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+44 1892 782220

2012

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Covers Russia,
CIS and Central/Eastern
Europe. Published in
Russian and English

Total Licensing New Europe


Goran Krnjak
goran@totallicensing.com
+385 99 202 3393

www.totallicensing.com

98
36

TOTAL LICENSING NEW EUROPE

FEATURES
Editorial Comment........................................5
News................................................................6
Profile: Masha and the Bear........................18
An in-depth look at a Russian favourite
Education: .....................................................26
A Guide to Property Types and
Product Categories
The Latest from Coca-Cola........................36

24

Education:......................................................38
What to Buy and How to Sell it
Choosing the right Licensing Brand...........46
Interview with Paul Tash, Plus Licens

34

52
66

Turkey Special:
Market Overview......................................................... 50
Ottomania - the Empire Strikes Back!.................. 54
Russia Special:
Licensing@Russia 2013........................................... 58
State of the Licensing Market................................. 60
Research: licensed properties on Carousel........... 64
Why Luntik is a brand whilst................................... 66
the Russian Knights are not
Poland - A market overview........................70
Whos Who in this issue...............................74
Upcoming Fairs and Events........................74

Autumn 2012
2012
Publisher
Francesca Ash
francesca@totallicensing.com

Welcome Willkommen Benvenuti Bienvenidos Mir se vini Pari yegak


Shchyra zaprashjem Dobro doli Vitame vs Tere tulemast
Kalos orisate Isten hozta Khosh keldiniz Aalzhy polyngar
Esiet sveicinati Sveiki Dobre dojdovte Witajcie Bun venit Vitajte Dobrodoli
Ho Geldiniz Laskavo prosimo Vtme t
mobrdzandit dvzlet dobredojde bine ai venit
Welcome to the Autumn edition of Total Licensing New
Europe the new magazine that highlights developments
in licensing specifically within the huge New Europe region a marketplace that includes Russia, CIS, Eastern
Europe, the Balkan countries of South East Europe, Turkey and all points right down to Israel. It is a region that
has 400 million people with a growing interest in brands
and licensed products.
Of course the largest and probably most significant
country within New Europe is Russia with 140 million
inhabitants. Whilst it is the smallest of the BRIC (Brazil,
Russia, China and India) territories, it has the highest
GDP per capita. Russia is growing fast and whilst much
of the rest of Europe is in recession, by December last
year Russia was the best performing growth economy in
Europe with a growing middle class that is expected to
encompass 82% of the population by 2015. Today, Russia
is the sixth largest world economy in terms of purchasing power. Interestingly, from a licensing perspective, it is
one of the top ten markets in terms of the movies and
entertainment.
Russian retail is growing fast. Whilst initial growth was
in key centres such as Moscow and St Petersburg, today
the Russian market is expanding into other areas of this
vast country. In 2012 it is likely that retail trade will grow
5.5% - significantly higher than the rest of Europe. And,
in the same way as its Western counterparts, Russia is
seeing strong growth in online sales a sector that most
believe will continue to grow at a significant pace.
But, whilst Total Licensing New Europe is published in
Russian and English, for the benefit of our fast-growing
list of Russian readers, the country is by no means the
only market covered within these pages. This issue also
has in-depth features on Turkey and Poland part of
New Europe but very different in character, although
both are growing in terms of consumer sophistication.
Our next issue, to be published in January, will take an
indepth look at the Balkan territories of South East Europe. We will also focus on companies based in New

Europe that will be at the Nuremberg Toy Fair traditionally a key market for the region.
One thing that we believe comes across strong in this
edition is the development of properties that have bee
created in the New Europe region and how many are
now poised to expand their reach into the rest of the
world.
Masha and the Bear, featured within these pages, is a
great example of a property that has taken its local Russian market by storm and is now expanding into Europe,
Asia and beyond.
It is interesting, if you look at the article featuring research from childrens channel Carousel how popular
local properties are. Out of the top ten best performing licensed television series on Carousel, four are from
overseas whilst six are home grown, including two from
Soyuzmultfilm which has been in operation since early
Soviet days. Whilst Russian children clearly enjoy nonRussian series such as The Smurfs or My Little Pony, they
also have a loyalty to home-grown or adapted properties. A great example of this is Winnie the Pooh. Before
Disney came out with their animated series and films,
Russia had its own version from Soyuzmultfilm and, in a
recent survey amongst Russian children, more preferred
the Russian version than the Disney creation.
Throughout 2013, Total Licensing New Europe will continue to bring readers information, insights and research
into the vast New Europe market.The magazine reaches
significant numbers in Russia and beyond and, in addition, is also distributed to Total Licensings 80,000 readers in 103 countries. You will also find Total Licensing
New Europe at a number of key trade fairs, including the
upcoming Brand Licensing Europe in London.
We hope you enjoy this issue and look forward to talking with you about future plans for the magazine. The
magazine is designed for the industry both within and
outside the New Europe region and we would love to
hear your thoughts, plans or experiences in working
within this rapidly expanding area.

Francesca Ash
Goran Krnjak
Publisher
Editor
francesca@totallicensing.com goran@totallicensing.com

Editor
Goran Krnjak
goran@totallicensing.com
Sales Director
Jerry Wooldridge
jerry@totallicensing
Editorial
Becky Ash
becky@totallicensing.com
Advertising Sales
James Ash
james@totallicensing.com
Subscriptions
subscriptions@totallicensing.com
Contributing Writers
Hakan Durdag, Roman Fedotov,
Ira Mayer, Danny Simon,
Janusz Tarasiuk,Vestnik
Special Advisor
Zeljko (William) Krnjak
william@limaneweurope.eu
Total Licensing
New Europe Office
Goran Krnjak,
Business Development
Manager
Paljetkova 16, HR-10000
Zagreb, Croatia
tel: +385 1 3865 564
mobile: +385 99 202 33 93
goran@totallicensing.com
Head Office
Total Licensing Ltd
4 Wadhurst Business Park
Faircrouch Lane
Wadhurst, East Sussex
TN5 6PT, UK
Tel: +44 1892 782220
Fax: +44 1892 782226
www.totallicensing.com
2012 Total Licensing Ltd
All illlustrations are reproduced by
permission of their owners.

Jerry Wooldridge
Sales Director
jerry@totallicensing.com

NEWS

TOTAL LICENSING NEW EUROPE

PEPSI LICENSED IN RUSSIA AND CIS


Hard on the heels of its successful launch, Brand Extensions Russia JJP, the joint
venture licensing company for the Russian market formed by JELC and PJB
Brands, has been appointed to license the PepsiCo brands Pepsi and 7UP in
Russia and the CIS.
Pepsi is one of the best-known and best-loved soft drinks brands in the world, famous for over 100 years. 7UP has enjoyed only slightly less longevity; the popular
lemon-lime soft drink first appeared in 1929. Both brands are
the inspiration for a major licensing programme in a number
of countries that takes Pepsi and 7UP to apparel, accessories,
glassware, calendars, gifts and collectibles, to name just a few,
as well, of course, as promotions across music, sport, food and
leisure. Now the licensing programme is coming to one of the
biggest developing licensing markets on the planet.
Brand Extensions Russia was formed in December 2011 by
JELC, a respected agency with many years experience in developing and managing global licensing programmes, and PJB
Brands, a major name in the Greek licensing market.The partners jointly bring over sixty years of licensing experience to one of the worlds
biggest and most exciting markets.
Claudia Lagunas, Director of New Media and Digital at PepsiCo US said, Pepsi
and 7UP already have a strong presence in the soft drinks market of Russia and
the CIS. As both markets become more open to branding and licensing now is
clearly the right time to take these very popular names into a wide range of
licensed goods.The directors of Brand Extensions Russia are widely respected in
their field, and the ideal partners for this exciting venture.We are greatly looking
forward to working with them.
Janet Woodward, Director, JELC, said, Pepsi and 7UP are among the strongest
brands not only in the soft drinks field but of all brands in the world. Expanding
the presence of both in Russia and the CIS is a great opportunity and one we
are looking forward to immensely.
This is an enormous vote of confidence both in the vast potential of the Russian
market and in our own ability to deliver results in Russia and the CIS for these
powerful brands.

MAAT BRANDS
SIGNS TO
REPRESENT
ARTIDA
Maat Brands has signed exclusive
representation for Artida.
Maat Brands will represent the characters as Master Agent throughout
the global market.
There are already several series of
ocolourful Artida T-shirts at retail,
and the Artida brand styleguide
contains apparel and accessories together with back to school products,
coloring books, traveling accessories, etc. There is potential for toys,
games and apps for kids.
Artida is targeting school-age kids
from 6-10 years old. Artida has a
website in Slovenian and English
language and has a presence in the
social media world.

CHUPA CHUPS PARTNERS WITH MEGALICENSE


Chupa Chups, the famous lollipop brand, keeps expanding its colourful licensing
lifestyle all over the world. Its next move is into Russia, where the brand is the biggest
confectionery brand in the market, scoring an awareness of near 100%.
To tackle the Russian market, Chupa Chups has selected a leading licensing
agency in the market, Megalicense, who have been appointed exclusive licensing
agents for the brand in Russia. Megalicense is already the licensing partner of
well-known character companies from around the world.
A joint strategy has been designed to build a programme in which they will
secure and manage licensees across a range of lifestyle categories targeted
primarily at kids and teenagers.
Russia is Chupa Chups top market both in terms of consumption and awareness.
Its a challenging market where the licensing business is presently expanding at a rapid
pace. Our partner Megalicense knows the ropes: they have a successful track record in
music and brand licensing, insight into retail, and a motivated team of licensing specialists.We are therefore excited at the
prospect of having them develop the Russian licensing potential, said Christine Cool, Senior Brand Manager of Chupa
Chups Licensing Division.
Chupa Chups is a unique brand for Russia: its name has become totally generic for a lollipop on a stick! This is truly
awesome! Chupa Chups has fantastic style guides for licensing, a dazzle of colours and a clear concept.And also, probably,
the most importantly, the brand is a perfect fit to products for a difficult teenage audience. It is practically without
competitors among other licenses, said Zakhar Nazarenko, Managing Director of Megalicense.

TOTAL LICENSING NEW EUROPE

CAROLINE MICKLER

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NEWS

TOTAL LICENSING NEW EUROPE

PLUS LICENS - 20 YEARS IN CEE


It was twenty years ago that Plus Licens opened its Warsaw office in 1992 and
thereby entered Central and Eastern Europe as the first independent licensing
company after the revolutions of 1989. Of course, some minor problems were
still at hand. For instance, there wouldnt be a modern copyright law for another
two years. And some of the prospective licensees did not really grasp the idea of
licensing and instead expected to be paid. As Plus Licens now celebrates its 20th
anniversary in Poland and CEE, Plus Licens Polands manager Malgosia Wojtaszek
gives some insights into the Plus Licens history of licensing in Poland
I was in the publishing business, and first encountered Plus Licens as I was purchasing rights for Garfield comics back in the early 1990s, said Malgosia. When
I entered the licensing business in late 1993 as the second manager of Plus
Licens Poland, copyright laws were
not yet implemented in Poland.
But Polish publishers in general respected copyright law, and our first
publishing deal was with Amber for
Star Wars and Indiana Jones, while
the first merchandising deal was for
Universals live-action Flintstones
movie apparel by ITI Cinema. But
with regards to merchandising in
general, there were some initial
difficulties. As I approached one of
my first prospective clients, they
answered: - Sure, we are willing to
promote your property. How much
will you pay us?
But, in time, people grasped the
concept, and we soon had all categories covered, although food and
beverage was not as big in the 1990s as it would become later. Since then, we
have seen a major development in our market over these past two decades. We
have even handled some deals and accounts that have been unusual within the
Plus Licens group, such as Gemstars ShowView system for video recorders, and
syndication rights for newspaper strips Dilbert and Peanuts - still carried by
Polands biggest newspaper Gazeta Wyborcza. On the anecdotal side, we were
also been awarded for having the worlds biggest licensing programs for Pixie &
Dixie and Fido Dido at the time.
Some classic properties like Zorro and Garfield have been with Plus Licens Poland from the beginning or very early on. We have worked with many huge hits
throughout the years and some of them are now back in our portfolio for new
ventures like Sailor Moon and the Teenage Mutant Ninja Turtles. During recent years, we have enjoyed formidable success with Hello Kitty as well as with
Hasbros brands, and we are also proud to take on new brands such as Stardoll
which is extremely popular among Polish girls.
An example of activity today is with the Incity retail chain for womens fashion
wear which has more than 300 stores in Russia, Ukraine, Kazakhstan and Armenia. Through a deal by Plus Licens Russia, the store has now launched a line of
fashion apparel featuring MGMs classic cartoon character the Pink Panther. The
product line was launched in late June and also comprises a range of Sleep &
Lounge casual wear and underwear.
In addition, with anime expanding in the Ukraine, the QTV channel now airs
Naruto: Shippuden (Hurricane Chronicles, the sequel to the original Naruto
series) and also launched the One Piece series in summer 2012. Naruto: Shippuden and One Piece have both recently launched also on the 2x2 channel in
Russia, where AXN Sci-Fi also will air all One Piece episodes.

NEW DEALS FOR


MAYA THE BEE
Studio 100 International and Rio
License announce new partners in
key product categories.
Maya the Bee the beloved
childhood character of millions in
Russia is returning as a license
with Studio 100 International and
Rio License announcing a line-up of
new licensing deals.
The new licensing programme
coincides with the re-run of Maya
Classic on Carousel channel across
Russia. A new Maya 3D series will
start on Carousel television in
March 2013.
As master toy partner Grand
Toys will make feature plush, playsets, figurines and vehicles, plush,
wooden toys and infant toys.
Roman Fedotov, Managing Director
at RIO licensing said, We are very
glad that one of the most popular
childrens brand that has been
familiar to us since the times of the
Soviet Union is still relevant today.
Maya the Bee classic series is one
of the most popular childrens
programmes on Russian TV. And
when the 3D-series airs, the
audiences affection for the brand
will grow even bigger. Our licensees
have designed a wide range of goods
that undoubtedly will bring joy to
children and their parents. We are
looking forward to the premiere of
Maya the Bee 3D-series in Spring
2013 and we are absolutely sure
that Maya will have a successful
future in Russia.
Sergey Kiselev, president of Grand
Toys Groups commented, Grand
Toys already has about fifteen
licensing contracts in its portfolio.
But Maya the Bee is the brand we
are putting big stakes on. We have
every reason to say it is a classic
since for many of us this character
is a childhood memory and we
strongly believe in its success in the
Russian market.
Our range of Maya the Bee products
is impressive and it varies from bath
figures to interactive educational
games.

TOTAL LICENSING NEW EUROPE

3


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NEWS

TOTAL LICENSING NEW EUROPE

CAROLINE MICKLER REPRESENTING


FIFTY SHADES OF GREY

BABY BEETLES
REACH RUSSIA

Caroline Mickler has lined up to represent the Fifty Shades of Grey book brand,
as well as The Beatles, Moomin, Horrid Henry and Tetris.
In particular, Fifty Shades and Tetris have seen success across the New Europe
and Russian territories.
Caroline is preparing her roster of brands for this years Brand Licensing Europe.
We come to this years Brand Licensing Europe with a portfolio that demonstrates the versatility of this company and its ability to understand and position
brands for a wide variety of markets, said Caroline Mickler.
But its not just about diversity; its also about impact. We firmly believe that
these are some of the most exciting brands on the market at the moment and
we are sure many of the visitors to our stand throughout the show will be keen
to be a part of that excitement.

The Baby Beetles animated characters that teach English to children


have now reached Russia.
First launched by Yellow House
English at MipTV in 2011, these colourful, musical creatures have been
licensed for TV, Books, DVDs, CDs
and merchandising from the Baltic
Sea to Vladivostok.
Moscow-based Brand Manager,
Sergey Predybailov said, We are
delighted to have this property. It is
already proving very popular with
children and parents here.
Publisher, Practical Medicine LLC
has created a new division called
Bilingva to manage this new childrens content. It represents a range
extension for the group.
We have given advice to parents
for many years on medical matters,
especially new parents, so it is a
natural step for us to advise them
on the education of their children,
continued Sergey, The animated
songs with simple English words
are perfect for the age group so TV
companies were interested straight
away.
All this is music to the ears of Yellow House English Sales Director,
Art Gniadek and CEO Claire Selby,
who is bringing the next series, Tom
and Keri, to Cannes this October.
Each series is designed to be global
and multimedia, explained Art, so
we plan to present our successful market model to TV and digital
companies from other countries at
the fairs.

HOW THE COSSACKS.... IN THE UKRAINE


Ukrainian licensing agency UDC Licensing Agency is working on its promotional
activity for the brand How the Cossacks. The campaign takes place under the
slogan: The Cossacks - the unofficial symbol of EURO-2012.
The episode of the Ukrainian cartoon How the Cossacks played football is
transmitted in public transport, on TV, in supermarkets, airports, major shopping
centers, McDonalds restaurants, trains and at the railway stations of Ukraine.
The campaign is especially actively in the cities receiving the EURO-2012 participants Kharkov, Donetsk, Lvov, Kiev.
Olesya Ponomarchuk, a marketing expert from UDC Licensing Agency, commented On the 7th of March of 2012, the 80th anniversary of the birth of Vladimir Dakhno, the director, screenwriter, animator of the cartoon serial How the
Cossacks, was celebrated in the Film House in Kiev. Remembering the works
of the great animation director, we were surprised by the coincidence or the
prediction of the episode How the Cossacks played football from the cartoon
serial How the Cossacks. Indeed, its difficult not to see a sacred element in
the cartoon. The fact is that the authors of the famous Ukrainian cartoon How
the Cossacks played football predicted the opponents of the Ukrainian national
football team at the European Championship in 2012 more than 40 years ago.
Moreover, the creators of the second animated film of the series All about the
Cossacks managed to foresee the sequence of matches with the participation
of the Ukrainian team.

