Table of Contents
Executive Summary
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- Overview
- The issues
- Decelerated growth patterns
- Toys and games in transition
- Staying top-of-mind
- The opportunities
- Unleash the “little kid” in the big kids
- Embrace online and other emerging media outlets
- Explore themes of nostalgia, familiarity, and education
- What it Means for the Future of Character Merchandising
The Market – What You Need to Know
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- Character merchandising outperforms broader licensed merchandise category
- Toys and games sit alone at the top
- Mass merchandisers and eCommerce seeing gains
- More content and ways to view means more characters to love
- Big buzz surrounding upcoming blockbusters
Market Size
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- Sector continues to post gains but sees slowdown in growth
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- Figure 1: Total US and Canada retail sales of licensed merchandise, at current prices, 2013-18
- Figure 2: US and Canada retail sales of licensed merchandise, by product type, 2016 -17
Market Breakdown
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- Three product categories represent nearly half of sales
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- Figure 3: US and Canada retail sales and percent share of licensed entertainment/character-based merchandise, 2016-17
- Discounters/mass merchandisers remain dominant channel, while eCommerce comes on strong
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- Figure 4: Share of US and Canada retail sales of licensed entertainment/character-based merchandise, by distribution channel, 2016-17
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- Figure 5: Retailers shopped, by select demographics, September 2018
- Figure 6: Method of shopping, by retailer, September 2018
Market Factors
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- No notable growth expected for children’s population
- Economic stability could lead to spikes during holidays and beyond
- Traditional gender roles being challenged
- More viewing options means more characters
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- Figure 7: Use of subscription online video content, August 2017
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- Figure 8: Influence of streaming services, by gender and age and parental status, August 2017
- Blockbuster hits create demand
Key Players – What You Need to Know
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- Long live the classics
- Comic books face challenges
- Is it time for a resurgence of toys and games?
- What’s old is also what’s new and next
What’s Working?
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- Everyone loves a classic
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- Figure 9: Estimated US/Canada retail sales and share of licensed merchandise based on entertainment/character properties, 2017
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- Figure 10: Popular characters, September 2018
- Men and their superheroes
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- Figure 11: Popular characters, by gender and age, September 2018
- Parents likely to pass down their favorites to their kids
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- Figure 12: Popular characters, by parental status by gender, September 2018
- Mickey for young kids, Darth Varder for older kids
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- Figure 13: Popular characters, by age of children, September 2018
What’s Struggling?
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- Comic books losing audiences
What’s Next?
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- The “big three” look to capture sales of toys and games
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- Figure 14: Amazon Toy Catalog, October 2018
- Figure 15: Amazon’s Movie and TV Hub for character merchandise, October 2018
- Driving sales through events
- Mickey turning 90
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- Figure 16: Target, Mickey and Minnie Mouse Collection, Email, May 2018
- Snoopy going to space
- Disney comes to the dinner table
- Properties to watch
The Consumer – What You Need to Know
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- Not just for kids
- Consumers say they prefer items with longevity, but their purchasing patterns don’t always reflect this
- Young men will treat themselves
- Tapping into nostalgia
- Gravitating toward the familiar
- Characters as children’s (and parents’) role models
Who’s Buying and Items Purchased
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- Young adults and parents are primary buyers
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- Figure 17: Items purchased – Any (net), by gender and age and parental status by gender, September 2018
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- Figure 18: Nonbuyers, by presence of children in household and household income, September 2018
- Toys and games fall down on the list
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- Figure 19: Items purchased, September 2018
- Except for toys, kids are not the primary recipient
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- Figure 20: Recipient of items purchased, September 2018
Reasons for Buying
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- Appealing more to kids and dads could help drive planned purchases
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- Figure 21: Reasons for buying, September 2018
- Men love to gift themselves
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- Figure 22: Buys made for self-gifting or collectible reasons, by gender and age, September 2018
- Hispanics and non-Hispanic Black consumers respond to affordable prices
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- Figure 23: Buys made for self-gifting, rewards, or price reasons, by race and Hispanic origin, September 2018
Shopping Preferences
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- Consumers seek longevity and nostalgia
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- Figure 24: Shopping preferences, September 2018
- One third of men 18-34 are collectors
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- Figure 25: Shopping preferences, by gender and age, September 2018
- Longevity of branded merchandise is important to parents
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- Figure 26: Shopping preferences, by parental status by gender and children in household, September 2018
Attitudes toward Character Merchandising
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- Familiarity is important to drive purchase
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- Figure 27: Attitudes toward character merchandising, by gender and age, September 2018
- Hispanics generally positive about character merchandising
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- Figure 28: Attitudes toward character merchandising, by Hispanic origin, September 2018
- Characters can be good role models for children
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- Figure 29: Attitudes toward character merchandising’s ability to encourage good behavior from children, by parental status by gender and presence of children, September 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Purchase Intelligence
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 30: Total US and Canada retail sales of licensed merchandise, at current prices, 2013-18
- Figure 31: US and Canada retail sales of licensed merchandise, by product category, 2016-17
- Figure 32: Population by age, 2013-23
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- Figure 33: Population of children under 18, by race and Hispanic origin, 2018-23
- Figure 34: Median household income, by age of householder, 2016
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- Figure 35: Consumer Sentiment Index, January 2007-September 2018
- Figure 36: Disposable personal income change from previous period, January 2007-August 2018
- Figure 37: Median household income, by race and Hispanic origin of householder, 2016
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