Licensing University

Amazon’s Big and Others’ Little Boxes: An Idiosyncratic Take on Licensing Expo

NEW YORK, NY; May 26, 2018—In the end, it’s all about boxes, isn’t it?

Amazon was, is, and will remain The Topic for licensors, manufacturers, retailers, consultants, agents, and anyone else involved in the business of licensing. And what is Amazon about if not boxes?

The headline out of Licensing Expo in Las Vegas this month had to do with Merch Collab, the online retail behemoth’s new program offering design and manufacturing/sourcing expertise for fast-to-market licensed merchandise to be sold on its eponymous website.

But as much as has been written about Amazon’s impact on retailing, that impact can’t be overestimated. Whether Epic Rights’s Dell Furano holding forth on the shift of music and celebrity t-shirt and jersey sales from venues to physical retail to online or Cartoon Network’s Pete Yoder enthusing about the technology behind Amazon Go, the company’s prototype supermarket (and likely all-merchandise) store of the future, to cite but two conversations during Expo, any conversation about retail inevitably turned to Amazon.

A part of that discussion that tends to be underrepresented, however, concerns Amazon’s various experiments with physical retail. Just as many “digital-only” magazines discovered the need to develop physical magazines because that’s what advertisers demanded, so, too, Amazon clearly recognizes that physical retail isn’t going to disappear.

My friend Marty Porter, executive director of the Media & Entertainment Services Alliance (MESA), and author of the Record Plant Diaries, calls this phenomenon “physigital,” and predicts that physical media will cater to the luxury segment of the market while digital will be for the masses. Amazon understands and lives that concept instinctively.

That’s one type of box. In my idiosyncratic take on what was fun and interesting at Licensing Expo, though, there’s another:

Cross Bratz with Shopkins, mix in the unboxing craze, add steroids, and you have Boxy Girls, which debuted exclusively at Walmart via Jay@Play the week of this year’s Licensing Expo. The child gets the doll in a box that has additional little boxes with clothes, accessories, makeup and other items. There are add-on boxes with multiple surprise boxes, boxes with two limited edition dolls plus little boxes, and so on. This is completely of-the-moment. Jay@Play is represented by Cynthia Hall Domine’s licensing agency, Synchronicity.

Cartoon Network (CN) has worked with subscription box licensees Loot Crate and Box Blvd., notes CN’s Pete Yoder, who sees boxes as viable long term rather than a fad, particularly as the ratio of consumables is increased in the mix.

In a larger context, boxes (and unboxing) are part of the trend toward licensing experiences rather than products. CN has been upping the number of live and touring shows it does, says Yoder, especially in Latin America and EMEA. CN launches its first cruise ship in 2019 — cruises have become a staple for Disney — and the network has its CN-themed Six Flags amusement park in China. In the U.S., Adult Swim’s Rickmobile started touring the country last summer; now there’s an Adult Swim music and comedy festival scheduled for Los Angeles this October and featuring Run the Jewels, among other acts.

BuzzFeed had one of the more curious booths — certainly for those of us who aren’t regular BuzzFeed addicts (that includes me). Visitors toured its big red box of a booth, with only the name out front by entering a series of doors that led to rooms that had displays and might also be housing BuzzFeed execs for meetings in action.

There wasn’t much to fill you in on exactly what the rooms represented (I went through three times at different points in the show, uniformly hearing people mystified and curious) until you read the thick newspaper-like handout that explained the rooms were themed to popular BuzzFeed channels — in particular the foodie Tasty brand room, which had a display of kitchen utensils and a chef preparing pancakes and other goodies. Turns out the line of Tasty-branded utensils are also a Walmart exclusive.

Shout out to BuzzFeed for the best swag of the show: When you got to the end of your self-guided tour there were bags on pegs and shelves from which to select whatever items you wanted — multi-colored measuring cups and whisks, cosmetics cases (or maybe they were pencil cases?), glass water bottles, miniature yo-yos…Eric Karp is heading up the licensing effort.

And moving beyond boxes. Way beyond boxes:

The dinosaur roaming the show entrance near the Universal booth and scaring the bejesus out of unsuspecting passersby was presumably promoting the upcoming Jurassic World: Fallen Kingdom movie opening June 22. I say presumably because no one was indicating what he was about, despite a handler upfront in dinosaur-wrastling get-up and a handler in the back keeping people away from the giant tail. The guy inside this costume wielded it phenomenally well.

Lenovo’s Jedi Challenges, available since late last year but offering demos at the show to attract other properties is the first augmented reality game I’ve seen that defined the genre for me: Jedi Challenge Expo 2018Put on the goggles, extend your lightsaber and you’re jousting lightsaber to lightsaber with a Jedi. Or in local mode, with another player. Asked whether the Star Wars relationship with Disney bodes well for Marvel and other Disney franchises down the road, a spokesperson suggested that “it’s easy to imagine” such a scenario but for now they are “concentrating on Star Wars.” That said, more software is needed to justify the expense of the $199 headset, but the play value is pretty incredible.

