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BBC WORLDWIDE SPECIAL FEATURE

REPORT INDUSTRY NEWS FEATURE INTERVIEWS

Exploring New Frontiers Tom Punch and Yvonne King talk brand extension, diversification and the letter “X”.

LAS VEGAS LICENSING EXPO - EDITION 24 LIKE US ON FACEBOOK @THEBUGGREPORT

“The Editor” Welcome to the 2017 Licensing Expo, Edition 24 of The Bugg Report Magazine and to welcome to Fabulous Las Vegas Nevada! This edition is something that we are really happy with because we think you can learn a lot from this. We have a range of feature interviews which are jam-packed with some great commentary, insights and opinions into the industry and business on a macro level. Take our interview with Haven for example; it was clear that adding value to business deals on all fronts is now essential in this day and age, and Haven have decided to address this with their recent rebrand. Licensing has become more than just the “deal” (maybe it has always been that way) but it’s really amplified now. You need to add value from marketing and advertising angles across so many platforms, the noise can be deafening and you need strategies for all of this. Consumer products are a derivative of the content that is driving them to the hands of consumers and this is more prominent than ever. The challenge is to drive the consumer to the isle through content; whether that is television, YouTube, Social Media or Apps. I don’t think this is necessarily changed in nature by business models like Amazon because they are selling the same products that physical stores are selling. The difference now is that so much time is spent looking at screens on phones and tablets that unless you are engaging the consumer on that platform and “selling” your products then you are missing a great opportunity. I mean, billboards are still relevant but the screens on phones and tablets are taking a huge amount of attention from these more traditional advertising platforms. We hope you learn something by reading The Bugg Report and encourage you to email us your thoughts on the content we have included. It would also be appreciated if you liked our Facebook page @thebuggreport and provided your thoughts and opinions on the many topics that are relevant to the industry right now. As always thank you for reading The Bugg Report. Matthew Bugg editor@buggreport.com.au

THE BUGG REPORT Managing Director Tony Bugg: tony@buggsolutions.com.au Editor Matthew Bugg: matt@buggsolutions.com.au

Contacts Advertising: bookings@buggreport.com.au Feedback: editor@buggreport.com.au Media: media@buggreport.com.au

Bugg Marketing Solutions Phone: +61 3 8782 3717 | Email: info@buggsolutions.com.au Address: Level 1, 64 Victor Crescent Narre Warren VIC 3805 | Postal: PO BOX 491, Berwick VIC 3806 The Bugg Report has been compiled as a guide to retail, sports, lifestyle, toys, licensing and other related matters. The views and opinions provided are based upon the views and opinions of its writers. In no way is The Bugg Report a factual guide to retail, sports, lifestyle, toys, licensing and other related matters and does not take responsibility for how the information provided is used by its consumers.

Las Vegas Licensing Expo - Edition 24

Powered by Haven EXPLORING NEW FRONTIERS Tom Punch and Yvonne King talk brand extension, diversification and the letter “X”

THE EMOJI COMPANY Feature Interview

SESAME WORKSHOP Feature Interview

ANIMAL JAM Feature Interview

VIMWOOD Feature Interview

ENTERTAINMENT ONE Peppa Pig & PJ Masks

NITRO CIRCUS Feature Interview

MGA ENTERTAINMENT Feature Interview

UNIVERSITY GAMES Interview with Bob Moog

UNIVERSITY GAMES Interview with John Herbert

JUST PLAY Feature Interview

DISNEY Feature Interview

KMART Feature Interview

LASER PEGS Feature Interview

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It’s safe to say that the world today is dramatically different to what it was 20 years ago. The internet, social media and the introduction of new technologies have changed the way the world connects and it is moving fast. I was chatting to Tom & Yvonne from Haven recently when they were explaining to me that the idea of “exploring new frontiers” for Haven meant offering more than just “licensing” and that these days, “brand extension” and “story telling” were key on their agenda on the back of their recent rebrand. So having said that, I asked Tom what’s up with the rad front cover we are sporting for this year’s magazine? Tom Punch, Managing Director In 2017 and beyond we are all about exploring new frontiers, hence why we went for such a fun space-age approach to this year’s Bugg cover. Yvonne expands on the strategy later in the article, and why the “X” (so now you’ll have to read it ALL - hah!). But it’s all about evolution, and expanding our expertise and influence into new areas. Sports and brands are two new areas of focus, and building nicely. Again, they are about getting out of our comfort zone, taking the knowledge and expertise of our fabulous team into new frontiers. We are really good at imagining the potential of “what could be” and then working out how we bring this to life in exciting, interesting and commercially viable ways, and building it to last. Sports has been fun, and growing well. Supercars Australia is up 500% on past retail merchandise programs, and getting solidly established and accepted across multiple retailers and multiple categories. And it’s been because we have re-imagined what could be for this brand, tapping into the massive kid and adult fan base, and then making it happen. We are hoping to announce some significant new Sports partnerships in the upcoming months. Fashion and brands have been an engaging new challenge, but one that is coming to fruition. We are signed for Australia’s largest and most powerful website for women (can’t tell you unless you ask), and we are in the final throes of a very significant retail partnership which will change how these brands are viewed. Our collaborations across our art portfolio are already showing success, with programs across the Gorman fashion apparel chain, BlackMilk, Cotton On, JayJay’s, mass and a stack of other partners. And then of course, there is our wonderful entertainment portfolio. Mass retail in Australia has been in turmoil (with a new strategy each week with the new CEO... Aarrgghh!), but we have managed to build our brands through huge events, or new big DTR’s, or marketing, collaborations and more. Mass is changing fast. Three to five years ago it was all about funding catalogues and point-of-sale, but that is ending, with retailers focusing on social media MUCH more than their old fashioned tools. It’s much more cost-effective, it’s faster and gets better results, so we are focussing our energies with the retailers in these fields to great effect. Whether it’s from PAW Patrol to Hungry Caterpillar to Keith Haring - it’s all about giving our wonderful retail partners new ideas. It’s about evolving and showing them things that excite them and give confidence that our programs will drive sales and reach their audience - and so far so good!

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Then I asked Yvonne; What’s the reason behind the new look Haven? Yvonne King, Director Our company and the places we play have evolved so much over the past near-quarter-century (ouch) that we really felt it was time to stop and take stock, to reimagine our future and reframe our current paradigm for an even more successful future. We all know the definition of madness - repeating the same thing and expecting a different outcome, so the time was right to do a rebrand that reflects the true (and vastly changed!) nature of what we do. The very first order of business was to drop “Licensing” from our name! A license is a contract that defines the terms of a commercial agreement and we do so much more than that! We create valuemaking ecosystems for global and local brands that maximise audience love and revenue potential. Issuing a license is the easy bit! We are market makers - if we don’t invent it and bring it to life, ain’t nobody knocking on our door asking for it! We create unique, engaging and enduring brand extension programs, matched with immersive “sticky” experiences to meet the aspirations and demands of contemporary audiences. Everyone’s got a story to tell and we love being part of a great story! We added the “X” to our logo because we have the X Factor, well no I just thought of that, we wanted to signify that with Haven there is more - an added advantage, and the multiplier signifies untapped potential. More value, more capability and the added benefit of doing things differently is symbolised in our Haven X brand marque. It’s a graphic device and a tool that always stands for more. Our outside now truly reflects who we are on the inside and our new website is a great illustration of that; www.havenglobal.com So the future looks bright! We are transforming our business, and leveraging our skills and reputation to build new partnerships, content and intellectual property across all categories and in new geographies!

“Someone far more famous than us once said in a well known movie... ‘Show me the Money’... well we believe doing the deal is the easy bit. It’s the hard work behind the deal where we bring our magic.” www.buggreport.com.au

We are the market makers Wikipedia defines DNA as a ‘molecule that carries the genetic instructions used in growth, development, functioning and reproduction.’ At Haven, we take a very similar approach. We extend every opportunity to expose your brand potential. Ultimately we unlock growth across every touchpoint.

x Collaborations

x Retail Activations

x Sports

x Art & Design

x Extending Brand DNA

x Location Based Experiences

x Marketing

x Blue Chip Promotions

Australia | New Zealand | South East Asia www.havenglobal.com E. info@havenglobal.com P. +61 2 9357 9888

FEATURE INTERVIEW WITH MARCO HÜSGES | CEO & FOUNDER OF THE EMOJI COMPANY

We have watched the evolution of the official emoji® brand over recent years. Marco Hüsges (CEO/Founder) has worked extremely hard to secure coverage for his brand around the world and in our view deserves his success. We have spoken with him about his vision for the official emoji® brand and since it launched some two years ago, its expansion is phenomenal.

no doubt the official emoji® brand has evolved significantly. Until today we have created more than 5000 icons, characters & patterns and we have developed and launched more than 35 style guides to our partners. The expressive power that lies in the official emoji® brand and its related content perfectly enables us to address a global market place while meeting today’s consumer trends and offering different lines of styles.

At an early stage in 2013 Marco realised the potential of a digital phenomenon and transformed that potential from the world of digital communication into a vibrant and official registered emoji® lifestyle brand that today stands for expressive consumer products ranges, promotions, activities and loyalty programs.

It is the diversity that makes the brand so powerful, attractive and universal and our team of designers gets inspired by music, history, films and seasonal events. There are simply no limits for our clients when it comes down to developing expressive and adorable fastmoving consumer goods, promotions and loyalty programs in connection with the official emoji® brand and its vast content library.

Leading into Licensing Expo in Las Vegas, we caught up with Marco in between his busy schedule to get an update from him on the official emoji® brand and his plans for 2017.

I notice that you continue to travel to all parts of the globe to spread the word and establish the official emoji® brand. How have you found the acceptance in such a diverse global market?

Marco, it has been a while since we last spoke. I am interested to understand the evolution of the official emoji® brand over the past two years since launch. Your current design direction is seriously fashionable and ontrend. Can you tell us about how this has evolved?

The success of the offical emoji® brand is phenomenal and most importantly the brand has a worldwide acceptance angle. Our brand is represented by 17 licensing agents and official emoji® products can be found in more than 65 countries all over the world. The great thing is, the brand simply works everywhere!

