The Bugg Report Magazine — Edition 35

Edition 35

452M VIEWS

(2020 - Australia and New Zealand)

430M VIEWS

(2020 - Australia and New Zealand)

READ MORE ON PAGE 06 OR CONTACT GAIL MITCHELL AT CENTA IP FOR MORE INFORMATION

From The Editor Welcome to our 2021 Toy Hobby & Licensing Fair Digital Preview magazine. As I am sure you will be aware, given recent world events the Toy Hobby & Licensing Fair will now be held in a digital format this year to allow the industry to connect. I thought it would be interesting to look back on some key updates that have happened so far this year leading into the fair, starting back in January with the Hong Kong International Licensing Show which was held online for the first time as well as the Asian Licensing Conference. We have seen Pokémon announce their landmark 25th anniversary celebrations which will include a global music celebration and many key activations throughout the year. The Wiggles have also announced their 30 year celebrations including the release of their brand-new single, We’re All Fruit Salad! Australia’s Merchantwise Licensing was appointment as Activision’s licensing agent in Australia and New Zealand and Toikido named Hunter Products as Master Toy Distributor for Among Us in Australia & New Zealand. Inside this magazine you will find an update on YouTube's Hottest Stars featuring Ryan's World and Love, Diana which are represented here in Australia & New Zealand by Global Licensing Agency, Centa IP.

Managing Director — Tony Bugg tony@buggsolutions.com.au Editor & Designer — Matthew Bugg matt@buggsolutions.com.au Published by Bugg Marketing Solutions info@buggsolutions.com.au PO BOX 491, Berwick VIC 3806

04

The Bugg Report Magazine

We also have some regular columns from Sally Pseudonym, Christie Nicholas (Top 10 Consumer Themes to Leverage in 2021) and Isabel Wu (Demystifying Digital Transformation). Keep an eye out for our 2021 Toy Hobby & Licensing Fair Bumper Edition as well which will release on March 1st in time for the fair. We will also be posting our updates on the ATA's Media Platform during the fair so please check our feed for updates. For those who have asked us about the 2021 Toy Hobby & Licensing Fair Digital and where to start, please see a screen shot and a link to get you started.

Registered attendees can access the Toy Hobby & Licensing Fair Digital platform at the link below starting in early February:

toyfair.australiantoyassociation.expoplatform.com

Advertising — bookings@buggreport.com.au Feedback — editor@buggreport.com.au Media — media@buggreport.com.au

www.buggreport.com.au

The Bugg Report has been compiled as a guide to retail, sports, lifestyle, toys, licensing and/or other related matters. The views and opinions provided are based upon the views and opinions of our writers. In no way is The Bugg Report a factual guide to retail, sports, lifestyle, toys, licensing and/or other related matters and does not take responsibility for how the information provided is used by its consumers.

Inside This Edition Centa IP Represents YouTube's Hottest Stars — Market Wrap

06

Toikido Names Hunter Products as Master Toy Distributor — Press Release

08

Australian Toy Hobby & Licensing Fair — Update

10

Australian Toy Hobby & Licensing Fair — Exhibitor Listing

12

Merchantwise Appointed Licensing Agent for Activision — Press Release

14

Sally Pseudonym — Column

18

Top 10 Consumer Themes to Leverage in 2021 — Column

20

Demystifying Digital Transformation — Column

22

www.buggreport.com.au

05

MARKET WRAP

Centa IP CENTA IP REPRESENTS YOUTUBE’S HOTTEST STARS Global licensing agency Centa IP is representing two of the hottest YouTube influencers today across Australia & New Zealand.

Ryan’s World sales growth continues to defy the odds during the pandemic reaching nearly a half a billion dollars in sales in over 50 categories and 5000 SKU’s. Pocket.watch, the exclusive studio partner for Ryan’s World has continued to develop the brand to create newness, differentiation and exclusivity while expanding it beyond the YouTube channel while aiming to make Ryan’s World THE number one global brand for kids 4-8.

Here in Australia the Ryan’s World YouTube channel regularly achieves up to 28 million* views a month and up to 5 million views in New Zealand (December 2020). But, Ryan’s World is not just a YouTube channel. Ryan’s World content has expanded to Amazon Kids+ with Super Spy Ryan which launched in November 2020 and in 2021 Ryan’s World content will be everywhere with specials, original content (Super Spy Ryan and Ryan’s Mystery Playdate) and Ryan & Friends.

