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Character Merchandising in the United States
Mintel, March 2006, Pages: 100
Licensed toys represent one of the most important segments of the character licensing industry. In fact, licensed toys typically represent about 25%-35% of all annual toy sales. Sales are significantly driven by movies, with the two biggest licensing properties in 2004 being Spider-Man 2 and Shrek 2.
Food tie-ins are another lucrative channel for character merchandising license holders. Two examples of agreements include Burger King’s promotions using Spider-Man 2 merchandise, and Baskin Robbins offering Shrek’s Swirl Sherbet.
With the proliferation of Hollywood in the marketplace, the opportunities for character licensing are continually increasing. The population of pre-schoolers is on the rise, and retailers are looking to character licensing and merchandising to drive sales.
For the purpose of this report, character-merchandising is defined as the use of popular children’s characters to promote the sale of consumer goods. Characters themselves typically derive from television, film, toys, books, comics, and computer games. Children (especially the “under tens”) are the key audience for character merchandising, although adults are the principal purchasers. Thus, character-merchandising is used by manufacturers to trigger a response among children, who then implore their parents to buy on their behalf.
This report includes the whole gamut of merchandised goods embracing media-led items as follows:
- media (books, magazines, films, videos, DVDs, computer games)
- greetings cards and other stationery
- furniture
- toys
- cycles and cycling accessories
- jewelry
- character timepieces
- oral hygiene items
- clothing and accessories
- bags, pencil cases, and sporting goods
- home furnishings and housewares
- mobile phone accessories such as covers;
- food and drink
Excluded from this report are celebrity endorsements and theme park admissions.
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