Popular characters can be very effective at driving sales for a variety of products. For example, according to Nickelodeon, Dora the Explorer has generated more than $11 billion in worldwide sales since 2002. The exceptional effectiveness of character merchandising—especially when related to advertising directed at children—has also led to a great deal of oversight from the federal government. Research has shown that children respond more favorably to products with packaging that includes cartoon characters. The effect is so strong that children even rate foods with cartoon character packaging as tasting better than other foods.

Despite the popularity of character merchandising, overall sales have declined in recent years. The decrease is partially due to the continuing weak economy, and that many parents have adopted more frugal shopping habits in an effort to reduce discretionary spending. Thus, while character merchandising can be quite effective, it is also important to examine consumer attitudes and behavior, as well as industry trends and innovations, to ensure that such efforts are successful.

To provide the data and insight often needed to maximize the effectiveness of character merchandising, Mintel has produced this report which addresses the following questions:

How have sales of character merchandise performed in 2010 versus 2009?

Which categories are associated with sales declines and which are driving gains?

Which consumer segments report buying less character merchandise in the last year and which are buying more?

Which companies have been most successful using character merchandising and why?

What are the most popular characters in the U.S.?

How do American adults view character merchandising and its impact on children?