
- Introduction
- Retail sales of entertainment/character merchandise
- Figure 14: Retail sales of licensed entertainment/character merchandise, at current and constant prices, 2000- 05
- Entertainment/character merchandise segments
- Figure 15: Retail sales of licensed entertainment/character merchandise, by product category, 2003 and 2005
- Figure 16: New children’s personal care product introductions featuring licensed characters, 2000-05
- New market activity and trends
- Figure 17: Film releases featuring licensed characters, 2005-06
- Distribution of licensed entertainment/character merchandise
- Figure 18: Distribution of licensed entertainment/character merchandise, US and Canada, 2003 and 2005
- SUPPLIERS
- Hasbro Properties Group (HPG)
- Mattel
- The Walt Disney Company
- Studio Entertainment
- Media Networks
- Parks and Resorts
- Consumer products
- Warner Brothers
- Licensing
- HIT Entertainment
- Marvel Entertainment, Inc
- THE CONSUMER
- Introduction
- Adults’ opinions on why children want character-licensed merchandise
- Figure 19: Adults’ opinions on kids’ preferences for character merchandise, agree summary, October 2005
- Figure 20: Adults’ opinions on kids’ preferences for character merchandise, agree summary, by household income, October 2005
- Attitudes towards character-licensed products
- Figure 21: Opinions towards products with characters, agree summary, October 2005
- Figure 22: Opinions towards products with characters, agree summary, by age, October 2005
- Figure 23: Opinions towards products with characters, agree summary, by race/ethnicity, October 2005
- Summary
- Character-licensed merchandise purchased
- Food/snacks
- Figure 24: Incidence of purchasing food/snacks character-licensed merchandise, October 2005
- Figure 25: Purchases of top six products featuring a well-known character in the last 12 months, by presence of children under 18 in the household, October 2005
- Figure 26: Purchases of top six products featuring a well-known character in the last 12 months, by presence of children under 18 in the household, October 2005
- Clothing
- Figure 27: Incidence of purchasing clothing character-licensed merchandise, October 2005
- Figure 28: Purchases of top six products featuring a well-known character in the last 12 months, by presence of children under 18 in the household, October 2005
- Toys/games
- Figure 29: Incidence of purchasing toys/games character-licensed merchandise, October 2005
- Personal care
- Figure 30: Incidence of purchasing personal care character-licensed merchandise, October 2005
- Stationery
- Figure 31: Incidence of purchasing stationery character-licensed merchandise, October 2005
- Household décor
- Figure 32: Incidence of purchasing household décor character-licensed merchandise, October 2005
- Average number of product categories purchased
- Figure 33: Average number of product categories purchased, by number of children in household, October 2005
- Figure 34: Average number of product categories purchased, by gender, October 2005
- Figure 35: Average number of product categories purchased, by age, October 2005
- Summary
- Opinions about popular characters
- Educational-themed television programming
- Figure 36: Opinions toward characters from educational-themed television programming, October 2005
- Figure 37: Opinions toward characters from educational-themed television programming, by gender and agreement with “It is a good role model” statement, October 2005
- Classic characters
- Figure 38: Opinions toward classic characters, October 2005
- Family favorites’ movies
- Figure 39: Opinions toward characters from family favorites’ movies, October 2005
- Sci-fi/fantasy
- Figure 40: Opinions toward Sci-fi/fantasy characters, October 2005
- Superheroes
- Figure 41: Opinions toward superhero characters, October 2005
- Prime-timers
- Figure 42: Opinions toward primetime television characters, October 2005
- Summary
- FUTURE AND FORECAST
- FUTURE TRENDS
- Tight shelf space, low price points, and fierce competition…
- …force companies to innovate at retail
- Tried and true remains most sought after
- Music, celebrity and sport licensing threatens to take share…
- …leading to producers and marketers targeting younger children
- Going to the dogs
- Movie studios forging long-term relationships with partners, on shorter-term projects
- Advances in video game and toy technology build brand awareness and loyalty
- Childhood obesity and the move from fast food to health food character-merchandised marketing
- Figure 43: Attitudes towards children and obesity, August 2005
- Companies take greater notice of Hispanic children
- Figure 44: Top purchased character-licensed merchandise, by race/Hispanic origin, October, 2005
- Educational programming in search of long-term partners
- MARKET FORECAST
- Overview
- Figure 45: Forecast of total US and Canada retail sales of licensed entertainment/character merchandise, at current and constant prices, 2005-10
- Forecast Factors
- APPENDIX: SELECTED LICENSOR/LICENSEE AGREEMENTS
- Figure 46: Major examples of licensors and licensees in the marketplace, 2005-06
- APPENDIX: NEW PRODUCT BRIEFS 3M Health Care: Nexcare Tattoo Waterproof Bandages
- Colgate-Palmolive: Colgate Dora the Explorer Toothpaste
- Yoplait: Go-Gurt Portable Yogurt Tube
- NatureSmart: Disney Princess Gummies MultiVitamins
- ConAgra Frozen Foods: Kid Cuisine Mac & Cheese Meal
- Sargento Foods: Disney: Mission: String Cheese
- Kraft: Supermac & Cheese
- Knouse Foods: Musselman’s Apple Sauce
- Kraft Foods: Nabisco Nick Jr Blue’s Room Fruit Snacks
- Brand New Products: Fear Factor Gross-Out Candy
- Gruma: Mission Bakery Kid Size Disney Edition Tortillas
- APPENDIX: RESEARCH METHODOLOGY
- Consumer Research
- Datascension, Inc and Harris Interactive Service Bureau
- Greenfield Online
- ICR Surveys EXCEL
- Simmons National Consumer Surveys
- Technometrica TechnoExpresssm
- Trade Research
- Informal trade research
- Formal trade research
- Desk & Internet Research
- Sources
- Definitions
- Forecasts
- APPENDIX: WHAT IS MINTEL?
- Mintel Group
- Mintel Reports
- Mintel Premier
- Mintel GNPD
- Mintel Menu Insights
- Mintel Comperemedia
- Mintel Custom Solutions
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