For information about the next issue of Total Licensing New Europe
contact, goran@totallicensing.com
10

TOTAL LICENSING NEW EUROPE

BABY BEETLES



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11

NEWS

TOTAL LICENSING NEW EUROPE

MOSCOW PREPARES FOR MY LITTLE


PONY WEDDING FESTIVITIES
The new animated My Little Pony: Friendship is Magic television series has become a favourite amongst an older audience - often called bronies. The new
series launched on Carousel in Russia in January 2012 and is currently being rerun in its entirety with the second season due to launch in September/October.
A key theme of season 2 is the wedding of Princess Cadance to Twilight Sparkles
brother Shining Armor. One hundred Russian My Little Pony fans will be invited
to a wedding banquet at the Royal Hall in Moscow on November 1, a highlight
in a promotional event that will continue into 2013.
From August 20 until September 30, Russian pony fans competed to create the
best My Little Pony wedding invitation, using any materials, shapes and colors
they liked.The entries were then uploaded on the Russian-language Hasbro web
site. One hundred winners were invited, together with a parent, to participate
in the My Little Pony wedding banquet, which will take place at the Royal Hall
of the Central Moscow Hippodrome in the presence of celebrities and press.

ELC LICENSE SCOOBY DOO BOOKS IN


ROMANIA
The European Licensing Company (ELC) has announced that a new range of
books featuring Scooby-Doo have hit the shelves across Romania courtesy
of Gama Publishing House - one of the market leaders in the Romanian childrens book sector.
The cartoon canine is hugely popular in Romania thanks to regular screenings
on Cartoon Network and the new publishing line offers a range of titles, including colouring books, activity
books and reading books, as
well as an eucational series
that teaches kids about a diverse range of subjects such
as the animal kingdom, unusual occupations, great inventions, geography, and the
universe. Gama is set to add
to the range with new titles
later this year.
The publishing deal adds to
the brands existing presence in the Romanian market, where it is already represented across categories
such as toys, toiletries, food
and drink and back to school.
We are delighted to have added a major name such as Gama Publishing
House to the licensing programme for Scooby-Doo, says Hakan Durdag,
CEO at ELC, it shows just how popular Scooby is in Romania and how much
potential exists for future brand development.

12

DREAMWORKS A
BOX-OFFICE
PHENOMENON
IN RUSSIA
The third installment in DreamWorks Animations Madagascar
franchise, Madagascar 3 - Europes
Most Wanted, broke box-office records for animated movies in Russia/CIS on its opening day June 9.
Local distributor Central Partnership reports that the film took in
130 million rubles ($3.96 million) at
the box-office from 1.830 locations
in Russia/CIS (excluding Ukraine).
And throughout the entire opening weekend, Madagascar 3 took in
$16.4 million at Russian/CIS boxoffice, the highest-grossing opening
worldwide outside the US and one
of the Top 10 openings ever in Russia!
Previous box-office blockbusters
like Puss in Boots, Shrek Forever After and Madagascar: Escape 2 Africa
have already meant that DreamWorks Animation is behind seven
of the top ten animated movies of
all time in Russia.
The stunning opening box-office
results for Madagascar 3 further illustrates the popularity of DreamWorks properties in our markets,
commented Plus Licens Russias
managing director Paul Tash. Combined with the powerful visual appeal of the characters, it is no wonder that several local licensees have
signed up for merchandising, publishing and promotional deals for
Madagascar 3.

TOTAL LICENSING NEW EUROPE

MAAT BRANDS


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13

NEWS

TOTAL LICENSING NEW EUROPE

INK SIGNS DTR DEAL FOR MASHA

BEN 10 PROMO

Ink has struck a direct-to-retail deal with Metro Cach & Carry for Masha and
The Bear, it has been announced.
Masha and The Bear is the most famous cartoon license today in Russia, business development manager Andrey Zinovyev commented. This is one of several
deals that we have announced recently. In the first case we signed the contract
with X5 Retail Group for Ice age in 2009, which has proved successful since
then.
This July licensed non-food goods (childrens socks, stockings etc.) with the Masha and The Bear image have appeared on retail network store shelves. The
ability to use a famous cartoon license is not new, unconventional, and is not
a boring and banal marketing tool, Andrey Zinovyev explains. The marketing
position of the retailer is rather traditional and the fight amongst networks for
the buyer with this advertising arsenal is conducted by a principle who is louder,
than is usual for the Russian market. The license acquisition for the buyer opens
up new opportunities for retailers.
Under the management of Ink, the brand continues to develop beyond the borders of the CIS. Today Masha and The Bear is the absolute leader in Russian
animation, Andrey Zinovyev concludes.

The European Licensing Company


(ELC) has significantly boosted sales
of Ben 10 branded merchandise
across Poland through two successful promotional campaigns.
A retail cooperation with Tesco
saw 140 hypermarkets across the
country running a special promotion featuring toys from Bandai and
puzzles and games from Trefl. Fans
that bought any of these products
received the chance to enter an exclusive competition with a top prize
of the chance to participate in the
Polish dubbing for the new Ben 10
CGI movie. The promotion was advertised via Cartoon Network commercials and a special microsite on
the channels website, as well as in
the Tesco Christmas catalogue and
through special in-store POS materials. ELC has also enjoyed success
with a web based Ben 10 competition in conjunction with licensees Bandai, Trefl, Galapagos and MSZ. Over
140,000 Ben 10 products, including
toys, puzzles and games, magazines,
and DVDs, were marked with a special sticker that revealed a unique
code when peeled off. Entering this
into a dedicated microsite accessed
via the Cartoon Network web portal enabled fans to play a specially
developed Ben 10 game, with prizes
on offer for the top scorers!
Both promotions resulted in dramatic increases in sales for Ben
10 merchandise and boosted the
brands popularity across Poland.
These promotions have bolstered
the position and visibility of the
brand within the Polish market, as
well as demonstrating to retailers
and licensees alike the value of promotions featuring top brands such as
Ben 10. said Hakan Durdag, CEO at
ELC.

JELC AND BRAND EXTENSION RUSSIA


BRINGING SUPERCAR TO BLE
Brand Extensions Russia JJP Ltd has announced the first-ever international
Russian brand licensing programme and a new addition to the JELC/Brand
Extensions Russia stand at Brand Licensing Europe.
Marussia Motors is the company behind the first premium supercar to be
designed and developed in Russia, and also part of a British/Russian Marussia
F1 team. A real Marussia B2 super car will be on show on the main aisle of
the JELC/BER stand number E010
at BLE.
The presence of Marussia at BLE Is further evidence of a changing awareness of
the Russian market, which has become
not just a new outlet for licensed brands
from around the world but is now producing its own big names.
The Russian supercar company will be
joining the JELC/BER stand whose highlights include Ultimate Fighting Championship, Bamforth; the Turizmo boys toy
and games concept; the Gem Fairies; and Plain Lazy, A number of deals from the
Brand Extensions Russia JJP joint venture, including the arrival of some major
names for the vast Russian market, will also be announced during the show.
Nikolay Fomenko, President of Marussia Motors says: We were delighted at
the response to our fantastic new cars from both the public and specialist car
aficionados. As trailblazers for a new and exciting direction for Russian car
design were looking forward to working with BER, whose Directors are wellknown and extremely well-connected, and to showing off a Marussia car at
Europes most important licensing show.

14

TOTAL LICENSING NEW EUROPE

DTR METRO CASH & CARRY

BEN 10
European Licensing
Company (ELC)
Ben 10
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15

TOTAL LICENSING NEW EUROPE

BRAND KIMMIDOLLS
Brand Extensions Russia JJP,
, JELC
PJB Brands,

kimmidoll. ,
, kimmidolls

, . kimmidoll, , . Kimmidolls
, , . kimmidoll , kimmidoll junior
kimmidoll love .
2013 - kimmidoll baby
kimmidoll wisdom, . JELC PJB 2011
Brand Extensions Russia.
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, Brand Extensions Russia, : kimmidoll
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JELC BER BLE


Brand Extensions Russia JJP Ltd - - JELC Brand Extensions Russia Brand
Licensing Europe. Marussia Motors
, , - 1 Marussia. Marussia
B2
JELC BER E010 BLE.
Marussi BLE ,
, . JELC BER, ,
Ultimate Fighting Championship, Bamforth,
Turizmo, Gem Fairies Plain Lazy. - Brand Extensions Russia JJP, .
, Marussia
Motors, :
,
.
, , BER,
, ,
Marussia
.

17

WHAT IS
TOTAL LICENSING NEW EUROPE

Masha and the Bear is the first Russian animation brand that has the
potential to speak to children all over
the world thanks to its style and its
universal humour.
This incredibly popular animated
series, was created by Moscow animation studio Animaccord. The series
was first aired on the most famous
childrens TV show on Russian television, Good Night, Children
in 2009. Since then the
characters have won
the hearts of millions in Russia and
the CIS, and the
popularity of
the 27 episodes
released so far
continues to
grow day by day.
Masha, the main
heroine of the series,
is a little girl. She is incredibly active and
energetic and,
like any child,
she believes
that the whole world
was created just for
her alone. She cant
sit still, and any object
that falls into her hands
immediately becomes

18

her toy. One day she wanders in to


Bears place. As a retired circus performer, Bear is used to the quiet life.
From the moment they meet, Masha
gets up to various high jinx, arranges
strange games, and generally gets in
the way and interferes in Bears quiet
life. The relationship between the
main characters reflects the relationship of a child trying to learn about
the world, and an adult trying to
help with this difficult task.
Masha and the Bear is a favorite
television series not only for
children, but also amongst adults.
Every adult recognizes his or her
own child in Masha as she asks a million questions and generally turns
everything upside down.
The setting for the series is a
clearing in the woods and
most of the action generally
happens around Bears house.
Apart from Masha and the
Bear, there are numerous other
characters: curious squirrels, the
smart rabbit, hedgehog, the always
hungry wolves, the cold female bear,
panda, tiger, and others. Many episodes of Masha and the Bear
introduce children to new
characters.
The series has achieved this

high level of popularity in both Russia and the former Soviet territories,
thanks to a number of things that
have helped differentiate it from most
other animated series.

Animation Quality
Very few animation studios make use
of high quality 3D CG animation for
television series. Animaccord set itself the job
of producing a series
with the level of
animation qual-

TOTAL LICENSING NEW EUROPE

ity equal to that of feature films from


Pixar or Dreamworks. The quality
is also reflected in the costs, which
amount to about $40,000 per minute
of animation.

The idea
The concept of the series, which
was created by art director Oleg
Kuzovkov, turned out to be so successful that it appealed not only to
children, but also to parents as well.
Masha and the Bear truly establishes
an emotional connection between
Masha and the audience. Combined
with the high quality of animation this
creates a synergy for success.

Rarity of the Genre


The series is in a rare genre. It does
not have much dialog, and all of the
plot is shown through action. This

makes it easy to understand no matter what the language.


On top of this, the plot of each episode is independent from the others,
leaving no blanks in anyones minds
should they view the episodes out
of order. In addition, each episode is
about seven minutes in length - short
enough to stop small children becoming bored.

Music
Masha and the Bear is accompanied
by wonderful and highly popular
songs and musical themes. The tribute
to this should go to the composer
Vasiliy Bogatirev.
Another bonus is that Masha and the
Bear are heroes of Russian folklore,
which is known to all Russian children. Although they are different
in the series, and live in the
modern world, this link to
Russian folklore gave the
creators new opportunities.
The Masha and the
Bear brand has
already demonstrated itself as
the strongest
pre-school
franchise in
Russia and the
CIS. The ratings

speak for themselves: the brand is


number 1 in terms of recognition in
Russia, number 1 in popularity among
girls aged 3-9 and number 3 among
boys of the same age.
The Masha and the Bear licensing
company is one of the most successful in Russia and the CIS. The brand
has more than 50 product groups and
the total value of products sold at
retail in 2012 was 100 million dollars
a figure which more than doubles
every year.

The ratings speak


for themselves:
the brand is
Number 1 in
terms of
recognition in
Russia;
Number 1 in
popularity among
girls aged 3-9;
and number 3
amongst boys of
the same age.

Take a look at some of the facts:


In 2011, more than 1.2 million

DVDs were sold in Russia, which

places Masha and the Bear the

second highest seller after
Avatar.
More than 3.7 million books and

1 million magazines have been
printed.

There are more than 1500


different product skus.

In 2012 to date Masha and the


Bear has received over 250
million views online and over
900,000 downloads for iOS

Ratings, sales, and licensing agreements increase each and every


month.

19

TOTAL LICENSING NEW EUROPE

Today

Profile of
Masha and the Bear
Target Audience:
Children 3-9 years
of age
Episode length:
About 7 minutes
Every episode has a
stand-alone plot
The series have a
lot of original music
and songs

20

Currently, Masha and the Bear is a


strong preschool franchise not only in
Russia and the CIS, but also in many
European countries.
Masha is broadcasted in France (Canal+ Family, Piwi+), Denmark (DR),
Switzerland (RTS), Canada and French
speaking Africa (Canal+), and USA
(Kabillion).
As an example of the shows popularity, in Denmark, after the first few
months of airing, TV ratings for Masha and the Bear overtook all other
preschool shows. This is a positive

sign that the brand will do well in


other foreign countries, which will
kick-start the licensing program in
earnest. Beyond the Danish example,
Masha has gained enough popularity
in the Baltic states that there will be a
promotion with food producer Hesburger in March 2013.
Thanks to the immense popularity
of Masha and the Bear in Russia and
the CIS, the licensing program of
the brand has many strong partners,
which allows the setting of very high
standards for any licensed product
categories.

Amongst Animaccords licensees are


major players such as Ferrero, Orkla.
Egmont, Metro, Perfetti van Melle,
1C-Softclub, Noviy Disk, Ministry of
Sound, Alfa Cosmetics and others.
The goal of the company at present
is a constant improvement in quality
standards and the company only accepts those partners that can provide
it this quality assurance.
In 2012, a spin-off project was
launched. Mashas Tales was created
for an audience of children aged from
2 to 6 years. It consists of six-minute
episodes with a mix of 3D CG animation and 2D flash animation, in which
Masha tells popular fairy tales in a
childish manner, confusing both story
lines and characters. In February of
2012 the project started showing on
Carousel, and a DVD with the first
six episodes was released. The main
goal of Mashas Tales is to increase the
popularity of the core project, and
also to create a sequel which shows
new sides to the main character. Mashas Tales also allows Animaccord to
increase the amount of animated content featuring Masha within a short
timespan because of the simpler and
faster method of production. In terms
of licensing Mashas Tales is viewed as
a separate franchise and has enjoyed
a successful start in mobile games

TOTAL LICENSING NEW EUROPE

thanks to the production work in 2D


flash animation. Up to the moment,
12 tales have been released, with the
total of 26 episodes set be completed by the middle of 2013.
Masha and the Bear has won over 20
international awards, some of which
were awarded in Germany and Montenegro. In addition, airings in France,
Denmark, and Norway created great
results as well. Interest in the series
is rising across Europe and Asia. TV
companies in over 22 countries have
bought the series, and more contracts
are in the works.
Understanding that interest is still
high, Animaccord has already gone
ahead and had the series dubbed into
English and Spanish. The work was
carried out in California. Masha was
voiced by the star of the animated
film Despicable Me, Elsie Fisher,
who even sang the songs of the main
character! On top of this, localization
in the series is also being done that
they can be understood by local viewers. Quality of French and German
dubbing is also being monitored.

The Future
Masha and the Bear has yet to meet
any barrier that would suggest
difficulties in promoting it into any
country. Probably this is possible
because both adults and children can

relate to it so well.

In 2013 most of Europe will become
acquainted with Masha including
northern Europe (NRK, MTV3 Juniori), Germany (KIKA), Italy (RAI), and
of course, Eastern Europe. Releases
in other countires are also being prepared: Australia, South Korea (Tooniverse), Malaysia, Turkey (TRT). Moreover, Middle East has great interest in
Masha. This year Masha and The Bear
Ltd will continue to collaborate with
their partner, licensing agency Ink, to
build on current portfolio of licensing contracts, for new collections of
licensed merchandise to be launched
in 2014 together with new TV season
of the cartoon. Licensing in Europe
is made easier by the fact that many
products have already been tested in
the Russian market, giving a valuable
insight as to which products will be in
demand. Work is also continuing with
a view to launch Masha on major
media platforms in other countries in
2013 and 2014.
There will soon be a new website
for Masha and the Bear, as well as a
multilanguage educational and game
site for children. Taken together, they
should give the brand its needed web
presence. This is a very important
step because every year the importance of the internet gets closer to
the importance of television in terms

of marketing to children.
Bringing the story up to date, right
now another 25 episodes are planned
for production (for a total of 52
episodes) by 2014. If the project
develops further as planned, more
episodes will follow. The brand is
developing and being supported not
only by the animated series, but other
products as well: Ebooks, computer
games, programs, theatre and shows,
mobile apps, and other products for
children and parents.
Another important factor is that
Animaccord has managed to create a
Russian studio that can manage high
quality 3D CG animation. Of course
this opens up a world of opportunities, of which Masha and the Bear is
just the start.

Masha and the


Bear licensing
covers more than
50 product
groups and, in
2012, generated
retail sales of
$100 million a figure which
doubles each
year.

