Disney Consumer Products Poised to Significantly Increase Share of Boys Market

Disney Consumer Products Poised to Significantly Increase Share of Boys Market


Jay Cochran - June 03, 2010
With strong retail sales of licensed Disney merchandise thus far in 2010, Disney continues its reign as the worlds largest licensor with $27 billion in global retail sales for 2009. During a presentation this week in preparation for the annual Licensing International Expo 2010 trade show next week, Andy Mooney, chairman of Disney Consumer Products (DCP), announced DCPs new goal to significantly increase annual global retail sales of Disney and Marvel licensed merchandise within the next five years, with boys merchandise playing a prominent role.

The tremendous strength of the Cars franchise, coupled with the recent acquisition of Marvel, which appeals to older boys, puts us in an optimum position to increase our share of this segment.

DCPs core strategy is to focus on newer properties targeting the boys market, including popular Marvel franchises, TRON and Disney Channel and Disney XD hit series Phineas and Ferb, as well as continued support of its six key franchises: Disney∙Pixars Cars, Disney Fairies, Disney Princess, Mickey Mouse, Disney∙Pixars Toy Story and Winnie The Pooh. With unmatched content, rich franchises and given recent signs of an improved economy, DCP is primed for significant growth through the remainder of 2010 and into 2011.

Retail sales of merchandise for boys properties have clearly been on the rise for DCP.

WHERE THE BOYS ARE

Our brand is our strongest asset and there is no better time in history for licensees or retailers to be associated with Disney; our strong slate of boys properties are designed to capture this market in a very big way, Mooney said. The tremendous strength of the Cars franchise, coupled with the recent acquisition of Marvel, which appeals to older boys, puts us in an optimum position to increase our share of this segment.

Toy Story Expected to Reach $2.4 Billion Mark

With fiscal year 2010 retail sales expected to reach $2.4 billion, Toy Story and its beloved cast of characters have become a priority and long-term franchise for The Walt Disney Company and DCPs biggest event film licensing program ever generating $9B in global retail sales since its inception. As Toy Story 3 readies to release in theaters June 18, major retailers have rolled out significant Toy Story product statements which have only set in the last month. But already in that short time, over 3.5 million units of Toy Story merchandise have been sold. In addition to the momentum from the film and merchandise, the Toy Story franchise will grow into a cross-company initiative that will include the introduction of all-new short form content on multiple Disney platforms modeled after the popular series, Cars Toons.

Cars Franchise Poised To Lead Disney Boys Franchises in 2011

Following the incredible success of Toy Story, DCPs biggest event film licensing program, the upcoming release of Cars 2 in June 2011 will be supported with unprecedented cross-company initiatives that are expected to dwarf DCPs huge Toy Story 3 retail sell-in. Cars was the highest grossing animated film in the U.S. in 2006 and has generated $2B in annual global retail sales every year since then. Cars has been a huge and consistent hit with boys, parents and collectors; years after the original films debut, Lightning McQueen and Mater still rank as the #1 and #2 most popular movie characters among moms of boys 2-5. Cars Toons, the hilarious series of shorts airing on Disney Channel, has made Cars relevant to young boys and provided fresh merchandising themes for incremental retail programs globally. To date, there have been 150 million die-cast cars sold around the world.

Marvel Drives Boys Marketshare Growth

The acquisition of Marvel and its wildly popular properties, including Captain America, Iron Man and Thor, gives DCP a tremendous opportunity to reach older boys and enhance its overall marketing and growth efforts.

DCP will initially leverage its strong retail and licensing relationships to stimulate sales internationally; the core Marvel management team will continue to run Marvels domestic brand in New York and will collaborate with DCPs domestic team on select, synergistic opportunities. Disney Store and DisneyStore.com began selling Marvel-licensed products this year with the release of Iron Man 2 and will continue through the year and into 2011.

And as the anticipation with TRON Legacy builds with the theatrical release approaching this holiday, DCP is laying the groundwork for a stellar merchandise assortment filled with innovation and something exciting for all, primarily older boys.

Phineas and Ferb Reigns As #1 Disney Channel Series For Boys 6-11, the #1 Animated Series on TV in Total Viewers, Kids 6-11 and Tweens

Phineas and Ferb is Disney Channel's #1 series among Boys 6-11 and is TVs #1 animated series in Total Viewers Kids 6-11 and Tweens 9-14. It is also delivering strong ratings on Disney XD in more than 135 countries and in 26 languages around the world. In the spring of 2009, DCP soft-launched a Phineas and Ferb t-shirt and by the end of the year Phineas and Ferb became one of the top three licensed properties in the boys departments at national retailers. The franchise has also demonstrated strong sales with stationery, fruit snacks, books, a DS video game and music sound track. For the first time this summer, consumers can enjoy a full line of Phineas and Ferb merchandise including skateboards, action figures and an assortment of toys and playthings. A Talking Perry plush has been a top seller at Disney Store, and DisneyStore.com now lets consumers create personalized Phineas and Ferb merchandise.

CORE FRANCHISES CONTINUE IMPRESSIVE GROWTH

DCPs ambitious plans for Cars, Toy Story and its newer boys properties are incremental to its sharp focus on core franchises including Disney Princess, Disney Fairies, Mickey Mouse and Winnie The Pooh all of which will continue to be a major priority across all lines of business.

It All Starts And Ends With A Mouse

Probably more than any other character, Mickey Mouse exudes the attributes of trust, quality and fun that have enabled the Disney brand to extend well beyond the licensed rack. Mickey Mouse reigns as Disneys largest franchise; products inspired by Mickey resonate with lifestyles in every consumer age and stage from preschoolers to urban artists and Mickey has inspired countless ideas and innovations over the years. Beginning this fall, high-end designers like Dolce and Gabbana, fast-fashion leaders like Uniqlo in Japan and key apparel retailers in the U.S. will offer exciting new collections geared toward trend-watchers and fashion-conscious consumers. Often described as the first lady of The Walt Disney Company, Minnie Mouse will also emerge in fresh new ways at retail in the U.S., Japan and Europe in a soon-to-be-announced merchandise program.

Taking Pooh Back To His Roots

Winnie The Pooh continues to be one of DCPs evergreen core franchises with a timeless appeal for the youngest consumers and their mothers. Pooh will return to his roots on July 15, 2011 with a theatrical film release backed by a major multi-media marketing campaign. At retail, DCP will drive Winnie The Pooh sales through strong new merchandising programs such as a soon-to-be-announced all-new Disney Baby collection for infants.

Disney Princess And Disney Fairies Generate Combined Retail Sales of $5.3B

Girls love to play dress-up and pretend, and they love Disney Princess and Disney Fairies. Disney Princess is the top girls brand worldwide for girls 2-6 with $4 billion in global sales. Tinker Bells tremendous popularity has sparked another sustainable girls franchise with Disney Fairies which has become a $1.3 billion retail business. As 2010 got started, The Princess and the Frog connected around the world and brought a new generation of fans to the dreams and adventures of girls everywhere. DCP officially welcomed Princess Tiana into the Disney Princess brand with a star-studded coronation ceremony and reception at the New York Palace Hotel in March. At the Disney Store, Tiana was the #1 best selling fashion doll throughout the Holiday, and continues to sell strongly. DCPs Toy and Stationery lines of businesses have enjoyed a healthy bump through the DVD release and the sales figures continue to grow, proving that Princess Tiana is a sustainable and incremental addition to the Disney Princess franchise. Disney will continue to expand both franchises with new theatrical releases and programs anchored around Blu-ray/DVD launches, online destinations, interactive games, books, music, theme park and live entertainment experiences, and more.





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