New consumer product programs through 2021 include Ryan’s World Tour with Ryan and his friends going on a World Tour visiting 80 countries and landmarks with lead retailer Big W launching in February 2021. Then in September 2021, Big W will launch Galaxy Explorers.

In Australia and New Zealand, Ryan’s World is a stellar franchise and there’s more to come.

The franchise is growing and the opportunities to partner with Centa IP have never been better. We will continue to build the brand with new and unique programs that are across all platforms and types of businesses, with more marketing and promotional support than ever before to ensure that we maximize business together.

Centa IP has also recently launched pocket.watch’s newest franchise “Love, Diana — The Princess of Play”. Starring Diana from the YouTube channel Kids Diana Show, the secondlargest YouTube channel in the world (Tubefilter 4th January, 2021), her massive global reach across her YouTube channels has garnered over 166 million subscribers and over 85 billion lifetime views since the first channel launched in 2015! Here in Australia Kids Diana Show's meteoric rise has captivated over 26 million monthly viewers and over 4 million in New Zealand in December 2020.

06

The Bugg Report Magazine

Six-year-old Ukrainian-born Diana takes viewers on playful adventures bursting with color and imagination, with her brother Roma and parents Olena and Volodymyr along for the journey. Fans of the Kids Diana Show channels are seeing the new “Love, Diana” brand come to life, with elements of it woven naturally into the core Kids Diana Show channel, creating a more diverse video experience.

Targeted to children between ages 2-7, the “Love, Diana” lifestyle product line encompasses the core characteristics of imagination, playfulness, creativity, empowerment and friendship that Diana's audience knows and loves.

In October last year HeadStart’s range of dolls and Mitch Dowd’s apparel launched in Australia and New Zealand and sales are off to a strong start. Headstart dolls are already the number five (#5) girls toy in Big W with excellent sell through. Both Target and Kmart are committed to Diana for 2021 and will continue to support the HeadStart range with confirmed exclusives for the remainder of the year.

Pocket.watch has also extended the Love, Diana brand into mobile gaming on the heels of their p.w Games division's success with Tag with Ryan which has garnered 12 million downloads and over 450,000 daily active users. The Love, Diana mobile game features a collection of fun minigames bursting with personality, vibrant colors, and imagination that will empower kids to design their very own "Princess of Play." It is available in the App Store and Google Play.

Centa IP is looking to expand the license into other categories including games and puzzles, outdoor, health & beauty, jewelry, confectionery, wheeled/sports as well as STEAM. If you’re interested in becoming a partner, please reach out to Gail Mitchell.

For more about pocket.watch's creator partners, content, consumer product lines, retail, promotional partnerships and more, please visit pocket.watch Gail Mitchell CEO at Centa IP Gail.Mitchell@centaip.com

www.buggreport.com.au

07

PRESS RELEASE

Toikido Names Hunter Products as Master Toy Distributor for Australia & New Zealand Among Us, the video game taking over the world, is set to become even more popular Down-under!

Thanks to an exciting new partnership between Toikido and Hunter Products, Crew mates and impostors from Australia & New Zealand will have access to all the latest and unique Among Us toys!

General Manager of Hunter Products, James Hunter says kids can expect to see action figures, collectables, plush, playsets, RC and much more on shelves in Australia and New Zealand very soon.

"Judging by the hype around this game worldwide, we predict Among Us to be one of the hottest brands of 2021. We are delighted to partner with Darran and his team. Brands like this don’t come around often."

James Hunter — General Manager at Hunter Products Among Us first launched in 2018 by US Software company Innersloth. In October alone, the mobile version of the game was downloaded more than 85 million times according to Sensor Tower. Research from SuperData shows it had about half a billion active users last November!!

CEO of Toikido, Darran Garnham is excited about the partnership with Hunter Products and says, "I am really pleased to be with the Hunter team again. Their experience and passion for Among Us made them the perfect distribution partner for Toikido in Australasia."

Darran Garnham — CEO at Toikido Stay tuned for June 2021 when Aussie and NZ kids could be AFK (away from keyboard!) while they hit the toy stores. We are not an Imposter!!

For more information about Among Us contact James Hunter at Hunter Products: james@hunterproducts.com.au

08

The Bugg Report Magazine

2021

Australian Toy Hobby & Licensing Fair The Australian Toy Association would like to welcome you to the Australian Toy Hobby & Licensing Fair, which is digital for the first time!

