Classic licenses a staple for Back-to-School 1995 - Back-to-School stationary

Discount Store News, June 5, 1995 by Laurie Freeman

NATIONWIDE DSN REPORT -- Licensed characters and brands will dominate the Back-to-School stationery scene this fall with notebooks, portfolios and writing instruments showcasing everything from Pocahontas and Batman to McDonald's, Looney Tunes and Nike.

The "hot" licensed characters, retailers report, are Pocahontas, Batman, X-Men, Spider-Man, The Lion King, Mickey Mouse and designs by Lisa Frank. The mix of new and classic is important, with popular movies and TV shows bringing excitement into the category while the classic properties continue to grow in popularity--especially among older consumers.

"In our business, we trade off classic licenses against classic subject matter and choose to do what's best for the particular product we are planning," said Derrill Dalby, director of licensing, American Greetings, Cleveland. "Our research indicates that classic subject matter, such as kittens and puppies and nature consistently outperform most licenses. However, classic properties like Superman have their cycles of popularity. They keep coming back."

American Greetings this fall will begin introducing greeting cards, gift wrap, party goods, ornaments and other social expression products featuring animated characters from several Nickelodeon cable TV programs including "The Ren & Stimpy Show," "Doug," "Rugrats," "Rocko's Modern Life," and "AAAHH!!! Real Monsters." By Back-to-School 1996, American Greetings plans to introduce other Nick-licensed stationery items.

"Most experts in the properties arena agree that it is nearly impossible to figure out what's going to catch a child's fancy next," said Susan Meek, licensing manager for Ambassador and parent Hallmark Cards, Kansas City, Mo. "The key is to project market trends, not simply react to them."

Ambassador and Hallmark this year will offer a full product line--including partyware, gift wrap, greeting cards and stickers--inspired by Walt Disney's Pocahontas. The company also holds licenses to The Lion King, Mighty Morphin Power Rangers, Thomas the Tank Engine and The Magic School Bus, among others.

Bugs Bunny, Tweety and other Looney Tunes characters will leap out from notebooks, portfolios and binders from Kansas City, Mo.-based Stuart Hall this fall. The company is offering three looks of Looney Tunes, including Looney Tunes Blues (a line of denimlike products with Looney Tunes embroidered figures), Looney Tunes Sports and Looney Tunes 3-D, images the company promises will "make parents eyes' squint," said John MacWherter, Stuart Hall vp, merchandising.

"This whole category [of licensed stationery] is exploding," added MacWherter. "The instant recognition by the kids is the big thing." Stuart Hall makes Lisa Frank and Sesame Street licensed supplies, as well as the three new Looney Tunes lines.

In the $25 billion-plus home office and school supply category, licensing is responsible for about 15% to 25% of sales, according to The Licensing Letter. Mass retailers increasingly are filling their stationery shelves with more long-term "classic" properties, noted Karen Raugust, executive editor of the New York-based newsletter, having been burned with slow sales on many short-term entertainment properties a few years ago. Retailers, she said, are less willing to take a chance on an unproven licensed item.

Mead, Dayton, Ohio, agreeing that retailers are less willing to stock products without a track record, is adding more items to the Nike line, which it introduced last fall. Mead is introducing a school ensemble binder and a zipper pouch, bringing the number of different school products in the Nike series to eight. The company owns more than 10 licenses including car brands, Garfield, sports leagues and Nike.

The company points out that Nike's brand is extremely well established, as demonstrated by the fact that more than 75% of teenage boys have said they want Nike footwear.

At the same time, Nike's brand name is backed by a highly recognizable, year-round advertising campaign.

"We're focusing on areas that have a significant opportunity for us and for retailers," said Mark Davis, vp, marketing, Mead School and Office Products Division.

The biggest area of opportunity, retailers and manufacturers agree, is in price. A generic notebook, for example, may sell for 25 cents or three for $1, while a similar licensed product may retail for closer to 79 cents. There is also a conscious effort to get consumers to trade up to the higher-priced licensed items, such as the fancy, nylon-covered portfolio binders, which often retail for about $20. "It's all part of an added-value emphasis," said Mead's Davis. "The consumer gets more product, and the retailer makes more profit."

A Hills buyer agreed, "We are expecting a strong Back-to-School season with emphasis switching from commodities to value-added product."

While most retailers, including Hills, clear extra space for Back-to-School supply sales, Target is mentioned by many manufacturers as having one of the best merchandising programs for this category. What Target does that's different from other retailers, industry executives said, is that it completely tears down its everyday stationery department. The chain instead routes consumers to its seasonal merchandise area, which it stocks floor to ceiling with everything from notebook filler paper to crayons to nylon portfolios, backpacks, lunch kits and book bags.