Disney-Licensed Toys Outrank Competitors

“Toy Story” and Proven Classics Sell With Character

By Marie Raven
August 2010

“We can do more staple licenses out of children's literature that have been proven over time.” — Nancy Stanek, Toys Et Cetera

^{With additional reporting by Julie L. Jones, Terri Hughes-Lazzell, Chris Lundy, Claudia Newcorn and Brenda Ruggiero}

Many specialty retailers hesitate to buy into licensed toy lines, concerned about mass-market competition and staying power in the market. But of those that do embrace the licensed route, at least minimally, Disney is one of the most popular. Five of 43 specialty retailers named Disney as their top-selling licensed brand during a TDmonthly Magazine survey in April of this year.

DISNEY BANKS ON TOY STORY

Karen Nethery at Lee Publications agreed that “anything Disney” is the company’s most successful license. In fact, the manufacturer released four new “Toy Story” products in conjunction with the film’s June 18 release.

“Just about every order we receive has the new books on them,” she updated TDmonthly in early July. “We usually see another big surge in sales of new movie titles when the DVD comes out.”

Based on the early success of “Toy Story 3,” with a No. 1 weekend debut breaking opening-day box office records for animated films at $41 million, the November DVD release is sure to spark additional consumer interest.

BUYERS RELY ON PROVEN PROPERTIES

The Toy Story appeal, however, doesn’t ring true for every license, or in every store — especially in independent retail.

“Most of what's licensed for us is short lived, or the mass [market] sells it at our cost,” said Bob Samuels, owner of Learning Express in Andover, Mass.

Samuels was among 68 percent of 43 retailers to respond that they carry little to no licensed products in their stores.

Nancy Stanek, owner of Toys Et Cetera in Chicago, Ill., however, shared her take on what licenses do work for the specialty market.

“We can do more staple licenses out of children's literature that have been proven over time,” Stanek said, listing Madeline, Winnie the Pooh and Curious George as viable options. “Those books don't disappear.”

Corduroy Bear by Russ Berrie and Edith the Lonely Doll were also mentioned by storeowners as licenses that sell.

Schylling's PR manager Stephen Medina echoed similar sentiments. “We've always looked for licenses that are evergreen, book related and educational. We're a classic toy company; we feel that's a good fit with our toys.”

Stanek also stressed the importance of combining a license with a matching toy type, such as Lego's Star Wars line. Three of 43 retailers said Lego accounts for their top licensed sales.

MORE UGLYDOLLS POP UP

Despite doubts about license viability, new items entering the market may establish themselves as the next classic.

Medina expressed excitement about an expansion of Schylling's new Uglydoll line, to include a tin jack in the box later this year. In addition, Schylling will release products featuring popular book character Olivia.

September marks the release of a new line of Nickelodeon items from Lee Publications.

WHAT TO MAKE OF IT

True to the “back to basics” mantra often carried by specialty retailers, licensed products are sweetest when chosen in time-tested, wholesome themes. Design and branding that echoes the creative and educational values reflected in the specialty market is likely to reveal the next generation of licensed gems.

Here are some new and favorite licensed toys:

Corduroy™ Bear by RUSS BERRIE

Other products from RUSS BERRIE