The show will go on from 1-5 March, fully online — Toy Fair Digital provides a safe and effective platform for our industry to meet, whether it’s from your desk in the office, your kitchen table, or a cosy spot at home.

We are excited to showcase the newest and best from suppliers around the country and connect the industry like never before. Chat with business contacts, browse products and brands, or attend a webinar in the Sessions module — through powerful AI and matchmaking, the experience will be tailored to you.

See you online at the Fair!

Georgina Kritsilidis ATA Event Manager

10

The Bugg Report Magazine

www.buggreport.com.au

11

EXHIBITOR LISTING

12

A & O Distribution www.aandodistribution.com

Explore Nook www.explorenook.com.au

All Brands Toys www.allbrandstoys.com

Funrise www.funrise.com

ARL (Toyworld) www.www.arl.com.au

Geomagworld www.geomagworld.com

Artiwood Australia www.www.artiwood.com.au

Happy Planet Toys www.happyplanettoys.com.au

Australian Toy Distributors www.australiantoydistributors.com.au

Headstart International www.headstartint.com

Axis Toys www.axistoys.com

Heebie Jeebies www.www.heebiejeebies.com.au

Bensons Trading www.www.bensonstrading.com.au

Hunter Products www.hunterproducts.com.au

Big Balloon www.www.bigballoon.com.au

HEXBUG / Innovation First www.hexbug.com.au

Big Wheel Toys www.www.bigwheeltoys.com.au

Impact Merch. www.impactmerch.com.au

Bright Wonders www.www.brightwonders.com.au

Jasnor www.jasnor.com.au

Connetix Tiles www.connetixtiles.com

Johnco Productions www.johncoproductions.com

Divisible By Zero www.dbzonline.com.au

Knock On Wood Toys www.knockonwoodtoys.com.au

Eureka Concepts www.eurekaconcepts.com.au

La Belle Toys www.labelletoys.com.au

Even Toys and Games www.eventoysandgames.com.au

LEGO Australia www.www.lego.com

The Bugg Report Magazine

EXHIBITOR LISTING

Let's Play Games Distribution www.letsplaygames.com.au

Tiger Tribe www.tigertribe.com.au

Loumet www.www.loumet.com

Tinc Retail Australia www.tinc.net.au

MADMIA www.www.madmia.com

TNW www.tnw.com.au

Mattel www.www.mattel.com

Toy Networx www.toynetworx.com.au

Merchantwise www.merchantwise.com

U Games www.ugames.com.au

Mizzie the Kangaroo www.mizziethekangaroo.com

Ugears Australia www.ugearsaustralia.com.au

MJM Australia www.mjm-australia.com

VR Distribution www.vrdistribution.com.auhello

Modern Brands www.modernbrands.com.au

VTech Electronics www.vtech.com.au

Moose www.moosetoys.com

Wild Republic www.wildrepublic.com.au

Plum Products www.plumplay.com.au

Windspeed Kites www.windspeedkites.com.au

Pouch Australia www.playpouch.com.au

Winning Moves www.winningmoves.com.au

Spin Master Australia www.spinmaster.com

Yipose Trading Company www.yipose.com.au

Squatter — Australia's Classic Game www.squatter.com.au

Zimbler www.zimbler.com.au

Theatrix Magic Stuff www.theatrix.com.au

CORRECT AS AT JANUARY 22, 2021

www.buggreport.com.au

13

PRESS RELEASE

Merchantwise Licensing Appointed Licensing Agent for Activision in Australia & New Zealand Australia’s Merchantwise Licensing has been appointed as Activision’s licensing agent in Australia and New Zealand.

Known for its best-in-class franchises and Activision Classics brand, Activision has been changing the way people play for more than 40 years.

Merchantwise Licensing will seek out Australian and New Zealand licensing opportunities for Activision’s many brands including the entertainment industry blockbuster, Call of Duty.

Licensing opportunities will also be sought for the Crash Bandicoot franchise including Crash Team Racing and the newlyreleased Crash Bandicoot 4* — It’s About Time which was released in October last year at #1 on the gaming charts.

Merchantwise Licensing will also represent Activision’s classic game series, Spyro The Dragon, as well as the company’s publishing titles, including three of Atari’s top 10 best-selling games of all time — Pitfall, Grand Prix and River Raid in the Australian and New Zealand markets.

