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ENGLISH /

Spring 2013 / 2013

98

TOTAL LICENSING NEW EUROPE

FEATURES

Licenses - International Trends 2013..........42


Spielwarenmesse 2013

Editorial Comment........................................6
Interview:Viacoms Dan Frugtniet...............8
Heroes of the City in 180 countries...........10

Customer is King!.........................................48
The Megalicense viewpoint
2013:The year of Kikoriki ...........................52

Masha and the Bear update........................12


Pea & Promoplast Russian focus.................14
Maya buzzes in CIS and New Europe.........16

Cover Story: Zeptolab.................................18


An in-depth look at a hot Russian studio
Education: .....................................................26
An Introduction to Brand Licensing
Education:......................................................38
Licensing is no theme park ride!

16
38

12

Bologna 2013................................................58
Where publishing meets licensing
Poland............................................................62
The latest from the marketplace
Calendar of Fairs and Events......................64
Upcoming Features......................................64

Spring 2013
2013
Publisher
Francesca Ash
francesca@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
Danny Simon,
Janusz Tarasiuk,
Pete Canalichio
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.

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 Spring 2013 edition of Total Licensing
New Europe magazine the ONLY magazine that specifically covers the licensing industry in Russia, the CIS,
Central and Eastern Europe.
Its been that time of year again - Toy Fairs: Hong Kong,
Nuremberg, London, New York, and coming up, Moscow.
If you take a look inside this issue of the magazine you
will find post-show reports from two of the worlds biggest toys and games events: Spielwarenmesse in Nuremberg and Toy Fair in New York. Our focus of course was
particularly on the licensed products and it seems that
there were more licensed products exhibited this year
than ever. Whats hot and whats not? Where is the toy
industry today and what is the future? Opinions
are quite different but the outlook is
still good. A preview of Toys &
Kids Fair in Moscow is inside as
well. And of course you can find
useful information about the Licensing Forum in Moscow and Bologna
Licensing Trade Fair.
Now, lets get back to New Europe:
New Europe is term which describes
the region comprising 35 countries
with more then 500 million people and
a highly growing interest in brands and
licensed products. The largest and most significant country within New Europe is, of c o u r s e ,
Russia with more than 140 million inhabitants. Russia
continues to grow fast in almost all sectors. For us, of
course, most interesting is the licensing and merchandising industry and everything that is connected with and
around the licensing sector. Once again in 2012 Russia
has shown huge growth in licensing up 39 percent
compared with 2011! And Russias total box office reached a record $1.33 billion in 2012, up 18.8 percent
from the previous year.
Cut the Rope, featured within these pages, is a great
example of a property that has taken the worldwide
market by storm and now expanding in licensing and

merchandising all over the world. The fact is that the


property has roots in Russia, but today is a very international business handled through Zeptolab company. Masha and The Bear is now branching out successfully into
international markets - according to a poll Total Licensing New Europe conducted in December 2012, Masha
was the number one property for this year in Russia.
In second place is Hello Kitty, and in third place the
Teenage Mutant Ninja Turtles. The Walt Disney Russia &
CIS company expects that Planes, Monsters University
and Iron Man 3 will be its hot properties in Russian and
CIS markets in 2013. 20th Century Fox and Dreamworks now have a new agent in Russia and CIS - the
European Licensing Company. Viacom Nickelodeon has established its Russian office and works
continuously to create a strong local team. And
that is by no means all! Read more inside these
pages...
Throughout 2013, Total Licensing New Europe will continue to bring readers information, insights and research into the
vast New Europe region. The magazine
reaches significant numbers in Russia
and beyond and, in addition, is also distributed to Total Licensings readers in
104 countries.You will also find Total Licensing
New Europe at a number of key trade fairs, including the
upcoming Toys & Kids Fair / Licensing Forum in Moscow
and Bologna Licensing Trade Fair.
Launched in April 2012, Total Licensing New Europe
will soon celebrate its 1st birthday and our Total Licensing flagship magazine is celebrating 10 successful years! With almost 100,000 readers in 104 countries we
can proudly say that the Total Licensing group now
consisting of 6 different editions - is the leading global
publisher of magazines specializing in licensing and merchandising. Thank you for all your support! We will do
our best to give you even more reasons to stay with us
in the future.

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

Jerry Wooldridge
Sales Director
jerry@totallicensing.com

Spring 2013
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
2013
. Total Licensing New Europe
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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
Danny Simon,
Janusz Tarasiuk,
Pete Canalichio
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
Viacom
International
Media Networks
(VIMN)s rapid
business growth in
Russia & CIS was
a good reason for
TLNE to talk to
Dan Frugtniet,
Director,
Consumer
Products Emerging Markets
at VIMN. For
the last seven
years, Dan has
worked on the
Russian and CIS
territories.

TOTAL LICENSING NEW EUROPE

Viacom International Media Networks


VIMN Russia & CIS is owned and operated by VIMN, a division of Viacom
Inc. VIMNs fast growing business in
Russia & CIS currently comprises elven channels including global brands
Nickelodeon, Paramount Comedy
and MTV, all operated under license
through local partner ProfMedia.
TLNE: How would you describe the
development of VIMNs business in
Russia and the CIS?
DF: These are very interesting and
exciting markets, with lot of opportunities. Russia is a top priority for VIMN
with excellent momentum already
building across the business. We used
to work with this territories remotely
from our offices in London, but as the
market have developed rapidly for us,
we realized that it was essential to
develop a local office with a
small but effective team.
TLNE: Tell us more about
your team in Russia.
DF: In November 2012,
Elena Balmont was appointed to the position of
General Manager, VIMN
Russia & CIS. Elena has
overall responsibility for
leading the operational
and strategic management.
As General Manager, Elena
continue to extend VIMNs reach
and portfolio of popular brands and
properties, with ultimate oversight of
local activities across all lines of business and creative including programming, production, creative, digital media, advertising and programme sales,
distribution, talent and music and consumer products. More recently, Petia
Toncheva was named senior licensing
manager for Russia and CIS.
This is the first ever Moscow-based licensing executive for the business as it
drives brand extension in the emerging markets. Petia will manage and
develop licensing programmes across
the Nickelodeon, Comedy Central
and MTV portfolios for Russia and
CIS markets. As part of her role she
will work directly with retailers and
licensees and with VIMNs Russian licensing agent, Riki Group. She will also

manage the agent business on a dayto-day basis.


TLNE: Which platforms are the
most important for VIMN in
the Russian market ?
DF: Over the last two
years, VIMN has deepened
its connection and its leadership with Russian audiences on all
levels and across all platforms. Nickelodeon a 24-hour Russian-language
childrens service and home to iconic
animation, SpongeBob SquarePants
has increased its distribution by 60%
in the last year to 6.45 miliion households. It won Best International Kids
Channel 2011 (Foreign TV category)
at industry conference CSTB, and is
now the number one most watched
thematic channel in Russia on cable
and satellite across all demographics
and genres.
TLNE:You have great brands in your
portfolio. Which amongst them would
you like to highlight in Russia & CIS?
DF: Historically, amongst our brands
present in Russia, Sponge Bob is the
main driver of the market with a fantastic 87 percent brand awareness.
In November 2012, the Nickelodeon
channel launched the highly-anticipated and reinvigorated series, Teenage
Mutant Ninja Turtles. TMNT are a big
focus for our business. We work very
closely with Gulliver, our distributor
of TMNT products in Russia.
Dora the Explorer is also very positive for us in the market now. Dora
is doing fantastically in Kazakhstan and
we are paying lot of attention to distribution.
Then, we are working very intensively
on the further business development
of the Avatar, MTV and South Park
brands. South Park is on Paramount
Comedy channel which has firmly
positioned itself as the markets premiere comedy destination. The 24hour, fully-localised and ad-supported
premium comedy channel broadcasts
a high-quality mix of local and international comedy daily from its local
Moscow base reaching more than
5.2 million households.
Viacom Nickelodeon is a sponsor

of Licensing Forum and we will have


presentation there, highlighting South
Park.
TLNE: Can you compare the Russian
market now with a few years ago
when you started to work in these
territiories ?
DF: Local consumer products have
become more advanced. The fight
against counterfeited products is
much better now. And there is more
development in terms of local properties. Russian licensees are much more
aware of how to operate the licensing business. Russia definitely should
be treated as very serious territory. It
has become a very exciting market.

TOTAL LICENSING NEW EUROPE

VIMN ,
VIMN,
Viacom Inc..VIMN


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Paramount MTV , .
TLNE:
VIMN ?
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NEWS
Viacom
International
Media Networks
(VIMN)




TLNE
Dan Frugtniet,
Director, Cosumer
Products
Emerging
Markets VIMN.

, Dan


.


5,2 . .
Viacom Nickelodeon
, South Park.
TLNE:
,
territiories?
DF:


,


....
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.

NEWS

TOTAL LICENSING NEW EUROPE

Heroes of the City in 180 countries


Swedish childrens entertainment
production company
Ruta Ett DVD AB
and their highly
respected German
TV distribution
partner,Your Family
Entertainment
AG, have recently
announced that
their pre-school
series Heroes of the
City is sold to more than
180 countries and that
production has started for
Season 2.
The fact that Heroes of the
City now is sold to more than 180
countries, shows that we are on the
right track with Heroes of the City
and that we have made a TV series
that is loved by children in preschool
age regardless of which part of the
world they live in, stated Pelle
Ferner, CEO of Ruta Ett DVD AB.
Your Family Entertainment is a
significant and important partner
for the successful sales of Heroes of
the City, and have with hard work
and their experience in distributing
high quality childrens programs also
played a key role, commented the
Sales Director of Ruta Ett DVD AB,
Lennart Blixt.
Within six months from the
completion of Season 1, we
managed to sell Heroes of the
City to numerous TV stations on
four continents, says Klaus Forch,
Executive Vice President Sales &
Legal of Your family Entertainment
AG. All TV stations increased their

10

viewership in the relevant slots,


consequently the market demanded
a Season 2. Ruta Ett and Your
Family Entertainment presented the
new elements of Season 2 at the
Spielwarenmesse in Nuremberg,
Germany, and KidScreen in New York
in early February.

Heroes of the City is a 3D animated


series aimed at children aged
between three and seven years.
The first 52 x 14 HD episodes
were completed in June last year
and Season 2, which is currently in

production, will be delivered later this


year and begin airing in 2014.
The storyline surrounds the
adventures of rescue vehicles
in a small town where
everybody gets to be a hero.
The series contains a lot of
warmth, friendship and fun
and brings a positive message
of everyone being needed and
that working together can solve
even the most difficult problems.
The key characters in Heroes of
The City include Paulie Police Car
and Fiona Fire Engine who help the
people in the city find thieves, help
them put out fires and help them
solve the many mysteries that happen
in the otherwise calm city. Another
featured character is Calamity Crow,
the most unlucky bird in the whole
city.
Ruta Ett DVD AB is a Swedish media
company with an international
market. The companys business is to
create and develop entertaining and
fun 3D animated TV-Series, as well as
merchandise, storybooks, etc. for preschool children on an international
scale. Since the company began in
2004 they have directed and animated
over 50 childrens films. They have
also been a producer of over 250
DVD productions for such companies
as Disney Channel Scandinavian,
Egmont and Warner. Since 2008
they have produced their own TV
series and films. Heroes of the City,
in addition to its broad international
sales, is the subject of publishing with
more than 120,000 books sold in
Scandinavia alone.