Indeed Tony, it has been a while but we are always excited speaking with The Bugg Report. We have been going for a couple of years now and

Meeting our partners - agents and licensee partners - is part of our business and we use those personal

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meetings to demonstrate face-toface what the official emoji® brand is all about and how it can be applied to products but also integrated into clients overall communication strategies. The official emoji® brand is a truly universal and multifaceted life style brand. The mechanism to market a lifestyle brand is totally different than what you have to do for an entertainment brand that does depend heavily on the success of the accompanying entertainment formats and therefore has only limited windows in marketing and sales. The official emoji® brand is a year round brand with consistent potential which is an outstanding and highly competitive aspect for licensees when they evaluate a brand’s potential and chose to invest into a brand and to work with it. We use our roadshows and face-toface meetings to highlight and to illustrate such potential to our existing and future licensee partners and to develop the best strategies together with them. Can you tell us about your plans for emerging markets such as Russia, the Middle East and Africa? Early this year the emoji company expanded into Russia, India and the Middle East by signing direct agreements with Pullmann Licensing (Russia), Black White Orange (India) and 20too Licensing in the Middle East. All partners are professional brand licensing agents with strong portfolios for their market places

and we are excited to work with them. Right from the start, all of them have delivered fantastic results and we expect to see a huge growth of the official emoji® brand in those markets, similar to what we have achieved in the rest of the world. We do offer an agile and multi-target brand concept that works for a global market place and the universal character of the official emoji® brand is a guarantor for disproportionately high results of our partners. As in most countries apparel gave the lead in those new markets. The big roll out will of course happen when the back-to-school season begins. In addition to that, all markets will face multiple promotions in 2017/2018 as well as branded activities in shopping malls and in department stores. On a multi territory and from long-term perspective we are working on an official emoji® mono brand store concept in connection with a franchise model. What is your view on those who seek to infringe on the official emoji® brand? We have invested heavily in the development of the official emoji® brand and have created a global trademark family over the past four years. We own more than 650 trademarks by today and developed more than 5000 high-resolution icons which are all protected under U.S. Copyright Law. In order to reach such intrinsic value we have invested millions into brand building, content creation and brand protection. At present, we work with 300 active licensee partners and we expect that number to increase to up to at least 420 partnerships by the end of 2017. Partners include Pepsico, Nestle, ZARA, Wal-Mart, Nikon, Fuji Film and many others who all appreciate the solid brand licensing package the emoji company is offering. And the results are visible.

Thanks to the extraordinary work of our global partners we have reached an amazing global brand recognition value and popularity. When it comes down to a verifiable infringement, we do take action against such companies. We are of course constantly in contact with retail via our licensing agents and share the information about possibly infringing parties or products that they might improvidently support.

package is a one of a kind offer and honestly speaking, why would any interested licensee, retailer or department store group be even interested in selling generic product that might bare the risk of infringing the emoji company’s extensive global rights when they can have the full support and all the benefits of the official emoji® brand, which is demonstrably used by the most reputable licensees globally and proves incredible success at retail.

In order for a brand to succeed you need a universal and carefully thought through brand concept with values and you need to stick to them. You need quality in design and production which means you have to invest. Our brand values are longevity and substance, which is why we constantly and proactively invest in market research studies, content creation and the development of unique design concepts. We seriously invested into building brand awareness and we continue to do so in order to maintain it.

What will be your primary focus for Licensing Expo this year?

We place funds into retail and consumer marketing, we attend trade shows all over the world and create added value concepts for our customers to support product sales. Our customised icon development service is used intensely by our licensees and just another service we offer to our partners. Our brand

Licensing Expo in Las Vegas is the window to the world of licensing. As in the years before we have increased our booth size and will present the official emoji® brand bestsellers as well as new and innovative product ideas. We use the show in Vegas to share our recent product developments with our clients that come from all over the world and we are convinced they will be highly inspired. Sharing the official emoji® brand experience is vital and we will attend the show with a big team in order to being able to manage hundreds of meetings and to handle all requests from our existing and potential new partners. What has been the most successful and impactful promotion that you have run over the past 12 months?

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We have released two incredible promotions with leading grocery retailers in Europe just lately. One was with COOP in Switzerland and the other one with Jan Linders in the Netherlands. Those promotions were based around collectibles and we developed a set of unique figurines for our partners.

Those promotions were heavily supported by far-ranging marketing activities which included TV commercials, print advertisements, in-store activities and expansive social media coverage.

licensees from every part of the world. On top of that we are exploring new business areas and have entered into serious partnerships aside from the standard licensing business.

Where do you see the official emoji® brand a year from now?

Consumers were rewarded for their purchases at the grocery stores and also had the chance to buy figurines separately. Consumers were also able to purchase official emoji® branded merchandise.

Besides the fact that we have experienced stellar growth since the first launch of the official emoji® brand at Licensing Expo in 2015, we are convinced about the long lasting potential of the brand.

Over the next months we will launch multiple campaigns based on a variety of concepts which will for sure stimulate revenue at retail and parallel strengthen and increase the official emoji® brand recognition and popularity.

Due to the universal appeal of the official emoji® brand to people of any gender and age, we are confident to grow the brand above the ordinary and to preserve the substantial business for decades. One reason for that is the wide scope of application for the official emoji® brand and its unrivalled all year-round universal potential which connects us with interested

Companies such as Nikon, O2 or the Swiss Post are cooperating with us and use our content in their communication strategy to create additional brand exposure for their own brands. Digital emoji® stickers and the already mentioned official emoji® mono brand store concept are just two other business areas to explore. Finally we will see collaborations with other major brands that include cross-overs and that will lead to fresh new style guides and new potentials.

“

You can view the Promo Trailer here; youtu.be/ooks2DzP7Q

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With all that in mind, I am convinced about the evergreen potential of the official emoji® brand. Marco, it is always great to speak with you and I can see your passion for your brand. There are many retailers around the world who are looking for 365 days a year programs for their businesses. Your universal official emoji® brand can clearly offer this to them across all platforms. The future looks very bright for the official emoji® brand.

Sesame Workshop WE INTERVIEW GISELA ABRAMS | VICE PRESIDENT | INTERNATIONAL MEDIA BUSINESS

The Bugg Report sat down with Gisela Abrams prior to Licensing Expo to learn about all the latest updates from Sesame Workshop including toys, promotions, TV and the introduction of a new character to the Sesame Workshop gang. Gisela, will your recent regional partnership with HeadStart for toys in Australia & New Zealand lead to more innovation in other parts of our region in relation to more local product development, marketing and distribution arrangements? First, we are completely excited to be working with HeadStart in Australia & New Zealand. Toys are an anchor category for us in the region, and HeadStart’s expertise in retail execution, product development, and marketing is unparalleled. Most certainly, we’re looking forward to opportunities to tap into local talent and see what creative things they can do with the Sesame Street characters and brand. We’ve had a long history of great partnerships with homegrown brands. A couple of years ago, we worked with Peter Alexander on a new line of PJs and loungewear, and shot the catalog on the Sesame Street set. We’ve also teamed up with the AFL to create co-branded Sesame Street merchandise for 17 of the league’s teams. We look forward to developing more partnerships with established and up-andcoming regional brands. I notice with interest that you have developed and launched many new promotional campaigns throughout this region including the recent partnership with Cookie Monster and The Australian Blood Bank. Would you mind sharing some of your most successful campaigns? The Australian Red Cross Blood Service used celebrity chefs and Cookie Monster in a campaign to encourage people to donate blood. Everyone knows you get a delicious biscuit at the end of the process, so it made perfect sense for Cookie to participate! Our cookieloving monster was also featured in an Apple ad using Siri to help him bake up a batch of his favourite treats. We worked with the AFL on their “Put Yourself in Their Socks” campaign in recognition of Australia’s youngest

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and bravest heroes – children who battle cancer. We also had a great international campaign with our PUMA collaboration. The Puma x Sesame Street collection featured a very cool line of sneakers, apparel, and accessories - all adorned the Sesame Street characters for both kids and adults. Peter Alexander shot his catalogue on the Sesame set in New York in recent times. This campaign resonated globally. In your opinion, what did this do for the profile of your brand? They shot their catalogue and some fun bits for their social media platforms. We loved the vibrancy and joyfulness that Peter brought to the set which matched so well with our Sesame Street Muppets. There was a lot of laughter that day: it was a perfect combination of fur, fun and fab. We have a wonderful on-going collaboration and we just celebrated Peter Alexander’s 30th anniversary in the industry with a Sesame Street’s capsule collection featured at his stores. As we look toward Licensing Expo where there will be many thousands of brands on show, can you tell us how Sesame has remained relevant and connected to both the industry and the consumer? It’s such an exciting time in the licensing industry. Just see how the number of exhibitors and attendance have grown! This is a reflection of how strong brands are and how they are engaging with consumers on a much deeper level. We’re thrilled to be a part of that. For almost 50 years, we’ve been able to deliver experiences and products that resonate with our fans. What keeps us relevant is the research we do every year to identify what issues are impacting children and how we can best address those needs through our content offering. What also keeps us top of mind is that the Sesame Street Muppets serve as great role models and always stay true to their characters. Elmo, with his contagious giggle, loves to learn. Cookie has a big appetite for life. Abby always wants to help her friends. Big Bird is the ever optimist. Everyone has a favourite character they can relate to.

Gisela, outside of Australia what are your three most important markets in the Asia Pacific Region to develop and why? Our top three markets would include Japan, Korea, and China. There’s an inherent affinity for character brands. Teens and young adults love Sesame Street as much as young children. But there’s also a strong value for education. This is where Sesame Street plays a key role. Our organisation is an educational force for change and social good around the world. Using the power of media and our engaging Sesame Street Muppets, we reach and teach children through a wide range of high and low-tech media, formal education, and philanthropically-funded interventions, all tailored to the needs and cultures of the communities we serve. Our programs are grounded in rigorous research and constantly evaluated. I notice with interest that you have introduced a brand new character into Sesame Workshop, her name is Julia and she has Autism. As is the case with many similar conditions, it is relatively misunderstood. How do you see her part in the show educating people in general about this condition?

Julia actually started as a digital character when we launched our initiative Sesame Street and Autism: See Amazing in All Children in the U.S. in 2015. There was a tremendous outpouring of support from the autism community. So many people related instantly to Julia; they wanted to see more of her, and specifically hoped to see her come to life as a Muppet. Our focus with the initiative is on promoting understanding and acceptance around autism and reducing stigma by showing the amazing in all children, while providing tools for families of children with autism to help with challenging moments. The support and feedback we have received from families and individuals from all over the world has been tremendous, and we are actively looking to localise the content in several countries. Watch this space! In a world that is now changing on a daily basis, how do the core values of Sesame Street stack up? Our mission is to help children grow smarter, stronger, and kinder. Sesame Street helps children learn their ABCs and 123s, but we’re also invested in their socialemotional well-being. We conducted a study last year and found that parents and teachers in the United States worry that their children are living in an unkind world: that people do not go out of their way to help others and believe that children need strong socialemotional skills to succeed in life. We undertook this study because we, ourselves, felt that the world seemed to be lacking in empathy and were concerned what the long-term impact of that would be on children and society as children grow older. The survey confirmed our concerns, and we think it’s time to have a conversation about kindness. What are your key priorities for the show this year? This current season, the 47th, is all about kindness. We’ve also just introduced Julia. We’re gearing up for our 50th anniversary in 2019. And we’re looking to do more unexpected collaborations. We can’t wait to share more news soon.

TURN THE PAGE TO CHECK OUT SOME GREAT PHOTOS OF ELMO OUT AND ABOUT ON HIS RECENT TRIP TO THE LAND DOWN UNDER!

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TO DO LIST. 1. Take photos of Elmo out and about Down Under! 2. Post photos in the new Bugg Report Magazine!

Checking out some Sydney street art mate!

Taking some snaps out at Bondi Beach...

kTM & Co

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Just chillinâ€™ at the pool on an Aussie rooftop.

Catching up with some of the Aussie locals !