“Merchantwise Licensing prides itself on its gaming and digital licensing expertise and we are incredibly thrilled to be welcoming Activision to our portfolio of pedigree brands. With exceptional brands like Call of Duty, Crash and Spyro as well as all the Classics range, Activision is one of the top game publishers in the world and globally recognised for its fun, thrilling and engaging entertainment experiences. We can’t wait to explore local licensing opportunities for Activision and to provide fans with a fully immersive merchandise experience with their favourite gaming brands.”

Kerryn McCormack — Merchantwise Licensing’s General Manager of Licensing For more than 40 years, Activision has been changing the way people play. In the process, Activision has built one of the largest portfolios of recognised brands and today is one of the most valuable interactive entertainment companies in the world.

Founded in 1979 as the first independent video game software developer and distributor, the company launched a series of multi-million unit selling titles in the early 1980s for the Atari 2600 including Pitfall, Kaboom! and River Raid. And since then, Activision has created some of the most iconic and memorable game experiences of all time.

Today, the company is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products for various consoles, handheld platforms and the PC. Over the past five years, Activision has continued to thrive as a leading digital entertainment provider, and its games appeal to a variety of gamers.

Activision strives to make the most fun, thrilling and engaging entertainment experiences for its players, who live in a world with many entertainment options. The company operates in more than 15 countries including in the U.S., Canada, Brazil, Mexico, the United Kingdom, France, Germany, Ireland, Italy, Sweden, Spain, Denmark, the Netherlands, Australia, New Zealand, Singapore, mainland China, Hong Kong and the region of Taiwan.

Activision is one of the top game publishers in the world and its games are played across the globe.

14

The Bugg Report Magazine

Home of Australia's Original Natural Teething Toy and Educational Toys Proudly exhibiting new products at ATA Digital Toy Fair 2021 www.mizziethekangaroo.com | 07-3857-3595 | info@mizziethekangaroo.com

HARRY POTTER 3D PUZZLES OFFER! ORDER NO

W

10% OFF Click here

to register

U. GAMES AUSTRALIA – FOR QUALITY GAMES, PUZZLES, TOYS AND MORE! Register as a retailer via our website to receive 10% OFF Harry Potter orders over $350. Use coupon code UGHP0321 at checkout.

Valid until 31st March. T&Cs apply.

Visit www.ugames.com.au for more information.

1300 998 150

Visit our website to register as a retailer.

www.ugames.com.au

COLUMN

Sally P seudonym Sally Pseudonym is a guest writer focussing on what’s going on in the toy industry and gives you some general information about the ups and downs in the toy business.

Guest Writer for The Bugg Report

Covid continued to play havoc with the business... border closures, store lockdowns and a surging Chinese export business that led to inflated shipping costs and container shortages. That said, the toy business had an incredible year and looking at data from various organisations the industry may well have hit the $3 Billion dollar mark last year, with an increase of over 20%.

• Black Friday sales did not slow December like the previous year. JobKeeper, JobSeeker, Superannuation raids and Government handouts ensured that there was plenty of money to spend and stimulate the economy. The toy business increased around 28% to 29% in December, which is incredible given such huge base sales • Online shopping appeared to maintain its increase at around 20% of sales... even with lockdowns, nimble retailers were click and collecting and direct to boot • JobKeeper and/or JobSeeker kept many businesses afloat and people employed... we avoided the hard landing that many predicted

Lego was the usual powerhouse and even with stock shortages, managed an increase of around 24% with an incredible market share of 20%. When you consider it doesn't have 20% of the retailers space this is an incredible result.

Whilst there was a slight decline in Harry Potter all brands within the portfolio increased... special shoutout to Star Wars with a 36% increase (the Child sold out very quickly).

Technic had an increase of 63% and Mario was off the charts (and their in-store point-ofsale was outstanding). You have to hand it to Lego, I recall years ago when the market was around $1 Billion that their share was around 9%... they keep coming up with the hits!

Mattel increased their business by 10% just ahead of Hasbro. They have done an incredible job with their two major brands...

Barbie up 23% and Hot Wheels up 32%. They still have a job to do with preschool however, as their Fisher Price business is languishing (perhaps a more focussed VTech and some of the stronger preschool brands such as Paw Patrol are taking market share?)

Hasbro was up 13% driven by Nerf (11%), Monopoly (25%) and Transformers (11%).