TOTAL LICENSING NEW EUROPE

NEWS

Heroes of the City 180



Ruta
Ett DVD AB
,
Your
Family Entertainment AG, ,
Heroes of the City
180
2-
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, Heroes of the City
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Ruta Ett
DVD AB.
Your Family Entertainment

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Your family Entertainment AG.

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50
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Egmont Warner. 2008

. Heroes of the City,
,

120.000
.

11

NEWS

TOTAL LICENSING NEW EUROPE

Masha and the Bear in the Ukraine


With Russian origins,
Masha and the Bear is,
today, not only amongst
the most well known
brands in Central and
Eastern Europe, but
also one of the most
promising franchises
for future exploitation.
The project was
created by Animaccord
Animation Studios and
is currently at the peak
of its popularity, and
as a result of the key
strategies of the studio
and the way in which
their development plan
has been put into action they have
consistently met with success year
on year.
According to market research
compiled at end of 2011, Masha and
the Bear moved from 11th place
in the SKU ratingto 6th place.
Specialists predict that, in 2013, the
brand will move into the top 3 brands
in Central and Eastern Europe and
find its place amongst the likes of
Cars, Spiderman and Winx.
An analysis of the licensing market
in Russia suggests that Masha and
the Bear is capable of setting a new
trend. One example of these new
trends is the studios partnership

12

with publishing house Rosman,


who are responsible for impressive
developments seen in recent years
relating to school products for
children aged from three to six.
Ukrainian children got to know
Masha and the Bear through the
television channel Inter.
Masha and the Bear is a cartoon
that Ukrainian audienced have had
the pleasure of waking up to every
morning.
The series is shown on the channel
daily from Monday to Friday, as part
of the Utro show, at 7:20am and
enjoys a 24.4% majority share of
viewers watching television at this
time.

Beyond these facts, the show is


included in the Sunday morning
schedule. The highest share achieved
during this Sunday slot was 2.8 million
(a 6.6% rating and a share of 26.8%).
Overall, for the total time that the
cartoon has been shown in the
Ukraine, over 30 million viewers have
tuned in.
One of the key principles of the
brands mission statement is a
partnership with manufacturers
that guarantees a high-quality
finished product. Recently a major
promotional campaign was well
received by consumers and achieved
the best possible results that
Animaccord could have hoped for.
Ferrero Group Ukraine released a
similar promotional campaign just
after the original campaign in the
Russian market, to span the New
Year festive season using the Kinder
products - Pingui, Kinder Milk Slice
and Kinder Maxi King with Masha and
the Bear on it. Thousands of people
took part in the promotion across
the whole of the Ukraine.
In early 2013 Kinder surprise will be
releasing a series of toys relating to
the Masha and the Bear franchise.
At the end of December just before
the New Year holidays the new Masha
and the Bear website is launched
which is expected to become one
of the most popular and innovative
online entertainment sites for
children.

TOTAL LICENSING NEW EUROPE


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Kinder Maxi King.

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Kinder Surprise

NEWS


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22,4%.
,
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Youtube .

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13

NEWS

TOTAL LICENSING NEW EUROPE

The Pea & Promoplast Group


was founded in 1973 in Italy as a
publisher which, within a few years,
became one of the European leaders
in terms of promotional marketing,
working with some key brands such
as Ferrero, Unilever, and Coca Cola
and others , creating and developing
promotional projects covering
several million gifts.
In 2005 Pea & Promoplast began
working with some of the most
important worldwide publishers,
creating a number of successful global
projects for them.
In 2010 the Group launched a new

Development Centre is based in Italy,


where all concepts and projects are
created and customized according to

both customer needs and


requests, and following
trends in the marketplace.
Sourcing and production
takes place in China
through a network of
factories and Quality
Control departments who
manage and control the
whole supply chain.
Test and certification
centers work together
daily with the leading
accreditated international
Laboratories (also
authorised for the Russian
Market), and monitor
the entire production
process to guarantee
the strict level of safety.
Division with a brand new logo Magic Collection - which is dedicated
to creating collectible products the
for Italian market. Under the Magic
Collection brand several properties
and projects have been created
over the last two years including
distribution into a number of
overseas markets (both into East and
Western Europe).
Pea & Promoplast Creative &

14

(For example, food contact and kids


standards)
By 2009, Pea & Promoplast focused
its attention on the Russian market
by analyzing trends, characteristics
and the preferences of local
consumers in order to identify the
key drivers for successful projects.
Based on this analysis, some
Partwork and Collectibles concepts
have been identified for properties
such as Smeshariki and more recent

Masha & The Bear. These have


subsequently been produced for
some of the main publishing groups.
In recent years, the Group has
increased its knowledge and
perception of the Russian market
within the expanded sectors of toys,
promotions and distribution and has
finalized important relationships and
a particularly close partnership with
one of the most influential Russian
licensing agencies.
These activities have given the
Group the opportunity to develop
twelve different projects in 2012
and early 2013, and to play an
increasingly active role in proposing
new ideas, concepts and tailor-made
projects specifically for the Russian
market and consumers.

TOTAL LICENSING NEW EUROPE


Pea Promoplast
1973
,
,

,
, Ferrero, Unilever,
Coca Cola ,
,
.
2005 Pea & Promoplast

,

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2010

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Pea Promoplast
,
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.

NEWS

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Promoplast



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2012
2013 ,
,
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15

NEWS

16

TOTAL LICENSING NEW EUROPE

Maya is a hit in Russia, CIS and CEE


Maya the Bee, from Studio 100, is
proving to be a great success amongst
children in Russa, CIS and CEE territories.
The property is certainly not untried!
Maya first appeared in a book in 1912
and the first Maya classic television series aired in 1975, since when it has
been broadcast in 136 TV stations in
120 countries.
With the launch of the new 3D CGI
animated series, Maya has reached
new heights of popularity. Throughout
Europe there are an astonishing 200+
licensees covering all major categories
including publishing, toys and games,
apparel, back to school, stationery,
interactive games, outdoor and entertainment.
On the publishing side, more than
165 comic books have been published
since 1979 and such as been the interest around the world in Maya that a
Croatian opera, Maya the Bee, written
by Bruno Bjelinski, opened in 1963.

Summer 2012 saw the Maya classic


animated series debut on Karusel and
this ran five times a week until November with a rerun through january
and February this year.
As of 8th March, the new Maya 3D series began airing on Karusel at 11am
five days a week. This will run for thirty episodes and in September
a further 78 episodes will begin airing until January 2014.
Further afield in the Ukraine,
airing began on CITI TV in midFebruary whilst in Latvia the series
will begin airing on Latvian TV in the
second quarter of this year.
The licensing programme for Maya in
CIS countries is handled through Rio
Licensing and the first major licensees
with product in the CIS market include Grand Toys as master toy, Panini
for stickers and trading cards out this
year, Egmont for magazines and books
out in April, Chupa Chups for confectionary that launches March, Benet-

In Russia an CIS, according to research


carried out by Tiburon, Maya is known
by 68% of children aged between
three and six, of whom 86% love the
character.

ton for a DTR apparel deal for Maya


classic that is running for six months
at the beginning of this year and Arkophama for a range of Maya vitamins
and Royal Jelly products scheduled to
launch 2013.
The television launches will be accompanied by a number of promotions
including the Karusel open air show
in Moscow for kids day (August this
year) and a television publicity campaign through Grand Toys. Maya has
also been made the Honey Ambassador in a co-promotion based on

honey and the Moscow Flower Show.


In Eastern Europe, the series airs in
Slovenia, Hungary, Slovakia, Poland,
the Czech Republic and Ex-Yugoslavia
with additional licensees including B&S
Polska for back to school, Intersonic
for home entertainment, E Plus M
for apparel, Androni for contstruction blocks and Dairy 4 Fun for dairy
products.
Turkey has also been active the the
launch of its new localised website
- www.maya.tv this March and retail promotions with Turkeys leading
retailer Toyzzshop (Sunman) in Summer). The series began airing on TRT
Cocuk in mid February and there
are currently a wide range of Turkish licensees including Educa Borras
for puzzles and games, Kozmoneks
for party goods, Ormak for melamine
toys, Anil for board games, ucar for
role play, Sunman for plush and toys,
Hakan Canta for back to school and
stationery, Zorlu for bedding and
Cimpa for underwear.
For information about the Maya the Bee
licensing programme, contact MarieLaure Marchand, International Licensing
Director, Studio 100.
marie-laure.marchand@studio100.tv

TOTAL LICENSING NEW EUROPE


Studio 100, ,
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, ,
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1975 .
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2012 .

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Licensing,


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, Intersonic -

: Grand Toys- ; Panini,


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, Zorlu- Cimpa .

Ma Marie-Laure
Marchand, International Licensing
Director, Studio 100.
marie-laure.marchand@studio100.tv

NEWS

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,

- - www.maya.tv ,

17

TOTAL LICENSING NEW EUROPE

COVER
STORY

ZEPTOLAB
THE BIG INTERVIEW
At Toy Fair in New York
Total Licensing New
Europe caught up with
Zeptolabs licensing
business driving forces:
Misha Lyalin, CEO
and Tanya Haider, VP
Global Licensing and
Merchandising.
Zeptolab was started by twin
brothers, Semyon and Efim Voinov,
based out of Moscow. They were
the kind of guys who took out parts
of computers (when they ware 10
years old) and then put them back
together again. They were really very
technically-minded guys - you could
call them geeks or nerds (although
theres nothing wrong with that!).
The two brothers wanted to create
their own games. The first game
they launched was Parachute Ranger,
which did well for them.
And then came Cute the Rope.
In October 2010, at time of its
launch, it was incredible one million
dowloads in the first week. Cut the

18

Rope has been one of the fastest


selling games of all time on the iTunes
App store and the first iOS game to
win a BAFTA Award, as well as an
Apple Design Award, amongst others.
Today, two and half years after launch,
Cut the Rope is at 300 million
downloads on a global basis. Eighty
million of these are in the US. Usage
numbers are terrific on global basis
there are 50 million users and 5
million daily average users - people
who have the game and play the
game every day.
At the heart of this acclaimed
puzzle game is the adorable pint
sized monster, Om Nom, who has
an insatiable appetite for candy.
Tanya Haider, Head of licensing and
merchandising business for Zeptolab
is based in the US. She began working
with the company in October 2011:
I have been with the company for
sixteen months now. We learned a
lot and have done a lot in that time.
I use to work with Nickelodeon, and
when I took off from there, Misha
founds me and want me to help him
to launch the licensing business for
Cute the Rope. So it was like:
Game on!