Animal Jam FEATURE INTERVIEW WITH JEFFREY CONRAD | FOUNDER AT PEEKO

The Bugg Report had the chance to speak to Jeffrey Conrad from Peeko about all things Animal Jam recently. A game which was introduced in 2010 has now grown to over 75 million users from all around the world and has now moved into licensing. We spoke to Jeffrey about many topics including the game’s growth, advertising, licensing and what the future holds accross many global markets. As an introduction Jeffrey, can you tell us about the origins of Animal Jam and how it has grown to become what it is today in terms of registered users? I believe that the community element has been one of the reasons for the game’s success so far? Animal Jam started back in 2010 and has grown to well over 75 million users worldwide. We bring in one to two million users every month, and that growth has been consistent and steady. It’s a place where kids can chat with friends, decorate their dens, play games and trade items they’ve acquired. The social environment allows kids to express themselves in a number of different ways and explore their own creativity. It’s also a place their caregivers can trust as we provide information about animals and their environments. In Australia, WildWorks TV advertises the game as well as running digital advertising, which is very positive in terms of building the brand. What have been some of the key brand-building platforms for the game, not only in Australia, but globally to-date? Our advertising strategy has evolved along with our audience’s media consumption. In the past our digital campaigns centered around Flash game portals. They now include a wide range of good, relevant content via gaming network partners like Ad2Games. We use a similar approach on mobile, advertising in games and apps that overlap with our audience. TV continues to be an effective medium to build the Animal Jam brand and to grow our global audience. We’ve run TV campaigns in Europe, Latin America and the US in addition to Australia.

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Speaking of the game itself; what does the future hold for developments to gameplay and characters? Growing slow and steady is what the Animal Jam team is working to do. In the coming year, we will be releasing updates to allow for more seamless play on both our web and mobile platforms. This will mean that when a Jammer buys a membership to one platform they gain access to membership on the other platform as well. We’re also working on an in-game narrative for the next two years that will include some exciting surprises. Animal Jam is different than most entertainment brands in that it is a living breathing production. This allows us to react to trends and current events and respond very topically to what kids are doing. Additionally, look for some developments with episodic entertainment that will play-out an even greater mythology to the world. On the back of the success that Animal Jam has experienced, how did licensing become a natural progression to build on the Animal Jam brand? The founders’ core focus was always creating an amazing virtual world for their players and not worrying too much about the real world space. They understood the need for their players to expand the Animal Jam universe into consumer products, but, if that was going to happen, they wanted the two worlds to connect. We accomplished this through unique

codes that are included within the consumer product. The codes offer either in-game currency or a new unique in-game item that can only be had by purchasing the consumer goods. By example, if you were to purchase a pair of PJs, you input the code and now your animal avatar is wearing the same PJs. We’ve supplied our licensing partners with over thirty million codes to date, with a redemption rate of 25% (industry average is 2-3%) When our players can get real world products, they go crazy for them and support them in a big way. From a licensing portfolio angle, can you provide a birds-eye view of the current Animal Jam licensing partners and the types of consumer products that are available and where? We focused on the top 2 markets for the online game itself, the US and UK. This is where we found the most engaged users and believed the greatest success would be achieved. We were very careful to choose partners that we believed would build with us and treat the brand like their own. That really started with our amazing master toy partner, Jazwares. Many toycos showed interest in licensing the brand, and Jazwares had the passion, drive and key talent to

make the program work. They very quickly developed a beautiful collectible line and secured major retail placement. From there, we looked for additional core partners in publishing, apparel, craft/activity, bedding and accessories. We are now very excited to have over 50 committed and enthusiastic licensing partners on board. Are you able to provide an overall preview of what we can expect from Animal Jam in the future? We continue to build our user base, which is the most important part of executing on our consumer products program. If our players are spending time in game, we’ve seen that they continue that engagement with our products. We spend a ton of time buildingout the world and making sure it’s an amazing experience for our players. There will be even more focus connecting the real world with the in-game experience. As animals and the environment are a core part of our online world, we’re looking to mirror events and happenings from our natural world. We’ll be extending that experience with limited edition products available both online and at retail. www.animaljam.com

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#1 online social game for kids!

75 million registered users!

Over 2.5 million registered users in AU/NZ!

TOYS NOW AVAILABLE IN STORES!

Vimwood FEATURE INTERVIEW WITH KIRRIN TILBROOK | VIMWOOD FOCUS ON EXPOSURE AND GROWTH

We last spoke to Kirrin Tilbrook (General Manager of Vimwood Australia) in March about her plans to increase Vimwood’s market share and presence at retail in Australia. We also focused on her desire for the company to become more visible in terms of retailer profile. Vimwood’s very unique model sees them specialising in accessorised concepts spanning hair, watches, seasonal, baby, travel, active and sunglasses. Vimwood are fortunate to be working with many of the biggest brands in the market including Disney, Warner Bros., DreamWorks and Shopkins, to name a few. We were able to catch Kirrin before Licensing Expo to learn some more about how they will develop their business over the coming year and beyond. Kirrin, what came out of a busy Toy Hobby & Licensing Fair in Melbourne in March? It was a great show! We had some very positive retailer meetings that we are busily working on ranging for now. I notice with interest that you have a brand called “Wishes” in your portfolio; can you tell us a little about where this resonates for you? Wishes is our own kids fashion accessories brand. Perfect pieces for every little girl. The brand is broken up into Wishes basics, Wishes fashion and Wishes baby and is designed based on key trends in apparel. We have a hair and jewellery range available with plenty of glitter and sparkles! The colour palette for

SS17 is soft pinks and gold – but it varies by retailer. Our baby offer is gorgeous and right on trend – feel free to check them all out next time you are at any Big W, Target or Myer store! As we all have seen, the distribution model has experienced some challenges in recent years. Given that Vimwood develop their own product, has this helped you to hit retail price points and engage a wider variety of retailers with your ranges? Not really - we work really closely with our retail partners and price points are a constant struggle as the overall pricing model in retail has reduced significantly and accessories, as an Impulse category, needs to be careful not to make price points too high or they become a much more considered purchase. We work hard on getting value for the price points, and pride ourselves on maintaining the highest quality. What will be your three main priorities for Licensing Expo this year? For us, Licensing Expo is about seeing what is happening on the Global stage in licensing versus what the Australian market is responding to. It is interesting to see the rise of entertainment properties associated with Netflix for example - though how this is translated into consumer products is what we are interested in. So we will be looking out for what we believe to be the strong, commercial properties that will not only be easily translated to consumer products, but specifically to the accessories category. What is your view on movie-based properties versus evergreen brands and how does this apply to your business?

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common response I get when I talk about consignment is “what’s the catch?,” there isn’t one! It is not a common model but for a category as fiddly as accessories, it works. Can you tell us a little about your seasonal programs?

They are both important - we rely on evergreen brands as the core of our offer but the movie based properties provide a much needed injection of excitement and provide us with incremental promotional opportunities. It can be a bit hit and miss depending on the movie - they don’t always translate into product sales, but we know that they help gain brand recognition. Frozen was probably the best performing movie based property we have had and is now an evergreen brand but I am very excited to hear the news of Frozen 2 movie release and expect to see a resurgence or interest in the brand, and then the products based on this. There has been an enormous amount of commentary relating to Amazon arriving in Australia. Do you have an Amazon strategy? No not as such. I am still very much a bricks and mortar shopper and whilst I am extremely impressed by Amazon, for me they remain a very clever and impressive online retailer. Will they have an impact? Of course. But I say embrace it - take what they are doing and see how you can use it to make your own offer better! Let’s chat again in a year from now and see if I need to eat my words. You mentioned when we last spoke about your consignment model. How do this work and what types of retailer will this work well for? The consignment model is the perfect model for any retailer who wants to get solid results for little effort. All we need is a commitment on space and we will deliver the results! For consignment to work properly though, we do require some technical capabilities but most retailers are capable of a consignment model, they are just skeptical about how it can work. The most

Our two biggest seasonal programs are Christmas and Back-to-School. For us, the key months in our calendar are from start October through end February. Our Christmas program is designed for each of our retailers based on key, best selling profiles such as earrings, novelty alicebands and other novelty accessories. The sales of Christmas accessories never cease to amaze me! Our back to school hair accessories are also a key sales driver for us throughout January through February simple, functional hair accessories in school colours. We have captured plenty of data now over the past years on what colours sell in what regions of Australia and can therefore ensure we are sending out the most wanted school colours by store location! Kirrin, what is your very simple message to prospective retail partners in terms of partnering with Vimwood in the licensed accessory category? If you have the space, we have the solution. We are flexible and easy to work with, and approach every partnership as a win/win. If it doesn’t work for you, it doesn’t work for us. What can we expect from Vimwood in terms of innovation over the next 12-months? We are always looking at what we can do to innovate within our category, though I would say we are not aiming to be leaders as far as innovation in accessories goes. We want to ensure our range offer provides stable, consistent sales results for our customers and provides beautifully designed, quality products for their consumers. Our innovation will come from the gaps we see in the market, and what we can come up with to fill that gap. ---------------------------------------------------------------------Thanks Kirrin, we look forward to seeing more accessory concepts from Vimwood in the market and to see you build more successful retail partnerships.

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Watches

Bag tags

sunglasses

BBC WORLDWIDE AUSTRALIA & NEW ZEALAND WITH AN EXTENSIVE PORTFOLIO OF PREMIUM MULTI-PLATFORM CONTENT, BBC WORLDWIDE CONTINUES TO STRENGTHEN ITS POSITION AS ONE OF THE WORLD’S LEADING CONTENT DISTRIBUTORS. FROM ADVENTURES THROUGH TIME AND SPACE AND EXPLORATIONS OF LIFE ON EARTH, TO BOOSTING CREATIVITY AND IMAGINATION AMONGST PRE-SCHOOLERS, BBC WORLDWIDE’S GLOBALLY SUCCESSFUL BRANDS CONTINUE TO INSPIRE AUDIENCES AND OFFER HUGE POTENTIAL FOR PARTNERSHIPS AND LICENSING.

DOCTOR WHO Doctor Who has returned to screens for the much anticipated tenth series, set to be Twelfth Doctor Peter Capaldi’s last. The exciting line up of new faces includes Pearl Mackie as The Doctor’s new companion - Bill, the adorable-but-deadly Emojibots and David Suchet as The Landlord. Returning foes include the Daleks, the Ice Warriors and the Mondasian Cybermen, as well as Michelle Gomez as Missy and John Simm as The Master - his first appearance in the show since 2010. This year also sees the launch of a brand new switchover show, Whovians. Airing on ABC2 and iview, Rove McManus and his team of superfans dissect, delve into and delight in the world of Doctor Who following the latest episodes every week. To celebrate the launch of Series 10, the BBC Worldwide ANZ team unveiled a mind-bending 3D illusion, which appeared alongside the TARDIS at one of Sydney’s most iconic locations, Circular Quay. Fans were able to catch TARDIS again when it materialised in the form of a full-size LEGO® replica at The Sydney Royal Easter Show to support the sales of the new look Showbag for 2017. In more product news, The Doctor Who men’s and women’s apparel has seen great success at Big W in the past 12 months and is now expanding into apparel for boys 7-16 from May. Other upcoming launches include the Doctor Who themed Mr. Men books, a hugely popular collaboration available in Australia from 1st May through Penguin Random House. Spotlight is also launching Doctor Who fabric from June and long-term BBCW partner, Ikon Collectables continues to provide fans with Doctor Who toys, gifts and collectables. Stay tuned for some iconic new gift and collectable product later this year. The Doctor Who Creative team have also been busy developing a new evergreen style guide for the series - Doctor Who Universe. The new style guide celebrates the rich heritage of Doctor Who throughout the last 54 years with a huge archive of material, from Doctors and companions to their monster enemies. Assets are available now for all ages and demographics around the world. BBC logo © BBC 1996. Doctor Who logo © BBC 2009. Dalek image © BBC/ Terry Nation 1963. Cyberman image © BBC/Kit Pedler/Gerry Davis 1966. Licensed by BBC Worldwide Limited.

