Cartoon Characters, Kids and Licensing

The new face of Brand Licensing in

India!

Character Licensing?

A Licensing Agreement A Character

RoyaltyManufacturing

&Retailing

What’s In?Cute animated charactersCool t-shirtsDisney charactersConsumer awarenessLicensing and retailingPopularity of characters among the youth

What’s Out?Flowers, motifs on tees

Moms choosing clothes for kids

Simple, plain stationeries and other utilities.

Why it works?

KIDS!!

60%

40%

A REPORT SUBMITTED BY LIMAAGE OF CONSUMERS

Consumers above the age of 15Consumers be-low the age of 15

Of which it is reported that they spend 4-5 hours daily over television

Q. What is your favorite channel? 

34%

16%23%

15%

13%

The % share of Most Popular KIDS' Channel on TV

DISNEY CHANNELNICKELODEONPOGOCARTOON NETWORKOTHERS

Q. What are the favorite characters of the children between the age of 8-14?

DOREMON HANNAH MONTANA

SHINCHAN CHOTA BHEEM BEN 100

5

10

15

20

25

30

35

The TOP 5 Favourite shows

DOREMON

HANNAH MONTANA

SHINCHAN

CHOTA BHEEM

BEN 10

Q. Write any five things you have, has a picture of your favorite character?

BEN 1

0

DOREMON

SHIN

CHAN

HANNAH MONTA

NA

CHOTA B

HEEM

TOM &

JERRY

MICKEY

AND M

INNIE

MOUSE

OTHER

S0

5

10

15

20

25

30

35

The MOST COMMONLY USED CHARACTER on the Things Used by the CHILDREN

The MOST COMMONLY USED CHARACTER on the Things Used by the CHILDREN

Q. Write any 5 things which you want to have a picture of your favorite character?

BEN 10

BARBIE AND SUPERHEREOS

DOREMON

SHINCHAN

HANNAH MONTANA

CHOTA BHEEM

TOM & JERRY

0 5 10 15 20 25

THE CHARACTERS STILL IN DEMAND

THE CHARACTERS STILL IN DEMAND

Marke

t pote

ntia

l

Kids

Clothes

School Utilities

Shoes

Mugs

Activity Books

Room Decor

Crockery

Games & Toys

Q. Does your kid insist on buying products and merchandises, which has some cartoon, movie character or television characters?

80%

20%

YES

NO

Q. What are the things kids look for in a product?

0

5

10

15

20

25

EXPENSIVE PRODUCTS

PRODUCTS WHICH HAVE CARTOON CHARACTERS

PRODUCTS PROMOTED BY FILM STARS

FASHIOABLE/ TECH-NOLOGICALLY AD-VANCED PRODUCTS

OTHERS

Q. WHICH IS A BETTER PRODUCT FOR YOU?

88%

5%8%

GOOD QUALITY, REASONABLE PRICE

PRICE OVER QUALITY

ANYTHING YOUR KIDS LIKE

Q. WHAT PROBLEMS DO YOU FACE WHILE PURCHASING SUCH PRODUCTS?

15%

38%28%

18%

3%

LIMITED AVAILABILTY

LACK OF VARIETY

HIGH PRICES

LOW QUALITY

CANT SAY

Q. Name any product which is beneficial for kids, but they do not like it. By promoting it with their favorite character, will they start using it?

35%

25%

18%

10% 8%

5%

THE PRODUCT CATEGORIES AND %age OF MOTHERS who voted fro the same

HELATH / ENERGY DRINKS

MEDICINES

EDUCATIONAL BOARD GAMES/ PUZZLES

FOOD ITEMS

OTHERS

CANT SAY

The next potential target

-

The YOUNG ADULTS College

students

Simpsons

Superhereos

Q. ARE YOU A BARND PERSON?

72%

28%

THE %age of PEOPLE WHO SAID THEY WERE A BRAND PERSON

YES

NO

Q. What kinds of t-shirts, do you prefer?

PLAIN

, SIM

PLE TE

ES

PRIN

TED W

ITH M

OVIE C

HARAC

TERS

PRIN

TED W

ITH G

AME CHAR

ACTE

RS

PRIN

TED W

ITH C

ARTO

ON CHARA

CTER

S

ANYTHIN

G WHIC

H IS "I

N"0

5

10

15

20

25

PREFERENCES OF THE YOUTH TODAY

PLAIN, SIMPLE TEES

PRINTED WITH MOVIE CHARACTERS

PRINTED WITH GAME CHARACTERS

PRINTED WITH CARTOON CHAR-ACTERSANYTHING WHICH IS "IN"