Find
Masha and The Bear
at
BLE 2012
> Booth D185 <
For further information,
please contact:
Masha and the Bear
129085, Moscow, Russia
9 Godovikovastreet, bld.3
tel: +7 (495) 775-13-31
fax: +7 (495) 775-13-32
info@animaccord.ru
www.animaccord.com

21

TOTAL LICENSING NEW EUROPE


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TOTAL LICENSING NEW EUROPE


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23

TOTAL LICENSING NEW EUROPE



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TOTAL LICENSING NEW EUROPE

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info@animaccord.ru
www.animaccord.com

25

TOTAL LICENSING NEW EUROPE


By Ira Mayer,
The Licensing Letter
www.epmcom.com
+1 212 941 0099

GUIDE TO PROPERTY TYPES AND


PRODUCT CATEGORIES
PROPERTY TYPES

Properties that are licensed, or with


potential for licensing, come from
many sources from art to celebrities, fashion designers to feature
films and television programs, sports
leagues and personalities to toys,
videogames, and food and beverage
brands.
Although some properties cross over
into several sectors, for the most part
they are classified under the property
type where their major licensing
activity occurs.
An exception is made when a separate licensing program is set up (with
its own art and logo) for an extension of the original. For example,
Batmans origins are as a publishing
property, since he was originally a
comic book character. But distinctive
licensing programs have surrounded
the first 1989 film and its sequels, so
the sales directly related to the logos
and images from the films would
be classified under Entertainment/
character, while any licensing of the
original comic book art falls under
Publishing.
Following are brief descriptions of
the 12 primary sources of licensed
properties, along with 18 sub-categories. Each description is followed

by a list of representative properties that fall under that property


type.The listings are guidelines
in helping you to understand the
data more fully, but are by no
means comprehensive.

ART:
Art licensing includes two subcategories:
Art & Artists: Living fine artists and
designers who create images with
products in mind, including textile
and surface designers, as well as
fine artists who create art for arts

sake, where licensing is a secondary


concern. The first group accounts
for the lions share of art licensing;
their work is found on or in apparel,
domestics, giftware, stationery, tabletop items, books, computer accessories and housewares, among other
products. They often specialize in a
certain genre such as sports, fantasy,
whimsical childrens, realistic, ethnic
themed, illustrative, nature art, or
decorative patterns.
Representative properties: American
Greetings and Hallmark card art, Jim
Benton, Lisa Frank, Anne Geddes,
Thomas Kinkade, Christian Riese Lassen, Precious Moments, Suzys Zoo.
Museums: Museums, which generally
oversee small, upscale programs with
merchandise distributed in their own
and other museum shops, through
other retailers, typically specialty
stores, and online. Some maintain licensing-based reproduction programs
where items from their collections
are duplicated on retail products such
as decorative accessories and home
furnishings; in miniature reproductions; on postcards, posters, scarves,

26

TOTAL LICENSING NEW EUROPE


a moving target: Michael Jackson, who
had relatively little licensing at the
time of his death, would have been
included under Music. Once he
died, however, his licensing was accounted for under Estates. The bulk
of estate licensing for most individuals is in the promotional arena (which
we do not tally), though as for living
celebrities, there can be a merchandise component to such programs.

and ties; in childrens activity kits; and


the like. Much of such programs are
inspired by pieces in the collection
rather than being pure replicas.
Representative properties: Victoria &
Albert Museum (V&A), American
Museum of Natural History, Brooklyn
Museum, Metropolitan Museum of
Art, Mount Vernon, Museum of Modern Art,Vatican Museum, Winterthur.

CELEBRITIES:
This sector includes living actors,
actresses, mode ls, chefs, business
executives, and others. While many
celebrity-based deals include endorsements and promotional tie-ins,
we look exclusively at the product
licensing generated by these individuals. However, sometimes merchandise
rights are granted as part of a broader promotional deal. For example, a
company for which a celebrity serves
as a spokesperson may also sell
memorabilia.
Representative properties
Entertainers: Mikhail Baryshnikov,
Ashley Judd, Sarah Jessica Parker, Jane
Seymour.
Models: Naomi Campbell, Cindy
Crawford, Kathy Ireland, Heidi Klum.
Chefs: Paula Deen, Emeril LaGasse,
Rachael Ray, Wolfgang Puck.
Home: Nate Berkus, Rachel Hale, B.
Smith, Martha Stewart
Business/Other: Paris Hilton, Priscilla
Presley, Donald Trump, Ivana Trump

COLLEGIATE:
College and university programs,
driven largely by team sports but also
including generic school merchandise.
Representative properties: Harvard,
Oxford, Notre Dame, Ohio State,
University of Miami.

ENTERTAINMENT/CHARACTER:
Feature films, cartoon characters, and
television programs are the basis of
the bulk of Entertainment/Character
licensing. A few properties, such as
Hello Kitty and Its Happy Bunny,
which have no antecedent in any medium, are also included here because
they are treated much as traditional
character licenses (rather than, say,
like an art property). Childrens
properties account for most of the
sectors activity, though there are also
substantial adult licensing programs
built around collectibles.
Representative properties: American
Idol, Batman, Ben 10, Betty Boop,
Biggest Loser, Bob the Builder, Care
Bears, Cars, Clone Wars, Disney
Fairies, Disney Princess, Dora the
Explorer, Family Guy, Flintstones,
Glee, Gumby, Hannah Montana, Harry
Potter, Hello Kitty, High School Musical, Hulk, I Love Lucy, Iron Man, Its
A Wonderful Life, Its Happy Bunny,
Looney Tunes, Lord of the Rings,
Mickey Mouse, Muppets, Pink Panther,
Pooh, Popeye, Scooby Doo, Sesame
Street, Simpsons, South Park, SpiderMan, Sponge Bob Square Pants, Star
Trek, Star Wars, Strawberry Shortcake, Thomas & Friends, Twilight,
World Wrestling Entertainment.

ESTATES:
Estate licensing runs the gamut from
musicians to artists to celebrities to
sports icons, and can be something of

Representative properties: Abbott &


Costello, Humphrey Bogart, Charlie
Chaplin, James Dean, Albert Einstein,
Jimi Hendrix, Michael Jackson, Bruce
Lee, Bob Marley, Marilyn Monroe,
Bettie Page, Elvis Presley, Frank Sinatra, John Wayne, Malcolm X.

FASHION
Designers primarily fall into three
groups apparel, footwear, and
home. And within these broad groups
fashion-based licensing consists of
non-personality-driven labels such

as OP, Burberry, and Carters, and


designer names such as Ralph Lauren,
Tommy Hilfiger, and Norma Kamali.
Fashion-rooted licensing programs
typically enable the brand to expand
into categories where the licensor
has little or no expertise in manufacturing, marketing, design, or distribution, or where licensing is more profitable than maintaining an in-house
operation.
Representative properties:
Apparel: Armani, Bob Mackie, Burberry, Kenneth Cole, Calvin Klein, Chanel, Cherokee, Christian Dior, Donna
Karan, Givenchy, Gloria Vanderbilt,
Guess?, Isaac Mizrachi, Laura Ashley,
Osh Kosh, Perry Ellis, Pierre Cardin,
Ralph Lauren, Rocawear, Sean John,

27

TOTAL LICENSING NEW EUROPE

NON-PROFIT:
Technically, a non-profit is defined by
its status as a charitable institution.
However, within that broad Categorization, the most common licensing
programs tend to be for healthcare,
environmental/nature, and relief/social service organizations.
Representative properties: AARP, American Red Cross, ASPCA, Federal Duck
Stamp Program, Greenpeace, Global
Fund/Product Red, National Parks
& Conservation Association, Nature
Conservancy, National Trust for Historic Preservation, National Wildlife
Federation, Save the Children, UNICEF, World Wildlife Fund (WWF).
Tommy Hilfiger, Tommy Bahama.
Footwear: Adidas, Converse, Crocs,
Esprit, Nike, Puma, Reebok, Skechers,
Timberland.
Home: Alexander Julian, Noel Jeffrey.

MUSIC:
Living musicians and bands, and bands
where at least some of the members are still living (The Beatles, The
Grateful Dead) are included in Music. Apart from merchandise licensing based on the individual or group
name/images (the Rolling Stones
tongue, for example), owners of music copyrights grant authorizations to
perform or record music. These uses
are outside the scope of consumer
products licensing unless the usage
is embedded in a consumer product
(such as greeting cards or toys). If a
musician has a fashion brand under
another name, that brand is included
under Fashion e.g. Gwen Stefanis
Harijuku, Avril Lavignes Abbey Dawn,
and Sean Puffy Combs Sean John.
Representative properties: AC/DC, Aerosmith, Avril Lavigne,
The Beatles, Beyonce,
Britney Spears, Carlos Santana, Christina
Aguilera, Grateful
Dead, Gwen Stefani,
Jennifer Lopez, Jessica
Simpson, KISS, Led
Zeppelin, Madonna,
Mariah Carey, Metallica, Rolling Stones,.

28

PUBLISHING:
The publishing sector includes three primary areas:
Books, newspapers/magazines, and comic books and
strips. Licensing of books is
dominated by childrens titles
and focuses on childrens
book characters. However,
there are also specialized
imprints for adults such as
Rand McNally, Berlitz, and
For Dummies, while some
adult nonfiction authors
(especially in health and cooking)
have launched licensing efforts as
well. In some cases, a property may
be split with Entertainment/Character e.g. Twilight, Harry Potter, and
Spider-Man, since much of the licensing is based on the filmed properties.
By contrast, while properties such as
Clifford and Curious George get a
boost through exposure on TV and
in film, if the licensing looks the same
in both media we keep them in the

property type of origin, in this case


Publishing.
Representative properties:
Books (children): Angelina Ballerina,
Arthur, Beatrix Potter/Peter Rabbit,
Clifford, Curious George, Dr. Seuss,
Golden Books, Guess How Much I
Love You, Mad Libs, Mr. Men & Little
Miss, Wheres Waldo?, World of Eric
Cane.
Books (adult): Agatha Christie, Deepak
Chopra, Tom Clancy, F. Scott Fitzgerald, Ernest Hemingway, James Patterson, Nora Roberts, Andrew Weil.
Books (brands): Chicken Soup for the
Soul, Fodors, For Dummies, Frommers, Joy of Cooking, Rand McNally.
Comic books/strips: Archie & Veronica,
Casper, Dilbert, Far Side, Garfield,

Peanuts, R. Crumb, Ziggy.


Newspapers/magazines: Better Homes
& Gardens, Car & Driver, Cosmo,
Elle, Esquire, Essence, Food & Wine,
Golf Digest, National Geographic,
The New York Times, Old Playboy,
Penthouse, Popular Mechanics, Real
Simple, USA Today.

SPORTS:
Sports licensing incorporates the
major leagues for football, baseball,
basketball, hockey, and soccer, including both teams and individuals, as well
as NASCAR, golf, tennis, Olympics
and niche programs including minor
league teams, outdoors-related properties, amateur sports associations,
womens sports leagues, and many
others.
Representative properties: Muhammad
Ali, Mario Andretti, Ironman Triathlon,
Michael Jordan, Major League Baseball, Major League Soccer, NASCAR,

TOTAL LICENSING NEW EUROPE

National Basketball Association


(NBA), National Football League
(NFL), National Hockey League
(NHL), Martina Navratilova, Olympics, Shaquille ONeal, PGA Tour,
Wimbledon, Tiger Woods.

TRADEMARKS/BRANDS:
The range of corporate brands with
licensing programs is enormous. With
this new categorization, we endeavor
to break out some of the most larger
sub-groups, including automotive/
vehicle, food/beverage, restaurants,
sporting goods, hardware/appliance/
tool, home-related, electronics/technology, and electronic media. Retail
brands, diet/health brands, luggage
brands, and additional brand- based
properties are aggregated under
Other. Large as this sector is, much
licensing in this area is invisible and
therefore difficult to estimate.
Representative properties:
Automotive/Vehicle: Cadillac, Caterpillar, Chevrolet, Chrysler, Corvette,
Dodge, Ford Motor, Harley-Davidson,
Hummer, Jaguar, Jeep, John Deere,
Mack Truck, Mustang, Porsche.
Food/Beverage: Budweiser, Cheerios,
Chiquita, Coca-Cola, Coors, Corona,
Del Monte, Dr Pepper/Snapple, Godiva, Hershey, Jack Daniels, Jim Beam,
Kahlua, M&Ms, Miller, Mountain Dew,
Nestle, Oreo, Pepsi-Cola, Pillsbury,
Special K, Sunkist, Sun-Maid, Welchs,
Restaurants: Bob Evans, Burger King,
California Pizza Kitchen, Cinnabon,
Claim Jumper, Marie Callenders,
McDonalds, Peter Luger, TGI Fridays,
White Castle.
Sporting goods: Body Glove, Browning,
Coleman, Dunlop, Everlast, Polaris,
Rawlings, Remington, Smith & Wesson, Spalding, Wilson, Winchester,
Under Armour.
Hardware/Appliance/Tools: Black &
Decker, Honeywell, Stanley, Sunbeam,
Whirlpool.

Home-related: Crocscill, Farberware,


Mikasa, Mr. Clean, Pfaltzgraff, Rubbermaid, Waverly.
Electronics/Technology: AT&T, Apple,
GE, IBM, Polaroid, RCA, Timex,Verizon, Xerox.
Electronic media: Animal Planet, Discovery, ESPN.
Other: Armor All, Dr Scholls, Emerson (this could be under Electronics/
tech), Jenny Craig, Linens n Things,
Samsonite, Sharper Image, Timex,
Weight Watchers.

TRADITIONAL TOYS/GAMES:
This sector includes board games,
non-electronic toys, and characters
that grow out of such toys and
games.

one classification. For example, plush


could be considered either toys or
gifts/novelties, or clocks could be
housewares or gifts/novelties or
electronics, depending on the specific product, distribution channels, a
given retailers approach, and other
factors. The list below is representative of the types of products in each
category.

ACCESSORIES:
Eyewear; handbags, backpacks & messenger bags; headwear; hosiery; jewelry and watches; luggage and travel
accessories; scarves and ties; other
including bandanas, belts, buckles,
gloves, small leather goods, suspenders, umbrellas, wallets.

Representative properties: Bakugan,


Barbie, Bratz, Candy Land, Colorforms, Crayola, Etch-A-Sketch, FisherPrice, GI Joe, Gund, Hot Wheels,
LEGO, Little Tikes, Littlest Pet Shop,
Magic 8-Ball, Matchbox, Monopoly, My
Little Pony, Playskool, Tonka, Transformers.

VIDEOGAMES/INTERACTIVE
AND ONLINE:
Includes videogames and videogamebased characters, online-originated
properties such as virtual worlds,
webisodic series, e-mail greeting card
properties, and other properties. In
some cases, such as Pokemon, the
licensing is split between this sector
and Entertainment/Character, since
there are distinct licensing programs
for the TV and videogames.
Representative properties: Angry Birds,
Moshi Monsters, Talking Friends, Club
Penguin, EverQuest, Guitar Hero,
Hoops & Yoyo, Neopets, Pokmon,
Pucca, Rock Band, Sims, Sonic the
Hedgehog, Super Mario, World of
Warcraft.

PRODUCT CATEGORIES:

Product categories are based on the


predominant way in which merchandise is classified by retailers and, by
extension, licensors, manufacturers,
and others in the business. Many
products could fall within more than

APPAREL:
Beach wear, boxer shorts, dresses,
fleece, intimates/lingerie, jackets,
jeans, night shirts, pajamas, shorts,
slacks, sportswear, suits, sweaters,
sweatshirts and sweatpants, T-shirts,
underwear, uniforms.

DOMESTICS:
Bath mats, bedding, blankets, cloth
placemats, curtains, fabric, laundry
bags, pot holders, placemats, sewing
patterns, table linen, towels.

ELECTRONICS/ACCESSORIES:
Appliances, cameras, camera/computer bags & sleeves, CD & DVD players,
cell phone accessories, clock radios,
clocks, foot massagers, home secu-

29

TOTAL LICENSING NEW EUROPE


rity systems, karaoke machines and
content, kitchen appliances, PDAs,
personal stereos and game players,
telephones, vacuum cleaners, waffle
makers, walkie-talkies.

FOOD/BEVERAGE:
Candy, cereal, cakes & accessories,
condiments, cookies, edible baking
decorations, fresh foods & produce,
frozen meals, gum, health bars, ice
cream, juice, meats, microwave meals,
organics, snacks, soft drinks, sports
drinks.

FOOTWEAR:
Athletic shoes, designer shoes, hiking
boots, sandals, shoelaces, shoes, slippers, sneakers, thongs.

pressure cuffs, bubble bath, combs


and brushes, condoms, cosmetics,
dental floss, disinfectants, electronic
thermometers, hair dryers, heart
monitors, home manicure kits, lotions
& hand sanitizers, massagers, shampoo, soap, tissues, toothbrushes &
toothpaste, vitamins.

HOUSEWARES:
Baking & cooking supplies, bath mats,
bowls, canisters, carving sets, clocks,
cookie jars, cups, desktop accessories, glassware, insulated beverageware, juice box holders, laminated
placemats, lunch kits, lunchboxes,
melamine tableware, mugs, plates,
silverware, storage containers, tableware, water bottles.

FURNITURE/
HOME FURNISHINGS:
Beanbag chairs, beds, bookcases, ceiling fans, chairs, desktop accessories,
house plans & developments, lamps,
outdoor furniture, paint, picture
frames, tables, toilet seats & covers,
wall coverings and wallpaper.

INFANT PRODUCTS:
Baby bags, bottles, bassinets, bibs,
bumper guards, cribs, diapers, diaper
bags, high chairs, infant bedding, infant
clothing, infant furniture, infant housewares, infant toys, mobiles, playpens,
rockers, strollers.

PUBLISHING:
Activity books, audio books, bath
books, book & CD/DVD packages,
calendars, cloth books, coloring
books, comic books, fine art/limited
edition/open-ended prints, magazines,
novelizations, postcard books, posters, story books.

SPORTING GOODS:

HEALTH/BEAUTY:
Fragrance; hair accessories; other
including adhesive bandages, blood

30

STATIONERY/PAPER:
Address books, birthday calendars,
birthday candles, balloons, bookmarks, checks, diaries, gift bags, gift
wrap, greeting cards, invitations,
journals, memo boards, note cards,
notepads, office supplies, paper party
decorations, paper tableware, party
goods, pens & pencils, postcards,
rubber stamps & pads, school supplies, scrapbooking supplies, stickers,
Valentines.