Fans at the new Doctor Who series launch at Circular Quay in Sydney

BBC EARTH This year marks the 60th Anniversary of the BBC Natural History Unit. To celebrate, BBC Worldwide ANZ is making a range of new BBC Earth products available to Australian audiences. Launching later this year is the BBC Earth Calendar from Browntrout Publishers which captures the astonishing wonders of the world.

In addition to this, a collaboration with Australia Post will see the wondrous BBC Earth stamp pack hit shelves this year. In keeping with BBC Earthâ€™s initiative these stamps showcase remarkable natural scenes, sharing the beauty of our planet and inspiring us to care in an entirely new way.

SUCCESSFUL TOY LAUNCH WITH FISHER-PRICE MATTEL – MARCH 2017 TOYS NOW AVAILABLE AT BIG W, TOYS R US, MYER AND ABC SHOP ONLINE TOP RATING BRAND ON ABC KIDS AND CBEEBIES LICENSING PROGRAM ROLLING OUT IN 2017 SERIES 2 OF GO JETTERS NOW COMMISSIONED For more information and licensing enquiries please contact Brigid Roberts T: +61 9744 4569 or E: brigid.roberts@bbc.com Visit BBC Worldwide at Stand N204, Licensing Expo

BBC logo TM & © BBC 1996. GO JETTERS logo TM & © BBC 2015. Licensed by BBC Worldwide Ltd.

JOIN THE GO JETTERS!

GO JETTERS It’s been an exciting time for geographic heroes Go Jetters, with the team grooving their way into Australian stores with a brand new range of products through global master toy partner Fisher Price Mattel. Available at Myer, Big W, Toys “R” Us and the ABC Shop online, the range includes a Jet Pad playset, talking Ubercorn plush, G.O. Force Weather Blaster and a series of action figures. The launch of the toys was backed by a campaign which included a ¼ page catalogue at Toys “R” Us and a half page catalogue at Big W; EDM support; a branded landing page at the ABC Shop online; a TV commercial aired on both free-to-air and subscription television and “Awesome April”, a Go Jetters themed month on CBeebies Australia. In addition to the new toys, there’s even more to come in stores with the launch of a children’s infant feeding range, set to be released later this year under a new licensing deal with Jasnor. DVDs through Roadshow and Publishing through Penguin Random House continue to be supported at Retail.

Meanwhile, Ubercorn has been busy meeting fans and showing off his disco-dancing moves, with recent in-store appearances at Big W and upcoming visits to Toy “R” Us Werribee and The Sydney Royal Easter Show. The awesome adventures continue, with new episodes including action-packed journeys to the Great Barrier Reef and Waitomo Glowworm Caves in New Zealand. The episodes have been airing on CBeebies Australia and ABC Kids since March A second series of the show is now in production, so young fans won’t have long to wait for even more thrilling action, awesome sights and fantastic facts!

SERIES TWO OF GO JETTERS IS NOW IN PRODUCTION!

FUNKY FACTS! Series 1 | Episode 6 | The Sydney Opera House, Australia Funky Fact: Sydney Opera House is so large that eight jumbo jets could sit wing-to-wing on the site!

Series 1 | Episode 39 | The Great Barrier Reef, Australia Funky Fact: This is the largest coral reef in the world and it’s so big that it can be seen from space!

Series 1 | Episode 46 | Waitomo Glowworm Caves, New Zealand Funky Fact: Glow-worms live in some of the dark Waitomo Caves. They stick to the cold, dark cave walls and glow brightly.

HEY DUGGEE BAFTA-award winning pooch Duggee has been getting his paws on yet more awards, not only taking away Best Boutique License of the Year at the 2017 Australian Licensing Awards, but also winning a prestigious International Emmy® Kids Awards in the Pre School category. There’s lots of exciting Hey Duggee product launches in Australia this year, including a range of toys at Toy Catalogue through Jasnor; games and puzzles through MJM at Big W in April; Hey Duggee magazine launching at Australian newsagents in June, and an infant feeding range by Jasnor at Coles in July.

Jacques Levy, Managing Director of MJM Australia Imports comments: “MJM and Crown Products is very excited to partner up with BBC and Hey Duggee. We will be releasing a new and exciting range of Puzzles & Games launching later in 2017.” Duggee continues to be a hit across the globe - in the US, a new range of products is set to launch at retail through Jazwares, whilst in the UK, the launch of an apparel range has been a phenomenal success. A boys pyjama set at Sainsburys and girls tee at Tesco both sold out within days! A second series of the colourful and entertaining animation has been airing on CBeebies Australia since March, and will also air on ABC Kids later this year, so there’s even more ways to catch Duggee and The Squirrels. A-woof! This year’s array of licensing deals thus reflect some the BBC’s most acclaimed content and brands, offering an array of products that will delight audiences young and old.

FOR ALL ENQUIRIES REGARDING BBC BRAND OPPORTUNITIES VISIT BBC WORLDWIDE AT STAND N204 AT THE LICENSING EXPO

HEY DUGGEETM and character logosTM & © Studio AKA Ltd 2014. Licensed by BBC Worldwide Ltd. BBC LogoTM & © BBC 1996

winner of the 2017 ata boutique license of the year award! join the award-winning duggee team! • INTERNATIONAL EMMY® KIDS AWARDS WINNER IN THE PRE SCHOOL CATEGORY • TOP RATING BRAND ON ABC KIDS AND CBEEBIES • BEST IN CLASS PARTNERS INCLUDING JASNOR AUSTRALIA, MJM, THE ENTERTAINMENT STORE, KINNERTON CONFECTIONERY, ROADSHOW, PENGUIN RANDOM HOUSE AND MORE! For more information and licensing enquiries please contact Brigid Roberts T: +61 9744 4569 or E: brigid.roberts@bbc.com Visit BBC Worldwide at Stand N204, Licensing Expo

N A I L A R T S U A L L A B T FOO E U G A LE

JESSICA HATZ, AFL LICENSING MANAGER EMAIL licensingeoi@afl.com.au TO DOWNLOAD THE AFL PROSPECTIVE LICENSEE APPLICATION FORM, PLEASE GO TO: AFL.COM.AU/AFL-HQ/LICENSING-QUERIES

AUSTRALIAâ€™S

SPORTING BRAND

Entertainment One Entertainment One’s (eOne) theatrical debut of none other than Australia’s leading preschool brand, Peppa Pig, has completed its run on Australia’s big screen. Its highly anticipated cinema special; ‘Peppa Pig My First Cinema Experience: Peppa’s Australian Holiday’ rolled out across 241 screens on 16th March and debuted at No. 3 on the Australian box office charts. The release generated box office receipts of A$2.2 million. The theatrical release was supported by an above the line marketing campaign and national PR, partnerships with Tourism Australia and Qantas, a celebrity studded pink carpet premiere as well as a collection of Australia-themed merchandise incorporating toys, books, apparel and accessories available exclusively at Big W. The home entertainment release of the title is scheduled for September 2017. The animated TV series continues to top preschool ratings with FTA broadcast partner ABC KIDS, with new episodes set to broadcast from June 2017 and beyond. New licensees rolling out in the second half of 2017 include Caprice with apparel & accessories, Park Avenue Foods with seasonal & every day confectionery, Colgate with toothpaste & toothbrushes, and MJM Australia with a new range of games & puzzles. PJ Masks, the preschool superhero TV show is continuing to win over audiences in Australia since launching on Disney Junior in April 2016, which quickly became the top-rating preschool show. The strong ratings continue to fuel a lot of excitement and buzz and Just Play’s range of toys, distributed by The Brand

Exchange, has launched a sneak-peak of products at Toys “R” Us Australia to excited fans. The consumer products program for PJ Masks will rollout wide from August 2017, with the program driven by toys, dress ups and publishing, supported by puzzles and games, back to school, apparel & party goods. Additional partners have signed to the brand including Rubies for dress-ups, Park Avenue Foods for seasonal & non-seasonal confectionery, Hunter Leisure for aquatic & furniture, Jakks Pacific for foot to floor ride-ons, and Caprice for apparel. Currently, Season 2 of the TV series is in final production with a free to air TV partner in Australia to be announced imminently. The first PJ Masks paid App ‘Super City Run’ is due to launch in Australia in mid-2017. For any licensing enquiries on Entertainment One brands in ANZ, please visit Trish Padoin at the eOne stand G196 at Licensing Expo, Las Vegas. For any further queries please contact Lissa at laitkenhead@entonegroup.com

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Nitro Circus FEATURE INTERVIEW WITH PETER MAULE | GLOBAL HEAD OF LICENSING

Nitro Circus continues to gather momentum, playing to sell-out crowds across five continents. Nitro Circus now has a legitimate footprint across Asia, Australia, Europe, North America and South Africa. Travis Pastrana continues to push the barriers in terms of extreme action stunts, which continues to attract huge audiences around the globe. We spoke to Travis Pastrana and Peter Maule late last year about the evolution of Nitro Circus and the commercial opportunities it provides for retailers around the world who are now operating in a super competitive market. This brand provides a connection to a huge demographic of fans. Travis pointed out to us that the key selling point for Nitro Circus is the product! “We don’t try to be anything we are not… the riders are really good at what they do. They sign autographs and talk to kids because they want to. Everything is genuine.” What’s more astounding is that 80-100 live events each year sell out the largest global venues in the world including Rod Laver, The O2 Arena in London and Madison Square Garden. Nitro Circus now has a multi year partnership with NBC, pretty cool! It is one of the fastest growing youth entertainment brands in the world. It is all about kids and families: 50% of all ticket purchases are by Moms 40 years old with two kids and 82% of kids are under 15 years old. Nitro Circus is the perfect brand for consumer products & licensing. We were able to speak with Pete Maule who heads up the licensing component of the business just prior to Licensing Expo. Pete was able to update us on the progress of the brand and talk a little about the retail opportunities that now exist. Pete, as we lead into Licensing Expo can you tell us what your major priorities will be during the show? We have been incredibly fortunate to have partnered with some amazing licensees since last year and have begun to gain traction at retail in the US, UK and Australia. Our major priority this year is to finalise fall

range plans with bikes, toys & specialty apparel and build an integrated marketing plan utilising our tour, social media, broadcast and our athlete assets to drive consumer and retail awareness. There are a number of new business opportunities and categories that we would like to lock down as well including mass apparel, home décor and electronics. Obviously, retail meetings are a focus for us as well. When we last spoke you were securing partners in key product categories and developing products that will resonate with the typical Nitro Circus consumer. Have you now locked up these key categories and what are the top three drivers for your business? We have been successful locking up a number of key categories over the last 18 months. Some are global in nature and other regionally focused. Our priority drivers include mobile and video gaming with Saber Interactive, the developers of Tier 1 games including Halo, World War Z and Quake. Sporting goods focused on bikes, scooters and skateboards is another key and natural category and we have secured a great partnership with Hyper Bike Co who sponsor a number of our top athletes. Bell have also come on board and will be developing a Nitro Circus inspired kids protective range for Spring 2018. As well, we have a multi-year partnership with ’47 who are developing an amazing range of authentic rider apparel and headwear focused on specialty retail including Zumiez and Lids. As Nitro Circus is truly a family sport, what is your pitch to prospective retail partners in terms of how you will build store traffic and engage consumers to seek out the brand? One of the greatest advantages we have to support licensees and retailers is our integration strategy across all of our existing marketing platforms. 80 live shows around the world each year, our partnership with NBC, our massive digital and social following and footprint, and of course our athletes. Having the ability to advertise and promote across all of these assets gives our partners a natural way to extend the product and retail messages to customers about our products

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Nitro Circus and where to buy them. Whether it is a new product or a new retailer, we remain committed to leverage these assets to the fullest. What a powerful tool to let fans know that the products are athletes are using, wearing or playing with will be available at your local retailer. This is a huge point of difference from traditional brands or licenses.

our highly engaged fans. Organic integration of our new products into this content will hit millions of consumers each month.