What was it like to come from a


big company to another very much
smaller one which came out of a
new generation of businesses?
TH: It was exciting because I came
from world of television where
things are different.You launch a TV

TOTAL LICENSING NEW EUROPE


series on air, run then for the 18
months, then the licensing program
follows and its sort of all rather
mechanical. This is different, very
different, because you have a
property that is out there, that is
available in 100 million homes on
global basis.
What was the biggest challenge?
TH: The challenge was, well, you
clearly have something which is
obviously a hit amongst consumers.
But how are you going to get
retailers to understand that this is
actually a sustainable brand. People
will play the game and merchandise
will sell when merchandise hits the
stores in 12 to 18 months time.
That was the issue. Thats interesting,
because in last two years digital has
emerged as a platform for launching
brands. We can all clearly see this
from other players in the market.
So, its been a challenge but not as
difficult we thought it would be.
Interestingly the global aspect is
very different from television when
you wait for success of the show in
the US, then you sell it into other
markets. Here, with the flick of
a switch you are in the iOS and
Android store and you are available
on a global basis.You can really follow
the track on programes in multiple
markets. Thats where we are right
now.
Who is representing brand and at
which territtories ?
TH: ITV is representing property
in the EU. We appoint subagents
through them for local markets
as well as partners we know.
And we launching this
Spring with full line of
toy products through
Toys R Us. Were very
exited about this. Then
the programme will
take off. We have 35
licensees signed for the
US. We are also launching
in Europe. Our next
goal is to figure out
what we are going to
do in Latin America
and Asia. We just signed

agents in Latin America


- Televisa in Mexico and
Exim for Brasil and the
rest of Latin America. So
we really are putting this
programme together on
a global basis.\
What about Russia ?
TH: We talked with
several potential
partners in Russia,
and we ended up with
somebody whom
Misha knows very well.
The company is called
Playcom and they are in
the home video business
and have distribution,
but they also have links
with all major retailers.
So, the thinking was lets
get them on board, let
make them a start with
sourcing products, and
bring some international partners
before they start to develop some
local partnerships. We just signed
them on. I think its going to be quite
interesting. And its quite a unique
approach.
And so to Misha Lyalin, CEO.

Can you tell us bit about your


background is it banking ?
ML: My backgound is starting
businesses, I started many companies
before this and one of them was
banking.
How did you get into Cut the
Rope ? You joined two brothers?
ML: Two brothers, twins, started this
adventure. They certainly created a
great game, but I came in to make
something big out of this. The game
was already big, but everything else
needed to be created around it. We
had known each other for the while,
we sat and talked and found that our
goals are the same we wanted to
create a next generation game and
a company a big company!
Now that it is 2013, how
would you say that the
journey had been so far?
Did you expect this
kind of success?
ML: Well, at the start
there were two or
three people in company.
Now it is a much
bigger team and we
continue to grow
and can do many
other things. Since 2010

19

TOTAL LICENSING NEW EUROPE


penetration of smartphones and
tablets is higher here then in Europe.
But Europe is catching up. Take the
US for example.You have 50% of
smartphones and we are probably
on one third of them. In Europe the
penetration is about 30%. But it will
catch up the US soon.

we have released only one further


Cut the Rope game which was Cut
the Rope Experiments in 2011 which
also became a No 1 hit.

international. It developed in Russia


but should not be considered as
Russian. We have offices now in San
Francisco, London and Moscow.

What are the plans for this year?


ML: We have a TV show coming
up and this year there will be more
from Cut the Rope. We definitely
will produce more short movies and
short animations. I dont think we
will do a full length movie, we have
nothing like that to announce yet.
There will be more games, more
animation and much more content
for this year.
Besides Cut the Rope there will be
other games, original games, as well.
We realized if we have the right
studio we can do a lot of things at
the same time. We can innovate,
create a different games
and animation, and
everything around it.
That is exciting.

Compared with what it was


possible to see at Spielwarenmesse
and hear regarding Cut the Rope
I have feeling that the property is
much better known in the
US market. Am I right or
wrong?
ML: Yes, the US in
a more advanced
market for us because the

Would you
say that your
business
based in
Russia or...?
ML: Our
business has
always been very

20

You know that licensing in Russia


is growing very fast can you
compare Russian licensing with
your US/International experience?
Where is Russian licensing
compared with a year ago?
ML: Oh, I mean, its the complete
opposite. The Russian licensing
business is really just starting. What
I see is lot of properties trying
to find their place in the market.
It is still early days.You can tell
by the products. A lot of people
still dont know what licensing is,
so they produce something that
makes no sense whatsoever. There
are some local brands which have
become very big, and their licensing
program has been exploding. But
still, in Russia, if you go into stores,
in supermarkets you are not going
to see a huge amount of branded
product. Obviously it is going to grow
much faster than any other segments
in terms of retail, which
represents great
opportunities. Om
Nom and Cut the
Rope are big brands
in terms of Russia but
they are viewed as a little bit
special, because the property is made
in Russia. Not many products that
are made in Russia are so successful
internationally. If that national pride
gets developed I think Om Nom and
Cut the Rope can take a great lead
role in the development of
the licensing market as
well.
As an enterpreneur
and investor, what
would you say are
the kind of properties
you are looking in which
to invest? For example,
Masha and The Bear is
very popular, Smeshariki,

TOTAL LICENSING NEW EUROPE

Fixiki. What is your perspective?


ML: Yes, Masha could succeed...
I think its pretty difficult to be in
Russia and to set out to design
something for the international
market. For example, I have friend
who has an animation studio,
producing content which people in
Russia simply dont understand. In
other territories, people get it. Take
Masha or Smeshariki People get it in
Russia, but hardly any do outside.
With games it is quite different
because you create a game for an
entire market, not only for Russia or

some local market.You think about


people everywhere. The design, alone,
makes it a very different approach. I
think for Russian animation studios
it will be difficult to really create
something top level and world level,
because I think they dont have
enough ability to compete. The US
market is a very different market
where we can build, launch and make
a property available to consumers.
The building and launching is a very
different story in Russia. And the
localization is very different. I think
that Russian animation and games
will not blend together
but there will certainly
be some experiences
and we will participate
in this as well. There is
much more animation
and games content that
will be successful on
a worldwide market
that can come out of
anywhere.
Speaking of digital
based content,
everyone compares
Cut the Rope, Moshi
Monsters and Angry
Birds. It seems that

nobody planned for the success for


these properties. It just happened
somehow. How you would
differentiate your property from
these others ?
ML: The only thing common to
Angry Birds and Cut the Rope is
that both are mobile games. Moshi
Monsters is actually an online
community. Angry Birds and Moshi
have a very different approach. They
are about Good vs Bad, fighting, etc.
We have very different story. So, how
can we compare that? As far as that is
concerned, I am not a specialist so I
cant really answer that question.
I know only that even mothers have
told us that ours wont work because
we have only one character.
We started the programme like this
for a reason and we believed it would
be a success. And as you can see,
it pays off. I dont really know why
some properties work and other
dont. I dont know what you need
to do to make a property work and
frankly if you are in game business, I
think you cant design specifically to
be a success in terms of merchandise.
You have to design to create a
successful entertainment property.
Obviously there is some magic that
needs to happen, but if you design
really entertaining content then the
chances of success are much, much
higher for success.
What are the plans for the future?
ML: Look, the whole space is
changing now and we want to build
a company that has great access
to consumers through all devices tablets, smartphones, whatever. So,
saying that, we are creating a huge
amount of content which can be
delivered and be available at exactly
the same moment to a ridiculous
number of people anywhere in the
world.
With so much content available on
devices you need to be very different,
I mean you really need to be the best
to be successful and to stand out
from the crowd. That need serious
investment. Its really cool to see
how we can build a new generation
company out of this environment. Its
a lot of fun.

21

TOTAL LICENSING NEW EUROPE

COVER
STORY

ZEPTOLAB


-
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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: Goran Krnjak

25

TOTAL LICENSING NEW EUROPE

AN INTRODUCTION TO

BRAND LICENSING
In the last two editions of Total
Licensing New Europe we have
given our readers an insight into
different types and styles of
licensing.
In this issue, Pete Canalichio,
an expert in brand licensing,
gives readers an introduction to
licensing in terms of brands and
branded goods.

AN INTRODUCTION TO BRAND
LICENSING
An easy way to get started on the
topic of Brand Licensing is to break
the subject into its two component
parts brand and licensing. Lets start
with the latter part first.

term, sign symbol or combination of


these, that identifies the maker or
seller of the product or service. The
brand, or its legal term trademark,
affixed to the product helps the
consumer understand where it
was manufactured or produced. In
essence, a trademark simply states I
made this. From the brand owners
perspective, it distinguishes the
products or services from those of
its competitors. Consumers, in turn,
can be assured the product they are
purchasing is exactly what they want.

WHAT IS LICENSING?
Licensing means nothing more than
the renting or leasing of an
intangible asset. An example
of intangible assets includes
a song (Somewhere
Over The Rainbow), a
character (Donald Duck),a
name (Michael Jordan) or a
brand (The Ritz-Carlton). An
arrangement to license a brand
requires a licensing agreement. A
licensing agreement authorises
a company which markets
a product or service (a
licensee) to lease or rent
a brand from
a brand owner
who operates a
licensing program
(a licensor). Before
we move any further,
lets discuss what we
mean when we use the term
brand.

WHAT IS A BRAND?
According to Philip
Kotler and Gary
Armstrong a brand is
defined as a name,

26

Based on its reputation, a brand will


convey a level of quality, reliability and
durability.

WHY DO COMPANIES BRAND


THEIR PRODUCTS?
The primary reason companies
choose to brand their products is
to differentiate them from their
competitors
products. For
example, most
consumers have
no problem
differentiating
a Coke from a
Pepsi. By giving
their products
a brand, a
company or
brand owner
can begin to
communicate

with their consumers regarding


the attributes of their products.
Over time, a consumer can rely
on the brand to explain not only a
products value but also its reputation.
If a consumer likes what a brand
represents and they have purchased
it before, there is a higher likelihood
they will choose the brand of their
preference over a competitor. In
fact, consumers will often purchase
a brand for the first time if it has a
strong reputation or if it is used by
friends or celebrities. Brands also
lead consumers to develop certain
expectations of products. The
longer they experience predictable,
consistent quality and performance,
the more they will expect any new
products sold under the same
brand to have the same. The brand,
therefore, adds value to these
products.
For example, customers expect
new products sold under the BMW
brand to be of the same quality as
an existing BMW. Consumers will
associate a brand with a certain price
level and standard of performance.
If we look at two distinct watch
brands: Rolex and Timex, one is
associated with a high price and high
performance and the other with value
through a low price and durability.
These same attributes can also

TOTAL LICENSING NEW EUROPE


be of benefit to businesses. Many
companies as well as consumers
look to UPS for their shipping needs
because Brown has developed
the reputation of actually adding
value to an organization through
its understanding of its customers
needs and its consistent reliability.
When consumers and businesses
get into the habit of buying certain
brands, they automatically buy them
again. This reduces the amount of
time and promotion needed to make
future sales, and it results in brand
loyalty. According to Philip Kotler,
brand loyalty, in marketing, consists
of a consumers commitment to
repurchase or otherwise continue
using the brand and can be
demonstrated by repeated buying
of a product or service
or other positive
behaviors such as
word of

mouth advocacy. Brands usually pass


through successive stages of brand
loyalty, which is the customers
allegiance to a particular brand.
The stronger the brand loyalty, the
higher the value of the brand and the
greater revenue it will drive for its
owner.

the brand. A brands equity is derived


from the awareness and image a
brand holds with its consumers.
Licensing enables companies whose
brands have high preference to
unlock a brands latent value and
satisfy pent up demand that exists.
After Apple launched the iPod a
number of years ago, it created an
immediate need for accessories;
Apple could have chosen to
manufacture and distribute these
themselves, but decided they
were not core to the business and
therefore, chose to satisfy the need
through licensing. Licensing the
iPod brand enabled many

WHY TO COMPANIES LICENSE


THEIR BRANDS?
As we have said, a licensing
agreement authorizes a
company which markets a
product or service (a licensee) to
lease or rent a brand from a brand
owner who operates a licensing
program (a licensor).
Companies who know their
brands well have a good
understanding of the equity of