TOYS/GAMES:

GIFTS/NOVELTIES:
Air fresheners, animation cels, banks,
bottle openers, bow-biters, boxes,
candles, ceramic gift items, character
clocks, Christmas ornaments and
decorations, collectibles, commemorative coins and plates, die-cast collectibles, figurines, gumball machines,
key chains, lapel pins, lighters, magnets, night lights, novelty watches,
oven mitts, pencil toppers, pens, prepaid phone cards, temporary tattoos
& body art, windsocks.

& water slides, wagons, water bottles.

Backpacks, balls, bicycles, bowling


balls, camping equipment, daypacks,
firearms, fitness equipment, golf
equipment & accessories, helmets
& safety gear, ice skates, inflatable
water toys, rollerskates, skateboards,
snowboards, sleeping bags, slumber
bags, sports bags & equipment, sports
uniforms, team uniforms, vinyl pools

Action figures, activity sets, arts &


crafts sets, beach toys, board games,
card games, craft & model kits, diecast vehicles & models, dolls & accessories, dominoes, finger toys, flying
discs, Halloween costumes/makeup/
masks, hobby sets and supplies, kites,
learning toys, marbles, milk caps/pogs,
playing cards, plush/stuffed toys, puppets, puzzles, rack toys, radio controlled toys, ride-ons, robotic toys,
science kits, scooters, sound chip
toys, trading cards, yo-yos.

VIDEOGAMES/SOFTWARE/
INTERACTIVE:
Videogames (cart ridge and CD-ROM
and downloadable), computer games
(CD- based, disc-based, on-line, mobile), educational software, productivity software, reference software,
screen savers, utilities; arcade games,
casino games & slot machines, digital
greeting cards, e-mail messages, electronic games (handheld & tabletop),
pinball games, simulation software.

OTHER:
Hardware & paint; gardening; pet
products; funerary; automotive accessories; boats & vehicles; musical
instruments, tobacco/smoking products.

TOTAL LICENSING NEW EUROPE

By Ira Mayer,
The Licensing Letter
www.epmcom.com
+1 212 941 0099

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Precious Moments, Suzys Zoo.
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31

TOTAL LICENSING NEW EUROPE


Batman, Ben 10, Betty Boop, Biggest
Loser, Bob the Builder, Care Bears,
Cars, Clone Wars, Disney Fairies,
Disney Princess, Dora the Explorer,
Family Guy, Flintstones, Glee, Gumby,
Hannah Montana, Harry Potter, Hello
Kitty, High School Musical, Hulk, I
Love Lucy, Iron Man, Its A Wonderful
Life, Its Happy Bunny, Looney Tunes,
Lord of the Rings, Mickey Mouse,
Muppets, Pink Panther, Pooh,
Popeye, Scooby Doo, Sesame Street,
Simpsons, South Park, Spider-Man,
Sponge Bob Square Pants, Star Trek,
Star Wars, Strawberry Shortcake,
Thomas & Friends, Twilight, World
Wrestling Entertainment.

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: Nate Berkus, Rachel Hale, B.


Smith, Martha Stewart
/ : Paris Hilton,
Priscilla Presley, Donald Trump, Ivana
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: Victoria & Albert
Museum (V&A), American Museum
of Natural History, Brooklyn Museum,
Metropolitan Museum of Art, Mount
Vernon, Museum of Modern Art,
Vatican Museum, Winterthur.


: Harvard, Oxford,
Notre Dame, Ohio State, University
of Miami.


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Wolfgang Puck.

32

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Humphrey Bogart, Charlie Chaplin,
James Dean, Albert Einstein, Jimi
Hendrix, Michael Jackson, Bruce Lee,
Bob Marley, Marilyn Monroe, Bettie
Page, Elvis Presley, Frank Sinatra,
John Wayne, Malcolm X.

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TOTAL LICENSING NEW EUROPE


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Ralph Lauren, Tommy
Hilfiger Norma Kamali.

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: Armani, Bob Mackie,
Burberry, Kenneth Cole, Calvin
Klein, Chanel, Cherokee, Christian
Dior, Donna Karan, Givenchy, Gloria
Vanderbilt, Guess?, Isaac Mizrachi,
Laura Ashley, Osh Kosh, Perry
Ellis, Pierre Cardin, Ralph Lauren,
Rocawear, Sean John, Tommy
Hilfiger, Tommy Bahama.
:
Adidas,
Converse,
Crocs,
Esprit,
Nike,
Puma,
Reebok,
Skechers,
Timberland.
: Alexander Julian, Noel Jeffrey.

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: AC/DC, Aerosmith,
Avril Lavigne, The Beatles, Beyonce,
Britney Spears, Carlos Santana,
Christina Aguilera, Grateful Dead,
Gwen Stefani, Jennifer Lopez,
Jessica Simpson, KISS, Led Zeppelin,
Madonna, Mariah Carey, Metallica,
Rolling Stones,.

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: AARP, American
Red Cross, ASPCA, Federal Duck
Stamp
Program,
Greenpeace,
Global Fund/Product Red, National
Parks & Conservation Association,
Nature
Conservancy,
National
Trust for Historic Preservation,
National Wildlife Federation, Save
the Children, UNICEF, World Wildlife
Fund (WWF).

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Ballerina, Arthur, Beatrix Potter/Peter
Rabbit, Clifford, Curious George, Dr.
Seuss, Golden Books, Guess How
Much I Love You, Mad Libs, Mr. Men
& Little Miss, Wheres Waldo?, World
of Eric Cane.
( ): Agatha
Christie, Deepak Chopra, Tom
Clancy, F. Scott Fitzgerald, Ernest
Hemingway, James Patterson, Nora
Roberts, Andrew Weil.
(): Chicken Soup for
the Soul, Fodors, For Dummies,
Frommers, Joy of Cooking, Rand
McNally.
/ :
Archie & Veronica, Casper, Dilbert,
Far Side, Garfield, Peanuts, R. Crumb,
Ziggy
/ : Better Homes
& Gardens, Car & Driver, Cosmo,
Elle, Esquire, Essence, Food & Wine,
Golf Digest, National Geographic,
The New York Times, Old Playboy,
Penthouse, Popular Mechanics, Real
Simple, USA Today.


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33

TOTAL LICENSING NEW EUROPE


Bratz, Candy Land, Colorforms,
Crayola, Etch-A-Sketch, Fisher-Price,
GI Joe, Gund, Hot Wheels, LEGO, Little
Tikes, Littlest Pet Shop, Magic 8-Ball,
Matchbox, Monopoly, My Little Pony,
Playskool, Tonka, Transformers.

/ /
:

,
,
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: Muhammad Ali,
Mario Andretti, Ironman Triathlon,
Michael Jordan, Major League Baseball, Major League Soccer, NASCAR,
National Basketball Association
(NBA), National Football League
(NFL), National Hockey League (NHL),
Martina Navratilova, Olympics, Shaquille ONeal, PGA Tour, Wimbledon,
Tiger Woods.

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Caterpillar,
Chevrolet,
Chrysler,
Corvette, Dodge, Ford Motor, HarleyDavidson, Hummer, Jaguar, Jeep,
John Deere, Mustang, Porsche.

34

/ : Budweiser, Cheerios,
Chiquita, Coca-Cola, Coors, Corona,
Del Monte, Dr Pepper/Snapple,
Godiva, Hershey, Jack Daniels,
Jim Beam, Kahlua, M&Ms, Miller,
Mountain Dew, Nestle, Oreo, PepsiCola, Pillsbury, Special K, Sunkist,
Sun-Maid, Welchs,
: Bob Evans, Burger King,
California Pizza Kitchen, Cinnabon,
Claim Jumper, Marie Callenders,
McDonalds, Peter Luger, TGI Fridays,
White Castle.
: Body
Glove, Browning, Coleman, Dunlop,
Everlast, Polaris, Rawlings, Remington, Smith & Wesson, Spalding,
Wilson, Winchester, Under Armour.
Hardware/Appliance/Tools:
Black
& Decker, Honeywell, Stanley, Sunbeam, Whirlpool.
: Crocscill, Farberware, Mikasa,
Mr. Clean, Pfaltzgraff, Rubbermaid,
Waverly.
/ : AT&T,
Apple, GE, IBM, Polaroid, RCA, Timex,
Verizon, Xerox.
: Animal Planet,
Discovery, ESPN.
: Armor All, Dr Scholls,
Emerson (this could be under
Electronics/tech), Jenny Craig, Linens
n Things, Samsonite, Sharper Image,
Timex, Weight Watchers.

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: Angry Birds, Moshi
Monsters, Talking Friends, Club
Penguin, EverQuest, Guitar Hero,
Hoops & Yoyo, Neopets, Pokmon,
Pucca, Rock Band, Sims, Sonic the
Hedgehog, Super Mario, World of
Warcraft.


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35

TOTAL LICENSING NEW EUROPE

Coca-Cola Worldwide Licensing launches new curated


collection of serveware for
home and outdoor
entertaining
Enriching the
Coca-Cola
experience
through the
Perfect Serve

Launching this fall, Coca-Cola Worldwide Licensing


has curated an assortment of new and iconic licensing
products which add to the enjoyment of drinking an icecold Coca-Cola with family and friends. The vision for
Coca-Cola Worldwide Licensing partnering with industry
leaders is to find unique and innovative ways to enrich the
way the beverage is enjoyed a ritual that is known as the
Perfect Serve at The Coca-Cola Company.
Perfecting the Perfect Serve
The first part of this experience crafted early in the
Companys history - calls for a genuine Coca-Cola glass,
of which Coca-Cola is introducing a number of exciting
new styles. Licensee Tervis has created a new line of plastic
tumblers with design inspired by Coca-Colas classic red
and white colors. Also new to the table is the Curve
glass. Made by licensee Libbey, its sleek curves and graphic
treatment of the Coca-Cola logo vertically across the glass,
mark it out as a new classic.
The second step of the Perfect Serve is to reach for a
perfectly chilled Coke from the icebox. Coca-Cola is
unveiling a new collection with Igloo, the iconic cooler
brand, to meet this entertaining essential. Igloo has designed
a custom Coca-Cola version of its Playmate cooler to
mark its 65th anniversary. Rolling out this December, each
cooler is fitted with Igloo technology on the inside, with
well-known Coca-Cola advertising slogans such as Coke
Is It and Its The Real Thing! placed across the jacket
perfect for keeping your Coca-Cola ice cold for your
favorite outing.
The final stage of the Perfect Serve is all about the pour.
Coca-Cola recommends filling the glass with three ice
cubes, opening the bottle, and then pouring the Coca-Cola
at a right angle into the glass. Coca-Cola has some fine new
products in this area. Licensee Tablecraft is releasing an
update on its classic flat-pocket bottle opener, to pop your
bottle open in style. Youll also want to enjoy your Coke
with a straw, so check out Tablecrafts vintage-inspired
Coca-Cola Soda Shop straw dispenser.
Now sit back, sip and enjoy!

36

TOTAL LICENSING NEW EUROPE

Coca-Cola Worldwide Licensing






,
- , Coca-Cola Worldwide Licensing.
Coca-Cola
Worldwide Licensing
,

- , Coca-Cola Company .

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Tablecraft

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Coca-Cola .
,
!

37

TOTAL LICENSING NEW EUROPE


By Danny Simon,
President of
The Licensing Group
danny@TLGLA.com
323.653.2700 x20

What to Buy and how to sell It


are the Essential Questions

Formula for success: rise early, work hard, strike oil.


Licensing is a rather simple concept.
In basic terms: Licensing is the
contractual right to use protected
materials owned or controlled
by a third party, in return for
consideration. Not a difficult concept
to comprehend; licensing is a method
that allows another party to use
intellectual property you own or
control.
More perplexing is the question what
makes a property of interest to a
third party, and agreeable to enter
into a licensing agreement? If the
objective of licensing is to establish
a contractual relationship with
third parties for use of owned or
controlled IP materials in exchange
for some form of remuneration, what
elements should a property possess
in order to attract interest?
As a licensor, before you attempt to
license your property, you should
have a good understanding of the
hurdles that may prevent its success.
As a licensee, understanding what are
those essential elements that need
to be explored before selecting a
property will more than likely help
you achieve success.
So where do we begin? Lets start by
debunking the biggest misconception
most people have about licensing:
That is The financial terms
requested by the licensor is the most
significant factor that dissuades a
licensee from selecting a property.
While it is true that the cost of a
license is or can be a significant factor
in the decision making process, it
is often not the leading reason for
the failure to make a sale. Often the
required advance or guarantee sought
by the licensor pales in comparison

38

little interest, and therefore a poor


candidate for licensing.Yes, there are
exceptions - properties that provide
the licensee with images they believe
will enhance their product and attract
consumer interest. The category
of art licensing is perhaps the one
area of licensing where image appeal
trumps awareness.
The opinion of the licensee that a
certain image is both appropriate
to the product in question, and
possesses the necessary appealing
qualities are the principle reasons
that drives property selection in this
category.
to the dollars the licensee must
spend to undertake the design,
manufacturing and distribution of
the product in question. Undertaking
the creation of a licensed item,
regardless of the product, requires a
significant investment on the part of
the licensee; an investment that the
licensee must be confident can not
only be recouped, but will generate
a profit.
Confidence that your property will
meet that criteria is the primary
factor that leads to a sale. No matter
how cute or adorable the elements,
regardless of the statistics you cite,
or the current popularity of the
property, belief that your property
will generate a profit is the single
most important factor that must to
be communicated to the licensee.
The question therefore, is what
essential information must be
transmitted by licensor to the
intended licensee in order to achieve
success?
The most important element a
property must possess is that of
consumer awareness. An unknown
property is almost certain to be of

Art licensing notwithstanding, the


overwhelming factor that generates
licensing interest is the fact that
a property enjoys either mass
awareness, or is alluring to a specific
audience.
Why? The reason is a basic factor of
licensing: belief that a property has
the ability to generate sales if applied
to a product, which is (usually) only
possible if the property in question
is both known and has a base of
consumer support. By demonstrating
that your property embodies both
qualities, it is likely that the property
can be successfully licensed.
Another critical factor is timing.
Most successful properties follow
a curve in terms of their licensing
appeal. In the early stages it is an
unknown entity, and enjoys no
consumer awareness or appeal.
With increased exposure and the
building of a consumer base of
support, the property is transformed
into a merchandisable entity.
Usually properties reach an peak of
popularity at which point they often
begin to go backwards, ultimately
suffering a significant decrease or

TOTAL LICENSING NEW EUROPE


total loss of consumer support.
When this occurs, the property
will either decline in prestige, and
is capable of only sustaining a
marginal level of licensing interest, or
becoming completely un-licensable.
Therefore, when selecting a property
to license estimating where a
property is in its lifecycle can be
as important as choosing which
property to license.
As with all things in licensing, there
are exceptions to this rule. The most
notable are those properties that
continue to engender consumer
support often referred to
as evergreen properties and
properties, such as corporate
trademarks, and sports entities, that
are often not subject to current
trends or style, nor rely on media
exposure as their primary base of
exposure.
In addition to the issues of awareness
and timing, another essential element
that factors into the property
selection equation is the question
of a propertys appeal. Perhaps
more subjective then judging either
awareness or timing, a propertys
overall appeal is often a key factor by
which a property is judged.

Attraction is defined as the power of


arousing a sympathetic response. A
propertys appeal encompasses more
than simply the response it evokes
when first encountered. Appeal
incorporates those qualities of a
property that are obvious and those
which may be obscure. The ability to
accurately interpret the fundamental
attributes that collectively comprise
its appeal will more often lead to
selection of a property best suited to
the needs of a licensee. Conversely,
licensors who correctly assess those
factors that are the foundations of a
propertys appeal are more likely to
develop achieve success with their
licensing program.
The following are several examples
that demonstrate that correctly
identifying the key characteristics
that make up a propertys appeal,
from the perspective of either
licensor or licensee, will increase the
likelihood of success.
Those examples that best illustrate
that correctly comprehending a
propertys appeal can make the
difference between success and
failure, I am intentionally using
examples from licensings early years
all, way back to the 1980s. Also

known as the Dark Ages, as it was


a time before desktop computers,
cell phones, BlackBerrys and the
existence of the worldwide web;
back then tweeting was something
only birds did. Lets start off from the
perspective of the licensor.

M*A*S*H

During the eight years of this wildly


popular television show, it was aired
weekly, Monday nights in the 8:00
PM time slot on the CBS Network.
M*A*SH was also being syndicated,
via local channels, twice a day in
every US television market across
the country. Its weekly audience
(primetime plus syndication) was
somewhere above 250 million
people. New to the 20th Century Fox
Merchandise Department, given the
enormous audience for this show,
I decided to attempt a licensing
resurrection, and bring M*A*S*H
product back to the market; product
not seen for the previous to five
years.
Undeterred by the fact half-hour
sitcoms were and still are perhaps
the most difficult media based
programmes to license (if you were
to put titles of all the successfully

39

TOTAL LICENSING NEW EUROPE

licensed sitcoms end to end the


line would not reach from here to
there), but given its huge audience
and significant popularity I still felt it
was worth a shot. Researching the
Fox Licensing Achieves (a rather dark
storeroom in the bowels of the Fox
executive office building the same
facility that in Hollywoods heyday
had been the personal playground of
film moguls such as Darryl Zanuck)
for samples of previously licensed
M*A*SH products, I came across
a yellow T-Shirt featuring a rather
large plastic transfer of Alan Alda
as Hawkeye Pierce. My immediate
reaction to the product was an
overwhelming sense that someone
made a series error in judgment as
to what were (and are) the most
appealing qualities of this show.
In analyzing what were the
rudimentary components of the
shows appeal, it was my opinion that
they were the shows collective cast
as an ensemble, not on an individual
basis - its army setting (which war
was being fought was irrelevant),
and the appeal of the shows logo.
Armed with this analysis I focused
the licensing program on use of the
following materials: the M*A*S*H
logo, the 4077th division number, the
term U. S. Army, availability of a red

40

cross, and use of the cast in the form


of a group photograph - prohibiting
the use of individual cast members.
The merchandising of M*A*S*H
was an overnight success, if you
define overnight as nine months
of begging every T-Shirt company in
the country to take on the license.
I achieved my first licensee (T-Shirt
manufacturer) by promising to
replace his M*A*S*H license with
any other Fox property of his choice
under the same terms - $2,500
advance and a $5,000 guarantee.
Within eighteen months, and after
expanding the license to include
all apparel, Fox had received over
$1.3 million in royalties.Yep, it
was the army theme, use of only
military colors (e.g. olive drab, khaki,
black), and military designs such as
camouflage,
Deemphasizing the use of cast
images, and focusing on the use of
the highly recognizable M*A*S*H
logo (and the other elements listed
above) were the keys to success.