I notice with interest that Nitro Circus was back in Australia with a Regional Centre Tour just prior to this show. What did the fans say and how did the tour deliver?

This event has been driven by Travis Pastrana’s passion for progressing action sport through safety and innovation. It is also the only true open competition in which anyone around the world can actually qualify to compete. We have revolutionised the scoring taking out subjectivity and making this a true legitimate competition. Last year there were 34 world first tricks done during the event and we expect more this year. From a merchandise perspective, many of the riders will be wearing authentic ’47 apparel and headwear which will be available at specialty retail this fall as well as riding bikes and protective gear that will be available for sale at retail for holiday 2017.

This recent regional tour broke all of past attendance records. Although the live tour got its start in Australia, we are continually amazed about how passionate our fans down under are. I believe you will be back in Australia again in 2018. Can you provide us with an overview of this tour? We have a 13 stop regional tour planned for 2018. We are really excited to be back on the Gold Coast, Newcastle, Darwin and Perth, to name a few. I see you now have well over 10 million likes on Facebook and your YouTube platform has drawn millions of views from eager extreme sports enthusiasts. Do your Social Media platforms now drive commercial outcomes? Digital and social media continue to grow and be a huge source for fans to consume content. We have over 200 million video views of our content each month and deliver new compelling content daily to

You have the Nitro World Games in Salt Lake City in June. What will this event deliver to the brand in terms of merchandise sales outcomes?

Pete, can you share with us some of your progress with merchandise partnerships and retail outcomes in the UK? We have an amazing partnership with our agent, Lisle Licensing who has been very active presenting our brand to leading licensees and retailers throughout the UK. Our tour comes back to major markets in the UK in 2018, and we are excited about starting our licensing program focused on ride on products from Ventura (scooters, skateboards, protective gear), as well as

SOME NITRO CIRCUS FAST FACTS ↓ • • • • • •

80-100 live shows each year selling out the world’s biggest venues Multi year partnership with the National Broadcasting Company The brand is perfect for consumer packaged goods & licensing One of the world’s fastest growing youth entertainment brands 50% of ticket purchases by Moms 40 years old with two kids An audience where 82% of kids are under the age of 15

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innovative new toy products from Kâ€™nex and Hexbug. We are looking for a key retail anchor in which we can leverage and drive traffic when our tour returns. What does your retail platform look like in the USA? We are very excited about how quickly our key licensees have been able to develop compelling product ranges and the broad support from key retailers including Target, Walmart and Toys â€œRâ€? Us, Zumiez and Lids. We are starting with small ranges in construction, bikes and play-sets that bring real innovation, quality and strategic price points. We are going to leverage our marketing platform to really drive consumer awareness and traffic to retail. There has been a real shift for some brands to include Pop-Up Stores as part of their retail footprint. Is this an option for Nitro Circus? Yes, this is a real opportunity given that Nitro Circus can really be a cross-category play. Our product ranges can span broadly and make a compelling shop in shop. Our imagery, custom content can help make the shop a destination and a real point of differentiation for a retailer. There has been an enormous amount of commentary surrounding the Amazon online platform. Do you have an Amazon strategy?

We are in discussion with Amazon on several levels. Obviously, they are a significant retail partner for our licensees, but we are also looking at leveraging our internal media production house to deliver library and original programming as they look to expand their content offering to consumers. What is your vision for where you want the brand to be from a merchandise perspective, by year-end? We are excited about working with our licensees and retail partners to develop and implement powerful marketing and promotional support, to inform our passionate family fan base that Nitro Circus authentic products will be available for sale at leading retailers for the very first time this holiday season. We are going to fully implement a cohesive marketing plan leveraging our North American tour starting in May, Nitro World in June, our TV advertising, social media and athlete support to drive interest and traffic to retail. We also want to secure further licensees around the globe. ---------------------------------------------------------------------Pete, thanks again for your insight. We trust that Licensing Expo will allow you to highlight the significant opportunities that the Nitro Circus brand offers both consumer products and retail partners around the world. www.nitrocircus.com

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MGA Entertainment FEATURE INTERVIEW | MGA FOUNDER ISAAC LARIAN IS AN ENIGMA OF THE TOY INDUSTRY

I have always wanted to interview Isaac Larian. He has had an amazing run in the toy industry since 1979, when his company MGA was founded. He has had to deal with much adversity during his time in the business and has shown amazing resilience during times when most of us would have given up! He has resisted sending his company public and is the only major player in the toy business that remains privately held. His intuition and feel for toys, particularly girls toys have been nothing short of genius. He has been the driving force behind Bratz, Moxie, Lalaloopsy and more recently Num Noms and L.O.L. Surprise! Regardless of his difficult background he must be fiercely competitive and driven to achieve what he has in his lifetime. Isaac is a bit of an enigma in the business, which probably comes from him doing things differently from the multi-nationals. He consistently challenges his team directionally and is generally right most of the time. We had a unique opportunity to speak with him leading into Licensing Expo. We asked him about his time in the business and about some of the more defining moments in his career. Isaac, what would you rate as your most significant achievement whilst you have been in the toy & licensing business? By far, it is creating Bratz from nothing and making it the biggest doll and licensing brand worldwide. It was made possible because of the passionate team we have at MGA that dared to swim upstream and win. The toy industry has been the victim of technology-based products over recent years. Do you see any trends that might bring innovation toward back to basics returning as a key driver? I don’t agree with this statement. Yes, there are some technologybased toys, but they come and go. More and more, parents want their kids to experience the fun of playing with simple great toys. We see that millennial parents want less “screen time” and more real playtime. That’s why Little Tikes grew by double digits last year and is on track to grow 40%+ this year. But, it’s not just about brands. Product is king, first and foremost.

Along with the growth of Amazon and online retailing, I am interested in your views on where distribution models are heading over the next three years? Retailing is indeed changing fast. eCommerce is the fastest growing part of our business worldwide. It is just so much more convenient. In 3–5 years, I see more brick and mortar retailers shrinking in size and eCommerce growing. Marketing tactics are also evolving and shifting to digital. Amazon is currently the king of the hill, but will need to continue to adapt to meet consumers’ needs to stay on top. Remember Kmart and Sears? They were king of the hill just 25 years ago! Can you tell us a little about your decision to acquire Little Tikes and bring it into MGA? Little Tikes is one of the few great iconic brands left in the toy industry. It’s been around for 40 years. All the parents of today played with Little Tikes as kids themselves. And, it is a worldwiderecognized brand. I saw great value

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in that brand. With product innovation, we have increased the sales of Little Tikes multifold since we bought the company. Little Tikes will grow another 40% this year on its way to becoming a billion-dollar brand. There has been a lot written and much research is currently under way into the millennial population group of 18-35. How do you see this playing out in the future? The landscape of the population is changing fast every single day. We need to be nimble and change and adapt to succeed, or we will miss the bus! What keeps you connected to your target market of young girls and infants, given that you are a baby boomer yourself?

MGA has been “ consistent in creating

new mega blockbuster brands, year after year.

I absolutely love kids! I interact and relate to them, sometimes at their level. Our employees have many kids (and more coming), and I am waiting to have my own grandkids soon. I always joke and say to newly married couples “we need more customers, please!” What did you learn from the dispute with Mattel involving Bratz and Barbie? I learned that if you believe in something you need to fight. There is no worse feeling than having a company try to hijack what you have built from scratch and with your sweat equity. Being persistent and fighting for your rights up to the very end is how you succeed. What’s the greatest advantage in being a privately held business?

The greatest advantage is that we innovate and do what we want for the long-term, rather than be slaves to quarterly reports. What’s your view on Toy & Licensing Industry Awards?

generate $100 million to $3 billion in sales. L.O.L. Surprise!, for example, will be the No. 1 selling toy and No. 1 selling doll (for the first time since Bratz) and will generate over $500 million in retail sales worldwide in its first year.

The industry awards are nice, but our best award is from the consumer. They democratically vote with their wallets. That’s the award I want!

MGA has been consistent in creating new mega blockbuster brands, year after year.

Finally Isaac, what drives you to be successful in business?

---------------------------------------------

I like the toy industry. I am very competitive and I want to win. I drive and challenge our great team toward that. I am extremely proud of our team. We are the only toy company that has created at least six new brands from scratch that went on to

This doesn’t happen by luck.

Isaac, we really appreciate you taking the time to speak with us. I admire what you have been able to do in the toy business and wish you every success for the coming year ahead. --------------------------------------------www.mgae.com

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University Games FEATURE INTERVIEW WITH BOB MOOG | FOUNDER UNIVERSITY GAMES | INDUSTRY INNOVATOR & LEADER

It has been a number of years since Bob Moog last attended the Toy Hobby & Licensing Fair in Melbourne, Australia. I met Bob 20 years ago when he first established a lasting partnership with long-standing toy industry executive, John Herbert, who is the Managing Director at University Games Australia (U. Games Australia). Although this article is about Bob, we had the chance to speak to John about what had defined his partnership with Bob over such a long period of time? John was quick to reference two traits that he associates most with Bob and their relationship; honesty and an understanding of each other. John also reflected back to 1999 when they signed a deal to develop and distribute Blues Clues and developed two games and two puzzles, then shipped in excess of $1.5 million of this product! When I first spoke to Bob, I was immediately drawn to Bob’s passion for the Industry and his business, along with his ability to acutely understand and respond to the dynamics of the Industry that he chose to work in.