Licensed Product Process Flow


Licensor picks
the product
categories to be
licensed

Licensor or its
agent finds and
negotiates a
license with best
licensees

Licensees develop
concepts, prototypes
and final production
samples and submit to
Licensor for approval

Licensor approves
licensed products for
sales

Licensees sell
approved licensed
product in
authorized channels
to retailers

27

TOTAL LICENSING NEW EUROPE

Royalty Flow
Retailers such as Sears and
Target sell $10 million of
licensed product, e.g. tee shirts
and caps in a calendar year

The tee shirt and cap


licensee sells $5 million of
licensed product to Sears
and Target (based on
100% markup)

companies to produce all kinds of


terrific products to make the iPod
more user-friendly and enhance the
listening experience. Examples include
the Bose Sound System with iPod
docking station, other products that
enable an iPod to be heard through
a vehicles built-in stereo and iPod
holding devices that allow users to
take their music with them when
they go running. All these accessories
are sold by licensees.
Apart from benefits to licensors,
there are benefits to licensees as well.
Licensees lease the rights to a certain
property for incorporation into their
merchandise, but traditionally they
do not share ownership in it. Having
access to major national and global
brands, and the logos and trade
marks associated with those brands,
gives the licensee significant benefits
they previously did not possess.
The most important of these is the
marketing power the brand brings to
the licensees

28

The tee shirt and cap licensee pays


Disney, the licensor, $500,000 in
royalties
($5 million x 10% rate)

products. Building a brand from


scratch can take years, millions of
dollars and a lot of luck.
The company which licenses a brand
gains immediate access to all the
positive brand and image building
that went before it. The licensee also
takes with them the reputation of
the licensor. Often this halo effect
can translate into many intangible
and immeasurable benefits such as
returned calls, an agreement to meet,

or simply the benefit of the doubt.

USING LICENSING TO ENTER


NEW CATEGORIES?
Often brand managers will enter or
extend their brands into new product
categories to drive strategic growth
for the company. For example, Crest
several years ago extended its brand
from toothpaste into whitening
(Crest Whitestrips). Before, Procter
& Gamble (P&G), the owner of the
Crest brand launched Crest
Whitestrips, they conducted
research to understand if the brand
had permission to enter into the
retail whitening category, long
held by established brands such as
Rembrandt and Aquafresh. P&G
wanted to fnd out if consumers
would expect Crest to offer a
whitening product and if so, based
on the preference for the Crest

TOTAL LICENSING NEW EUROPE

WHAT ARE THE


EXPECTATIONS OF
LICENSORS AND
LICENSEES?
Licensors expect that the
licensee will be committed to
investing in the category they
license.
This means they will work
hard to understand the
essence of the brand and
develop their licensed
product in a way that
captures that essence. In
other words, the licensed
products should connect

brand, purchase this new product.


As we know Crest Whitestrips have
performed well since their launch in
the market and have achieved high
rankings and advocacy ratings.
While P&G decided to source the
product overseas and distribute
globally, they could have chosen
to manufacturer it themselves and
distribute or enter the market
through licensing.
In the case of P&Gs Mr. Clean brand,
P&G discovered that consumers
expected them to sell cleaning
accessories under the Mr. Clean
brand. In this case, P&G decided to
enter the market by licensing the
category to Magla, a company that
already had expertise and presence in
this category.
The diagram on the previous page
illustrates the different stages that
are a part of the Licensed Product
Process Flow.

with the consumer both functionally


and emotionally. If the licensee does
this, the products they develop will
normally be approved without delay
or difficulty. To achieve this takes
time and money. So while both
parties want to commercialise the
category as soon as possible, the
licensor will expect the licensee to
start with building the brand into the
product first. The licensor will
also expect the licensee to
be familiar with the contract
and to meet the obligations
of the contract. That is why it
is important for the licensee
to ensure all employees in
the licensees organisation
working on the license are
familiar with its contractual
obligations. For example, when
a product becomes approved,
the licensor will expect the
licensee to commercialise the
licensed product quickly in
each of the authorised channels.

Finally, the licensor will expect


the licensee to meet or exceed
the projected sales targets for the
category as outlined in the contract.
When all of these things happen, the
result can truly be award winning
products that meet or exceed annual
sales and royalty projections.
Licensees, in turn, expect that the
license they have acquired will
provide them with sales growth, and
rightfully so. This sales growth may be
in the form of growth within existing
channels or the opportunity to enter
a new channel or new market. To
accomplish this objective, licensees
expect that the brand they are
licensing is as strong or stronger
than they believe or have been
told, that it will open doors and
ultimately help them meet or
exceed their business objectives.
Moreover, licensees expect that
the licensor or their agents will run
a simple, straight forward licensing
program that will not administratively
tax their organization. Finally, they
expect that the licensor will approach
the licensing relationship with a winwin attitude that will allow them
to move quickly to take advantage
of opportunities that present
themselves. Because licensing
contracts obligate the
licensee to sales
targets and royalties,
the licensees goal
will be to quickly
achieve sales of
licensed product
to meet these
requirements.
The second part of this
article,
The Brand Licensing
Process Step by Step,
will appear in the
next issue of Total
Licensing New Europe.

Pete is a brand licensing strategist with over 20 years of business experience. Having worked in brand
licensing for close to 15 years for companies such as The Coca-Cola Company and Newell Rubbermaid, he
is considered an expert on the subject and is repeatedly asked to speak at branding and licensing
conferences and leading business schools globally.
In 2009, Pete founded Licensing Brands, Inc., a company dedicated to helping brand owners and
manufacturers harness the power of brand extensions through licensing.
For more information, please visit website: www.brandlicensingexpert.com

30

TOTAL LICENSING NEW EUROPE


Total Licensing New Europe


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32

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samples and submit to
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Licensor approves
licensed products for
sales

Licensees sell
approved licensed
product in
authorized channels
to retailers

33

TOTAL LICENSING NEW EUROPE

Royalty Flow
Retailers such as Sears and
Target sell $10 million of
licensed product, e.g. tee shirts
and caps in a calendar year

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34

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TOTAL LICENSING NEW EUROPE

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36

TOTAL LICENSING NEW EUROPE

Licensing
is no
Theme Park
ride!
By Danny Simon
President of The Licensing Group
danny@TLGLA.com
Tel: 323.653.2700 x20

Understanding the realistic expectations of a licensing property is a core


component common to all successful
licensing programs. Spoken out loud,
the notion that those in charge should
be cognizant of the product boundaries of their property seems like a
rather obvious concept.
But in reality, the failure to accept a
propertys limitations, continuing to
pursue products out of step with the
character of their property has lead
to the demise of more than one property.
Ill-conceived products foisted on unsuspecting consumer in hopes of reaping a quick buck off the current must
have property, is an all too often the
consequence of what I call heat-of
the-moment negotiations, and the
fault often lies with both licensee and
licensor.

38

Whether driven by pure greed, to


please a property owner or to meet
pre-established financial benchmarks,
the over proliferation of poorly conceived product is what I have come to
think of as the Pig Principle of Licensing: More is better.

Evidence that the licensor has fallen


prey to this form of licensing is usually easy to spot. Most obvious is that
the resulting licensed products have
a doubtful relationship to the property in question, meaning there is no
natural fit between the product and
property. The overriding sense is that
the licensor is hell-bent on building a
licensing list where volume is the important factor.
All too often in a gathering of licensors or their agents the names of
licensees are tossed out quickly followed by a choirs of got em. For
those who have not sung out, having
failed to number that company among
their licensees somehow denote their
property as less than successful?
The question is does the property
that dies at retail with the most licensees attached win?

TOTAL LICENSING NEW EUROPE


Perhaps the time has come that rethink the more-is-better approach to
licensing.
In this age of shrinking retail counter
space, where the fight to gain retail
distribution has become the real battle ground, it seems to me that one
good product that fits the contour of
the license will be of greater value to
the property and licensor then several
products that have little or no relationship to the property.
Am I speaking licensing heresy by
preaching a doctrine suggesting that
the goal of a licensor is not to collect
as many licensees as possible; perhaps.
But reality is that the quantity of licensees really has little correlation to
the long term success of a property. I
may be going out on a limb here, but
in my opinion I think that the over
proliferation of licensees may be one
cause of why certain licenses peek too
early, lose consumer interest, and find
themselves on the backside of the licensing curve.
Often called label slap, the act of a
manufacture merely slapping a label
on an existing product to create a
licensed version, this type of product
is often recognized by the consumer
as cheap form of a licensed product.
With too much, or frankly much, of
this type of product on the market a
licensing program can often be tainted
as being of poor quality, and thus hasten the propertys retail death.
A key factor that often motivates the
licensor to pile on licensees is the
manner in which licensing deals are
constructed.
With each new licensing agreement
consummated, (usually) comes front
money in the form of an advance, and
promise of more money to follow
the guarantee a sum of money due
no later than the conclusion of the
license.
Regardless of the licensees succeeds
or fail with the property, based on
payment of an advance, and a commitment to a guarantee, the licensor is in

a profit position from day one. True,


most every licensor hopes that royalties paid out during the term of the license will far exceed the advance and/
or guarantee; nonetheless the drive to
continue to collect such income can
be a very compelling force, and causes
some property owners to lose their
ability to judge product relevance in
relationship to the property in question when the scales are being impacted by the dollar signs of an advance
and guarantee.
Depending on the licensing category
and property, there may also be another factor that drives a licensing
program to reach too far the unrealistic vision of its creator. The one
common denominator I have found

In my opinion I think that


the over proliferation of
licensees may be one cause
of why certain licenses peek
too early, lose consumer
interest, and find
themselves on the
backside of the
licensing curve.
among many creators is a belief that
the property they created seems to
fit most every age group. It seems
that no amount of logical discussion
regarding the play patterns of boys
vs. girls, or what appeals to toddlers
is light years from something that attracts tweens; some creators are often
blind to any such limitations of their
property, and to rational argument
that counters such beliefs. Also, there
are often unrealistic expectations. My
personal favorite: it is one in which
a costume deal should be obtained;
hell its only June, and Halloween is
still a long ways off... Usually fueled
by a lack of knowledge about licensing,
manufacturing and retailing in general,
if allowed an uneducated creator can
often wreak havoc on the best planed
licensing program.
The question is what is the best foun-

dation for a licensing program? It is to


extend the licensing program out to
its logical conclusion. What I mean by
this is to continue to license the property to those categories where there
is a logical and comfortable fit between the property and the product.
In order to accomplish this objective,
it requires an honest assessment of
the propertys strengths and weakness, and willingness to acknowledge
who is the real core consumer for the
propertys licensed products. Though
this process may sound simple, for
some properties it can be difficult
to correctly identify the right target
market. It also demands of the licensor a willingness to narrow the scope
of focus to that audience which has
been identified as the primary consumer base for the property; by doing
so it will likely place certain products
and/or product categories off limits as
potential candidates for licensing, and
thus limiting the pool of potential licensees.
By concentrating on key product categories and products, in addition to the
creation of products that are highly
compatible with the licensed property,
the licensor is better able to control
trademark costs, filing for only those
categories needed, and forgoing those
categories that have no relevance to
the property.
Identification of a propertys core
consumer base and an honest assessment of a products relevance to the
property are the two most important factors in building a successful
licensing program. As property builds,
the licensor always has the ability to
broaden the consumer base if necessary, and push the product boundaries
if warranted.
Avoid the temptation of grabbing licenses for the sake of the dollars, often such opportunities prove to be
less than satisfying experiences. And
remember, as the title of this article
implies; every property has its limitations.