DYNASTY

A second example of correctly


gauging a propertys appeal concerns
the television show Dynasty. The
initial efforts to merchandise the

show had only produced limited


results. Now head of the Fox
Licensing Department, I was asked
to meet with the shows creator and
producer Esther Shapiro to discuss
taking over the shows licensing
representation. Shortly after the
meeting started I requested to see
what if any merchandise had been
licensed to date. Esther produced
two product samples for my review, a
T-Shirt featuring the shows cast, and
a collector plate that also contained
the same cast shot.
Underimpressed by both items, and
staring at the shirt and plate I had
been handed, I found myself in the
uncomfortable position of having
nothing complementary to say about
either product. Fearful of being
disrespectful, I made no comment,
hoping that Esther would tip her
hand, and (hopefully) reveal her
displeasure with these products. But
no such luck. As the silence began
to turn toxic, it was becoming very
apparent that Esther was expecting
a response from me regarding the
samples I had placed beside me on
her couch, wishing, like loose pocket
change, that these two items would
slip between the cushions and be
forgotten.

TOTAL LICENSING NEW EUROPE


Under the guise you cant lose
business you dont have, I decided to
give honesty a shot, and rendered my
opinion of the merchandising effort
made to date.
Before we go any further it is
important that you know something
about this television show, given that
some of you reading this column
were not born when this show was
being aired. Dynasty was an hour
long primetime drama that revolved
around the oil rich Carrington family
headed up by John Forsythe in the
role of family patriarch, Linda Evans
as his beautiful wife Krystle, and Joan
Collins as the wicked ex-wife. Weekly,
the viewing public was treated to
heaping amounts of eye candy in
the form of lavish mansion settings,
beautiful cars, and chic fashions. For
a brief hour each week you were
allowed to experience the lifestyle
of the super wealthy. With ratings
in the forty plus range, the show
commanded a large and faithful
audience, its greatest appeal being to
women in the 25-45 age range.
The show featured an ensemble
cast populated with a few stars and
a number of relatively unknown
but beautiful actors. I could not
understand what would motivate a
female consumer to purchase either
the shirt or the collector plate, which
quite frankly looked like the pictorial
definition of the word cheesy. Using
well-chosen words I offered my
evaluation of her samples, stating I
saw little to no connection between
this merchandise and her television
show. I then outlined a different
approach to merchandising the show;
creation of the Dynasty Collection
as the umbrella theme under which
all licensed merchandise would be
developed and marketed. Dynasty
dripped opulence and style, and my
opinion that was what its licensed
products should reflect.
Dynasty was all about glitz, glamour
and money. The shows main
characters, one more depraved then
other, and the soap-opera styled
story line notwithstanding, Dynasty
was the very definition of escape

TV. As such, the show provided the


perfect platform for launch of the
Dynasty Collection. The concept
worked; merchandise that reflected
the shows extravagance and taste,
but available at affordable price
points: Neiman Marcus class at Target
prices.
Use of cast images played a vital
role in the success of the Dynasty
Collection, not as fodder for use on
products or packaging, but as the key
marketing images promoting the sales
of various items. With the support of
Linda Evans the Krystal perfume line
reached annual sales of $34 million,
and the Dynasty Collection After Six
tuxedo line, marketed with point of
sale materials featuring John Forsythe
and other male members of the
cast dressed in their midnight blue
Dynasty Collection tuxedos, became
the companys most popular tuxedo.

BARNEY

The last example concerning the


importance of analyzing a propertys
appeal is from the perspective of
the licensee. The property is Barney,
a purple dinosaur, whose television
show spawned a licensing program
that generated billions of dollars in
retail sales of its licensed products.
To generate exposure for Barney,
the creator went to the expense
of producing direct to retail video
programs. Catching the attention of
a local PBS station,
Barney became a
PBS network show
featuring a costume
clad Barney. Aimed
at the very youngest
viewers, the show
was a big hit with
children, but early
on encountered
some backlash by
adults who found the
character unpalatable.
The property failed
to address what was
becoming a growing
audience of parents
who questioned
the entertainment/

educational value of Barney, and


Barney ultimately transformed from
a must have license to a property of
little or no interest.
Most licensees who obtained Barney
licenses at or near the beginning of
the propertys licensing program
enjoyed significant financial success.
Conversely, a number of companies
who were late in acquiring their
Barney licensing rights fared less
well due in large part to a significant
slowdown in Barney retail sales.
One reason for the drop in the sales
of Barney products was refusal by
those parents to purchase Barney
products because of their growing
dissatisfaction with the character.
For those companies who failed to
correctly judge Barneys appeal or
the growing lack thereof, was the
difference between financial success
and failure.
Correctly judging the current
and future levels of awareness,
appropriately estimating timing as to
the level and direction of popularity
and accurate evaluation of appeal, are
invaluable tools in selecting the right
property to license or determining
the direction, style and tone of its
licensing program.Yes, financial terms
are also a critical factor, but lets leave
that subject until next time.
Happy Licensing,

41

TOTAL LICENSING NEW EUROPE

By Danny Simon,
President of
The Licensing Group
danny@tlgla.com
+1 323 653 2700 x20

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45

TOTAL LICENSING NEW EUROPE

HOW TO CHOOSE THE RIGHT LICENSED BRAND


As part of an ongoing
Bulletin series, we are
publishing a series of market
fact-finding materials in
which professions working in
the Russian licensing market
will share their experiences
and give advice on choosing
brands for manufacturers
and distributors who want to
begin working with licensed
products.
Our first Bulletin expert is Paul Tash, head of Plus
Licens in Russia and the CIS.
Paul will talk about when to place movie-related
product on shelves and will also look at what support
options there are available for brands.
TLNE: Paul, could you please
tell what franchises are and
what are the key features of
their life cycles?

Paul Tash: Trends, in general, as well


as personal consumer interests, are
constantly changing. In order for the
product to be successful, you need
to have a good understanding of its
life cycle.You need to know, whether
the new brand and its characteristics
would be compatible, in order to

46

form the licensed product. There


are three types of licensing projects:
short-term, medium-term and
long-term. Each kind has its own
peculiarities.
Short-term projects. In terms of
movie licenses, the duration of a
typical project, is usually around
six months. If a franchise is a great
success, this period may be longer.
The direct benefit from a license using
symbols or images from a film is the

strong marketing support from film


studio who invest a great deal into the
promotion of films.
When choosing a movie, you need
to remember not only its massive
marketing support and the target
audience, but it is very important to
choose the right time to launch the
product to coincide with the release
of the film.
You need to make sure that you have
enough time to develop a product and
get it onto retail shelves and do it in
parallel with the release of the film.
Delays of even a week could be crucial
and thwart all the plans for sales.
Ideally, it is better to place the goods
at retail two or three weeks prior to
the release of new movie. In this sense,
logistics, coordination and planning
actions are very important.
A good example of a successful
animated film is Madagascar 3. The
Dreamworks studio invested huge
amounts to promote the movie,
which was a great support for
licensed products as well as for joint
promotional partnership.
Medium-term projects. Here, I would
recommend using those characters
and brands that are actively supported
on TV, for example, cartoon series.
Major projects on TV generally
need to have 26 to 52 episodes. This
creates a high brand recognition and
consumer loyalty to it.
Success on TV is a combination of
factors such as the channel selected
for broadcasting, the target audience
and the right timing of when the series
airs. A good example is Redekai. Plus
License, together with the Cartoon
Network expanded activity around
this brand in 2012, both on terrestrial
and on cable channels and promoted
it through merchandising and toy
programs.
Long-term projects. These are socalled evergreen franchises, based
on the years of image and design.
They are more flexible in respect of
product life cycle and are not tied to
a particular high-profile event such as
the launch of a new film.

TOTAL LICENSING NEW EUROPE

If you are looking for an evergreen


franchise, then ideally it should be a
brand name or a character where the
level of recognition is very high and is
passed from generation to generation.
It may be beloved by grandmothers,
daughters, sons, fathers and mothers.
A good example here is Karlsson on
the Roof, whose popularity in Russia
has been very high since the 1960s.

TLNE: On what should the


manufacturer focus when
choosing a franchise or
license?

Paul Tash: If you choose an existing,


well known character, check the
number of companies that have
already purchased the license and see
whether synergy is possible. Check
whether there are TV ratings and
which marketing campaign supports
this brand. An additional plus will
certainly be TV support or that fact,
that the second part (sequel) of a film
is planned.
If the movie is new, please pay attention
to whether there are any promo
campaigns within retail networks.
Also, find out how successful the film
was in other countries, and what the
experience was.
It is possible, that there are already
resources that will positively impact
on your sales.

In addition, dont forget about Internet,


mobile and interactive brands and
characters. They are not tied to TV
or film, but may have high consumer
loyalty.

TLNE: What should one pay


particular attention to?

Paul Tash: It is best to do some


research. Check the level of awareness
among consumers, what can you learn
from a variety of sources in the market
and read all the information that is
available on the topic. Some sources
may not be sufficiently objective so
beware of this. Dont forget that
the opinion of others is also a good
source of information.

their buying habits and the behavior of


the decision-maker.
My general recommendations are
as follows. Be sure to explore all
information that can be found
regarding any brand, character, or
movie that youre going to purchase.
Explore the market before making
a final decision. Make sure that this
brand is compatible with your brand
and product and meets your marketing
strategy, and set time frames, most
importantly the date that the product
should be on the shelves in the store.
Be open to everything new. Most likely,
the use of a license will help give new
life to your product.

TLNE: How should a local


manufacturer, for example a
manufacturer of a difficult
product to license, such as
dumplings, choose a brand for
their product?

Paul Tash: Speaking of dumplings,


this is a typical Russian product and it
would seem strange if it was branded
with some foreign character. Perhaps,
is it worth choosing something
typically Russian that has support
on TV, or is well-known from Soviet
animation of the past. The choice will
depend on the target audience and

47

TOTAL LICENSING NEW EUROPE


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49

TOTAL LICENSING NEW EUROPE

Trkiye

To find out
more about
the state of the
Turkish licensing
marketplace,Total
Licensing New
Europe talked to
Hakan Durdag
who has two
licensing agencies
- Licens AS and
Sinerji - operating
in Turkey.
He gives us his
impression of the
market and some
of the issues that
anybody looking
to do business in
Turkey should be
aware of.

50

TURKEY

First of all, perhaps you can tell


us about the market in terms of
who the main licensors, licensees,
agents and distributors are?
HD: The leading licensors include
Warner Bros Consumer Products,
Cartoon Network and Disney. In
addition, leading European football
clubs such as FC Barcelona, Real
Madrid, Manchester United and
AC Milan are popular. Beyond
these Mattel, 20th Century Fox,
Nickelodeon, Rainbow and Iconix are
key licensors. In terms of licensees
there are quite literally hundreds
of Turkish companies that produce
licensed product. However there are
some that are particularly well-known
for utilising licenses, These include

Yaygan Canta, Zorlu Textiles, Hakan


Canta and Donmezler.
And so to agencies. The leading
agents in Turkey are Lisans AS, Sinerji
Lisans Ltd. and Gamma Medya. Other
agencies operating in the marketplace
include companies such as Filma and
Max Licensing.
Finally in terms of distributors,
the major toy distributors include
Adore, Samatl, GP, Sunman and
Neco Oyuncak, whilst Arkan is a
leading distributor of watches and
sunglasses.
Could you tell us what you believe
to be the top licenses in Turkey at
the moment?
HD: Looney Tunes is the No. 1

classic property in Turkey, thanks to


its ability to appeal to both genders
and all age groups. In addition,
Tom and Jerry always enjoys wide
recognition.
DC Comics has become the most
popular fashion trend among
teenagers and adults and the brand
has been inspiring designers and fast
fashion retailers.
Other big brands and properties
in Turkey include Ben 10, Bakugan,
Monster High, Disney Cars and Winx.
In addition, Ice Age is becoming
increasingly popular.
Could you tell us about your
business. What do you think sets
you apart from others in the
market?
HD: We have two separate agencies
- Lisans AS and Sinerji Ltd. Through
both of these, we have an in-depth
understanding of brands and the
licensing process and how to build a
propertys popularity over a period
of time. We are also extremely proactive and work hard to come up
with creative ideas to support our
licensees. Our structure is designed
to fulfil the needs of licensors and
licensees alike and we have a large
team of seasoned professionals. This
really guarantees a highly professional
service to anyone we represent.
We are experienced in launching and
building brands from scratch with a
360 approach and creating consumer
awareness and delivering programs
that are strong at retail.

TOTAL LICENSING NEW EUROPE


What do you see as the problems
or difficulties the licensing industry
faces in Turkey?
HD: Counterfeiting is a massive
problem studies show that Turkey
has the highest level of pirated goods
on sale per capita after China. It is
also very easy for counterfeiters to
register copyright. As a result, if there
is any delay in applying for coverage
with the Turkish patent authorities
then the rights holder may find
it has already been registered, a
situation that is very costly and timeconsuming to resolve and correct.
Therefore, Turkey should be at the
top of every licensors list when
it comes to registration, not least
because Turkey is the manufacturing
base of Europe, so counterfeit
goods can quickly spread across the
continent.
Another difficulty is that the licensing
market in Turkey is still growing and
licensees need to be educated about
what the process involves and the
benefits that it can offer. This has
undoubtedly got better over the last
decade or so but, as agents, it is still
something we spend a lot of time
doing. General policing of partners
is also necessary, as many companies
like to act independently, making it
important to keep an eye on things
that you would expect, including
anything such as royalty reporting
right up to brand assurance and even
marketing and sales strategies of
the licensed product lines. In many
ways, we take a parental approach
and offer help across the

board, to the point of even having sitdown meetings with long established
companies to help them put proper
accounting procedures in place. In the
long-run, getting everything in place
helps everybody.
This is one of the challenges facing
anyone looking to do business
in Turkey a similar
challenge to that faced by
any companies in new and
developing markets. Over and
above that, however, Turkey
has some of the problems that
are faced by more developed
markets such as such as an influx
of different properties which
can mean limited shelf-space at
retail.
How do you expect the market
to change over the next 12
months?
HD: I see an increase in international
sports licensing, and brand licensing,
as well as more classic properties on
Turkish shelves as retailers become
less eager to try out new brands. This
is similar to issues faced throughout
Europe and other more developed
licensing markets.
What opportunities are there for
licensors and licensees in Turkey?
HD: Turkey now has an established
licensing market but it is somewhere
between infancy and maturity. This
means there is plenty of room for
growth and therefore opportunities
to be exploited.
However, per capita spending at
the moment is extremely weak
and the typical consumer has a
quarter of the spending power
of a consumer in an established
Western European country. Allowing
for this, expectations
must be kept in
line with
the reality
of the
Turkish
situation,
which is at
the moment
every category is
years behind in terms of
per-capita consumption

Trkiye

quantities of average Western


European countries.
However, one significant advantage
that Turkish licensees can offer to
licensors is that they often operate
in CIS countries, the Middle East and
North Africa, thereby offering a good
route into these developing markets.
Is there a licensing trade body in
Turkey?
HD: No, certainly nothing like LIMA.
Finally, can you tell us about the
toy industry in Turkey?
HD: The toy industry is still very
generic driven if you look at it in
terms of volume, with inexpensive
non-branded toys manufactured
locally or in the Far East filling the
shelves.
However, the rapid opening of
shopping malls in Turkey over 350
at the last count means that the
number of specialist toy retailers such
as Toyzzshop is increasing and these
shops now carry a lot of branded and
licensed toys.
In terms of toy categories, action
figures for boys and dress-up dolls for
girls are most popular.
Educational toys do not perform well
at the moment, whilst branded games
are suffering as they are an easy
target for counterfeiters.

51

TOTAL LICENSING NEW EUROPE

Trkiye




,
Total Licensing



Licens AS Sinerji.
O


,


,


.

52

,
,
?
:
Warner
Bros Consumer Products, Cartoon
Network i Disney.

, FC Barcelona,
Real Madrid, Manchester United i AC
Milan.
,
Mattel,
20th Century Fox, Nickelodeon,
Rainbow Iconix.
,

, . ,
. Yaygan
Canta, Zorlu Textiles, Hakan Canta i
Donmezler.
. Lisans AS,
Sinerji Lisans Ltd. Gamma Medya.
, ,
Filma Max Licensing.
,
,
Adore, Samata, GP, Sunman
Neco Oyuncak,
Arikan
.

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?
:
,
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.
DC Comics

,
.

Ben 10, Bakugan, Monster High,
Disney Cars Winx. , (. Ice Age).


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,
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: - Lisans AS Sinerji Ltd.

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, .


, 360, ,

.
, ?
: - , , ,


per capita.
.
- , ,


, , ,

.
, ,
,

,
.
, -

TOTAL LICENSING NEW EUROPE




,
,
.
, , ,
.
,

,
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,
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Trkiye

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.
,
350,
, ,
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,
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-
.

