{"id":17046,"date":"2019-09-19T09:19:05","date_gmt":"2019-09-19T13:19:05","guid":{"rendered":"https:\/\/dev2.worldscreen.com\/tvkids\/ble-special-report-outside-box\/"},"modified":"2019-09-20T08:54:09","modified_gmt":"2019-09-20T12:54:09","slug":"ble-special-report-outside-the-box","status":"publish","type":"post","link":"https:\/\/worldscreen.com\/tvkids\/ble-special-report-outside-the-box\/","title":{"rendered":"Outside the Box"},"content":{"rendered":"

Changes in consumer viewing habits are forcing those in the licensing-and-merchandising industry to adapt and overcome.<\/em><\/p>\n

When the bastion of American toy sales, Toys \u201cR\u201d Us, vanished from the U.S. retail landscape last year, the kids\u2019 licensing-and-merchandising business braced for the worst. Clamoring against Disney to score precious shelf space was challenging enough. Now there was even less available. And just as e-commerce has put the squeeze on brick-and-mortar retailers, the rise in on-demand viewing has upended all the traditional models for building a viable kids\u2019 brand.<\/p>\n

These days, rather than daily appointment viewing, it\u2019s far more likely that a child is binge-watching a show that they\u2019ve chosen from a curated selection on a streamer. And with changes in viewing habits come the inevitable shifts in the ways consumers interact with the products associated with their favorite shows and movies.<\/p>\n

MOVING FASTER<\/strong>
\n\u201cThe key is to innovate, to work hard and also to adapt to changing viewing and buying habits as well as new marketing channels,\u201d says Valentina La Macchia, Mondo TV\u2019s licensing director. In response to these changes, Mondo\u2014which manages the kids\u2019 animated property MeteoHeroes<\/em>as well as the non-broadcast IP Feisty Pets, among others\u2014has thrown its hat in the digital space, representing a web series, House of Talent<\/em>, for the first time. The show follows as a crew of 20 influencers, who have a combined half a billion monthly impressions, come together in the real world to live together. It has over 260 10-minute episodes that 8- to 14-year-olds can watch, engage and even interact with. \u201cAnd they can do this on any web-enabled device, because, let\u2019s face it, that\u2019s what they\u2019re used to: entertainment on the move is a teen and tween lifestyle choice and we mean to reflect that,\u201d La Macchia says.<\/p>\n

Rob Spindley, senior VP of commercial development for the U.S. and EMEA at One Animation, the Singapore-based content producer behind the Oddbods<\/em>property\u2014which has amassed over 10 billion views on YouTube\u2014agrees that L&M schemes need to shift drastically to meet consumers\u2019 needs.<\/p>\n

\u201cTraditionally, buyers were primarily focused on looking at the free-to-air broadcast figures\u2014that was the key focal point of the retail and licensing sector,\u201d he says. \u201cIf you had a prime broadcast slot, that\u2019s where the buying decisions were generated from. Brand support as consumers transition to alternative platforms to view content has created a big disturbance to that previous methodology. A strong online presence is now also key.\u201d<\/p>\n

He continues, \u201cWe\u2019re seeing brand emergence and decline moving faster than it ever moved previously. YouTube and digital channels can elevate brands from zero to hero and back again in a heartbeat, as kids have consumed everything they want to consume and they\u2019ve moved on to the next thing.\u201d<\/p>\n

Spindley points to the \u201cplayground chatter\u201d afforded to shows in the past, which saw kids watching an episode of a show each week and then talking to their friends at school about it, creating a slow buzz and feeding a long-term appetite for the show. In today\u2019s viewing world, Spindley observes, \u201cChildren can sit down and they can just watch an entire series [in one sitting]\u2014which is great for the brand for that very short period of time, but the consumer then is moving on to something new.\u201d<\/p>\n