Happy Licensing!
39

TOTAL LICENSING NEW EUROPE

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



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41

TOTAL LICENSING NEW EUROPE

International Trend Selection 2013


Each year, Spielwarenmesse is without doubt a showcase for licensed toys. This year, probably more then ever, licensed
products were present across almost all booths and in every product category.
A special highlight at Spielwarenmesse is the International Trend Selection, in which international media partners present
the top three properties with potential in their respective country markets.
Results of this selection highlight the differences between worlds markets. While the Teenage Mutant Ninja Turtles and
Skylanders are, as expected, on the lists, the Turkish Top 3, for example, is quite surprising and reflects the importance of
local properties which are still in many cases the most popular and, as such, resist the more global phenomenon influence.
More information is available at: http://www.toyfair.de/highlights/lizenzen/
Here, TLNE brings you the results and available descriptions of all the selected Top licenses with the spotlight, of course,
on New Europe territories: Russia & Turkey.

Australia

Skylanders

Masha and the Bear

Peppa Pig

Hello Kitty

Teenage Mutant Ninja Turtles

Teenage Mutant Ninja Turtles

China

Spain

Rabbit Gang

Monster High

Bonnie Bears

Peppa Pig

MegaMinimals

Skylanders

Germany

Turkey

Maya the Bee

Sizinkiler

Disney Planes

Cille

Mike the Knight

Nane and Limon

France

UK

Teenage Mutant Ninja Turtles

Teenage Mutant Ninja Turtles

Rabbids

Superman

The Ranch

Monsters Inc.

Italy

42

Russia

USA

Barbie

Teenage Mutant Ninja Turtles

Minnie Mouse

Skylanders

Cars

Man of Steel

TOTAL LICENSING NEW EUROPE

RUSSIA
1: Masha and the Bear
The franchise is based on a famous Russian cartoon series. It is the first Russian animation brand that
has the potential to connect with children all over the world thanks to its style and emotional appeal
generated by the top-notch animation quality and amusing scenarios. The Bear is a big and hearty
character who loves comfort and whose life is quite average and boring without Masha.
Licensor: Masha and the Bear Licensing Agent: INK Brands
2: Hello Kitty
Hello Kitty was born in London in 1974.Throughout the years she has become one of the most
unique and interesting characters ever created, a worldwide social icon with relevance to women of
all ages, ethnicities and economic backgrounds as well as an inspiration to artists and designers. Her
motto is: you can never have too many friends.
Licensor:Sanrio Licensing Agent: RIO Licensing
3: Teenage Mutant Ninja Turtles
Back and better than ever! The new TMNT are younger, funnier and Ninja-ier than ever before, Teenage Mutant Ninja Turtles explores the lives of four teenage brothers.
Licensor: Nickelodeon and Viacom Consumer Products
Licensing Agent in Russia: RIKI Group
Also No 1 in France, UK and Australia.
The TV launched in the US and Canada in September 2012, for English language markets in October
2012 and for non-English language markets in November 2012. The target groups on-air are boys
between six and 11. The relaunch looks good for 2013 in Australia, with the master toy line from
Jakks Pacific being distributed locally by Headstart International. Licensing agency in Australia: Haven
Licensing

TURKEY
1: Sizinkiler
Sizinkiler is an animated comic strip and is Turkeys most famous comic strip series, which has been
published in Sabah Newspaper since 1991. TV broadcasting started on 31 December 2012 aimed at
children aged between four and 12.
Licensor: Mart Ajans
2: Cille
In ancient times, there was a war taking place between the humans and Ezakis. One day these two
armies faced eachother in Blacksmith Valley. But this time the leader of the Kadu people came forwards to make peace with Zend, the Ezaki leader. As a result, the Caspian Age began. But the leader
of the Ezakis Zend died and the evil Zigat acceeded to the throne. He put an end to the peace and
re-started the war. When all hopes run out old King Kadu went to Blacksmith Valley to take refuge in
Ikivak the tree.The tree explained to Kadu the secret of saving his people: using the forces of the four
elements, twelve creatures from ancient times and the power of Cilles. So a mission for peace begins.
Licensor: Cordoba Animation Studio
3: Nane and Limon
Two curious siblings with highly-developed imaginations have new adventures on ordinary days. The
only need of Nane and Limon is their quest for learning. Interesting ways of solving daily problems
are in their minds. Sometimes they are fearless explorers and sometimes they are heroes of old fairy
tales. While Nane considers herself as an expert tailor, leading the fashion world, Limon dreams he is
a football player who is the nightmare of all goalkeepers. The most important guests that visit the siblings in their dream worlds are Biber and Cilek. Cilek follows the clear plans of Nane but when Biber
and Nane come together they push the limits of their imagination. If there is common ground for all
of these four friends, it is to entertain and to learn new and interesting things.
Licensor: Cordoba Animation Studio

43

TOTAL LICENSING NEW EUROPE

Properties International Trend Selection


(in alphabetical order)
Barbie - No 1 Italy
Barbie is a fashion doll manufactured by American toy-company Mattel, Inc. and was launched in March
1959. American business woman Ruth Handler is credited with the creation of the doll using a German
doll called Bild Lilli as her inspiration. Barbie is the figurehead of a brand of Mattel dolls and accessories,
including other family members and collectible dolls. She has an on-off romantic relationship with her
boyfriend Ken, who first appeared in 1961.
Licensor: Mattel
Bonnie Bears - No 2 China
Bonnie Bears is a 3D animated series that features two bear brothers. Bonnie Bears is one of the hottest
original animation programs in China. The show has been on the top of rating since its debut in CCTV
Children Channel at the beginning of 2012. Bonnie Bears has been distributed to over 90 countries
worldwide including the US, Russia and Middle East.
Licensor: Fantawild Animation Inc.
Cars No 3 Italy
Cars is a 2006 animated film produced by Pixar Animation Studios and released by Walt Disney Pictures
and Buena Vista Distribution. Planes is an upcoming spin-off of the 2006 animated film Cars and the 2011
animated sequel Cars 2. This movie will be produced by DisneyToon Studios. It will be the first DisneyToon Studios film released theatrically since Poohs Heffalump Movie eight and a half year earlier in 2005.
Licensor: The Walt Disney Company
Disney Planes - No 2 Germany
From above the World of Cars, Disney Planes is a high-flying, actionpacked animated comedy adventure.
Planes follows Dusty Crophopper, a bighearted, speedloving crop duster who dreams of becoming a
famous racer. There are only a couple of not-so-small problems: Dusty is not exactly built for racing, and
he is afraid of heights. Licensor: The Walt Disney Company
Maya the Bee - No 1 Germany
Freedom takes courage and good friends Together with lazy Willy and many more of her friends Maya
the Bee lives in a poppy field. She is constantly seeking greener pastures beyond the strict rules of her
bee colony. Therefore she often runs into exciting adventures and frequently ends up in risky situations.
The series will be shown from 31 March on ZDF tivi and KiKA for the target group kids 4 6 and
families.
Producer: Studio 100 Animation in association with TF1 and ZDF. Licensing agency: Studio 100 Media
GmbH
MegaMinimals - No 3 China
MegaMinimals is an animated TV-series which is specially produced for pre-school kids and the parents
based on Kindergarten life, where the kids study and play together, sharing happiness and friendships. Every chapter is a single story.The joined effort of many pre-school education authorities and Kindergarten
teachers make the story real and touchable. MegaMinimals was broadcasted in June 2012 in TV station.
Licensor: Guangdong Alpha Animation & Culture Co. Ltd
Mike the Knight - No 3 Germany
Through comedy, adventure and magical mishaps, Mike rises to each challenge tackling each mission according to his motto Be a Knight, do it Right together with the help of his closest friends: Sparkie and
Squirt (a pair of tame dragons) and his trusty horse, Galahad. Licensor: RTL Disney Fernsehen GmbH &
Co. KG (SUPER RTL)
Minnie - No 2 Italy
Minnie Mouse is a humorous cartoon character created by Ub Iwerks and Walt Disney. The comic strip
story The Gleam (1942) by Merrill De Maris and Floyd Gottfredson first gave her full name as Minerva
Mouse. Minnie has since been a recurring alias for her. Minnie is presented as the girlfriend of Mickey
Mouse. She is affectionately known as the first lady of Disney, and consumer awareness for the mini-

44

TOTAL LICENSING NEW EUROPE


fashionista is almost as strong as it is for Mickey himself. Minnie continues to take centre stage in her
very own series, Minnies Bow-Toons, with brand new episodes airing throughout 2013 on Disney Junior.
Licensor: The Walt Disney Company
Monster High No 1 Spain
Monster High is a fashion doll license released by Mattel in the July 2010. The characters are inspired
by monster movies, Sci-fi horror, and thriller fiction.. They were created by Garrett Sander, with illustrations by Kellee Riley. The licensing program includes consumer products such as stationery, bags, key
chains,various toys and video games. There are also Monster High TV specials, a web series, a direct to
DVD movie, and software. Lisi Harrison is the author of the Monster High young adult novel series, the
first of which was released in late 2010.
Licensor: Mattel
Monsters Inc.- No 3 UK
Since its release in 2001, Monsters, Inc. continues to thrive, generating $525 million in global box office
and $1.5 billion in global merchandise retail sales to date. The film also boasts 96 percent awareness
among 13-54-year-olds, with 60 percent of parents owning Monsters, Inc. on DVD.
Licensor: The Walt Disney Company
Peppa Pig - No 2 Australia, No 2 Spain
Peppa Pig, the Entertainment One (eOne) brand, grossed over 200 million in UK merchandise sales in
2010.
In addition to episode DVDs, a variety of licensed Peppa Pig products is available, including video games
and other toys such as playsets, playing cards, vehicles, and stuffed toys.
Peppa Pig made tremendous progress in the Australian market in 2012 and looks set for a big 2013 with
the master toy line coming from emerging toy company, Big Balloon. Licensor: Entertainment One
Licensing agency in Australia: Merchantwise Pty Ltd
Rabbids - No 2 France
Over 8 million video games have been sold and there are partnerships with Renault, Coca-Cola Zero,
Motorola, UHU amongst others. A TV series will launch in 2013. The coverage of the video game is
France and Europe.
Licensing agency: CPLG France
Rabbit Gang - No 1 China:
Rabbit Gang has been broadcast on Toonmax TV since September 2012 and on Disney Dragon Club
since November 2012. The series will be broadcast again in 2013 nationwide and also in Hong Kong and
Taiwan.
Licensor: Toonmax
Skylanders Giants - No 1 Australia; No 2 USA; No 3 Spain
After a presentation at the Licensing Expo in Las Vegas in 2012, Skylanders has gone from strength to
strength in the Australia market. In the run-up to Christmas 2012, there were significant numbers of
retail displays and most retailers were left with empty shelves.
Licensor: Activision Publishing, Inc.
Superman: Man of Steel No 2 in UK; No 3 in the USA
Man of Steel is coming to the big screen in June 2013. Warner Bros.Consumer Products has secured a
long list of licensing partners including Lego, Mattel and Rubies Costume Co, Noble Collection, Kinetix,
Converse, Jakks Pacific, Fischer Price and Hallmark.
Licensor: Warner Bros.Consumer Products
The Ranch No 3 France
Produced by Tele Images Productions, The Ranch is the new rendezvous for horse loving children. The
series has achieved good ratings on TFOU since it launched on October 13 last year.
Licensor: Tele Images Productions/TF1 Licences for France