Play-Doh gave kids something to do in lockdown with a 36% increase Spin Master had a great November/ December driving their increase to 24% Hunter Leisure was a bit of a sleeper with and increase of 20% coming from their craft, Laser X and ball divisions Moose Toys was next with an increase of 46%... with Treasure X up 29%

Adventures with Mario Starter Course

18

The Bugg Report Magazine

Keep an eye on YouTube... what are your kids watching? Minecraft, Nitro Circus, Blippi, Cocomelon, Love Diana and Miraculous. This non-traditional channel will become the home of super brands.

MGA had an increase of 68%... the hits keep coming! L.O.L. Surprise! was a huge brand and with a large base still had an increase of around 4%, which was a great result. Special shout outs to Na! Na! Na! Surprise, Poopsie and a surging Baby Born and Little Tikes ZURU increased their business by 20%... incredible given the previous success of Bunch O Balloons. Rainbowcorns was the standout Big Balloon driven by Pokemon (74%) and Ty Beanies (10%) had a volume increase of 15% in total Crown & Andrews increased their business by an incredible 23% on the back of Wahu, games and puzzles Crayola also benefited from the pandemic with an increase of 31% (great product also helps!)

MJM deserves a special shout out, jumping into the top 25! Their business jumped 12% and would have been higher had the pandemic not cleaned them out!

HeadStart — despite losing MGA half way through the year, also deserves a special shout out as they are still in the top 10! Watch this space... they are doing some great product development

Licensing Highlights

Category Highlights

✅

✅ ✅ ✅ ✅ ✅

✅ ✅ ✅ ✅ ✅ ✅

Barbie was the Number 1 licence... kudos to Mattel with a 22% increase Star Wars was next driven by Lego and The Mandalorian (up 50%) Hot Wheels had a 31% increase Pokémon had a 74% increase thanks to cards and soft toys

✅

Craft up 46% Total construction up 22% Games and puzzles up 39% Dolls up 16% Action figures up 7% (hurt by lack of movie releases) Outdoor toys up 24%

Mario was off the charts thanks to Lego Paw Patrol, given the fierce competition in preschool licenses, still managed a 15% increase

Pokémon

F rozen despite the age of the licence had an increase of 28% and was 72% of Barbie’s sales!

Looking Forward...

Keep an eye on You Tube... what are your kids watching? Minecraft, Nitro Circus, Blippi, Cocomelon, Love Diana and Miraculous. This non-traditional channel will become the home of super brands (not to mention Netflix and the Disney channel).

That' s all the looking forward I'm going to give you... for more log-on to the Digital Toy Fair platform from the 1st to the 5th of March... I will be there looking for new product and opportunities to bring to our customers!

Have a great year!

Sally

Sunken Gold Treasure Ship Playset

www.buggreport.com.au

19

HOW TO BE A BRAND FORCE WITH INFLUENCE: FAST FACTS TO GET YOU THERE — EDITION 4 Christie Nicholas is the Chief Growth Partner at Mumpower, Australia’s leading agency shaping brands that speak to Mums. Christie joins The Bugg Report as an exclusive guest writer and will share important intelligence that will help your brand prosper in a changing market.

by Christie Nicholas — Chief Growth Partner at Mumpower

Top 10 Consumer Themes to Leverage in 2021 Do you remember the consumer trends that were suddenly thrust to the forefront last year?

People’s homes became their world, old-school activities were the hottest entertainment since colour TV, it was a time for DIY everything, comfy loungewear was a 24/7 staple for all, hygiene practices were the new black and all of a sudden, everyone was practicing new — and mostly old school — recipes. The consumer changed right before our eyes — and so did the distribution of household discretionary spend.

However fleeting, some brands rode the wave to financial stardom, while others struggled. The lesson for both was about how important it is to know what your customer wants, cares about and values. As this is where she will invest time or money in. Which brings us to 2021.

If you knew what was going to be big this time round, would you take a different approach? While we can’t go back in time, we need to prepare ourselves with what’s next. And it starts here.

Mumpower continuously taps into our vast network of 21,000 Australian Mum Shoppers and 2,000 Mum Influencers to identify themes that will continue to play a central role in her life. Given 72% of Mums are largely in chase of household spend, this audience impacts your sales. With this knowledge you will elevate and amplify your brand strategy and your B2C communication dialogue, demonstrate your understanding of the customer and deliver to them what matters most.