For this reason and many others, it\u2019s harder now than ever to get onto retailers\u2019 shelves. Jennifer Coleman, VP of licensing and marketing at Konami Cross Media NY, which manages the Yu-Gi-Oh! brand, points to Fortnite as a prime example of how much money and time it takes for new and untested IP to reach shelves. It took years for a game that has become a cultural phenomenon to get into stores. \u201cIn order to secure that shelf space, you have to show that you\u2019ve got that proven audience in there,\u201d she says. \u201cYou have to show that you have the eyeballs, show that you have the engagement. And once you can prove that, it\u2019s much easier to get on the shelf. So it\u2019s a substantial investment in marketing, content development and production. There are high barriers to entry.\u201d<\/p>\n

Mondo TV\u2019s La Macchia agrees with Coleman: \u201cLicensees prefer to wait for identifiable demand\u2014that\u2019s not ideal for a broadcast business that thrives on new ideas.\u201d<\/p>\n

PAIRING OLD AND NEW<\/strong>
\nThankfully, Coleman says, Konami\u2019s Y<\/em>u-Gi-Oh! property, as well as its classic gaming IPs Frogger, Bomberman and Contra, have the brand recognition that gives them that foot in the door. Konami\u2019s legacy brands stand somewhat immune to the fickleness of consumer interest, delivering much-needed stability, Coleman says.<\/p>\n

Genius Brands International is in a similar situation when it comes to its known IP, says Lloyd Mintz, senior VP and head of worldwide consumer products. Of Llama Llama<\/em>, a Netflix original, Mintz says, \u201cWe have one advantage that most of the other shows that might suffer from binge-watching don\u2019t have, which is we also have a ten-year-old-plus best-selling book series. There are over 25 million books in print. There are about half a dozen new titles every year, including a featured hardcover title. Those usually shoot to the top of the best-seller list. Because they are hardcover, they get a lot of attention. I think with some shows, people do binge-watch and then move on. But when you\u2019re a book series, you do benefit because you\u2019re part of the bedtime reading routine. You get into that rotation of books that constantly get read. That\u2019s one thing that helps us compared to others who may not have that publishing heritage.\u201d<\/p>\n

Coleman says that Konami is expanding its online Yu-Gi-Oh! store and working more with streaming platforms. \u201cThat\u2019s been one way for us to try to make sure our content is still finding its way into the hands of our fans and continuing to keep that audience engagement,\u201d she says.<\/p>\n

Mintz outlines a similar strategy that Genius is taking by focusing on the online market. \u201cWe just started a Llama Llama<\/em>YouTube channel,\u201d he says. \u201cWe\u2019re not only reacting to the market, but we\u2019re picking up on best practices from other properties that have gone before us and what\u2019s worked for them and what hasn\u2019t. We know that YouTube helps elevate that engagement.\u201d<\/p>\n

Mintz adds that it is crucial to time L&M rollouts carefully to allow the brand to build recognition in the market. \u201cWe\u2019ve seen too many properties that have been in too much of a rush to get product out there. I don\u2019t know if anybody can point to one that has followed that strategy and been successful. If people don\u2019t really know and ultimately love the property, then the product is not going to sell.\u201d\u00a0<\/strong><\/p>\n

EXPERIENCING CHANGE<\/strong>
\nSo how do companies get their products on shelves in a world where e-commerce reigns supreme? \u201cHow do you keep [customers] coming in the doors when you can\u2019t beat the Amazon price? What else can you offer?\u201d Konami\u2019s Coleman asks.<\/p>\n

Experiential retail might be the answer. It\u2019s a space that the L&M sector has begun to look toward as the future of what will keep buyers leaving their houses to spend money on products that they could likely purchase online, often for less. \u201cTo get products to retail is still a must\u2014but getting consumers to retail is no longer about just putting product on shelves,\u201d says La Macchia. \u201cIt\u2019s about ensuring a memorable in-store experience for their consumers. Given the strong competition from e-commerce, it\u2019s very important to be able to add value to the shopping experience, with events, meet-and-greets and the chance for kids to interact with their favorite characters.\u201d<\/p>\n

