Retailers, brand owners seek fortunes at Licensing Show
NEW YORK (Reuters) - Toymakers, manufacturers and retailers shrugged off soaring temperatures and flocked to the 2008 Licensing International Expo, some showing off hit brands, and others vying for rights to use them.
A giant Pokemon character hung from the ceiling and others like Felix the Cat trotted down the aisles at New York's Jacob Javits Center, where the show goes on from June 10-12.
At the event, being attended by about 25,000 people, owners of brands -- from toys like Barbie and G.I. Joe to beverages like Dr. Pepper -- meet manufacturers who seek the rights to use the brands on their products.
"This is the place where everything's on display and may solidify a licensee's decision," said Bryony Bouyer, senior vice president of marketing at No. 2 U.S. toymaker Hasbro Inc (HAS.N). "It is certainly great for attracting new licensees."
In 2007, U.S. retail licensing revenue was $107.8 billion, down slightly from $108 billion in 2006, while it was estimated at $195.7 billion globally, according to LIMA (International Licensing Industry Merchandisers' Association)
A ground-to-ceiling-sized G.I. Joe presentation flanked one wall of Hasbro's booth, which had pink-lit My Little Pony and neon orange-and-yellow dotted Nerf displays inside.
The first interactive Nerf "N-Strike" video game for the Nintendo Wii is set to launch this holiday season, through Hasbro's licensing program with Electronic Arts (ERTS.O).
At rival and top U.S. toymaker Mattel Inc MAT.N, Barbie T-shirts, bags, and golf clubs, and similar Hot Wheels products were on display prominently.
Mattel's senior vice president of marketing, media and entertainment worldwide, Richard Dickson, said the licensing show was "a melting pot of opportunities."
Through a licensing deal this year, Mattel will sell Hot Wheels T-shirts for women for the first time this fall.
A good number of deals are struck at the show every year. This time, about 80 percent of attendees are expected to kick off or finalize deals at the show, as per data from the Expo.
CEREAL BOXES AND SPARE DOLLARS
For manufacturers and retailers, picking a hit brand is a big deal.
Their hope is that shoppers will choose Barbie shoes or Hannah Montana sneakers, over generic items.
That edge could prove vital, given how picky consumers have become with their spare dollars, as they face sharply higher costs for essentials like food and fuel in a weak economy.
Weak brands are ones that "get punished in a recession," Disney Consumer Products chairman Andy Mooney said.
"My experience has been that if you have a strong brand, a strong product offering, those brands emerge from the cycle stronger," Mooney said at the event.
On Tuesday, companies pulled all stops to steal the show.
At Warner Bros, a gigantic "Eating Right Kids" cereal box with Looney Tunes characters caught peoples' eye. This summer, about 100 Eating Right Kids-branded food and drink products will be launched exclusively at Safeway Inc (SWY.N) stores.
Crowds buzzed around lavish booths set up by movie studios, which are in the market for licensing support for future films. People cooled off with hand fans, as temperatures flew past 90 degrees Fahrenheit in New York City.
To cap the event, LIMA is handing out "excellence awards."
Among the nominees -- Strawberry Shortcake for best character brand program, Coca-Cola for overall best licensed program and Wal-Mart Stores Inc (WMT.N), for best retailer of the year for Spider-Man 3 and High School Musical 2.