45

TOTAL LICENSING NEW EUROPE

RUSSIAN LICENSING FORUM


An event for people and brands involved in the Russian market
A new exhibition forum recently
took place for the young and developing Russian licensing market - an
event which brings together a specialist exhibition, a trade conference and
a number of other business events.
The Russian Licensing Forum was
held from 13 to 15 March 2013 at the
Crocus Expo, Moscow.
Over the three working days of the
exhibition and business forum participants had the opportunity to search
for business opportunities and solutions and communicate with representatives of the licensing industry as
well as colleagues and specialists.
The key theme of this years Russian
Licensing Forum 2013 was People
and Brands involved in the Russian
Licensing Market.
The organizer of the Russian Licensing Forum is ACGI (Childrens
Goods Industry Association). Rights
holders, licensing agencies, experts,
government representatives, television companies, foreign and Russian
companies, licensees, children goods
and services industry enterprises and
media companies all play their part in
the Forum.
Key speakers uncovered the secrets
of how to create, manage and promote licensed brands and products.
They also shared their know-how,
in terms of the best technology and
tomorrows trends. A busy business
program alongside a targeted exhibition are very effective ways to widen
the scope of a brand and increase its
recognition in Russia.
Key areas covered during the Russian
Licensing Forum included national
Russian brands, marketing and licensing, the protection of intellectual
property, the licensing market in
Russia and the CIS, as well as statistics, trends, facts and new media and
digital in licensing.
Finally, the business program at the
show included a Licensing School for
newcomers as well as an extensive
program for those already experi-

46

enced in licensing.
Among the participants at this years
Forum were representatives from
Masha & The Bear, INK Brands, Plus
Licens, ELC - European Licensing
Company, Brand Extensions Russia,
Warner Bros., Consumer Products,
Marmelad Media, Megalicense,Viacom Nickelodeon, Hasbro, Hamleys,
The Walt Disney Company CIS
LLC, FC Zenit, Riki Fashion, Sony
Pictures Consumer Products, Turner
CN Enterprises, STV Film company,
Tvidi Kids&Tweens Portal, Fashion
Consulting Group, Playcom LLC (Cut
the Rope), IRSOL (Angry Birds) and
others.
Through these and others, several
licensing categories were represented
at the show: entertainment and characters, corporate brands, sport, fashion, art & design.

Comments and Impressions


As the only International licensing publisher at the Forum, TLNE asked exhibitors and participants about their
impressions and comments. Below
are just a few of them.
The Russian Licensing Forum is a
unique opportunity to communicate
with members of the licensing market
and find out about industry leaders
new projects. Dennis Kulakov, Director
of Disney Consumer Products,The Walt
Disney Company CIS LLC.
The Licensing Forum is very young
event and we can see how interest is
growing among visitors. For Hasbro
this is first opportunity to participate
in collaboration with Licensing Forum
as an Official Partner. We put a lot of
efforts in to deliver great content on
Hasbro brands and bring in visitors.
We are very satisfied with initial
feedback - you could see that after
the presentation, people approached
us with questions and wanted to talk.
That is a very positive reaction.
As for the results this depend on

how you quantify results. For us this


is about new partnerships and our
visibility in terms of licensing, as well
as the quantity of products on shelves
and things that can be measured. We
are changing our business model in
Russia, improving many processes and
getting great support from our team.
This is a long-term process and The
Licensing Forum was a great opportunity to share news with partners.
We wish Licensing Forum success
and we are happy to work on great
content for the Forum in the future.
Maya Moskvicheva, Senior Licensing
Manager Russia, Hasbro
The Russian Licensing Forum was a
very important and influential event
for us, because it was the first time
that the brand took part. Mashas
image has been significantly raised
over the course of this year, which
culminated in it winning Brand of the
Year award and becoming the most
popular video on Russian YouTube.
According to TIAs ratings, the property made over a $100 million last
year, making it as successful as other
cartoons such as Peppa Pig and Mickey Mouse Clubhouse, not to mention
the fact that it is by far the most
successful Russian animation project
currently in the market. This fact appealed to many visitors to Mashas
booth. On top of that, our private
conference within the exhibition ran
very smoothy and we got the chance
to discuss with our current partners
and agencies, like Ink and UDC Licensing Agency, as well as potential
new ones. The Russian forum helped
us to make sure that we generated
as much interest as possible in Masha
and the Bear and we are very excited to keep working hard and keep
reaching for the stars! Daria Katiba,
PR Manager, Masha and the Bear
In terms of our satisfaction with
exhibiting and the results of the Licensing Forum, the show was great,

TOTAL LICENSING NEW EUROPE


also in adult categories (like food,
apparel etc.) I hope next time we will
meet more sport clubs and associations, as we are keen to share our
experience with our colleagues.
Ilya Slutskin, Commercial Rights Department, FC Zenit
with lots of new opportunities and
contacts. It met our expectations by
100% or even more! Zakhar G. Nazarenko, Managing Director, Megaliner
Entertainment Russia
In terms of exhibiting and the results
achieved at the Forum, the stationery
and toy categories were well represented with attendees as a result of
the adjacent shows but there were
few good quality attendees from
other categories. The show organisers need to spread the word to a
much wider audience next year and
also engage with retailers much more
actively and also educate them about
the importance of licensing. With
regards to meeting our expectations,
yes, it was the first year for this organisation so we werent expecting
miracles. Were pretty confident we
will convert leads into licenses and
will certainly be exhibiting again next
year. Janet Woodward, Director, Brand
Extensions Russia
We are sure that we are satisfied
with this event. We had many useful contacts here, some of them,
we hope, soon will turn into new
contracts. As we only launched our
licensing program last year, we were
trying to improve our knowledge of
licensing by meeting key players in
the Russian market (not only those in
sports licensing), such as Disney, Riki
Group, ELC, Plus license and etc. The
Forums business program was also
very rich. The level of the speakers
was really high, and most of the topics were up-to-date and relevant.
In terms of meeting our expectations,
yes it really did. I can say that in some
ways this event has even shifted our
expectations. It was nice that despite
the fact that this forum was held with
the Toy show, we met potential partners not only in childrens categories
(like toys and stationery items) but

Despite the high credibility of the


organizers of the forum and the high
expectations of the results of the
exhibition, after speaking with our
colleagues and other licensing companies we must reflect a mutual opinion, that the show did not reach the
anticipated level of interest and attendance this year. We believe that a
small interest in the Licensing Forum,
has been linked to a weak external
PR campaign which was part of the
exhibition Childhood. Toys & Kids
Russia. In our opinion, most visitors
came to the toy show and were not
interested in licenses. Lidia Grigorieva,
Marketing Director, Icon Promotions
I was very satisfied with the results
achieved at the Licensing Forum
as our objective was to assess the
market and determine what types of
properties are working in Russia.
The event did meet expectations.
I thought it was well attended and
being part of the Toy and Stationary
show assisted in determining market
potential. Gregory G. Economos, Senior
Vice President, Global Consumer Products, Sony Pictures Consumer Marketing

I visited this time as guest/visitor


on 14th - and noted good progress
and growth compared with last year
- there were more exhibitors, a more
diverse conference program, more
local Russian speakers with stories
of success and interesting projects
- and Disney did not dominate the
agenda so much this time! I agree
with Janet Woodward, somewhere
out there must be people and businesses desperately looking to hitch
their wagons to the stars... and there
were some great star brands at the
Licensing Forum. The challenge is to
bring the stars to the wagons... work
harder at adding more stars and find
creative ways to make them known
to manufacturers and retailers especially in the regions, on a regular basis
and beyond the Licensing Forum. The
Forum is a great project that seems
to be gathering momentum. Good
luck! Personally, I got at least a couple of immediate and workable leads
from the meetings/contacts. Alfia
Adilova, General Manager, LTI Vostok
I think that the Licensing Forum
showed interesting progress in the
Russian market for childrens licensed
product and just the beginning of
other types of brand licensing. The
show had a good attendance and the
booths looked busy. Looking forward
to the next event. Michele Pearce,
Head of European Licensing, Performance Brands

Brand Extensions Russia (BER) celebrated its first year at


the Russian Licensing Forum
The joint venture licensing company for the Russian market formed by JELC
and PJB Brands is only one year old, but is built on decades of licensing experience that has already given BER a strong presence in massive Russian market.
Not only have BERs founding partners successfully introduced many of their
existing portfolios of brands to Russian licensees but their expertise and
marketing insight has also attracted some major US and international brands.
Gem Fairies, Plain Lazy, Royal County of Berkshire Polo Club and My Cat Pip
from the JELC/PJB stables have been joined by the PepsiCo brands Pepsi/7Up,
popular Australian collectable doll brand kimmidoll and NBA.
At The Forum BER announced that it has been appointed to manage the
Russian licensing program for three more well known brands: the massively
popular Hallmark brand Forever Friends, The World of Eric Carle with an initial focus on The Very Hungry Caterpillar, and one of the worlds greatest and
best-loved childrens characters, The Little Prince. The popular new French
television series has boosted the popularity of The Little Prince to ever higher
levels. Series 1 of the animated television series broadcast on CTC, one of
the leading entertainment networks in Russia, with series 2 scheduled to
broadcast soon.

47

TOTAL LICENSING NEW EUROPE


By Roman Chetvertkov
Marketing Director,
Megalicense Russia
rc@megalicense.ru

The Consumer is King


in the Russian
Licensing Market
Consumers are everything! Its
not black caviar, nor Cheburashka,
nor intelligent society, nor even
the government, but the very
customer that is the most important.
Managers may be dull and passive,
but their companies products will
be manufactured and sold on and on.
There will be less sold than those
of their more active competitors,
but still. Foreign resorts may not
make their staff learn Russian, but
Russian tourist number will still go up
and up. Banks may keep their rates
unreasonably low, but client number
will still increase. And this injustice
will go on while they are out there...
our customers.
Our customers are really active,
even aggressive: they dont just
buy, they want to buy. The most
active core of them is middle aged
and older middle aged. They buy
everything: They buy stuff
they need and stuff they
dont need - just
on a whim.
The source
for their whim
lies in their age:
22 years ago,
when they were
aged from 14
to 24 years old,
they experienced
the extraordinary
collapse, the most vivid contrast
of empty store shelves followed by
bright colorful packages just a few
months after. That was a shock. A few
understood it, but it was still a shock:
their eyes were not just opened,
they were on fire. Perhaps only an
economic crisis would be able to
cool this down though even this was
still doubtful. Wealth will dominate
over the course of the few crisis
years, until the end of it when they
will move on to buying anew.