Walking malls in recent months conducting licensing tours, Hotel Transylvania photo booth Expo 2018I’ve been struck by the variations on the classic photo booth — booths that upload to Instagram, selfie booths (contradiction in terms, no?), booths that feature licensed properties. At the show, Sony Pictures had an interesting iteration with a screen featuring characters from its upcoming Hotel Transylvania 3, opening July 18. Facing it, when you moved, the character mirrored your moves. Your image appeared in the corner near the movie character. More traditional: When Grumpy Cat wasn’t available in person for a photo, you could step in an old-fashioned photo booth and pose next to a preprogrammed Grumpy Cat.

On the promotional side — and what is Licensing Expo if not a promotional event? — kudos to WWE and, especially Sesame Street (see photo up top for your humbled blogger and friends), for the photo ops in the show’s registration area. Great way to talk into a show.

 

The booth garnering the most speculation was perhaps that of Jonathan and Drew Scott, known for their HGTV Property Brothers home-fixer-upper TV show. The booth referenced Property Brothers but the license being offered was Scott Brothers.

Scott Brothers Expo 2018

I assume Property Brothers is owned by the network and that the Scotts want to control their own licensing. (That’s akin, so to speak, to the situation many chefs featured on, say, Food Network, find themselves in: Network owns the show and controls licensing rights, but savvy chefs have retained the rights to their individual names.) The Scotts’ booth — a large, multi-tiered, beautifully outfitted affair — was packed when the brothers were on hand, and not very populated the rest of the time, save for a few staffers.

Licensing Expo is not just about entertainment, though it can feel that way. There are heritage brands, literary properties and artists along with fashion labels, sports properties, and others. Capezio Expo 2018Among the heritage brands new to the show this year were two fourth generation members of the family that founded Capezio, the classic dance apparel and footwear brand. While the brand was once licensed to a wider audience, it has in recent years been more limited to the dance community. Reimagining the brand through licensing is the plan.

The Licensing University program sponsored by LIMA orients hundreds of newcomers to understanding the benefits of licensing, the structure of the business, the trendlines and more.

basics-panel-expo-2018.jpg

Gary Caplan, Ira Mayer, Katy Briggs

I had the honor once again of leading the opening “Basics of Licensing” panel with “godfather of licensing” Gary Caplan, of Gary Caplan Inc., and Hallmark’s Katy Briggs. Thanks to you both, and to LIMA’s Marty Brochstein for inviting all three of us to participate.

Knights hockey team popup 2018Finally, at the airport leaving Las Vegas, there was a great pop-up booth dedicated to local hockey team the Vegas Golden Knights, who made it to the Stanley Cup finals. Sporting goods stores in Fashion Show mall were also festooned with Knights merch, but the pop-up was a great unintentional last impression of the show!

Looking for a licensing assessment to assist with strategy and new business development? I’ll help you identify the white space for your licensing program through competitive analysis. Visit www.iramayer.com for details.

 

Walking Surtex, Stationery, and Home Shows 2016: Design, Product & Packaging Trends

NEW YORK, NY; May 16, 2016—The joy of Surtex, which focuses on art, about half of which is available for licensing, the other half for sale, is its co-location with ICFF, a show for contemporary and avant garde furniture and design, and the National Stationery Show. The three shows crossover with the licensing world on both the design and manufacturing levels, and feature interesting packaging ideas as well. It takes a great deal of walking, but there is a wealth of creativity to be seen and inspiration to be had.

There is also fluidity across the shows in that some exhibitors would be wholly comfortable in different areas — particularly some of the artists found in ICFF and the Stationery Show who might be best served by the Surtex audience of manufacturers and retailers. That’s what makes a 5+ hour walk here fascinating (and I didn’t make it to the downstairs furniture show which in the past has been heavy on upscale living and bedroom offerings, lighting, and the like).

Most interesting finds this year were the first two exhibitors at the far end of the hall on the third level in an area dedicated to emerging designers.

Mike Joyce is an established graphic designer whose Stereotype graphic design agency features a portfolio strong on album art (Katy Perry, Iggy Pop, others) and advertising (Volvo, Visa, etc.).

Swissted Surtex 2016

Mike Joyce and his Swissted posters

His “personal project,” Swissted, started in 2012, combines his “love of Swiss graphic design and punk rock by redesigning old” concert posters into International Typographic Style posters. He takes information such as the band lineup, date, venue, and ticket prices from the originals (which he collects) and creates entirely new designs. He sells museum quality prints on 140 lb. cover stock in multiple sizes from $50 (17”x23.75”) to $150 (36”x50.5”) but is looking to “carry it to the next level” and is open to licensing the work.