The Bugg Report was privileged to have had the opportunity to spend some time with Bob during his most recent trip to Australia this past March of 2017. Rather appropriately, Bob’s trip coincided with the 20th Anniversary of University Games (U. Games) in Australia and we were able to speak to Bob about his origins in the business, his views on the Industry and his thoughts on the current retail environment. Bob was quick to provide some insight into the changing landscapes in the worlds of consumers and retailers, then he described his view on how this will play-out in the future. Bob believes that there will be two distinct pillars; the first being the amplification of media & technology and the second being a shift back towards the basics of what made functional and outdoor-based toy concepts engage with children. Bob believes that the investment in licenses from entertainment businesses will continue and many companies will consolidate, which will mean industry executives and brand portfolios will be merged into huge powerhouse entities. We moved onto Bob’s views relating to changing distribution models and particularly online platforms. He clearly sees this as the future as most would agree. It is interesting to note that Bob headed up the Dotcom platform for Toys “R” Us in the early 2000s and he has very definite views on where online is heading. Bob believes that online sales will represent 40-50% of all sales in the future and he sees this as a huge opportunity for retailers. Bob pointed out that you cannot afford to think of “online” & “bricks & mortar” as a single strategy; you need to operate online as a completely separate business. He

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recommends resourcing your online business with good people and most of all he implores you; “don’t wait, do it now!” When I asked about how Bob got started in this Industry, he reflected on how he always knew that he wanted to start his own business; the question was what business would that be? It boiled down to three choices in the end; a computer aided design business, a micro brewery business or a games business. Bob sights limited funds as the main reason he entered the toy industry via the games business. He also told me that he probably would have enjoyed the micro brewery concept even more than creating games, had he had the funds to execute the idea. In the end though, Bob executed on the games business and here he is in 2017 in the Captain’s seat at U. Games. An interesting fact about how the name “U. Games”came about; Bob began selling to “University” shops and he soon learned that there were many other frontiers to conquer and U. Games was born. U. Games are now a market leader in the games category and they leave nothing to chance. Their exhaustive process of bringing a new game to market includes developing a prototype, testing the concept with various focus groups, conducting a highly critical internal assessment and then signing off on the packaging direction. He will then take the process a step further and share the proposed game with his key retail partners; a unique touch in this Industry. Once the idea has been decided upon and finalised, Bob will generally not sign-off the commencement of production until they have committed around 40% of their forecast to firm sales.

I asked Bob what motivates him and he noted that his mantra has always been design and quality; know your own product range from back-to-front and be acutely aware and understanding of your competition. Bob has installed this culture within his organisation and it has grown and developed into an overarching stigma; as a market leader, U. Games are viewed as a consultant to the Industry and to their partners in the games & puzzles category. We shifted conversation towards the future where the emerging focus on the Millennial is unavoidable, with 24% of the population between the age 18-35. This trend relates to both the consumer and the new-age business executive. Millennials are typically “mobile everywhere” and they definitely have different values from other generations so it is important that we understand who they are and how they behave. Bob enthuses that his company is devoting much time and energy to research this emerging trend and that, “We all need to re-learn the market.” Bob also pointed out his belief that there is a new emerging consumer group which he calls The Equitable Male Shopper; consumers who have the purchasing power and desire to buy. Bob believes that millennials will probably be more prone to working in a group or collaborating, which does not mean that they won’t be successful, it just means that they will do it differently to those before them; people like Steve Jobs & Bill Gates.

Where his own business in concerned, the shift towards the younger generation taking more control and responsibility from the original owners is very real. Bob believes that; “the sooner the better,” once they reach their mid 20s and goes on to say that it is not a problem for the older business owner to defer decision making to younger people who are more in touch with the market. He believes that encouraging these younger executives to become more involved in decision-making, product, sales and marketing is essential, however as he learned that the older generation need to stay involved to take care of the financial side for now. In his view, the most important component of running a successful business is understanding cash flow. “This takes many years to learn” and it is critical to the success of any business. We talked about the characteristics of becoming successful where Bob believes there are some critical character traits which allow this to happen. People who succeed will normally be those who break the rules and are prepared to take risks, however most importantly they must have the passion and drive to want to do this every day regardless of background! When asked what businesses are going places, Bob mentioned Goliath and Ravensburger, as well as his belief that U. Games are well positioned to succeed in the future. Bob admires the Funko story and the transformation of Hasbro from a toy & games business into an Entertainment business. A new stand-out in his opinion is Big Potato, a new games business out of the UK. Finally we talked about the year ahead where during the early months of the year Bob travelled to all five trade shows across Asia, Europe, the United States and Australia. He sighted enthusiasm and energy for the business; “For the first time in a long time, retailers are at the shows asking questions and wanting solutions.” We are entering into uncharted waters with enormous change and we cannot simply do what we have traditionally done for many years, better, to succeed. He left us with an observation that will require the Industry to think carefully as to how they plan their strategies for the future;

“The market has changed, however retail has not yet reacted.” --------------------------------------------------------------------The Bugg Report would like to thank Bob for challenging us all to think differently! --------------------------------------------------------------------www.universitygames.com

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University Games FEATURE INTERVIEW WITH JOHN HERBERT | MANAGING DIRECTOR | U. GAMES AUSTRALIA

This year marks the 20th anniversary of U. Games launching in Australia. John Herbert has led the company during this time where they have stayed focused on developing and distributing quality educational, learning and engaging products for the market. To run a successful toy business, you require a great deal of resilience and knowledge and John has been able to use his skills to build a respected organisation with a great team who have remained motivated and dedicated. With Licensing Expo in Las Vegas upon us, we convinced John to give us a snapshot of what the last 20 years in the toy industry have meant to him and to U. Games Australia. John; your proudest achievement in this industry being with U. Games Australia is? Probably still selling games in the industry after 20 years. When you start a company there is always self-doubt, most of the time there is, and I was no different. I remember sitting at my home over 20 years ago with my first employee entering all retailers’ ship to addresses. I then flew to Melbourne and knocked on every retailer’s door and presented a range of family learning games that was basically anything University Games US sold. If they had it we sold it. Not very selective then, but we were just learning. I remember that year our first year forecast was $1 million. We ended up getting $995,000. I was pretty happy to get so close but we did not cheat and went with the $995K. What did you learn from your early Hasbro days? Certainly the business side of things. How the industry worked, who was in it and what did they contribute. toys were hot. Mums lined up Saturday mornings to get a new shipment. Every year in New York the major toy players would launch a hot new concept. Today the concept is rarely new and mostly movie driven. Investment becomes the guarantee and the licensing contributes to corporate profits. Does the product really work like it did years ago? I don’t think so. Toys then were designed to have fun and be played with by kids and designed by toy designers. Now toys are designed by Hollywood moguls and script writers then adapted to be a toy. But we were part of that world. It felt like we were part of the entertainment industry. And in fact we were. Every year the concept or product changed. People would always ask, “What is the best selling toy”? Now even though the same question is asked the answer is” Whatever the best movie is”.

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You mention that your teams have played a big part in your success. Can you tell us a little bit about what they have meant to you over the journey? Well it’s all about growth, earnings and status. Staff make it all happen. Armies need Generals and Generals need Armies. I have been blessed by having a great team of people who have worked for U. Games. From Dad’s Army to Cool Kids we have had them all and I am very proud to say we have had the same current 12 employees for the past 5 years. The average stay of people at U. Games is 8 years. That is what I am proud of. I also love seeing people grow in their business life, something I knew nothing about 25 years ago. Good people want to be trained and old people like me need to spend the time and the resources training them. Watching someone go from warehouse to management gives us a great thrill. Experience matters more and the more experienced your team is the better equipped they are to handle rough water. I understand that you would rather have no representation in a territory you distribute to unless the person or persons understand and respect your product. Is this true? Probably yes. I think the wrong person can do more damage to your brand and company than you think. We are still using the same three distributors we started with 20 years ago. Most of our agents are still with us. Of course these days we are all looking at nontraditional toy channels to get to. One chain with 200 stores being supplied maybe three lines could potentially be a $1 million business. It’s about trends, buyer relationships and having something that somebody else wants.

What has been the major driver for you over the journey with your company?

What has been you biggest success whilst you have been in charge of U. Games Australia?

Success has certainly played a huge part of the drive for me over 20 years. I have been lucky to have made many friends in this industry. A few not but not many. We started 20 years ago with a vision to take learning toys and make those toys available to mass retailers. Prior very few toys and games could boast an educational/ learning theme. Today, retailers from large stores are buying and selling learning product at the expense of the multi-nationals.

Biggest success has been achieving something or building something for other people to enjoy. Building brands is something that we do pretty well. In store display areas, concept areas and suitable PR campaigns. We have a dedicated full time employee that spends all her time managing PR activity. As well we have a PR company that also assists us. Social media campaigns are on-going and we are currently working with several retailers to build store and brand awareness. Also identifying new channels of distribution as well as new trends and new retailers to understand the new trends and opportunities.

Best toy concept over the last 20 years? No doubt Transformers all those years ago. Every retailer in the industry came along to the 1985 Toy Show with an open order book. These were the days when we could allocate inventory to retailers. They were the days!! I think the only retailer to not give us an order was John Martins an Adelaide based department store. The buyer said â€œI think I will wait and see how it goesâ€?. Well it went boy did it go, but it never went to John Martins that year.

You have spent more than half of your life in the toy industry, what has this meant to you? I have been blessed to have been chosen to work in the toy industry. My first toy job was with George Wills and the year was 1979. Hasbro were just getting going and Mattel ruled the world. I have seen many changes, many ups and many downs (answer continued on page 45).

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GAME ON.

Whatâ€™s your MILLENNIAL game plan?

We have games for everyone, including millennials. Get your GAME ON with U. Games Australia. Presenting games for all generations.

U. Games Australia +61 2 9436 1016 www.ugames.com.au sales@ugames.com.au

University Games Large multi-national toy companies spend less on developing toy concepts than they did 30 or even 20 years ago. Licensing has emerged as the major driver of toys and toy concepts. This industry is fashion. It changes and changes quite often. Today a licensed toy for a child could be a licensed back pack as opposed to the original toy that it came from. And what would you put on your highlights reel? Highlights!! Spending 15 years as a director of the Australian Toy Association. Certainly being one of the first to join Milton Bradley all those years ago. Having a son who has followed in the industry who will be more successful than I was. Meeting so many good people and still working with those same people 35 years later. Taking learning product and introducing it to mass retailers for those mums who want learning. What has the recent Tree Toys partnership done for your company? The Tree Toy purchase was an interesting one. I had watched Tree Toys for several years but had never met the owner. We are very excited about the range because science is hot globally. Craft is slowing and science is growing. They had a full range of product that was growing in the market. The nursery range is really standout merchandise. The day I met Tree Toys management for the first time is the day we agreed to become partners.

Do you have an Amazon strategy? Amazon is an interesting one. While we all await the arrival of them everyone wonders how it all will pan out here in Australia. We have all the necessary paperwork but we believe the launch has been pushed back until 2018. How will it affect us?? It will give us many millions more customers from the current retailer based bricks and mortar shops. In my travels, every distributor who uses Amazon tells me that they are their biggest customer. I guess just more people have access to brands. Whether our population is sufficient to sustain an organisation that large only time will tell. You are one of the originals in this industry; what legacy do you hope to leave for the next generation? Legacy for the next generation. I have a son in this industry who has spent over 18 years selling toys. It seems to be in his blood as it is in mine. I hope that I am remembered as a goodie as opposed to a baddie. -----------------------------------------------------------------------Thanks John, we really appreciate you taking the time to speak to The Bugg Report and we hope to see you on The Strip in Las Vegas this May! -----------------------------------------------------------------------www.ugames.com.au

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â€œWe recently engaged Mills Oakley to provide their commercial services in licensing to our organization. Their professional approach and attention to detail has been invaluable to our business.â€? Jonathan Zimbler Zimbler Australia

C OPYRIGHT & WRONG Doing business isn’t always easy, and dealing with creative intellectual property can be even harder. Mills Oakley are experts in all aspects of the intellectual property and technology life cycle. They assist clients to identify, register and commercialise their intellectual property assets and enforce their rights both at home and abroad. As a member of LIMA they understand the complexities of licensing and commercialism. They provide plain English advice and use tables and key point summaries so clients understand their position and can quickly make informed decisions. The Mills Oakley Intellectual Property team provide specialist advice in: • Trade Marks, Designs and Patents (globally) • Social media, eCommerce and domain names • Copyright • Anti-counterfeiting • Privacy, confidential information and FOI • Advertising, marketing & corporate re-branding • Litigation, disputes and oppositions Mills Oakley has offices in Melbourne, Sydney, Brisbane, Canberra and Perth, with over 80 partners and more than 630 staff. For more information on how best to protect your brand or to make an enquiry, contact Stuart Gibson at Mills Oakley today on +61 3 9670 9111 or sgibson@millsoakley.com.au.

