Picking a powerhouse - choosing the best licensed merchandise for apparel stores

Discount Store News, June 19, 1995 by Shari Sanders

The licensed images of cartoons, movies, television, comics, video games and sports have long helped retailers sell apparel.

Last year, licensed apparel generated $11.4 billion in sales in the United States and Canada, making clothing the largest segment of a $70 billion licensing industry.

In fact, licensed apparel has played a major role in keeping the garment business, suffering from several seasons of soft sales, on its feet.

But with a plethora of available licensing choices and limited floor space, mass market retailers are trying to maximize the odds of picking the right properties by carefully tracking their options.

The Classics

Retailers count on the classics, such as Disney's famous characters and Warner Bros.' Looney Tunes, to drive sales because of their proven track records and high levels of consumer recognition.

The task of keeping a classic property tantalizing is not a simple one, but Warner Bros. Consumer Products (WBCP) and Disney continue to extend their franchises by cross-licensing, establishing corporate partnerships and creating character extensions.

Apparel adorned with classic characters, such as Mickey Mouse and Bugs Bunny, has always been licensing bedrock, but these famous faces are also pushing sales in other areas.

Manny Francione, merchandise manager of core fashion at Canton, Mass.-based Hills, reports "excellent movement" in accessories with the marks of Warner Bros. and Disney characters. "I'm very pleased with our Armitron Looney Tunes watch line and the Cinema Classics line featuring Disney film images."

Francione also reports great success with Looney Tunes gold-filled and costume jewelry from Michael Anthony and minibackpacks from various vendors.

Freeze, a manufacturer based in New York that holds a number of major character licenses, reports that Looney Tunes is its top seller. "We came in last June, pretty late in the game, and we were able to introduce some really neat graphics," says Kim Cauley, vice president of licensing.

Although T-shirts remain integral to the Looney Tunes apparel program, Karen Weiss, WBCP vice president of apparel and accessories licensing, says she is looking to avoid over-penetration of that category by expanding more into fashion items like the baby-T that is so important in juniors and the surfwear that's making waves in young men's.

WBCP is also touting "Batman Forever," which flew into theaters June 16. The film, purportedly lighter and more humorous than its predecessors, is expected to help make merchandising the property to kids and adults easier.

"We see Batman as an ongoing brand," says Mary Yedlin, WBCP vice president of marketing, DC Comics and theatrical properties. "Every three years, we've introduced a new Batman film, and without question 'Batman Forever' will be the strongest licensing program so far."

WBCP has lined up major corporate unions with WalMart, Kmart, Target, Sears, JCPenney, Kids "R" Us and Toys "R" Us, featuring customized displays and the cross-merchandising of apparel with various hard lines like toys and stationery.

Don De Laura, vice president and general merchandise manager of boyswear, menswear and footwear at Omaha, Neb.-based Pamida, says that although Saban Entertainment's Mighty Morphin Power Rangers and Sega's Sonic the Hedgehog remain important in the boyswear department, he is very optimistic about Batman Forever for Back-to-School. "Everyone expects this movie to be bigger and better than ever. And it doesn't hurt that it stars Jim Carrey. The interest in Batman always seems to be there, but the new movie will definitely make it newer."

Meanwhile, Disney is re-releasing "Wnow White" on video in October, hoping to gain renewed interest in the sweet, feminine tale. "We had a very small licensed product program, but now we're beefing up our efforts," says Douglas Mangino, vice president, divisional merchandise manager, soft lines for Disney Films Entertainment Licensing, noting that new Snow White licensees include S. Goldberg, Allison Mfg., Pyramid, Kid Duds and Messer.

"Casper" has been revived on the big screen with a much-anticipated release courtesy of MCA/Universal. The classic figure is targeted to both women and girls in a number of licensed categories. MCA has also lined up a corporate partnership with PepsiCo.

Licensing veteran Betty Boop has evolved from a cult figure into a mass favorite.

Cauley says Freeze is enjoying the bulk of its Betty Boop success in the juniors department at discounters such as Kmart and Hills, as well as in specialty chains like Deb Shops, Rainbow Shops and G+G.

Another Betty Boop licensee with a solid share of the discount business at the missy and juniors levels is New York-based Richard Leeds Intl., a sleepwear manufacturer that is using gift-with-purchase panties to sell its dorm shirts.

King Features is helping retailers maximize Betty Boop's appeal on the sales floor with life-size, cardboard stand-ups.

The Outer Limits

A new batch of science fiction-and fantasy-based characters, which have always been an important part of licensing, are in the hunt for space in the apparel mix.