Q. In your opinion, do you think that cartoon characters, movie characters and popular game characters are "in" among the youth today?

80%

20%YES

NO

Q. According to you, what is the reason behind the popularity of use of characters in clothes and accessories among the youth?

23%

30%23%

13%

13% ASSOCIATION/ RELATE TO

COOL, CHIC

ITS "IN"

THE LOOK , FEEL OF IT

NOSTALGIA

WHEN ASKED IF THEY MISSED ANY PRODUCT, THEY NAMED FEW CHARACTERS WHICH THEY FOUND LOST

80%

20%

YES

NO

Q. One product which should be available in the market with a character print?

ACCES

SORIE

S

LAPT

OP ACC

ESSO

RIES

MOBI

LE A

CCSSORI

ES

APPARE

LS

SHOES

OTHER

S0

2

4

6

8

10

12

ACCESSORIESLAPTOP ACCESSORIESMOBILE ACCSSORIESAPPARELSSHOESOTHERS

INFERENCESLack of variety

Many popular characters being ignored

The need of more such licensing

The need to understand the demands of the market they are entering

No end to the product categories.

Licensors’ GAIN

o Marketing support for the core business

o Extending a corporate brand into new categories, areas of a store, or into new stores overall

o Trying out potential new businesses or geographical markets with relatively small upfront risk

o Maintaining control over an original creation

Licensee’s GAIN

Gaining the consumer awareness and marketing benefit of a well-known character, logo, design, etc

Moving into new distribution channels.

Enhancing authenticity and credibility.

THE THREE OPPURTUNITIES:

HOW TO ENTER THE

MARKET?

SITUATION – 1:

MANUFACTURING AND RETAILING, BOTH DONE BY THE SAME COMPANY IN INDIA

establishment cost increases.middlemen and agents can be avoided

the supply chain is reduced. the lead time reduction.spend more on space, labour and capital

strong customer relationshiplack of interest among retailers can be avoided

SITUATION – 2:

MANUFACTURED BY ONE, RETAILED BY ONE, BOTH OF INDIAN ORIGIN:

warehousing costs decreases.cost of establishment of a showroom

decreases.free of advertising or promotional

activitiescosts are reduced and profits are

stable. lack of brand imagelow risk of loss due to lack of

brand loyalty

SITUATION – 3:

MANUFACTURED IN ANOTHER COUNTRY, IMPORTED BY AN INDIAN COMPANY TO INDIA:

Though, here there is no direct character licensing agreement being entered into, but then, this shows that there is scope of such products in the market but there aren’t many manufacturers of these products in India.

And the reasons behind themSome Success Stories

DISNEY – The trendsetter!

Disney and Nerolac paints.

Swarovski and Popley.

Mickey Rock’ collection available at all Reebok stores

o Produces different flavors of cheeseo Brand name – Go cheezoso Had been in an licensing agreement with

Warner Bros.o Characters – Tom & Jerry o Said to have increased the sales for the

brand

Parag Milk Food Ltd

Other major players:

Big Bazaar and Nick India - Back To School (BTS)

The launch of new Zoop Collection, by Titan.

EXPERIENCE @

SOUTH CITY MALL

Problems faced Low awareness

Piracy and counterfeiting

Implementation of law

Lack of knowledge

Conclusion

oScope of product extension

oMore investment from the

licensors

oSpreading awareness –

conferences

oFollowing up of the laws

THANK YOU!