Stuart Gibson Partner Corporate Advisory, Intellectual Property

2 Pack Figures

Vehicles

The global phenomenon is launching now!

Collectible Sets

Role Play

Plush

Role Play

For any sales enquires please contact The Brand Exchange: customerservice@thebrandexchange.com.au © 2017 Just Play. PJ Masks ©Frog Box/Ent. One UK Ltd/Disney 2014. © Disney. © 2017 Mattel, All Rights Reserved.

Just Play FEATURE INTERVIEW WITH ROSANNA CILMI | JUST PLAY LOOK TO EXPAND THEIR FOOTPRINT

While Just Play are a relatively new player in the toy industry in Australia, they have emerged as a market leader in children’s consumer goods. They are passionate and they are trend driven when it comes to developing product. Just Play’s management team have over 20 years of experience in toys and have been doing business in Australia for over 15 years. From a licensing stand point, they currently work with many of the leading brand houses including Disney, Entertainment One, Mattel and Nickelodeon. Their range is diverse, however they do have strength in the “role-play” category, plush and dolls. Rosanna (Ros) Cilmi, heads up the Australian region as Sales & Marketing Director and is a former Disney Senior Business Manager; she brings strong brand management skills to her new role at Just Play. Because of their brandfocused range, Licensing Expo is an important show for Just Play to understand where the major brand owners and studios are directing their resources. From an Australian, New Zealand and Asia standpoint, we were able to speak with Ros about Just Play’s plans for the region over the next 12-months. Ros, Just Play is a relatively new player to this market, what differentiation do you bring to the table? Our product is our underlying point of differentiation. We have an exceptional team of product developers in the US that tailors each and every product to the license it represents. Coupled with that - we are making toys that kids really want to play with - fun, innovative and imaginative products that really stay true to the brands they are representing. What have you been able to apply to your new role from the things that you learnt at Disney? I feel like I have been on a roller coaster learning curve since I left Disney but in a positive way! Working at Disney gave me a passion for the brands we represented - and gave me an appreciation for how difficult it is to create products that are unique to each brand. Another key part of my role at Disney that was transferable into this one was the strong relationships that were integral in managing a wide group of retailer relationships and licensees. The only difference for me now is that there seem to be way more customers across Asia, many more distributors and even more licensors to deal with! It’s a balancing act but it has been so much fun learning about all the markets throughout Asia. Just Play has a significant commitment to PJ Masks, how do you see this brand playing out for you in the Asia Pacific region?

We launched PJ Masks in Australia last month and have been blown away by the sell through results so far. Across Asia we have planned a structured roll out in line with content availability - but our first drop will be into South Korea this month for the Children’s Day celebrations which we are really excited about. Having the ability to follow the US and European success has really allowed us to tailor the product range for the region and we’re really excited to see where PJ Masks will go this year. Can you tell us about your “role-play” category? We really try to create toys that kids want to play with so all our role play items are created with kids imaginations in mind. We know kids want to be the characters they see on TV - so our items allow them to play out that fantasy. For example, our award winning Doc McStuffins range of role play products allows kids to transform their world into McStuffinsville and let them be a toy hospital doctor. Your role includes Asia; what are your priority markets within the region for Just Play ranges? Interestingly each country has different ranges that work well - and they all vary from one to the next. It’s been interesting to dissect which properties resonate from one country to the next. At present our focus is on South Korea and Japan as the two largest growth opportunities in the region. We are also keenly focused on the Greater China region and South East Asia region in the next phase of our growth.

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What’s your hottest product currently at Just Play? Interestingly for me (coming from Disney), the property that keeps on flying off the shelves for us is Doc McStuffins. The Doc Bag set and Pet Vet Carrier have been our two stand outs. This may change soon... There is a lot of conversation in relation to Amazon coming to our shores. Do you have an Amazon strategy for Just Play? Interestingly being part of a US based company - my colleagues have been astounded that Amazon hasn’t come to Australia sooner. The repeated phrase I hear from them has been “it will change your life,” from a consumer perspective. They use it from everything to grocery shopping to entertainment content.

That being said; our company has been working with Amazon as a key customer since we started our business. I know the fear in Australia is that Amazon will erode our current retailer’s customer bases however we haven’t experienced this in the US. In fact - the strategy we have for Amazon is one to provide the largest amount of product per brand, with in depth information and photography for each product. We also have an extended life span for many of our products with Amazon - they are in the position to have infinite shelf space as they operate in the semi-virtual world. Our US team has also noticed that mums actually use Amazon as a research tool when purchasing toys and to that end we have created

some really in depth and detailed pages for our ranges to be able to assist in the purchasing decision. How much emphasis does Just Play devote to Social Media? Our marketing efforts worldwide have been focused on blending social media marketing with traditional media and ensuring the right brands are being targeted to the right forms of media. A key part of this has been our involvement with key mummy bloggers in the US and worldwide that have huge social media profiles. In Australia we have focused a significant portion of our marketing to Social Media - especially for our collectible programs. We run localized pages for some of our brands to ensure that our customers are not just seeing US feeds but a localized content that speaks to them. Ros, how do you see the massmarket space, which includes, K Mart, Target and Big W playing out over the next three years? That’s an interesting question Tony! I think we are living in a very fast paced changing society and all 3 retailers are really adapting the way they retail to their consumer base which is great to see. Each of them have changed so much in the last 3 years so I’m expecting more change in the next 3! Not to mention we as consumers change - so it’s only natural the retail landscape move along with us. It will be interesting as more European and US retailers start entering the market to see how we as consumers adapt even further. -----------------------------------------------Thanks for your time today Ros, we hope to see you at Licensing Expo in May. As we understand it there will be well over 5,000 brands on display during this time, plenty for the Just Play team to consider for the on going development of your ranges.

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INCREASE YOUR GLOBAL NETWORK â–ş The Global Trade Association for the Licensing Industry â—„

LIMA MEMBERS REPRESENT THE GLOBAL SPECTRUM OF LICENSING Expand your business around the world through networking, information and education. To become a member please email LIMA Australia and get started. memberships@licensingaustralia.org

LIMA AUSTRALIA LIMA is an international organization for licensing industry professionals including licensors, agents, licensees, manufacturers, retailers & consultants. LIMA represents the interests of its members by providing the tools necessary to achieve their licensing goals.

DISNEY

FEATURE INTERVIEW WITH MEAGAN SANDERS HEAD OF CONSUMER PRODUCTS AND RETAIL

THE WALT DISNEY COMPANY AUSTRALIA & NEW ZEALAND

Australia has always been an energetic and important market for The Walt Disney Company. With Licensing Expo repositioning to a May window, we check in with Meagan Sanders, Head of Consumer Products and Retail for Disney Australia & New Zealand, for her insights and perspective on the business after 6-months in her new role in Australia. We pose some questions to Meagan from a more global angle and also some questions as to how global strategies will impact the business in Australia.

Meagan, since we spoke with you during the Australian Toy Hobby & Licensing Fair in March, have you detected any further changes in the marketplace in terms of emerging opportunities? Retail continues to be both dynamic and competitive. But in amongst all of this we are still seeing the power of storytelling hold its own. While it may not be an “emerging” opportunity, I don’t think there has ever been a time where authentic storytelling has been more important. All of our research and results suggest that consumers today crave the reassuring and the

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familiar; characters that connect on a deeper emotional level remind consumers of happy, simpler times. That kind of consumer connectedness creates incredible brand elasticity, opening up new categories, channels, price points and platforms. Challenging norms and being brave is key to unlocking opportunity in the climate. I notice that Woolworths launched a new Marvel Super Disc collector program with purchase. Is this part of a wider strategy with Woolworths to open up other merchandise categories?

“

Millennials are yesterday’s kids and tomorrow’s parents, so they are a segment that we seek meaningful connection with.

We’ve been in partnership with Woolworths for the past three years on its collectibles programs. Every year we try to do something different and disruptive. For Disney, it is as much about the consumer connection as it is a merchandise opportunity, so yes it does form part of a wider strategy. Most importantly, the program allows us to engage, inspire and create much deeper connections between consumers and our brands. Secondly, having a presence in grocery brings us closer to our heartland consumer, so that we become part of their routine and they can immerse themselves in our stories and worlds every day. Millennial consumers now account for 24% of the population worldwide. Has Disney identified this as something they should plan for? Absolutely. Millennials are yesterday’s kids and tomorrows parents, so they are a segment that we

seek meaningful connection with. Whether it’s through on trend uni supplies from Typo, a cracking soundtrack like Guardians of the Galaxy Vol. 2 or contemporary heroines like Emma Watson as Belle in Beauty in the Beast, the key is to understand your audience and stay relevant. There has been an enormous amount of commentary relating to Amazon coming to Australia. Do you have an Amazon strategy? We try to keep things pretty simple by taking a partnership approach to everyone we work with. Every retailer is unique in their strategies, pressure points, maturity in market - the list goes on and on. Our job is to be amazing partners - to understand their needs and drivers, solve real problems and unlock new opportunities with the power of our brands. Listen lots and move fast!

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Going into Licensing Expo, what are you hoping to achieve in terms of moving your business forward? 2018 is shaping up to be our biggest year ever. The content slate is phenomenal and our evergreen business is in incredible shape. With such scale, we must ensure we continue to stay intimately connected with our consumer. From Vegas, I am keen to work through strategies to get closer to the consumer, to benefit from the experience of our global colleagues and to hear more about the success that they are enjoying in niche segments and channels.

Wars: The Last Jedi, we are ramping up to a huge second half. There are some nuances between what is a focus globally vs locally, largely due to the differences in the retail landscape, but the headline position of growing from strength to strength is consistent. I believe it has been some time since you last attended a Licensing Expo. What are you expecting from this year’s event?

How do you see the US market performing from a Disney standpoint, and what can you draw from this to influence your business in Australia & New Zealand?

I was fortunate enough to join the US licensing and retail event in LA last November. It was so energising. To have so much in the pipeline, and so many partners genuinely excited to be part of the Disney business. We are incredibly lucky to work with these incredible brands every day. Licensing events are a powerful reminder of that.

No doubt about it that globally, the retail and consumer products industries face challenges ahead. We are comparing ourselves to last year, when we had the biggest year ever at retail due to the massive success of Star Wars: The Force Awakens.