The end game is more relevant brands, stronger relationships and faster conversion.

20

The Bugg Report Magazine

Here are the Top 10 themes your customers will embrace in 2021: 1. Kids will not go without Products in this space are more protected than other categories as she continues to invest in ways to protect, enjoy and shape her children’s lives as a priority over other needs. While every second household in Australia has felt financial strain and normal spending has not yet resumed — moving forward, mums are determined her children will not go without.

2. Family, friends & togetherness The unexpected separation from friends and families has made families develop a new found respect for quality bonding time, togetherness and meaningful relationships that all contribute to “greater life experiences”. Your customer continues to value spending time with loved ones, therefore solutions that enable this are appealing.

3. Cooking, sharing meals With a slower than usual life still happening, families are no longer pressured to deliver ‘fast, quick meal ideas’ as much as before and there is more focus on healthy cooking. More Mums are intent on keeping her family nourished and via cooking/sharing family meals, she will increase and preserve the meaningful bonding time experienced in 2020.

4. Self-care & nourishment “2021 shall be named the year of self-care” is a resounding theme. It’s not just about face masks and massages. Mums learnt very quickly the huge role they play at keeping the family well and with life pressures taking a toll, she will address and invest in herself in different ways, more than ever. Your customer wants to be her best self. Take her there.

5. Slower living & mindfulness

9. Local love

The pandemic took away the hustle and bustle of outings, activities, and fast living and introduced the concept of slowing down; something Mums want to maintain in some form. Therefore, Mums will remain more connected to meaningful transactions and activities and brands that will support her in her pursuit of this ethos.

Mums want to support local. In fact, a whopping, 64% of mums buying local/Aussie made regardless of prices. Supporting local continues to be a topic prevalent in the media as well. There will more attention of the country/source of origin for certain market categories.

6. Health, happiness & pleasure With the overriding threat of compromised health and safety, and going through lessons and hardships in different ways (from home schooling, family mental health and more). Mums know from experience how important and valued health, happiness and pleasure is for her and her family. Therefore products that offer this are in line with her values.

7. Security, saving, value for money Consumers seek greater financial security. We’ve seen almost every second household experiencing financial setbacks, 65% of households now saving for a rainy day and 70% of Mums opting to only buy what they need. Customers today are more money conscious and are looking to validate the value for money, and need to feel more confident in buying decisions.

8. Home haven With travel still restricted and continued work from home lifestyles will see families continue to invest in home life.

While home maker brands may not grow as exponentially as they did last year, home life will continue to be important to this customer who will continue to spend in this space.

10. Purpose driven brands will be noticed With 47% of consumers believing that it is important for brands to be involved in social issue and movements, Mums will become more aware of brands that act with purpose. Brands in this space will empower the customer to feel like they are making a difference to a greater purpose and be more compelling.

These are the top 10 popular consumer themes to embrace in 2021. By monitoring how life has changed for the consumer and understanding what she now values most, as brand marketers we can lean into the driving themes and trends that will dictate her future spend and stay relevant. Brands that deliver solutions to support Mums in these areas of her life will flourish.

Mumpower exists to lead mum-centric brands to nextlevel brilliance. We fuel Mum-to-Mum Brand Advocacy via: Market Research, Influencer Marketing & Campaign Activation, designed to power B2C relationships forward. mumpower.com.au A brand force with influence.

www.buggreport.com.au

21

THE NEW AGE OF DIGITAL — EDITION 2 This article is written by Isabel Wu from Meta Management and covers all things digital. Meta Management is a consultancy specialising in helping its clients with the organisational assets that drive effective digital transformation and create value in a hyper-connected, constantly changing world.

by Isabel Wu — Managing Director of Meta Management Solutions

Demystifying Digital Transformation

Digital transformation. The term invokes a range of responses. For some it is the key to new opportunities; for others, it is old problems, new name. After the year that was 2020, few will see it in ways other than synonymous with crisis. Which doesn’t have to be bad. In what turned out to be a year of one disruption after another, many have discovered that crises really are opportunities in disguise, and digital transformation are how those disguises are peeled off. It’s no wonder the focus on digital transformation has intensified.

"By acting early and being bold and decisive, CEOs can accelerate their digital transformation and reach the next normal sooner."

(McKinsey, April 2020) "COVID-19 pandemic is tipped to create a fresh productivity boost for the country, thanks to the accelerated digital transformation of all industries."