53

TOTAL LICENSING NEW EUROPE

Trkiye

OTTOMANIA

By Goran Krnjak
Editor
Total Licensing New
Europe
goran@totallicensing.com

The Empire Strikes Back


The eyes of the world economy,
including the licensing industry, are
focused strongly on emerging markets and Russia in particular - but
there is another country in New
Europe which certainly deserves
attention: Turkey.
Turkey has 80 million inhabiatants
and a GDP of over $960 billion, and
is just as worthy as Russia of being
under the global spotlight. This is for
several reasons:
Despite the crisis and the slow down
in the European and world economy,

54

Turkeys economy has for several


years now seen steady growth (8.6%
in 2011);
Turkey is a European manufacturing
base;
Thanks to its geographical position
(but not only that) Turkey is a hub
for the EMEA region, linking Europe
with the Middle East and Africa;
Turkey is very attractive to foreign
investors, resulting in the strong
presence of hundreds of multinationals that consider Turkey as one of
themost important markets. Many

companies have selected Turkey as


the base for their EMEA operations
Turkeys licensing business is fairly
developed, with hundreds of Turkish companies manufacturing licensed goods - in this resepct, Turkey is far ahead of Russia.
While there is still much room for
growth of the licensing industry
and production of licensed goods,
the main problem is counterfeiting.
However, this is a no more a problem that it is in other countries in
this part of the world, and Russia.
(Please refer to the interview with
Hakan Durdag for more about the
Turkish licensing market.)
However, the motive for writing
this article is something that on
first sight has nothing to do with
licensing: Suleiman the Magnificent,
the famous Ottoman Sultan, the
Conqueror and ruler has returned
to the region in a big way. And in a
very modern and unconventional
way. Without firing a shot or sabers
ahead, Suleiman the Magnificent,
four and a half centuries after his
reign, again dominates areas of the
former Ottoman Empire, and beyond. But how?

TOTAL LICENSING NEW EUROPE


Through a TV show! At the beginning all kinds of debates and protests
were created because of the way on
which producers show his life in the
first episodes of TV series.
The TV soap The Magnificent Century is based on the life of a famous
Sultan Suleiman the Magnificent,
although to be precise, is developed
through Suleimans preserved love
letters. Known as the Lawgiver
among Turks, Suleiman is regarded
as a sacred character, who ruled
the Ottoman Empire from 1520 to
1566. The media announced the TV
show as a historical series, though
the producers of the show from
the start explained that the show is
actually fiction inspired by history.
Success of the TV series means that
viewers have been taken by storm in
the 45 counties it aurs in, and ratings
are sky high.
The phenomenon, which is popular
from Budapest to Mecca, from Algiers to Baghdad, is being labelled:
Ottomania.
The first big success of Ottomania was recorded with the series
Noor (Silver), and it continued with
Asi (Rebellian), Forbidden Love,
As Times Goes By, 1001 Nights,
What is Fatmaguls fault ? and oth-

Trkiye

ers, up to latest offering The Magnificent Century and Once upon a


time in The Ottoman Empire.
According to a recent Turkishconducted survey, it was confirmed
that 78% of subjects in the areas of
the former Ottoman Empire were
watching Turkish TV series. Every
second family in Turkey regularly
watches the series. In Serbia, the
records show that the second episode of the first season of the TV
series The Magnificent Century
was watched by 1.7 million people

(Serbia has 7 million inhabitants!).


In Croatia, Turkish TV series are
constantly at the top of the ratings.
At the time of writing this article, a
series about Suleiman the Magnificent, broadcasted in Croatia on RTL
television, recorded 8.8% share of
total viewers in the age group of 18
to 49 years.
Broadcasting of this series was
preceded by a strong promotional
campaign, the likes of which are not
often seen in Croatia. In the 15 hour
slot from from 7am to 10pm, the

55

TOTAL LICENSING NEW EUROPE

Trkiye

By Goran Krnjak
Editor
Total Licensing New
Europe
goran@totallicensing.com

56

Croatian national TV station Nova


TV broadcast or rebroadcast six
hours of Turkish soap. At the same
time, RTL broadcast or rebroadcast
seven hours of Turkish soaps.
Some side effects of the series The
Magnificent Century have been
confirmed by two anecdotes. In
Macedonia, the director of the largest mobile operator called the director of local television and announced
that it would no longer advertise on
the television because at the time
when the series
is broadcasted,
the phone

traffic is dead. In Kazakhstan, the


police chief confirmed in a letter
sent to the TV station said he is very
pleased with the series because, at
the time when it is broadcasted,
the number of thefts and robberies
drastically fell.
Earlier there was a lot of talk about
the production quality of Turkish
TV series, but it is obvious that this
is a serious big budget production
now. One episode of the series The
Magnificent Century costs around
$500,000. It is the largest and most
expensive television series ever
filmed in Turkey, and shooting of
the first season cost nearly $19.5
million. To build a movie studio cost
around $4.7 million. Because the
local authorities did not allow the
filming at the original locations in
Istanbul, production company TIMS
had to build an entire movie studio
an area of 10,000 m2. The most
money, $1.7 million was spent to
build a faithful replica of the Topkapi
Palace in Istanbul, which for almost 4
centuries housed the administrative
center of the Ottoman Empire. All
attention was paid to detail. More
than 500 costumes for the first season of the series were made of luxurious fabrics, to replica the originals
from that era. All the jewelry worn
in series was hand made by Turkish
masters, and the value of jewelry
made for the series is estimated at
$3.5 million. The main actor, Halit
Ergenc, who plays the role of Suleiman the Magnificent, is paid 30,000
euros per episode. For next season,

series producers have been negotiating with Brad Pitt, to play the role
of the Mongol khan. For now unofficially, as possible candidate to take
one role in TV Series is mentioned
Mel Gibson.
From 2001, over 70 Turkish TV series have found their way to viewers
in more than 60 countries, thus creating Turkeys export revenue of $50
million in 2011 alone, with predictions that this will soon be 10 times
higher, and reaching, on the wave of
present success, the expected $500
million. The company Global Agency
is the distributor of the most popular Turkish TV series, and a major
player in this area is company CEO,
Izzet Pinto. Global Agency promotes
Turkish series around the world,
from Cannes to the Ukrainian Kiev
to America.
The success of Turkish series, particularly the The Magnificent Century has very much impacted on
the Turkish economy, with Turkish
film being one of the main drivers in
the economy. Apart from the fact
that such big productions employ
thousands of people, the benefit
is also expensive advertising space
can be sold in broadcast time, as
well as sponsorship. And promoted
products definitely sell well. Goldsmiths and jewelers made replicas
of jewelry from the series and saw
success with them. The owner of the
museum which holds clothing and
jewelry worn in the Ottoman Empire, Esat Uluumay, confirmed that
the rich holdings of the museum in

TOTAL LICENSING NEW EUROPE

Trkiye

the last year were seen by thousands


of fashion designers from Europe
and America.
Turkish tourism has great benefits.
The Topkapi Palace, which is annually visited by 3.5 million tourists,
was in the first 6 months of 2012
visited by 8 million people! Many of
the millions of passengers coming to
Turkey came by national air carrier
Turkish Airlines.
In countries where the Turkish TV
series are shown, travel agencies
reported selling better than ever
packages to Turkey. Also a significant
increase in sales of books with subjects of the Ottoman Empire have
been recorded, even cookbooks
with recipes for Turkish cooking
have seen increased sales, and language schools have seen a strong
increase in enrollment for Turkish
language courses.
Coincidentally or not, Ottomania
is used by the Turkish companies
seeking business opportunities in
countries abroad. For example, in
Croatia this summer, there has been
a very visible advertising campaign
promoting holidays in Turkey. A
number of Turkish travel agencies
are established in the country. Turkish Airlines is very active, and almost
every week news is heard of a Turkish investment or takeover of a company in Croatia - in various sectors
- from tourism to energy.
Japanese television is recording a
documentary about Turkish television production as the growth
engine for the Turkish national econ-

omy. A prominent worldwide economic magazine estimates that Turkish TV series are used to strengthen
Turkish influence and position in the
Europe and the Middle East.
And while for Western counterparts, it might seem a bit unusual
that the Turkish series are so successful and influential in the area that
had once belonged to the Ottoman
Empire, the explanation is quite
simple: more than four centuries of
Ottoman rule and influence has left
an indelible mark on the areas of
the former empire where a shared
history and culture is now revealed
as an asset. Viewers are obviously
eager to watch the non-Western
series for a change.
Personally, I cannot remember a
time - save for back in the
eighties when Dallas and Dynasty were so popular - when
a TV show has caused such
hysteria as has this TV series.
Latin American soap operas,
which were very popular in the
region, are out. Ottomania is in.
The success, influence, and economic results of the Turkish TV series in Turkey and the whole region
cannot be measured or compared
to any currently existing licensing
program in this part of the world.
Although licensed products based on
the series The Magnificent Century
and other Turkish series (at least
officially) do not yet exist, a small
indicator of the potential for the
creation of such licensed products is
on the streets of Turkish cities.

Here you can see young people,


influenced by the TV series, wearing
T-shirts with the emblem of the Ottoman Empire, alongside the inscription: The Empire Strikes Back!

57

TOTAL LICENSING NEW EUROPE

LICENSING@RUSSIA SET FOR MARCH 2013


Russia is the smallest but most prosperous of the BRIC markets, with the
highest GDP per capita and a tangible
upper middle class expected to
comprise 82% of all households by
2015.
In December 2011, Russia was the
best performing growth economy in
Europe and in 2012 the country
looks set to weather the global
economic storm better than Turkey,
Brazil and India.
For this reason, the first-ever Licensing@Russia took place in Moscow
last March and will take place, once
again in Moscow in March 2013.
Russian Consumers appreciate quality
and are more and more brand
conscious, putting pressure on manufacturers and retailers to get both
the value proposition and the retail
environment right. Modern retail,
although still small in comparison to
traditional retail, is expanding fast and
becoming more powerful.
Russia is the ninth largest economy in
the world by nominal value and the
sixth largest in terms of purchasing
power. Russia is now amongst the top
ten markets for major Hollywood
film studios and for the cinema industry in general.
Licensing@Russia 2012 was first
ever effort to bring the international

licensing community into this part


of the world. Most exhibitors were
surprised at the quality of visitors and
with the business deals which
emerged from the event. There were
more than 350 properties and brands
on show, and participants included
Walt Disney CIS, Dreamworks, Hasbro, Turner CN, Warner Bros, Nike,
Megalicense, Art & Design RU, Carmen Ariza, Studio 100, Brand Extensions Russia,Vipoland, All Media, Fremantle, Sanrio, Mondo TV, Bella Sara
Company and others.
In addition, Riki / Nickelodeon was a
general partner in 2012. Plus Licens,
ELC and Rio participated as event

partners. LIMA was the official educational provider.


The upcoming event will be expanded
to include the participation of Splice
the Society of Product Licensors
Committed to Excellence. Further
new exhibitors expected to be showcased include the Victoria & Albert
Museum with their extensive art program, Michael Searle who will bring
his lenticular programs to the market,
Dependable Solutions, the IT leader
in terms of brand solutions and Brand
Extensions Russia.
The upcoming Licensing@Russia
event will also see a greater focus
on Corporate trade mark and brand
licensing as well as Art licensing. In
addition, the focus will be on different
types of licensing as well as on nonstandard opportunities in character
and entertainment licensing.
A full conference program will be announced at the end of October.
For more information visit:
www.licensingshowrussia.com.
Contact person: William Krnjak
william@limaneweurope.eu or
info@licensingshowrussia.com.
Tel +385 1 4830 561
Mobile +385 99 813 94 69
Fax +385 1 4830 514

58

TOTAL LICENSING NEW EUROPE

2013
,

,

- 82%
2015
.
2011

2012

, .
Licensing@Russia


2013 .
,

,
.
,
,
.

.

.

Licensing@Russia 2012
.


-
. 350 Walt Disney, CIS, Dreamworks,
Hasbro, Turner CN, Warner Bros,
Nike, Megalicense, Art & Design RU,
Carmen Ariza, Studio 100, Brand
Extensions Russia, Vipoland, All
Media, Fremantle, Sanrio, Monto TV,
Bella Sara Company .
, Plus Licens, European Licensing
Company Rio
Riki / Nickelodeon
2012. LIMA -

.
Splice -
,
.


Victoria & Albert,
, Michael
Searle
, Dependable
Solutions, -
Brand Extensions
Russia.
Licensing@Russia
,
.
,

,
.

.

:
www.licensingshowrussia.com.

William Krnjak
william@limaneweurope.eu

info@licensingshowrussia.com.
: +385 1 4830 561
: +385 99 813 94 69
: +385 1 4830 514

59

RUSSIA

TOTAL LICENSING NEW EUROPE

The State of the


Licensing Market
Vestnik is the leading
Russian information
internet portal, dedicated to the licensing
market, which provides
the most exhaustive
review and analytical
information about different brands, licenses
and licensed goods with
an accent on popular childrens brands.
Together with latest
market news Vestnik
presents topical survey
results, expert opinions
and appraisals, market
development forecasts,
ratings of license brands,
licensed TV content and
products in the licensing
market of Russia.
www.licensingrussia.ru

The first ever licensing show in


Russia, Licensing@Russia, was held
in Moscow in the middle of March,
2012. It revealed the different views
of Russian and international experts
on the Russian industry, which proves
the necessity of constant exchange of
views. All the experts agreed that the
Russian licensing industry is currently
one of the most attractive in the
world.
Russian experts, the pioneers of
national licensing who took part at
the show, do not consider the market
to be closed. They are certain that at
this level of licensing business, Russian
entrepreneurs are interested not
in the basics of licensing, but in new
practices and possibilities that appear
in todays industry. Many big Russian
companies have long had licensing
properties in their portfolios. The
phase when we need to talk about
the advantages of licensing is left
far behind. Nowadays, most of the
market players know what licensing is.
The amount of goods you can see at
the civilized retail chains is more than
enough to say that the Russian market for licensed goods has formed,
says Ilya Popov, general producer of
Riki group of companies.

Solving problems
According to experts and licensees,
the main problem of the national

60

licensing industry is piracy. However,


international experts say that piracy
develops in direct proportion to the
development of the licensing market,
and that the main influx of counterfeit into Russia is to come. Interestingly, it is typical of Russian licensees
to leave the piracy fight to authorised
state committees and license agencies.
The main methods in the counterfeit
struggle are to register and inform,
says Yulia Rubakova, the head of the
Russian office of ELC, one of the
leading licensing agencies in Central
and Eastern Europe. Our partners
are obliged to register the trademark

and their products with the Russian Agency for Patents and Trademarks. We work side by side with
the Customs division that regularly
reveals counterfeit, and we always ask
retailers to check if their suppliers
have licensing agreements. We also
regularly take part in relevant conferences, workshops and fairs.
The other kind of piracy is the socalled royalty piracy, sometimes
typical of Russian companies. International experts proved to be familiar
with it. The closed internal reporting and impossibility of actual sales
external auditing adversely affects the
image of Russian licensing market. In

TOTAL LICENSING NEW EUROPE


this case, it is a licensing agent who
should be responsible for choosing a
reliable licensee.
Of course, we need to fight piracy in
Russia, believes Roman Fedotov, development director of RIO Licensing.
There are many ways to do it, from
holograms glued on products, to the
right of a licensor and his representative to carry audit, implied by licensing agreements. The best method
to avoid royalty-piracy, though, is to
thoroughly choose licensees and not
to sell intellectual property rights
to companies whose honesty you
question.
Within the show, the communication
among industry professionals helped
all the participants of national and
international markets that plan to
continue working in Russia realise
the current condition of the licensing market. According to Russian
experts, the Russian licensing market
is formed but it is necessary to properly organize and analyze its work.
Russia is indeed the focus of public
attention, resumes Zakhar Nazarenko, director general of Megalicense
licensing agency. All world licensors
yearn to enter the Russian market.
Everybody thinks that Russia is a fastgrowing market, a kind of Klondike,
where you can come and get easy
money. But this is not true. In Russia
you need to work.
It would be untrue then, to say that
foreign licensors look forward to
easy victories in the Russian market.
According to licensors presentations,
their plans are quite the opposite.
All franchises are carefully selected,
and precise promotion strategies are
developed on the basis of peculiarities of national media-channels.
Licensing agents that represent their
interests and know the market play
first fiddle.

Rio Licensings philosophy


The indisputable privilege of Russian
licensing agencies is the knowledge of
local licensing business specifics. Oftentimes, an agents proper approach
in developing brands and creating
licensing programs determines the
success of international franchises on
local markets.

Along with big international agents


that entered the then wild Russian market of the 1990s, the local
agencies recently began to emerge
in the country. The first of them was
RIO Licensing. Today it is an agency
that confidently operates in the
market. With its wide experience,
RIO Licensing has carried out many
successful licensing projects.
Talking about the philosophy of RIO
Licensings work, Roman Fedotov, its
development director, states that, in
terms of the agencys strategy, it is
of vital importance to define the approach of choosing brands.
We are focused on brands that have
had tangible success already. That is a
part of our philosophy. For instance,
one of our franchises, Babar, is a
French elephant with an iconic history that has been around in Europe
and elsewhere for 80 years. It really is
an evergreen property. The values it
is based on are timeless the importance of family, respect and leadership
and are topical at any time, in any
country. We picked Babar, because
we believe in its strength as a brand.
Our other property, Hello Kitty, is
a brand, whose popularity is proved
by years of success in many world
markets.
One more brand from our portfolio,

Pocoyo, we can undoubtedly call a


phenomenon in the local market,
continues Roman Fedotov. Despite
that it has not yet become popular
worldwide, in Spain it is almost a
national hero. Seeing its success, we
decided to introduce it in Russia.

