Here today, gone tommorrow: the changing character of licensed products

Discount Store News, April 3, 1995 by Michele C. Hollow

The Power Rangers have seized control of juvenile home fashion sales. Retailers listened to children's wish-lists and took action by stocking their shelves with this top-selling license.

While retailers revel in profits from popular juvenile licenses, they know that fame eventually fades. That is why discounters and manufacturers are making room for the unknowns.

"We believe that noncharacter licenses are a real opportunity for us," said Jim Munro. division vice president of marketing for Monticello bedding products at Fieldcrest Cannon.

A case in point is a pattern called City Shapes from Monticello. It is a topselling juvenile bedding pattern at Domestications that will be available to all retailers starting September. According to Munro, this pattern of a city skyline with taxicabs, traffic lights and trucks "is doing extremely well. Many parents want to buy something that is colorful, attractive, nonviolent in nature and has longevity."

VIOLENCE IS

SHORT LIVED

Power Rangers are violent characters, but retailers are betting that the Power Rangers will travel the same path as the Teenage Mutant Ninja Turtles (remember them?). The quick rise to stardom often falls just as fast.

The trick is to order just enough merchandise while the license is hot and to know when to get out. Juvenile licenses are a fickle business. A hot commodity today can be easily replaced tomorrow.

Retailers will always welcome new cartoon characters onto their store shelves. A popular license drives the juvenile bed and bath business. However, some retailers are building their juvenile bed and bath departments with generic prints.

"Twenty percent of my juvenile bed and bath business is devoted to nonlicensed patterns," said Kathy Smith, bedding and bath buyer at Stuarts. "Some people understand that licenses are short lived. And many parents don't want licensed products in their children's room."

Along with the Power Rangers, consumers will find The Bibb Company's unicorn and bandanna prints as well as Perfect Fit's crayon sheet set and comforter at Stuarts.

This is the first year Stuarts has emphasized nonlicensed juvenile bedding products in comforter and sheet sets. "Business has been very good," Smith said. "Parents are looking for value. They want attractive designs that won't quickly go out of style."

Price is another factor. Since no royalties are paid, generic designs are less expensive.

THE CLASSICS

What retailers really want are the classics - designs that have staying power. The Little Mermaid is an excellent example. This Disney movie character caused a wave of excitement on the retail selling floor. When the Disney movie appeared on the big screen about three years ago, sales skyrocketed. They rose again thanks to the introduction of the video and television cartoon series.

While other characters have come and gone, The Little Mermaid is still selling. Sales aren't as strong as its initial phase. Competition from Disney's "Aladdin" and "The Lion King" and even "Barney" have impaired sales. However, retailers refer to "The Little Mermaid" as a classic. Like Mickey and Minnie Mouse, Jasmine from "Aladdin" and the stars from "The Lion King," these characters have staying power.

"The Lion King will turn out to be a good steady pattern," said Rick Platt, divisional merchandise manager at Ames.

Ames stocks a wide assortment of The Lion King merchandise in all of its stores. Sleeping bags are found in the sporting goods department. T-shirts, book bags, lunch boxes and party goods, as well as bed and bath products with The Lion King designs, can be found throughout the store.

To boost interest, Wamsutta - the manufacturer of Disney bed products - will introduce another The Lion King pattern to this April's market. The pattern with two cubs on it is designed to appeal to little girls.

DISNEY'S NEWEST

CHARACTER

"The newest Disney pattern that everyone is excited about is Pocahontas," said David Hollowell, national sales manager at Beacon Manufacturing Company. "The reaction has been great. Sales will soar once the movie comes out and will rise again when the video hits the stores."

Pocahontas will appear on blankets from Beacon, bedding from Wamsutta and shower curtains, embellished towels and bath accessories from Saturday Knight. The movie opens in April-perfect timing for the April Home Fashions Market.

"Retailers trust Disney from experience," said Susan Bennie, director of design for the Disney division at Wamsutta. "Just look at Disney's track record."

"Pocahontas will appeal to the little girls market," said Bennie. "Parents spend more money decorating a girl's room."

Bennie also believes that Pocahontas will stir sales among ethnic consumers. This is the first minority character given a starring role.

Retailers at all of the major discount mass merchants and specialty stores will carry a wide assortment of Pocahontas merchandise.

Another popular license to look for in the April market is Gargoyles. This new Disney property is an animated children's series. The Wamsutta bed ensemble, which shows these cartoon characters flying over a city, glows in the dark.