48

To tell the truth, when describing


active customers, the subject of
Gnration perdue (or the lost
generation) cant be ignored. This
mostly works for showcases and
comparisons, since most experts
operate with predictions and what
ifs, and with such an approach as we
all well know, you are safe.
Were talking not
about Hemingway and
Remarks characters,
but about our
contemporaries. They
are lost in a certain
manner compared with
its original true meaning:
the youth that served
on the front during of
WW1. Thirty-year-olds
behave like true cynics:
they know the value of everything,
but they dont value anything . They
search for activities that are not
only dear to their heart, but will also
benefit them. In terms of shopping,
this is a truly strong trend, which has
conquered Russia. However, its not
really a surprise: the overall sales
volume for Moscow Metros Cash &
Carry chain beat the whole of Metro
retail in Spain (taking into account
that Moscow Metro chain has 12
stores, while Spain Metro chain has
34 stores). Troika Dialogue company,
Otkrytie analytical department, and
Renaissance Actives Management all
state that the share of the organized
retail market in terms of overall retail
volumes in countries with market
under development, is a little over
30%, which means it is less than a
half of the profit compared with
developed markets.
Now lets develop our first idea: the
market is growing as a result of the
activity of our customers! And while
the horse is active, the horseman
should be no less active! The same

applies to a business. It doesnt


matter, whether it is a Russian one
or a foreign one. Growing business
needs to explore any possible
opportunities in terms of sales
support, whether marketing ones
or not. One of these methods, one
that has been explored as yet only
by strategically oriented companies,

is licensing: the usage of licensed


characters images or brands on
your own product. Or a brand for
hire, - a formula well mention
again and again. We will speak about
right holders and licensees in other
articles, but right now we should
focus on the customers for licensed
product.
The majority of licensed characters
and products target an audience of
12 to 14 years old.
Add a year or two, and do these kids
grow up? No, they dont actually, but
they strive to stress this anyway!
Thats why we see so few licensing
campaigns for those aged over 18.
However, the properties are there:
Hello Kitty for young women, who
dont want to feel confused, or Chupa
Chups as the flower-bright and
colorful logo for people who are also
colorful and bright. Or a brand loved
by all - vampire Robert Pattinson
from the licensed saga Twilight. Think
you can name a few more? There are
numerous campaigns which target
kids but shift the overall accent -

TOTAL LICENSING NEW EUROPE


that what is licensed looks childish!
However, the young adult audience
has taken root in Russia. If it succeeds
though only time will tell. I guess the
opportunity is there, but only to the
new generation who are now 12
years old - so called pre-teens. They
will be able to accept this youth
game whilst the present generation
of 20+ Russians wont. No matter
how passionately contemporary
young adults are striving to be, they
are not mentally ready to have a
childrens character in their
wardrobe, on their desktop,
or in their living or bedroom.
There definitely are exceptions,
but they are still just that exceptions.
To real kids aged 0-12, licensing
has a wide range of characters
on offer. In terms of well
known ones, there are over
100.You can test yourself and
put together a list of them. if
the number is over 50, youre a
master. If it is over 100, you are
a licensing Wassermann. However,
without listing them all, lets instead
point out certain aspects that are
peculiar to Russian adult consumers
(after all, these are kids products
bought by grown-ups. Whether they
buy of their own accord or are led by
their kids is another matter).
Most contemporary Russian adults
grew up in pseudo licensed Soviet
80s or in the Western 90s, when
there were lots of cartoons and
characters, but no licensed products
to power them up. Now, when the
products are finally available, many
adults are still nostalgic about this
unfulfilled inner demand. I didnt buy
them then, so Ill buy them now!
The non-purchasing that happened
during those years shatters their
confidence, something that is boosted
by annoying TV commercials.
Havent you bought that? Are you out
of your mind? With this commercial
trolling, appealing to long-term
consumer hunger, the purchase of a
licensed product for your kid or a
colleagues kid has a double effect:
I made a purchase (fulfilled what I
couldnt do before), and at the same
time Ive pleased the child.

Purchasing in itself is a great purveyor


of pleasure. Moreover, this pleasure
is applicable to any age - 21 or 85.
The quantity of licenses, of course,
keeps stimulating this. Licensing is
not a purchase of faceless product,
but a product which holds a clear
emotional impulse: whether it is
the daring magicians club Winx, or
the flexible and agile Spiderman.
The entertainment industry literally
pours smoke over its customers,
mesmerizing and charming them

along the way. Possibly it even


frightens them in some ways. After all,
can you pass by something beautiful
without noticing? And licensed
characters are beautiful, but in
different ways.
Its a mystery, but while ordinary
purchases containing non-licensed
images and characters keep us inside
a closed circle (first you buy one
collection, then another one, but the
difference is only in the collection), a
licensed purchase breaks this circle
for good. It is like a spiral, which is, as
Nabokov so well described, a circles
spirituality. The circle having broken
open, gains freedom in the spiral,
and ceases being foul. This licensing
freedom still exists, while there is
still the breath of the twentieth
century. The twenty-first Century,
on the other hand, is teaching us
individuality in which each will be
famous for seven and a half minutes,
as Andy Warhol predicted. But this
is the problem: it is very difficult to
be an individual. And the customer
finds himself surrounded.You have
to stick to your individuality, but
your own power is lacking. Licensing
shows you a possible exit, but lets

once again remind ourselves about


fame for 7.5 minutes: the same
will and does happen in the licensing
world. New characters are born
literally every day, and it is harder to
choose the one for you. However,
the new generation, born
into this ever-changing world,
will be used to this. This very
generation, that values youth
over wisdom, will be a new and
possibly a brighter customer
for licensed products. It is true
that in licensed characters
two different directions meet:
individuality and update.
When it comes to this,
evergreen licenses will feel
especially important as
patriarchs of licensing. They
will influence customers helping them
to tell a genuine article from this
everlasting flow of characters and
products. As for those manufacturers
who understand this, they acquire
profit from licensing both from the
current world and from the not so
distant old new world.

49

TOTAL LICENSING NEW EUROPE


,

Megalicense
rc@megalicense.ru

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TOTAL LICENSING NEW EUROPE


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51

TOTAL LICENSING NEW EUROPE

2013: The Year of Kikoriki


Rights management agency Marmelad
Media is the first multi-branded licensing agency in Russia. The agency deals
with supporting popular media brands
in the territory.
Its strategy is to sell the rights of
animated characters, for consumer
goods, retail and childrens clubs, as
well as selling digital rights.
Includedin
Marmelad
M e d i a s
portfolio
of properties are
K i ko r i k i ,
K i ko r i k i :
Pin Code, Baby Rikies, Fixies, Qumi
Qumi, Short Fairy-Tales, Belka &
Strelka, Ozornaya semeyka, and Mr.
Freeman.
We expect 2013 to be a successful
year, and even more productive than
ever, commented Olga Kritskaya, the
CEO of Marmelad Media. The first,
and priority event of the year, is the
10th anniversary of Kikoriki. We are
preparing for the anniversary with
a series of events. In collaboration
with our licensees we are preparing
a limited edition release of Kikoriki
branded good.We wont yet reveal the
partners and trademarks who are participating in this action, but we will say
that all fans of Kikoriki are anticipating
big national contests with a huge prize
fund.
Marmelad Media cooperates with
over
60 licenses producing
over 4,200 products,
in 30 trade categories.
The franchised chain
of Smeshariki (Kikoriki) brand includes
over 50 branded
shops and clubs in
Russia.
In 2013 Marmelad Media intends to actively develop
Baby Rikies:
in September
2012
the first is-

52

sue of Baby Rikies magazine was published. The magazine has been such a
big success that we are considering
making a cartoon series with the same
name, continued Olga Kritskaya.
In the meantime editors, artists and
psychologists from the Umnaya Masha have started
writing a script.
The series are
likely to appear
on the screen by
the end of the
year, and will definitely become an
excellent licensing platform for
the entire project.
The
agencys
portfolio
does
not exceptionally
consist of Russian brands. Since
2011 The Riki
Group, including Marmelad Media, became Nickelodeon Viacom Consumer Products
exclusive agent in the Russian and CIS
Markets. In the framework of the partnership, Marmelad Media represents
over 20 Nickelodeon properties, including SpongeBob SquarePants, Dora
the Explorer, Teentage Mutant Ninja
Turtles, Go, Diego, Go!, ICarly, Avatar:
The Last Airbender, Jimmy Neutron,
Funboy and ChhumChum, as well as
Paramount Comedy Brands, such as
South Park and others.
In March 2013, the Teenage Mutant
Ninja Turtles series aired on national
Russian and Ukraine channels, TNT,
Novyi, and QTV. Marmelad is planning
a strong licensing programme around
this.
At the end of 2012, marmelads portfolio was updated via the web-portal
Tvidi.ru. The monthly audience of the
socal network is around 2.1 million
people.
Internet is streaming into the licensing market, comments Olga Kritskaya. We have high hopes for this
project. It is well-known that one of
the main trends of the licensing indus-

try is mobile application and PC game


development Nowadays, children are
extremely interested in all electronic
devices. And if mobile device distribution territory in Russia is limited by
monetary means, the Internet covers
all almost every major city in the country, as well as
the
majority of towns
and villages.
The Internet
and
mobile
devices are a
very powerful
source. Such
properties as
Cut the Rope,
Angry Birds,
Swampy are
primarily mobile
games.
Tvidi.ru
is
not
merely
a game, it is
an all-round
game space, with the option of integrating various goods and services
into childrens favourite games and
images. Licensees are already showing
interest in the project, and Marmelad
is negotiating with a major publishing
agency about a magazine launch.
At the end of 2012, the first KumiKimi DVD was released, along with
apps for iOS and Android. The agency
is planning a range of B2B and B2C
events in the frameworks of brand
promotion in 2013.Those include specialized exhibitions, intensive creative
work with children during animation
workshops, outdoor art classes and
children festivals all around Russia,
along with bringing the first toy ranges
to retail.

TOTAL LICENSING NEW EUROPE

2013-
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53

TOTAL LICENSING NEW EUROPE

- International Trend Selection 2013


Spielwarenmesse- . , , ,
-, : , .
Spielwarenmesse International Trend Selection, .
.
, -3, , , .
: http://www.toyfair.de/highlights/lizenzen/
TLNE , -,
: .

(Peppa Pig)

Hello Kitty

Teenage Mutant Ninja Turtles

Teenage Mutant Ninja Turtles

(Rabbit Gang)

Monster High

(Peppa Pig)

-! (MegaMinimals)

Sizinkiler

Cille

Nane and Limon

(Mike the Knight)

Teenage Mutant Ninja Turtles

Teenage Mutant Ninja Turtles

(Rabbids)

(The Ranch)

Monsters Inc.