Next to Joyce is Airplantman Josh Rosen, who creates vertical garden frames and tabletop “vases” — I hesitate to use the word (he calls them vessels) to house airplants.

The plants are dipped in water for a few hours about once a week. Easy to see the frames or vessels licensed by botanical gardens or other nature-oriented or environmental properties, and certainly sold in those venues. The frames, available 11”x11”, 11”x18”, and 24”x18”, are powder coated aluminum with nylon coated stainless steel cable that holds the plants in place. They retail for up to $135.

Other creative executions:

  • Cardboard six-pack beer carrier with attached greeting card from Beer Greetings. It’s the beer equivalent of the ever-popular wine bag with card on the carrying handle. In this case the card is the side of the package. Retails for $4.95, which is the same as a mid-range greeting card these days. The company has been selling the item direct for about a year and a half and started wholesaling the line about six months ago.
  • Monster Factory has been making licensed Volkswagen children’s play tents for some years (I remember seeing them at Bed Bath & Beyond); now they’ve added a VW van pet carrier, a cooler, picnic blankets, and a pet bowl.

General trends:

  • New coloring books are still pouring forth, despite the fact that the market is reportedly cooling.

    Galison, exhibiting in the Chronicle Books booth, has a recently-released Andy Warhol coloring book with the Warhol Velvet Underground album cover banana on the cover (Galison has a range of Warhol items, including soup cans and a coming Time Capsule kit). Paris-based Omy, distributed in the U.S. by Ameico, has pocket maps, postcard books, fanny packs, pencil cases and other items. Hester & Cook has placemats and placecards. Sourcebooks offers calendars, dream books, and such. The list goes on.

  • Flash drive manufacturer Mimoco, which specializes in licensed drives, says sales of classic Star Wars models have cooled off, though younger fans are still interested in the newer characters.
    Mimoco Star Wars Surtex 2016

    Mimoco Star Wars flash drives

    If Star Wars, its best seller, indexes at 100, the second best-selling line, Marvel, would index at about 75, a sales rep says. The company has confidence that Star Wars has longevity while it expects the Marvel line to drop off over a five to six year period.

About three and a half hours into walking these shows, I was starting to think there were substantially fewer letterpress companies exhibiting than the last few years, and that Brooklyn had lost its cache. Not at all. Minutes later I made it to a dedicated letterpress area in the stationery show—and within about 10 minutes and two or three aisles had come across I Am Here Brooklyn (jewelry), Boundless Brooklyn (DIY paper sculpture kits of water towers, bridges, etc.), Gold Teeth Brooklyn (greeting cards), Umlaut Brooklyn (cards and wine bags), and the representative from French chocolatier Marie Belle, which has a New York store in Soho, immediately informed me (with no prompting) that they now have a store in Brooklyn, too. Not to mention that many of those letterpress firms are located in Brooklyn even if the company names doesn’t shout it out.

On the packaging front, two exhibitors made great use of cork-stoppered glass vials: Japan’s YHM Jewelry, which also has a Brooklyn store but which mostly sells online, uses glass vials about 6” high that have a little greenery at the bottom and eyehooks in the cork from which are suspended necklaces or earrings. It’s a beautiful presentation (and the much of the jewelry is quite nice and very original). Similarly, the aforementioned I Am Here Brooklyn uses much smaller vials for its hammered metal pendants with an initial on them. Again, makes for a nice display concept.

Unto itself Surtex, which is relatively small, isn’t formally a curated show, but it’s always seemed to attract a high quality of exhibitors. Plenty of seasonal art, children’s, florals; many agents, some of which have a certain consistency of taste across the artists they represent, some of which are totally varied in an effort to have something for every retail need; many new artists each year looking to test the waters. Surtex is as good a barometer of what’s available for licensing for textiles and other goods as you’re going to find. The bonus is that the co-located shows might not be as focused on textile-oriented designs, but are full of licensable ideas — from designs to products to packaging.

The shows opened at the Javits Center here yesterday, and run until 6 p.m. today and until 4 p.m. Tuesday.

Next up: I’ll be at Licensing Expo in Las Vegas June 20 (day before the show opens), 21 and 22. I am available to conduct personal tours of the show based on your needs. Two slots remain. For information about the personal tour, please contact me at ira@iramayer.com. I’m also leading a workshop, How to Work With Licensing Agents and Consultants, as part of LIMA’s Licensing University on the 21st. My panelists are an all-star team of Gary Caplan, Gary Caplan Inc.; Carole Postal, CopCorp; and Ilana Wilensky, Jewel Branding. To register for Licensing University, click here.