Disney’s latest release, Beauty and the Beast, has already set records at the Australian Box Office and is expected to gross well over $1.5 billion globally. What are some of the highlights from a merchandise activation standpoint?

The great news is that despite the pressure of that comparison, the business continues to grow. With Cars 3 around the corner, followed by Thor Ragnarok and then Star

We’ve now cracked $45million in Australia, and we still have a number of weeks in cinema to run. We are thrilled with the way Australian audiences have responded to the

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film. The merchandise across all categories has also performed beyond expectations. Among the standouts for me would be publishing; it’s been fabulous to see Belle’s love of reading really breathe some new life into the category. I’d love to believe that campaigns like our “little library” installations at tram stops, bus stops and Melbourne Central really made an impact. Another I would call out is MinkPink’s female-targeted adult apparel line. This was a really creative and faithful interpretation that captured the essence of the Beauty and the Beast story, and it’s been phenomenally successful both here and overseas. It really speaks to how licensed Intellectual Property can be reimagined without compromising fashionability. The line really resonated with consumers, resulting in a number of SKUs selling out in the pre-sale period. ----------------------------------------------Meagan, we trust that Licenisng Expo will deliver very positive outcomes for The Walt Disney Company and more particularly the Australian & New Zealand business. We look forward to speaking with you again after Las Vegas to get your take aways from the show.

Kmart FEATURE INTERVIEW WITH JULIE MILLER SENSINI GENERAL MANAGER LIVING | KMART AUSTRALIA & NEW ZEALAND

Kmart has not always been associated with the “living” category or renowned for fashion and best in class ranges and presentation. Kmart is now 8 years into its directional change and re-positioning of the business and a lot that has happened during this journey including range rationalisation, a move to lowest prices every day, a resetting of its approach to licensing and a more direct approach to sourcing. Amongst all of this, a “living” category had emerged, which is delivering spectacular growth, and Kmart has become a real destination for Australian consumers to decorate their homes on a budget. The Bugg Report recently had the opportunity to speak with Julie Miller Sensini, who is the current General Manager of “living” for Kmart, about many topics including her approach to the task and some of the more memorable achievements along the way. Julie has a rich back ground in the home and living business, having held senior roles with both House of Fraser and Home Base in the UK. Julie has headed up the “living” business for Kmart for much of the period of directional change. What she has achieved during the past 6 years is amazing with Kmart now featuring their own brand in the “living” category!

Julie; what did you set out to achieve when you first began to build a Living business for Kmart? The goal was to build the best range of everyday basics at the lowest price in the market. The layering on of more “design focused” product came after a strong foundation was built. It typically takes a long time to turn around big institutions such as Kmart. What have been some of your biggest challenges over the past 6 years? Unique to Kmart is the ability to continue to drop prices and drive sufficient volume to deliver sales and profit growth and this takes courage and strong belief from all of the internal stakeholders. This was a challenge in the early days, but it did not take long to get total buy in once strong financial upside was achieved. Most importantly our customers responded very positively so conviction kicked in.

Julie, how do you reconcile the price vs. quality equation? With products for the home selling for as little as $2... how do you sell the dream to your customers? Products need to perform to the intended function and look good. It does not matter how cheap an item is if it can’t do those two things. Our customers can expect to get products which are fit for purpose and perform well. The question I often ask is; “Can it withstand family use?”. We have high standards of quality control and only source from ethically approved factories. As I mentioned in my introduction, Kmart was not traditionally known for its “living” department. How have you attracted the attention of such a significant customer base? There was a gap in the market for on-trend, low priced homewares. We shortened the lead time from trend to market and put a strong focus on making everyday products

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as attractive as possible. We have a very talented design team who work closely with the Buyers to ensure we are always challenging ourselves to provide inspiration for our customers. The goal was to make our products irresistible from both a price and design perspective. Customers related to this quite quickly, then spread the word though social media. We have many loyal followers who are proud to show images of how they have revamped their homes for very little. Your advertising and catalogue direction has changed and evolved from the old days. Has this impacted on your success? We started using our catalogues as a vehicle to showcase lower prices AND inspiring room solutions, while our marketing team worked hard to improve catalogue after catalogue, through inspiring styling and room shots. Our customers tell us that they keep our catalogues as they would a home magazine for reference!

Social media is a very credible form of word-of-mouth because it comes from an unbiased source, usually mothers or first homeowners who are very proud of the decorating they have been able to achieve. Homes are very dear to our hearts and for customers who may not have been able to create the “magazine” look in past, now can, without breaking the bank, and they are loving it. Often they band together and share ideas and tips, I see this continuing to grow in the future as customers seek more low cost inspiration. We watch with interest and learn so much from our loyal followers who are growing in numbers every day. They thank us for their “guilt free” joy. Do you have any plans to introduce product into your department, which carries a License? It is not on our agenda currently; we are focused on working with our amazing in-house design team to deliver low cost, unique designs and everyday basics. From what I can gather you have now become an authority on recommending product selections for decorating the home through the ranges you select for your Kmart business. Once again, this is innovative for a mass-market retailer. Could this become an additional service that you offer your customers? We try and keep our formula as simple as possible for our customers and design & buy to customer type, whether it be more urban or classic in style, to make it easy for customers to shop. An additional service we offer is styling tips online to help customers to shop the look. Our TV commercials and catalogues also provide assistance in selling the coordinated dream and our customers do a brilliant job of sharing their own interior decorating or hacks on how they use our products on social media.

I notice with interest that many of the home magazines and lifestyle programs are also realising what you have developed and are seeking to write stories and launch segments to showcase your products. Is this impacting on the growth of “living” in your stores? I think it is great recognition and has helped to broaden awareness of our homeware ranges. Kmart is a brand which people are proud to have in their homes. We love seeing how everyone uses our products, whether it be a family sharing a photo of their living room to a media outlet on how to style our latest trends. It has certainly helped build momentum and loyalty to our brand. Social Media presents huge opportunities these days; is commentary on these platforms a driver for Kmart and do you see this evolving further in the future?

Finally, how do you see the evolution of your Living business over the next three years? We are very clear that we will continue to drop prices, chase in the wanted items and continue to build our business as New Zealand and Australia’s most popular and successful retailer! We don’t tend to focus externally but continue to listen to our customers and improve year on year. ----------------------------------------------Julie, thank you for your time and we really appreciate you speaking to The Bugg Report. What you have achieved with Kmart in a relatively short period of time is amazing. Every time we visit a Kmart store there seems to be further innovation and new products. We wish you great success for the future and we hope we can speak to you again soon.

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Laser Pegs WE INTERVIEW PHILIPPE HERON | MANAGING DIRECTOR INTERNATIONAL

We recently had the opportunity to meet with Phillipe Heron from Laser Pegs at this year’s Australian Toy Hobby & Licensing Fair in March. We spoke to Philippe about Laser Pegs and the origins of the business. We also discussed their plans for the Australian & New Zealand markets now and in the future. Phillipe, for those who are not familiar with Laser Pegs; can you provide a brief introduction to Laser Pegs and its origins? Established in 2009 and headquartered in Sarasota (Florida), Laser Pegs is the original Lighted Construction Set. Laser Pegs encourages forward thinking and multi-dimensional play. Laser Pegs products combine two things that nearly every kid loves; light and building things. The product lines are based on a “Slide, Stack & Spin” play pattern that allows you to build anything you can imagine like vehicles, dinosaurs, robots or even spaceships! Year after year, Laser Pegs has been recognised as an award winning toy. To date, the company has been honoured with over 50 awards because of its “Slide, Stack & Spin” play pattern by esteemed organisations like Dr. Toy, Oppenheim Toy Portfolio, Parenting magazine and Good Housekeeping magazine. Its merits in science, technology, engineering and mathematics (STEM) learning have been well documented, making Laser Pegs one of the best selling toys in the construction market. With unique categories, over 20 items in its 2017 product lineup and retail presence in more than 70 countries, the brand continues to establish itself as the global standard in lighted construction. How do Laser Pegs differ from other products on the market in the construction & puzzle categories? Laser Pegs is a technology, education, entertainment and construction toy Company with the following original objectives: Intellectual Property surrounding illumination and microchip controlled interactivity; application of technology into educational and STEM learning product ranges; innovate, develop, market and distribute toys in the “Tech-Construction” category.

Las Vegas Licensing Expo - Edition 24

Laser Pegs products distinguish themselves through: • Clean, crisp and impactful packaging concepts • Clarity amongst the sea of colours • Modularity. Family packaging that will instantly capture the consumer’s attention • Laser Pegs® state of the art lighted demo boxes significantly increase sales velocity • “Try Me” feature on every 2017 box gives the consumer a first-hand Laser Pegs® experience Laser Pegs are available in-stores and online; are both platforms equally important or do you find that one tends to be more popular with this product? We see a fast growing trend for internet sales as the smartphone market is developing so quickly along with increased internet speeds via 4G and soon 5G. This shift obviously drives more consumers towards internet sales. In the USA, internet sales account for a higher share of our sales than in Europe or Asia, but the trend is towards a worldwide growth of sales through the internet and the many online channels. From a licensing point-of-view, do you have any plans to move Laser Pegs into the licensing market with licensed options of your products? Our distribution will have covered all key markets by the end of 2017 and we certainly will look at opportunities that could make sense both for Laser Pegs and for brand owners seeking new licensee opportunities and categories. Remember though, the Laser Pegs DNA is the light & construction category. Speaking specifically from a market angle; what are the strongest markets for Laser Pegs throughout the world so far? USA, Canada, France, Benelux, Switzerland, Denmark, Australia & the Middle East; we are also developing fast in all other European markets. Crayola Italy will introduce Laser Pegs this year end and we are establishing nicely in a very specific market which is key in the toy industry; Germany.

Australia & New Zealand are fast growing markets; who are you working with in these markets for Laser Pegs for Sales & Marketing?

Finally, from a marketing point of view; do you have content that supports the products in terms of social media, television or digital media?

We have operated a drastic change in our distributorship which started in early 2017. We are very excited to have appointed Zimbler from Melbourne (Australia) who have a very strong name in the market and who are a highly recognised family owned company. Zimbler are committed to brands and they have a very dedicated sales team which I have been very happy to meet during the recent Toy Hobby & Licensing Fair in Melbourne in March.

TV commercials and digital media are part of our communication plans for Laser Pegs and we are currently working on such a TV commercial. We are also excited to be filming extra footage for digital media as well. All our distributors tend to prefer digital media to national TV campaigns simply because digital media offers a chance to specifically reach our target market at a much lower cost than a national TV campaign. We also all know that kids are now spending more and more time on smartphones and tablets than in front of the TV... so now we have to follow them!

We anticipate this new relationship to provide a strong and mutually profitable partnership between Laser Pegs and Zimbler. It is also exciting that we will receive support from Kidstuff; they will allocate a very unique space to Laser Pegs in their stores which is great. Toys â€œRâ€? Us are also a very active retailer for Laser Pegs and we hope to have some accounts offering Laser Pegs distribution from 2018. Things take time to address and correct but we are hopeful to see Australia becoming an even stronger market for us in the future!

To contact Philippe Heron for general information or licensing enquiries email philippe@laserpegs.com or visit the Laser Pegs website at www.laserpegs.com.

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