In your portfolio there is place


for competition
According to RIO management, every
franchise RIO Licensing is currently
working with is unique in its own way.
The brands owned by the agency are
aimed at different age groups. That
is the main principle the company
follows when choosing new properties. There is one property for every
age group in our portfolio, explains
Roman Fedotov. We do not pick
conflicting brands. All our franchises
complement each other. Thus, Babars
target audience is 80% boys aged
4-10 years old. It is supplemented
by our other brand, Maya the Bee, a
time-proved franchise, aimed at girls
of the same age.
Roman Fedotov thinks that the way
the agency uses to choose properties enables it to offer several brands
to one manufacturer. Each of those
brands is suitable for a particular
age group. Along with wide range
of brands for 2-6 year-olds, we have

61

TOTAL LICENSING NEW EUROPE


we sell our clients an unsuccessful
license, no one will ever cooperate
with us, and we aware of that. That is
why we seek long-term mutually beneficial relations among right holders,
licensees and consumers.

Russia is following trends

a prospective license for boys aged


10-12, Monsuno. Before choosing this
property, we have long watched its
performance abroad. It was important
for us that initially this project was
created with the support of toys and
games manufacturers.

A global strategy with a


local approach
Roman Fedotov believes, that a
limited number of brands that supplement each other in RIO Licensings
portfolio makes it possible for RIO
Licensing to devote enough attention
to every franchise. We can focus on
the development of several brands,
being considerate to each of them,
says Fedotov. Every brand has its
own way on the market. We want
to sell strong brands, that is why we
care about their promotion together
with the right holders. Every franchise
is considered as our own by us. This
attitude distinguishes us from many
other agencies that solely sell rights.
RIO Licensing rules the brand development marketing strategy, carries
regular monitoring of brand position and promptly reacts to the data
received from the market.
RIO Licensing was founded simultaneously with the development of the
civilized licensing market in Russia,
says Oleg Kimyashov, director general
of RIO Licensing. This enables us to

62

be experts of the local market today.


RIO Licensing staff took part in the
development of super-successful Russian project Smeshariki. On the basis
of the success they attained, Oleg
Kimyashov and Roman Fedotov, the
founders of RIO Licensing, defined a
complex approach to brand management. The approach is based on regular research of the market, customers demand and preferences.
Our own market research helps us
understand the current condition of
the Russian market, explains Roman
Fedotov. We invest in this research
and get the real facts that enable us
to make right management decisions.
According to Rio management, we
secure the due positioning of RIO Licensing at the world arena and builds
proper relations with international
partners. Rio Licensing is distinguing itself for being a business partner
to Licensors that act with a global
view and a local action. We pursue
in creating business opportunities
and supporting the activities with a
strong marketing plan. Licensors find
in Rio Licensing that missing part to
approach strategically the russian
territories. This is one of the key of
our success.
RIO Licensings motto is Development and responsibility. Roman
Fedotov believes that licensing business is shall base on confidence. If

Experts in the Russian licensing


market are sure that prospects for
the national industry are positive.
According to experts, the licensing
market is growing by 12-15% a year.
Todays market value of around $2 to
3 billion, in 7-10 years can increase in
several times. As manufacturers are
now certain about the advantages of
licensing, TV channels help develop
licensing content, the demand for
licensing goods increases annually, the
industry develops in all its sectors.
The reviving national animation give
birth to strong local brands that are
able to present Russia at the world
market.
According to the experts, the licensing of life-style brands and non-media
brands stemming from the Internet
will trigger in the next few years.
New communication technologies
enable licensees to less depend on
TV, as well as defy stereotypes of low
profitability of brands that are not
based on animation.
Experts explain that the reduced
trade imbalance between Moscow
and other regions of the country is
change for the better. Major national
and international retailers are now
interested not only in million-plus
cities, they are opening their chains
in small cities, thus, promoting
licensing products to other Russias
regions.We have passed the critical
point of retail development in Russia,
says Ilya Popov. He is positive about
the further growth of civilized retail
chains throughout Russia.
The positive dynamics of Russian
industry is supported by steady
structural growth. Year after year,
the number of new players on the
Russian market increases, says
Zakhar Nazarenko, director general
of Megalicense licensing agency. They
start working with brands that for
some reason were not taken by more
experienced colleges of theirs.

TOTAL LICENSING NEW EUROPE


As licensing develops, Russian franchises, both modern and older soviet
ones, get a chance to fulfill their
potential. According to Ilya Popov, it
is of crucial importance to satisfy the
growing interest of Russians in terms
of national brands by licensing local
projects. In the next 5-7 years the
share of Russian projects will increase
in many times, says Popov.

Local brands
The plans of Soyuzmultfilm animation
studio to integrate into the growing
Russian licensing market are very
encouraging. After 20 years in the
doldrums, the company hopes to get
additional sources for their new projects. One of the experts who offered
to advise Soyuzmultfilm on licensing
matter, is Ilya Popov, general producer
of Riki group of companies. He has
successfully produced Smeshariki, the
Russian smash hit.
Sharing his experience, Ilya Popov
says that from the beginning Smeshariki was conceived as a commercial project. The characters were
created in the way that they could
become a strong brand bringing
money and presenting Russia at the
world market. According to Popov,
there was no kids brand equally competitive in several product categories
before Smeshariki. And this is hard to
argue. Over 7 years, the company assured 100% brand awareness among
the target audience in Russia. Thanks
to cooperation with Nickelodeon,
Smeshariki is watched by kids and
adults in 17 countries worldwide.
According to Liudmila Tsoy, sales
director, Melnitsa Animation Studios
Licensing Agency, the companys
approach to licensing enables them
not only to maintain, but also raise
revenues each quarter for Luntik
licensed product sales. Luntik is currently the companys most effective
brand, shown on Spokoinoy nochi,
Malyshi TV show on the Russian
federal channel. The animation series
hold their leadership at rankings
of most popular Russian animation
movies.
One of the three most popular
Russian brands, according to Kids
Global, Masha and the Bear, has ap-

proached the peak of its popularity.


Dmitry Loveiko, director general of
Animakkord studio is positive about
it. Animakkord has recently promoted
the brand into the European market
and first agreements have been concluded. Now we are looking for new
partners to conclude contracts and
offer distributors the best examples
of Russian products, says Dmitry
Loveiko. We hope that in 2013 the
new phase of our brand promotion
will begin in Europe.

Focus on Ukraine
A further trend in the licensing
market is the revival of the Ukrainian
market. Following the pattern of
Russia, you can draw attention to the
increasing number of licensors. The
stabilized Ukrainian economy enables
the licensing agencies that work in
Russia to open offices in the Ukraine
and enter the undeveloped Ukrainian
market. Plus License and Ink have
recently opened offices in Kiev.
With its 46 million inhabitants,
Ukraine is the second largest country
in CIS.
The licensing market in the Ukraine
is poorly developed, said Oleg
Sudak, sales director of Ukrainian
Distribution Consultants, the first
Ukrainian licensing agency. In terms
of licensing, Ukraine is where Russia
used to be 5 years ago. Disney is
almost the only brand that is sold in

the Ukrainian market. Recently, the


very popular Hello Kitty and Masha
and the Bear appeared. But many of
those goods were counterfeit. Piracy
is not seriously prosecuted in so far
in the Ukraine. According to Oleg
Sudak, there is neither a childrens
state channel, nor the equivalent of
Spokoynoy nochi, malyshi program
in Ukraine. This lack complicates
licensing media-content promotion.
Based on Kievnauchfilm studios,
Ukrainian Distribution Consultants
Licensing Agency is currently promoting several properties that previously
belonged to the once famous studio.
Our main licenses are Treasure
Island, Captain Vrungel, and Doctor
Aibolit. One more project that is important for us is a series of cartoons
about adventures of Khazaks. We
plan to develop new animation soon.
Nowadays, Ukraine needs national
products. There is Matrioshka and
Tcheburashka in Russia, but there is
no national symbol for souvenirs in
Ukraine. We hope that our Khazaks
can be one of them.
Whether the expert forecasts will
come true and if Russian and Ukrainian specialists manage to make their
brands not only recognisable, but
popular, time will tell.
However, the success of Smeshariki,
Luntik, and Masha and the Bear set
the scene for the Russian market
which is still very much in its infancy.

63

TOTAL LICENSING NEW EUROPE

The Popularity rating of animated series with


licensed characters showing on Carousel channel
The Popularity Rating of Animated series featuring licensed characters
on Carousel Channel

Fixics
Friendship is a Miracle (My Little Pony)
Luntik and his Friends
Masha and the Bear
Chuggington

In this issue of Total Licensing New


Europe, we are delighted to bring
readers some research on the popularity rating of animated series featuring licensed characters. This information was provided to Vestnik directly
by Channel One childrens channel
Carousel.
The research included cartoons
with ten or more episodes, and their
standing in the broadcasting channel
over the past six months. The results

The Smurfs
Adventure of Captain Vrungel
Kikoriki
Maya the Bee

of the research into the popularity


of cartoon series were collected by
Channel 1s Telephone Measurements
Service.
Computer Assisted Telephone interviewing which is applied by majority
of the research companies in the
world, including Channel 1, allows for
a significant reduction in error rates
in terms of the measurement of TV
audiences.
Telephone numbers for the survey

Cartoon series with licensed heroes Share


Rights Holder,

% Representative
Fixics

2.81

Marmelad Media

The Smurfs

2.20

Ink Licensing Agency

Adventures of Baron Myunkhgauzen

2.00

Soyuzmultfilm

Friendship is a Miracle (My Little Pony)

1.90

Hasbro, Plus Licens

Adventure of Captain Vrungol

1.80

Kiyevnauchfilm, UDC Licensing

Luntik and his Friends

1.64

Studio Melnitsa

Kikoriki

1.56

GK Riki, Marmelad Media Licensing

Masha and the Bear

1.55

Animaccord, Ink Licensing Agency

Maya the Bee

1.43

Rio Licensing Agency

Chuggington

1.27

All Media Licensing Agency

Neznaykas Adventure

0.70

Soyuzmultfilm

64

were selected at random by the


computer from the general Moscow
city telephone network. The service
makes more than 53 thousand calls a
day and about 14 thousand of them
are effective. The rating numbers
obtained as a result of the telephone
survey shows what percentage of the
total TV viewing audience is watching
Carousel TV during the broadcast of
certain programs. It is necessary to
note that if ratings are measured for
programming from one TV channel,
the timing of the broadcasting is very
important. The results of this research
into Carousel TV clearly demonstrates this relationship.
For example, one of the leading
series on the list a cartoon series
called Friendship is a miracle (My
Little Pony) aired on Carousel on
weekdays at 18.45. At this time a
core group of show fans preschool
children have already returned
home from nursery and can watch
their favorite cartoon. The same goes
for the cartoons that are shown at
the weekend. But, for example, Maya
the Bee which was a very popular
animated film in the 1990s, was
broadcast at 12.05pm on weekdays
and, therefore, was not available for
children attending kindergarten. It
is also necessary to note that in the
thirty most popular animated films on
Carousel, in addition to the foreign
cartoon characters not licensed in
Russia, there are also older domestic
cartoons. Series such as Adventures
of Baron Myunkhgauzen from Soyuzmultfilm, for example, gained a full 2
% of the audience, and Neznaykas
Adventure, also from Soyuzmultfilm,
achieved 0.70%.
Of course, it is hoped, that someday
these cartoons will be licensed. As to
the heroes of a popular Soviet cartoon series The Adventure of Captain
Vrungel from Kiyevnauchfilm studio,
this has already begun to be licensed
and the studio have assigned the
rights for licensing to licensing agency
Ukrainian Distribution Consultants.

TOTAL LICENSING NEW EUROPE






.
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Telephone Interviewing) ,
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Ukrainian Distribution
Consultants.

%
2.81

2.20
Ink
2.00

(My Little Pony)

1.90

Hasbro, Plus Licens

1.80
, UDC Licensing

1.64

1.56

, .

1.55

, . Ink

1.43
Rio

1.27

All Media

0.70

65

TOTAL LICENSING NEW EUROPE

By Roman Fedotov,
RIO Licensing
fedotov@riolicensing.ru

Why Luntik has become


a brand, but the Russian
Knights have not!
Cartoons about the Russian Knights
Iliya Muromez, Aloysha Popovich
and Dobrinja Nikitich are, without
doubt, very popular. They gave a
good local answer to Hollywood
productions, proving that domestic
animation is capable of working in
big formats.
However, the characters of the
Russian Knights have not become
licensed brands. Why have such
popular stories and characters
failed to have serious commercial
continuation in the form of
licensing goods for kids? Let us first
understand some other domestic
brands that have not only won the
sympathy of young viewers, but have
also achieved commercial success.
One of the most famous childrens
characters is Luntik. On the one
hand its success is provided through
powerful television support the

cartoon film was shown in the


program Good Night, Kids for
several years. However, the most
important aspect is that this is a story
about bugs and spiders that live in
grass beneath your feet. Children,
unlike adults, are very interested in

the world of insects. This is the first


thing that is available to them that
they can study by themselves. That is
why kids love catching ants, beetles
and butterflies. Adults have long
forgotten about it and the world of
insects is intangible as far as they are
concerned. They forgot that a beetle
in a box is a real treasure for a young
boy.

66

TOTAL LICENSING NEW EUROPE


fighting enemies, evil and injustice.
That is why products branded
with Batman or Spider-man, are in
great demand.
The Russian Knights are cool,
but children do not want to be
like them. They are good to be
laughed at but not imitated. The
characters reach their goal of
showing irony, but fail in terms of
heroics. Children happily spend
time with clowns, but they dont
imitate them.

Playing around with beetles and ants,


children learn that this is a different
world, with its own connections and
relationships. Therefore, art images
of the world of insects easily find an
place in the soul of a child. Hence,
the popularity of cartoons about
bees, butterflies, ants, and other
small animals. This is a completely
new direction in terms of childrens
animated cartoons.
The Luntik cartoon successfully
captured the natural disposition
of a child to study the world of
insects, and created different insect
characters, all linked through
the character of Luntik. This
aspect, combined with long-term
broadcasting, secured Luntiks success.
Masha and the Bear appeared on the
Good Night, Kids show just once.
But here is a great mix of humor and
great graphics. This cartoon featured
a touching relationships between the
child and the adult, where the adult
is protective and child is bullying and
stubborn, but also portraying the love
of an adult. This relationship model
is very sympathetic to children, so
they can easily copy it themselves.
In addition, a sense of history is
represented by the traditional Russian
imagery that adds to her charm.

relationship are modeled. Smeshariki


is an adaptation of the adult world for
children. It is also very user-friendly
as far as children are concerned.
In addition, Smeshariki is very well
made, dynamic and vibrant.
All of these projects have become
successful brands, because they
create an attractive and interesting
world, which the child would like to
be a member or part of. In the case
of Russian Knights, alas, this pattern
does not work.
The artistic image of the Russian
Knights is that they are superheroes,
in theory, fertile ground for the
creation of the brand.
For a boy it is important to associate
himself with a character with some
kind of magic, unusual abilities, who is

It is also important that the


superhero has to be set in no
particular era or time. Batman
and Spider-man could live in any
era. They are not associated with
domestic life. Therefore, they can
always be contemporary. In terms of
the Russian Knights, domestic life and
even the socio-political situation of
bygone Russian is of key importance.
Children cannot place themselves in
this situation. For them the concept
of history is indistinguishable and
has no emotional connection. And
amongst young children there is no
patriotism yet.
Therefore, the history of the Russian
Knights turned out wonderfully, but
was not very suitable for branding.
Children and adults know these
cartoons, and they love watching
them. But because of the various
reasons we have mentioned, it was
not possible to creating a commercial
brand using these characters or
stories.

The most successful Russian project


to date is Smeshariki. Through
humorous cartoon characters adult

67

TOTAL LICENSING NEW EUROPE


RIO Licensing
fedotov@riolicensing.ru


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68

TOTAL LICENSING NEW EUROPE


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69

POLAND 2012
TOTAL LICENSING NEW EUROPE

Polska

A Market Overview

Economic situation

By Janusz Tarasiuk
JANTAR PROJEKT
03-133 Warszawa,
Nowodworska 29B
lok.104
Poland
Tel: +48 22 614 2028
jantar@antarprojekt.pl

The licensing business in Poland


is following the overall economic
situation. Even though the country is
passing through the crisis relatively
easily, licensees are rather
thinking about surviving
by keeping a strong
portfolio of well-known
brands rather than
expanding their list of
licensed brands or taking
the risk involved in new
ideas and properties with
future potential.
As a result, stagnation has
overtaken the market.
There is not even up to
date information since
NPD is not present in
Poland any more.
Poland represents a market of more
than 38 million inhabitants. Many
international companies still treat the
market as an indicator and their base
in order to take steps into Eastern
Europe.

Brands
As mentioned above there is no NPD
data now available and, as a result, it is
difficult to pinpoint the most popular
brands in Poland. However, without
doubt, Disney, Mattel and other major
players are top of the list. Thanks
to strong TV support and frequent

70

broadcasting, we also have Scooby


Doo and Ben 10 which continue to
be popular. There also continues to
be interest in brands like Hello Kitty
or Looney Tunes.
A lot of new properties
are waiting for the
economy to improve
before they launch.
More and more popular
are brands like Angry
Birds. After a long time
where movie, cartoon
brands or toy brands
formed the basis of all
licensing, we are now
entering a new wave
of MMO or other
properties with origins in
gaming. This is understandable when
you look at the still-growing numbers
of cellphones and smartphones.
As readers will note,
there are no local
or domestic brands
mentioned. The
only property with
exportpotential
is The Witcher
(Wiedzmin) by CD
Project Red. This PC
game is very popular
in US and the story
of The Witcher is
also quite well known
in Russia. Almost
4,000,000 games have been sold by
CD Project Red on a worldwide
basis.
A number of domestic kids brands
are also building a position in the
market but, in order to achieve
a satisfactory level, there is a lot
of work to be done, in particular
regarding the IP law. Popular series
from the past include Bolek i
Lolek which still has strong brand
awareness.