For the YooHoo brand, based on the Aurora World plush toys and now encompassing the preschool series YooHoo to the Rescue<\/em>, Mondo TV has secured a customized shopping area in various Mondadori locations across Italy. \u201cWe\u2019re also planning four in-store events in the megastores, featuring YooHoocostume characters along with an engaging format to get kids and families to experience a unique interaction with the brand,\u201d she says. There are also Feisty Pets-themed shopping mall events across Italy.<\/p>\n

KEEPING UP<\/strong>
\nUnique buying experiences come in many shapes and sizes. \u201cA prime example might be a birthday cake, for instance,\u201d says One Animation\u2019s Spindley. Using an app, a consumer can scan the packaging, \u201cand the Oddbods emerge on-screen and \u2018Happy Birthday\u2019 plays. Added-value interactions like this provide additional layers and deeper brand engagement to the consumer experience.\u201d<\/p>\n

\u201cLook at the Trolls experience that DreamWorks has built in New York,\u201d Konami\u2019s Coleman offers. \u201cYou\u2019re not just going in there to purchase\u2014though of course monetization is going to be a part of it. It\u2019s more about interacting with the brand so that you\u2019re getting a 360-degree experience\u2014from green-screen opportunities to characters there to a play space. That seems to be a direction that retail is headed in, and I think that even in Toys \u201cR\u201d Us announcing that they were going to be coming back, they mentioned some experiential retail opportunities.\u201d<\/p>\n

Mondo TV has also dipped into the world of immersive retail, launching a new AR app for its animated property Robot Trains\u00a0<\/em>that allows kids to interact with the characters from the show in real time. \u201cRetailers, too, have the opportunity to demonstrate the innovative immersive technology in-store, encouraging kids to scan products or use an exclusive graphic marker to activate special content and become part of the Robot Trains<\/em>world,\u201d La Macchia says. \u201cThis adds value to the retail experience.\u201d<\/p>\n

For anime and gaming IPs, Konami\u2019s Coleman says many experiential retail opportunities center around good old-fashioned human interaction. \u201cIn addition to normal brick-and-mortar, there are a lot of [fan conventions] and the expos, so those are a growing opportunity for us,\u201d she notes. Pointing to retailer FYE\u2019s pop-up shop at this year\u2019s San Diego Comic-Con, she says that customers are \u201cgoing in to interact with whatever that brand or that IP is that\u2019s surrounding that pop-up shop opportunity. Even the retailers are catching on to that and realizing that these are different opportunities where they can certainly monetize and capture new audiences and revenues.\u201d<\/p>\n

For brands to stay competitive, they have to undertake multifaceted L&M schemes, ensuring their products are offered across every category and in every space that consumers might look. One Animation\u2019s Spindley says the company always aims to launch campaigns that \u201cengage our entire ecosystem. All of the messaging we produce is aligned and cohesive, delivering a consistent message across multiple touchpoints and media for maximum consumer recognition.\u201d<\/p>\n

Giulia Bert\u00e8, licensing and brand manager at the Italian production-and-distribution group Showlab, agrees, saying that launching a brand requires a comprehensive approach to its licensing and merchandising. \u201cWe always try to create a project that involves all the commercial elements,\u201d Bert\u00e8 says. \u201cWe want to build a brand in all aspects. So when we start to work on a project, we always think about how many commercial spheres can be involved. We don\u2019t want to just offer a new property to the market; we want to make it a big, big project.\u201d<\/p>\n

Adapting to fast-changing consumer buying and viewing habits, exploring innovative partnerships and keeping an eye toward the experiential retail space are key to brand relevancy in today\u2019s market. \u201cThere will be many L&M opportunities that will see the business grow now and in the future,\u201d La Macchia says. \u201cWhat matters is to be ready for them.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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