(Australian Financial Review, June 2020) COVID-19 has sped up digital transformation for Australian business by an average of six years.

(Twilio, July 2020) "Why is this digitalization different from digital prior to COVID-19? … [It’s] the pace of adoption. … The digital part isn’t new, but the acceleration part is crucial."

(Gartner, September 2020)

22

The Bugg Report Magazine

The verdict? Moving on new business opportunities is no longer for the already successful. Speed and unpredictability of change and competitive pressures make adhering only to old ways of doing business a liability. Caution and the illusion of certainty ruled how enterprises traditionally addressed possible opportunities. After months (or years) of deliberation, many projects often launched with the bar of success set at a low, “If it doesn’t disrupt or cost too much, let’s give it a try.”

The age of digital needs an approach that treats opportunityleveraging as business as usual, not senior management pet projects. That approach is digital transformation. Digital transformations are not be be confused with digital strategy and technology projects. The defining difference is digital transformations don’t start with technology, but with behaviours.

Human behaviour is perpetually shifting in line with new attitudes and social norms. Every shift exposes an underserved, emerging or latent need waiting to be filled. That’s why crises can be such fertile ground for new business opportunities. To take advantage of them, enterprises must wire themselves to be behaviour-seeking organisations.

Notable shifts in 2020 like regular working from home, contactless transactions, heightened concerns for health and well-being, comfort dressing and more in-home entertainment may have started in response to a pandemic, but they are here to stay.

Many enterprises however miss the opportunities that come with behavioural shifts or lack the ability to effectively address them.

The most common mistake is thinking traditional business and management practices can be transferred from their industrial setting to work in a digitised society. Industrial solutions are all but limited to product and service features and existing supply channels.

Digital transformations, on the other hand, find ways to extract new value through innovative business models, such as a department store in China that turned each department into a livestream on WeChat. New ways of doing business must be supported by new ways of working. Collaborative, creative and customer-centric practices like Agile and design thinking combine with technology to capture and deliver the new form of value to ensure operational and commercial success.

The benefits of digital transformations are exponential. Organisations that have successfully completed digital transformations tend to be better at withstanding, and are faster to react to, future shocks. Workforces that have gone through a successful digital transformation emerge more skilled and more engaged.

The hardest part of digital transformations could very well be making them part of your business as usual — and then deciding which opportunities you wish to pursue.

To learn how to run a digital transformation, subscribe to our free email course. www.metamanagement.net

www.buggreport.com.au

23

Cost Effective Design Services logos / business cards / corporate brochures / print advertisements digital advertisements / magazine layouts / general design services Bugg Marketing Solutions can produce simple, fast, easy and cost effective design work.

Get in touch to start the conversation and find out more about what we can offer...

CALL OR EMAIL MATTHEW BUGG

WWW.BUGGSOLUTIONS.COM.AU

0407 700 267

MATT@BUGGSOLUTIONS.COM.AU

The Brand Licensing & Market Specialists As the leading independent Brand Licensing Specialists & Market Intelligence Agency in the business, we pride ourselves on being connected to Brands, Agencies, Retail and emerging trends and we are the go-to organisation to provide you with balanced, researched and up-to-date market intelligence.

We are the perfect conduit to the market for small to medium businesses that are not in a position to hire a full-time marketing or licensing manager.

Let us seamlessly connect YOU to brands & distribution channels at a fraction of the cost of a full-time employee!

CALL OR EMAIL TONY BUGG

WWW.BUGGSOLUTIONS.COM.AU

0418 321 837

TONY@BUGGSOLUTIONS.COM.AU

Q: HOW MANY OF YOUR CUSTOMERS DRIVE? A: ABOUT 19 MILLION OF THEM.

P E E L’ N ’ S T I C K T O L A P T O P S , CARS, MOST SMOOTH S U R FA C E S

RETAIL AND PROMOTIONAL ENQUIRIES WELCOME Billy Asi P: +613 9721 4206 E: basi@fanemblems.com www.fanemblems.com

HARRY POTTER characters, names and related indicia are © & ™ Warner Bros.

PO Box 600 Bayswater VIC 3153

J.K. Rowling and Warner Bros. Entertainment Inc. Publishing Rights © JKR. (s20)

Entertainment Inc. WB SHIELD: TM & © WBEI. J.K. ROWLING’S WIZARDING WORLD ™