At this point I should mention the


Euro 2012 licensing in Poland and
the Ukraine as this was an unusual
programme. A number of licensing
people were very optimistic and
invested a lot of time and effort
to make the program successful.
It was the first time that the Euro
competition was held in Poland and
the Ukraine so expectations ware
quite big. The difficulties with this
kind of property, is when the host
countrys team fails and the stock
product is still in a warehouse on the
day that the competition ends. This
created a new experience for many
licensees and distributors.

Licensing services
Services in terms of licensing in
Poland are still very much Poland is
still under development. Except for

international, well-known players,


there are one or two well organized
licensing agencies such as ELC, Plus
License or Ink. There is still a lack of
independent domestic agencies that
could support and promote local
brands.
As already mentioned, the Intellectual
Property law and other aspects
concerning this are far from ideal in
Poland. The country needs changes
and clearer rules. This would create a

TOTAL LICENSING NEW EUROPE


strong base for development both for
local brands and the Polish licensing
industry in general.
In addition, a low level of licensing
know-how also impacts on the
industry. Poland has a lot to learn
from the Italians, the English or the
Spanish.

Polska

Market
The Polish retail market is well
organized and developed following
major changes that took place in
the early 1990s. Thanks to major
international retail chains like
Metro, Tesco or Jeronimo Martins,
customers have easy access to all
kind of goods and merchandise.
The market, in terms of size and
organization, is similar to Spain There
are quite a number of well organized
and well known domestic chains like
Piotr i Pawel or Alma in the food area,
Reserved, Cropp Town, House or
Mohito owned by LPP SA, a leading
apparel company in Eastern Europe.
In addition, a great job was done by
Polish shoe producer and retailer
NG2 (CCC, Boti, Quazi). In terms of
children, the leading kids store chain
Smyk and multi media chain Empik,
both belong to the same capital

group. Some of above have already


enjoyed success through licensing.
However, most of the retail market
is representing by the foreign
organizations, especially in electronics,
cosmetics, accessories, sporting
goods and publishing retail.
Licensed products are still not as
commonplace as generic products.
It has been a delight this year to see
that the back to school is dominated
by licensed collections. More
importantly, the design and quality
have really improved.

Licensees and producers


Almost all licensing categories are
already developed and produced by
Polish companies. Back to school,
apparel, accessories, sporting goods,
publishing,
cosmetics and
more recently
food products, are
available in the
Polish market.
In the past, most
licensed products
were imported
from overseas and,
as a result, did not
necessarily fit local
market needs.
Sometimes, it
seemed like stock
clearance with old
designs and high
priced products
on sale at the
same time. As a
result, licensed
products were not
attractive to Polish
consumers.
Today, many Polish
producers and

licensees successfully compete with


the large international companies.
Examples are puzzle producers Trefl
S.A, toy manufacturers Cobi SA or
Wader Wozniak, apparel companies
such as E plus M, juice producers
such Hortex Holding SA or Agros
Nova. All of these are well known,
and thanks to a long history and
tradition, are strongly connected to
the domestic market.
Licensed products are more and
more popular amongst consumers.
This has been possible thanks to
the success of local designers who
incorporate local traditions. As a
result, more and more companies
have been persuaded to use a license
to differentiate their products from
the generic products on retail shelves.

Trends
Despite the economic situation and
some difficulties with new types of
properties, such as FIFA, these will
not stop the process of development
in terms of the licensing business in
Poland.
In particular, those companies and
organizations that are prepared to
overcome the difficulties, will have
a chance to increase sales in very
short time and become leaders in
their categories. Also, those who feel
the pulse of the licensing world and
collect all possible information from
the market may achieve great results
in the future.
Life in the licensing industry is very
fast and sometimes difficult to keep
under control. However, in Poland
we should now prepare ourselves
for more new properties, new ideas
and new players and welcome more
and more people into the world of
licensing.

71

2012
TOTAL LICENSING NEW EUROPE

Polska

By Janusz Tarasiuk
JANTAR PROJEKT
03-133 Warszawa,
Nowodworska 29B
lok.104
Poland
Tel: +48 22 614 2028
jantar@antarprojekt.pl


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Looney Tunes.

72


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TOTAL LICENSING NEW EUROPE



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, Metro, Tesco Jeronimo
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73

TOTAL LICENSING NEW EUROPE

Companies in this issue


To help our readers, the following are companies that are mentioned within the pages of this issue.
Animaccord........................................................................................................................................................www.animaccord.com
Brand Extensions Russia.................................................................................................................................http://www.berussia.ru
Caroline Mickler....................................................................................................................................... www.carolinemickler.co.uk
Carousel TV..............................................................................................................................................................www.karusel-tv.ru/
Chupa Chups.....................................................................................................................................................www.chupachups.com
Coca-Cola...............................................................................................................................................................www.coca-cola.com
Dreamworks..................................................................................................................................www.dreamworksanimation.com
European Licensing Company............................................................................................ www.europeanlicensingcompany.com
Hasbro Consumer Products...................................................................................................................................www.hasbro.com
INK Brands...........................................................................................................................................................www.ink-brands.com
Jantar Projekt.................................................................................................................................................. www.jantarprojekt.com
Licensing Letter...................................................................................................................................................... www.epmcom.com
Licensing@Russia............................................................................................................................... www.licensingshowrussia.com
LIMA............................................................................................................................................................................ www.licensing.org
Maat Brands..........................................................................................................................................www.maatentertainment.com
Masha and the Bear..........................................................................................................................................www.animaccord.com
Megalicense...........................................................................................................................................................www.megalicense.ru
Plus Licens............................................................................................................................ www.pluslicens.com/OfficeRussia.html
RIO Licensing......................................................................................................................................................... www.riolicensing.ru
Studio 100................................................................................................................................................................. www.studio100.be
The Licensing Group......................................................................................................................................................www.tlgla.com
Total Licensing................................................................................................................................................ www.totallicensing.com
Total Licensing New Europe................................................................................................... www.totallicensingneweurope.com
UDC Licensing..................................................................................................................................................www.udclicensing.com
Vestnik................................................................................................................................................................www.licensingrussia.ru
Yellow House Designs.........................................................................................................................................www.yhdesigns.com

Whats on

MIP Junior ..........................................................Oct 6 7 ..................................................... www.mipworld.com/en/mipjunior/


MIPCOM ............................................................Oct 8 11 ............................................................................. www.mipworld.com
Frankfurt Book Fair .........................................Oct 10 - 14 ...........................................................www.frankfurt-book-fair.com
China Licensing Show......................................Oct 11 - 14.............................................................www.chinalicensingshow.com
New York Comic-Con.....................................Oct 11-14............................................................................... www.comic-con.org
Brand Licensing Europe ..................................Oct 16 - 18 ......................................................www.brandlicensingeurope.com
Character & Licensing Dubai ........................Nov 27 - 28.................................................................................www.character.ae
Hong Kong Licensing Show............................Jan 7 - 9 2013..................................................www.hktdc.com/hklicensingshow
Americasmart Atlanta......................................Jan 9 - 16..........................................................................www.americasmart.com
Toy Fair (London).............................................Jan 22 - 24....................................................................................www.toyfair.co.uk
Nuremberg Toy Fair..........................................Jan 30 - Feb 4................................................................................... www.toyfair.de
Kidscreen............................................................Feb 5 - 8.................................................................................. www.kidscreen.com
American Toy Fair.............................................Feb 10 - 13............................................................................... www.toyfairny.com
Australian Toy Fair.............................................Mar 3 - 6.................................................................................. www.toyfair.com.au
Toys & Kids Russia............................................Mar 13 15.......................................................................www.world-of-toys.org
Licensing@Russia..............................................Mar 12 - 14........................................................... www.licensingshowrussia.com
Bologna Licensing Fair......................................Mar 25 - 27................................................................. www.bolognalicensing.com

Total Licensing New Europe January issue: Focus on South East Europe,
New Europe at the Nuremberg Toy Fair plus news, views, insights and research.
For information, contact Goran Krnjak (goran@totallicensing.com)
74

TOTAL LICENSING NEW EUROPE

TOTAL LICENSING NEW EUROPE

RUSSIA

ENGLISH /

Autumn 2012/ 2012

The Popularity rating of animated series with


licensed characters showing on Carousel channel
The Popularity Rating of Animated series featuring licensed characters
on Carousel Channel

The State of the


Licensing Market
Vestnik is the leading
Russian information
internet portal, dedicated to the licensing
market, which provides
the most exhaustive
review and analytical
information about different brands, licenses
and licensed goods with
an accent on popular childrens brands.
Together with latest
market news Vestnik
presents topical survey
results, expert opinions
and appraisals, market
development forecasts,
ratings of license brands,
licensed TV content and
products in the licensing
market of Russia.

The first ever licensing show in


Russia, Licensing@Russia, was held
in Moscow in the middle of March,
2012. It revealed the different views
of Russian and international experts
on the Russian industry, which proves
the necessity of constant exchange of
views. All the experts agreed that the
Russian licensing industry is currently
one of the most attractive in the
world.
Russian experts, the pioneers of
national licensing who took part at
the show, do not consider the market
to be closed. They are certain that at
this level of licensing business, Russian
entrepreneurs are interested not
in the basics of licensing, but in new
practices and possibilities that appear
in todays industry. Many big Russian
companies have long had licensing
properties in their portfolios. The
phase when we need to talk about
the advantages of licensing is left
far behind. Nowadays, most of the
market players know what licensing is.
The amount of goods you can see at
the civilized retail chains is more than
enough to say that the Russian market for licensed goods has formed,
says Ilya Popov, general producer of
Riki group of companies.

licensing industry is piracy. However,


international experts say that piracy
develops in direct proportion to the
development of the licensing market,
and that the main influx of counterfeit into Russia is to come. Interestingly, it is typical of Russian licensees
to leave the piracy fight to authorised
state committees and license agencies.
The main methods in the counterfeit
struggle are to register and inform,
says Yulia Rubakova, the head of the
Russian office of ELC, one of the
leading licensing agencies in Central
and Eastern Europe. Our partners
are obliged to register the trademark

Fixics
Friendship is a Miracle (My Little Pony)
Luntik and his Friends
Masha and the Bear
Chuggington

and their products with the Russian Agency for Patents and Trademarks. We work side by side with
the Customs division that regularly
reveals counterfeit, and we always ask
retailers to check if their suppliers
have licensing agreements. We also
regularly take part in relevant conferences, workshops and fairs.
The other kind of piracy is the socalled royalty piracy, sometimes
typical of Russian companies. International experts proved to be familiar
with it. The closed internal reporting and impossibility of actual sales
external auditing adversely affects the
image of Russian licensing market. In

In this issue of Total Licensing New


Europe, we are delighted to bring
readers some research on the popularity rating of animated series featuring licensed characters. This information was provided to Vestnik directly
by Channel One childrens channel
Carousel.
The research included cartoons
with ten or more episodes, and their
standing in the broadcasting channel
over the past six months. The results

Cartoon series with licensed heroes

Solving problems
According to experts and licensees,
the main problem of the national

56

Share
%

The Smurfs
Adventure of Captain Vrungel
Kikoriki
Maya the Bee

of the research into the popularity


of cartoon series were collected by
Channel 1s Telephone Measurements
Service.
Computer Assisted Telephone interviewing which is applied by majority
of the research companies in the
world, including Channel 1, allows for
a significant reduction in error rates
in terms of the measurement of TV
audiences.
Telephone numbers for the survey

Rights Holder,
Representative

Fixics

2.81

Marmadale Media

The Smurfs

2.20

Ink Licensing Agency

Adventures of Baron Myunkhgauzen

2.00

Soyuzmultfilm

Friendship is a Miracle (My Little Pony

1.90

Hasbro, Plus Licens

Adventure of Captain Vrungol

1.80

Kiyevnauchfilm, UDC Licensing

Luntik and his Friends

1.64

Studio Melnitsa

Kikoriki

1.56

GK Riki, Marmadale Media Licensing

Masha and the Bear

1.55

Animakkord, Ink Licensing Agency

Maya the Bee

1.43

Rio Licensing Agency

Chuggington

1.27

All Media Licensing Agency

Neznaykas Adventure

0.70

Soyuzmultfilm

were selected at random by the


computer from the general Moscow
city telephone network. The service
makes more than 53 thousand calls a
day and about 14 thousand of them
are effective. The rating numbers
obtained as a result of the telephone
survey shows what percentage of the
total TV viewing audience is watching
Carousel TV during the broadcast of
certain programs. It is necessary to
note that if ratings are measured for
programming from one TV channel,
the timing of the broadcasting is very
important. The results of this research
into Carousel TV clearly demonstrates this relationship.
For example, one of the leading
series on the list a cartoon series
called Friendship is a miracle (My
Little Pony) aired on Carousel on
weekdays at 18.45. At this time a
core group of show fans preschool
children have already returned
home from nursery and can watch
their favorite cartoon. The same goes
for the cartoons that are shown at
the weekend. But, for example, Maya
the Bee which was a very popular
animated film in the 1990s, was
broadcast at 12.05pm on weekdays
and, therefore, was not available for
children attending kindergarten. It
is also necessary to note that in the
thirty most popular animated films on
Carousel, in addition to the foreign
cartoon characters not licensed in
Russia, there are also older domestic
cartoons. Series such as Adventures
of Baron Myunkhgauzen from Soyuzmultfilm, for example, gained a full 2
% of the audience, and Neznaykas
Adventure, also from Soyuzmultfilm,
achieved 0.70%.
Of course, it is hoped, that someday
these cartoons will be licensed. As to
the heroes of a popular Soviet cartoon series The Adventure of Captain
Vrungel from Kiyevnauchfilm studio,
this has already begun to be licensed
and the studio have assigned the
rights for licensing to licensing agency
Ukrainian Distribution Consultants.

54

The ONLY magazine that specifically covers the


licensing industry in Russia, the CIS, Central and Eastern
Europe. Published in English and Russian.
Published four times a year...
next issue January 2013 with a special focus on
New Europe at Nuremberg!

For information: goran@totallicensing.com


www.totallicensing.com
TOTAL LICENSING NEW EUROPE

ENGLISH /

March 2012 / 2012

By Roman Fedotov,
RIO Licensing
fedotov@riolicensing.ru

Why Luntik has become


a brand, but the Russian
Knights have not!
Cartoons about the Russian Knights
Iliya Muromez, Aloysha Popovich
and Dobrinja Nikitich are, without
doubt, very popular. They gave a
good local answer to Hollywood
productions, proving that domestic
animation is capable of working in
big formats.
However, the characters of the
Russian Knights have not become
licensed brands. Why have such
popular stories and characters
failed to have serious commercial
continuation in the form of
licensing goods for kids? Let us first
understand some other domestic
brands that have not only won the
sympathy of young viewers, but have
also achieved commercial success.
One of the most famous childrens
characters is Luntik. On the one
hand its success is provided through
powerful television support the

TOTAL LICENSING NEW EUROPE

Trkiye

To find out
more about
the state of the
Turkish licensing
marketplace,Total
Licensing New
Europe talked to
Hakan Durdag
who has two
licensing agencies
- Licens AS and
Sinerji - operating
in Turkey.
He gives us his
impression of the
market and some
of the issues that
anybody looking
to do business in
Turkey should be
aware of.

cartoon film was shown in the


program Good Night, Kids for
several years. However, the most
important aspect is that this is a story
about bugs and spiders that live in
grass beneath your feet. Children,
unlike adults, are very interested in

the world of insects. This is the first


thing that is available to them that
they can study by themselves. That is
why kids love catching ants, beetles
and butterflies. Adults have long
forgotten about it and the world of
insects is intangible as far as they are
concerned. They forgot that a beetle
in a box is a real treasure for a young
boy.

66

48

TURKEY

First of all, perhaps you can tell


us about the market in terms of
who the main licensors, licensees,
agents and distributors are?
HD: The leading licensors include
Warner Bros Consumer Products,
Cartoon Network and Disney. In
addition, leading European football
clubs such as FC Barcelona, Real
Madrid, Manchester United and
AC Milan are popular. Beyond
these Mattel, 20th Century Fox,
Nickelodeon, Rainbow and Iconix are
key licensors. In terms of licensees
there are quite literally hundreds
of Turkish companies that produce
licensed product. However there are
some that are particularly well-known
for utilising licenses, These include

Yaygan Canta, Zorlu Textiles, Hakan


Canta and Donmezler.
And so to agencies. The leading
agents in Turkey are Lisans AS, Sinerji
Lisans Ltd. and Gamma Medya. Other
agencies operating in the marketplace
include companies such as Filma and
Max Licensing.
Finally in terms of distributors,
the major toy distributors include
Adore, Samatl, GP, Sunman and
Neco Oyuncak, whilst Arkan is a
leading distributor of watches and
sunglasses.
Could you tell us what you believe
to be the top licenses in Turkey at
the moment?
HD: Looney Tunes is the No. 1

classic property in Turkey, thanks to


its ability to appeal to both genders
and all age groups. In addition,
Tom and Jerry always enjoys wide
recognition.
DC Comics has become the most
popular fashion trend among
teenagers and adults and the brand
has been inspiring designers and fast
fashion retailers.
Other big brands and properties
in Turkey include Ben 10, Bakugan,
Monster High, Disney Cars and Winx.
In addition, Ice Age is becoming
increasingly popular.
Could you tell us about your
business. What do you think sets
you apart from others in the
market?
HD: We have two separate agencies
- Lisans AS and Sinerji Ltd. Through
both of these, we have an in-depth
understanding of brands and the
licensing process and how to build a
propertys popularity over a period
of time. We are also extremely proactive and work hard to come up
with creative ideas to support our
licensees. Our structure is designed
to fulfil the needs of licensors and
licensees alike and we have a large
team of seasoned professionals. This
really guarantees a highly professional
service to anyone we represent.
We are experienced in launching and
building brands from scratch with a
360 approach and creating consumer
awareness and delivering programs
that are strong at retail.

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