54

Teenage Mutant Ninja Turtles

TOTAL LICENSING NEW EUROPE

1:
.
, , ,
. - , . ,
, , , . -
, , .
:
: INK Brands
2: Hello Kitty
Hello Kitty 1974. , , , , . : .
: Sanrio
: RIO Licensing
3: Teenage Mutant Ninja Turtles
, -! , . -, , ,
, . , !
: Nickelodeon Viacom Consumer Products : Marmelad Media
1 , .
2012 . , 2012 . 2012 . .
6-11 . 2013 . , Jakks Pacific,
Headstart International. : Haven Licensing

1: Sizinkiler
Sizinkiler
, Sabah 1991 .
, 4- 12 , 31 2012 .
: Mart Ajans
2: Cille
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: Cordoba Animation Studio
3: Nane and Limon
. , . , .
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: Cordoba Animation Studio

55

TOTAL LICENSING NEW EUROPE

International Trend Selection


( )
- 1
, -, 1959 .
Mattel, Inc.
Bild Lilli. Mattel , . (Ken Carson), 1961 .
: Mattel
- - 2
-- 3D- , -, . -
. CCTV Children Channel
2012 . . - 90 , , .
: Fantawild Animation Inc.
3
, 2006 Pixar Animation Studios Walt Disney Pictures Buena Vista Distribution.
, . , 2,
24 2011 . 2006 . 2 2011 . DisneyToon Studios.
, , , 8,5 , 2005 .
: The Walt Disney Company
- 2
, - . . , Dusty Crophopper, .
: Dusty !
: The Walt Disney Company
- 1
-
.
, .
. , , ,
.
: Studio 100 Media GmbH
-! (MegaMinimals) - 3
-!- , , ,
. ,
. -! 2012 .
: Guangdong Alpha Animation & Culture Co. Ltd
(Mike the Knight) - 3
, , , ,
, ( )
. : RTL Disney Fernsehen GmbH & Co. KG (SUPER RTL)
- 2
- , . The Gleam (1942) Merrill De Maris Floyd Gottfredson
. . -.
, - ,

56

TOTAL LICENSING NEW EUROPE


.
Minnies Bow-Toons, 2013
. Disney Junior.
: The Walt Disney Company
(Monster High) - 1
- -, Mattel 2010 . ,
, - ,
,
. ,
, , , . -
( ), , ,
, , , .
: Mattel
(Monsters Inc.) - 3
2001 ,
525 1,5
. 96
13-54- , 60 ,
DVD.
: The Walt Disney Company
(Peppa Pig) - 2 , 2
Entertainment One (eOne) 200
2010 . DVD,
, -
, , ,
. 2012 . , ,
2013 ., Big Balloon, .
: Entertainment One
: Merchantwise Pty Ltd
(Rabbids) - 2
8 , ,
Renault, Coca-Cola Zero, Motorola, UHU. 2013 .
.
: CPLG France
(Rabbit Gang) - 1
2012 . Toonmax TV, Disney Dragon
Club 2012 . 2013 . ,
.
: Toonmax
: - 1 ; 2 ; 3
2012 . Licensing Expo -,
. 2012 .

!
: Activision Publishing, Inc.
: 2 ; 3
2013 . Warner Bros.Consumer Products
, Lego, Mattel
Rubies Costume Co, Noble Collection, Kinetix, Junkfood, Bioworld, Converse, Jakks Pacific, Fischer
Price Hallmark.
: Warner Bros.Consumer Products
(The Ranch) 3
Tele Images Productions , .
: , , .
TFOU 13 .
: Tele Images Productions/TF1 Licences

57

TOTAL LICENSING NEW EUROPE

BOLOGNA
Licensing Trade Fair

This years Licensing Fair in Bologna


will be the Italian market meeting
place of choice. In response to a period of major upheaval for many companies as well as significant changes in
the dynamics of sales and distribution,
the Fair will present a number of exhibitor innovations: for the first time
there will be a greater presence of art
/ graphic properties and brands, both
new and classic, largely due to the
evolving nature of the entertainment
sector which has always been so central to licensing.
This edition of the show has, more
than ever, had the the aim of uniting
the different key areas of Italian licensing, as well as laying the groundwork
for a new level of dialogue within the
industry, with Italian licensees on the
one hand, who increasingly have a
need to identify licenses which they
can operate outside the national territory, and on the other hand, foreign
licensors looking for licenses capable
of providing distinctive and authentic
Made in Italy added value, such as at-

58

tention to design and superior product quality, plus a new way of communicating with the distribution network
from wholesalers to major retailers
and department stores. In addition,
this show always aims to offer content
and cutting-edge insights on the future
of the licensing market, knowing that
only in a market like
ours can we talk
about food licensing, art, fashion and
design as features of
excellence of a market, alongside established brands.
In addition to the
presence of major Italian licensors and
licensing agencies as well as the Italian
headquarters of international agencies
and brand owners which constitute
the heart of our countrys market, visitors to the fair will encounter completely new Italian and international
companies such as Lynx, Raimondi &
Campbell, Moviemax and Torrini 1369,
to name just a few.

They will also be able to focus on


the international market which has
its own dedicated space, the International Lounge, which will present eight
non-Italian companies all of whom are
strategically targeting the Italian market.
For those looking to speculate on fu-

ture trends in art, fashion and design,


the show has created an exhibition
space dedicated to the work of young
designers inspired by Italian cultural
heritage goods as well as to Italian
Pop-Art artists and fresh new ideas,
where fashion interacts with environmental sustainability. This blend of
art, fashion and design will be a central theme during the first day of the
show, with two events: a keynote speech by Katie Hatch,
an American designer who
combines the latest trends in
design and furnishing with harmony of color and shape; the
other event is a seminar about
the eclectic mix of these different worlds, with speakers who
are seemingly very diverse yet
share a common ground.
This event is held in partnership with the Jolty studio of
Carpi, which specialises in
high-fashion. The show will pay
particular attention this year
to two important subjects: the
Russian market and the retail

TOTAL LICENSING NEW EUROPE

sector.
With regards to the Russian market,
on March 25 there will be a round
table discussion with the participation
of two major Russian agencies, JELC
and Rio Licensing, who respectively
specialise in brands and entertainment, along with Italian companies
who have already worked for some
time in the Russian market such as
Pea & Promoplast. With particular reference to the latter, this well-known
promotions company has been analysing the trends and preferences of the
Russian public for some time, studying
the properties which have been most
successful in the area.
The company has been working with
the leading players in the Russian publishing industry for two years with
their success with Smeshariki.
This year the Fairs central focus will
be retail.
The Retail Licensing Day will be a
whole day devoted to this important
topic, during which the first ever research into this sector will be presented, covering loyalty and modern

60

distribution strategies as well as a full


afternoon of one-toone events between
retailers and exhibitors. The whole day
was organized in collaboration with the
trade magazine Largo
Consumo, which has
had input not only in
defining the content
of the day but also in
the choice of retailers that participate
in the afternoon session. Another key
partner is Value Lab, who the Fair have

and on the key categories of clothing,


home dcor and stationery. The research will be presented on the morning of March 27 and then will be sold
during/after the event.
Three other hot topics include the
production of Italian animation, counterfeiting and food licensing. For the
first time ever in the field of licensing, Italian-made animated series will
be presented at Bologna, over 90% of
which were produced by RaiFiction
who, over the last 16 years, have been
bolstering this market and the companies operating in it.
In particular, news related to the pub-

commissioned to carry out the first


ever study into the penetration of licensing in the retail sector.
The focus will be on retail chains, department stores and specialized areas,

lishing world will be presented, both


from the point of view of publishing as
a source of this kind of project as well
as publishing as a licensed end product
of it. Counterfeiting is the major issue under discussion on
March 26; voices of experience such as brand
owners AC Milan and
specialist law firms such
as the Italian Patents Society will be taking part.
There are also many
avenues for discussion
on the subject of food
licensing, from brand
owners in the food sector to top performing licensees in the area who
are setting themselves
apart from the competition.

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

62

POLAND 2013

New Year, New Brands, New Hope...

2013 is considered by the Polish


government, as being the most
difficult, and yet crucial year in terms
of stabilising the economic situation
within the country.
Unemployment is growing and may
reach 14% - 15% at the end of this year.
Cash flow and B2B payments behavior
is far from the standard that used
to exist. We can see some changes
and acquisitions amongst the biggest
retail chains across the market. Many
manufacturers and licensees are still
fighting with stock clearances as the
market is not able to absorb product
that was forecast two or three years
ago. On the other hand, there are no
visible symptoms of a crisis. This was
especially truly during the weeks up
to Christmas, although official data
concerning retail sales in December

2012 are not available yet.


Stronger
and
forward-thinking
companies
are
looking
for
opportunities to get well-known
brands as well as new properties.
Manufacturers that were producing
generic products are now looking
at licensing to help them in the near
future. People that understand and
believe in the growth of economy in
coming years are already searching
for factors that will leverage their
businesses.
2013 will, as usual, bring good results
for classic brands. Properties owned
by Disney, Mattel or Sanrio have a
strong and long-lasting position in the
licensing industry, but many of the new
players are also doing a great job and
some of these brands are achieving a
strong position. For 2013, we will see a
lot of princesses, Hello Kitty, Monster
High and Barbie licensed products
and that makes the girls category
quite busy. On the other
hand, the boys category
looks a little forgotten
(again, as usual). Ben
10,
Spiderman,
Thomas & Friends
will obviously be
present. Brands like
Scooby Doo, Smurfs,
Cars and others we know
f r o m the past will find new licensees,
but still there is a lot of room for
licensing in Poland.
In terms of new hope I can see
certain properties such as Angry
Birds, Paul Frank and some of
the life style and sporting brands
(Dunlop, No Fear, Vokl, Converse)
which are now appearing. As a result,
adult brands may start to influence
and slightly change the licensing
landscape in Poland. However, most
manufacturers are still focused on
kids products.
One apparel retailer opened in

the New Year with the new idea


of using domestic classic movies
and TVP series from long ago. That
demonstrates a new direction in
terms of the development of the local
licensing industry.
What is interesting is that Poland has
more and more different well-designed
and manufactured licensed products
covering categories that previously
were never covered. Categories such
as food, cosmetics or sporting goods
are becoming more and more well
known thanks to great designs from
excellent artists and designers. This
strong position will help grow the
apparel, back to school and publishing
categories.
Taking into consideration well known
properties, new brands that arriving
in the market, a better economic
situation that may start in 2014 and
more licensees from new and different
categories, I believe that 2013 will be
an interesting year, full of opportunities
for the licensing industry in Poland.We
should use this opportunity to prepare
ourselves for economic growth in the
next few years.
Let me wish you all a lot of fun and
great success in the year 2013!

TOTAL LICENSING NEW EUROPE

2013
, ,

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,

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14% - 15%
. Cash
flow B2B
.

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2013 !

63

TOTAL LICENSING NEW EUROPE

Whats on
Toys & Kids Russia............................................Mar 13 15.......................................................................www.world-of-toys.org
Russian Licensing Forum.................................Mar 12 - 14........................................................................ www.licensingforum.ru
Bologna Licensing Fair......................................Mar 25 - 27................................................................. www.bolognalicensing.com
MIPTV..................................................................Apr 8 - 11.......................................................................................www.miptv.com
Kazachok Licensing Forum.............................Apr 17 - 18.............................................................................. www.kazachok.com
Surtex .................................................................May 19 - 21 ................................................................................. www.surtex.com
National Stationery Show ..............................May 19 - 21.................................................... www.nationalstationeryshow.com
Intl Licensing Expo - Las Vegas......................June 18 - 20..................................................................... www.licensingexpo.com
Seoul Character Fair........................................Jul 17 - 21............................................................................... www.characterfair.kr
Surtex Asia..........................................................Aug 25 - 27............................................................................ www.surtexasia.com
Autumn Fair.......................................................Sep 1 - 4.................................................................................www.autumnfair.com
Moscow Licensing Event.................................Sep 17 - 19................................................................. www.bolognalicensing.com
MIP Junior...........................................................Oct 5 - 6................................................................. www.mipcom.com/mipjunior
MIPCOM.............................................................Oct 7 - 10.................................................................................. www.mipcom.com
Frankfurt Book Fair..........................................Oct 9 - 13................................................................................ www.buchmesse.de
China Licensing Show......................................Oct 15 - 17............................................................................... www.tjpa-china.org
Brand Licensing Europe - London.................Oct 15 - 17.........................................................................www.brandlicensing.eu

Upcoming Features

Total Licensing New Europe is published four times a year in both print and digital formats. Each issue of Total Licensing New Europe is distributed to a minimum of 12,000 readers within the New Europe region. In addition, Total
Licensing New Europe is distributed to the readership of Total Licensing flagship magazine which totals over 84000
professionals in 104 countries.

64

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 May/June 2013 with a special focus on
Intl Licensing Expo and Licensing in Russia: Who is who!

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.