Tag Archives: coronavirus

Disney content and licensing hit hard by Covid-19 but consumer products offer glimmer of hope

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Content sales and licensing revenues at the Walt Disney Company have suffered big losses at the hands of the pandemic with dramatic decreases of 56 per cent and an operating income decrease of 78 per cent driven primarily by the closure of theatres, parks and experiences over the course of last year.

Lockdown restrictions and social distancing measures played a major role in significantly reduced theatrical distribution from the studio with many theatres across the globe either closed or operating at reduced capacity in the ongoing fight against the coronavirus.

As a result, Disney content sales, licensing and other revenues dropped by over half to $1.7 billion, while segment operating income decreased 76 per cent to $188 million.

Meanwhile, lower TV and SVOD distribution results were driven by the shift from Disney’s licensing of content to third parties to distribution via its own direct-to-consumer services like Disney+.

The studio has attributed the decrease in home entertainment results to lower unit sales, partially offset by lower marketing costs. The prior-year quarter reflected the performance of Toy Story 4, The Lion King and Aladdin compared to no significant titles in the current quarter.

The negative impact of Covid-19 continued to be felt across Disney’s Parks, Experience, and Products segment which saw Q1 2021 revenues plunge 53 per cent to £3.6 billion, with segment operating results dropping $2.6 billion to a loss of $119 million.

As a result of the pandemic, Disneyland Resort was closed and the company’s cruise business was suspended in the current quarter. Disneyland Paris closed on October 30, 2020 and Hong Kong Disneyland Resort closed on December 2, 2020. Walt Disney World Resort and Shanghai Disney Resort were open in the current quarter, but were operating at significantly reduced capacities.

Disney’s consumer products business has however offered the firm a glimmer of light, with operating income growth driven by an increase in games licensing revenue, reflected in the release of Marvel’s Spider-Man: Miles Morales.

‘The most significant impact on operating income in the current quarter from COVID-19 was an estimated detriment of approximately $2.6 billion at the Disney Parks, Experiences and Products segment due to revenue lost as a result of the closures and reduced operating capacities,’ explained Disney in its Q1 2021 financial  statement.

‘The impacts of Covid-19 on our Disney Media and Entertainment Distribution segment were less significant. Lower revenues due to the deferral or cancellation of significant film releases as a result of theater closures were largely offset by the related reduction in film cost amortization, marketing and distribution costs.’

Bob Chapek, chief executive officer, The Walt Disney Company, said: “We believe the strategic actions we’re taking to transform our Company will fuel our growth and enhance shareholder value, as demonstrated by the incredible strides we’ve made in our DTC business, reaching more than 146 million total paid subscriptions across our streaming services at the end of the quarter.

“We’re confident that, with our robust pipeline of exceptional, high-quality content and the upcoming launch of our new Star-branded international general entertainment offering, we are well-positioned to achieve even greater success going forward.”

Mad Beauty confident of ‘flourishing beauty gifting market’ with extensive Mickey and Friends collection

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Mad Beauty has expressed its confidence in the gift market with a follow up collection of its original Disney Mickey and Minnie line featuring a new slate of on-trend products, tapping directly into the need for friendship and kindness in the midst of the coronavirus crisis.

Developed by Mad Beauty’s creative director, Julia Cash, the new range of Mickey and Friends designs takes inspiration form the nostalgia of the original cartoons, with the addition of vibrant colours and bold outlines across a new 35-piece collection.

The expansive range has been developed in a show of confidence that the gifting market “will flourish” over the coming year.

The new line spans clay masks, bath jellies, bubble bath, lip balm tins, and bath fizzers, make up bags, and sheet masks.

Julia Cash, creative director and owner of Mad Beauty, said: “We are so proud and excited as a creative team to launch this beautiful Disney Mickey & Friends inspired bath & body collection. We have introduced new SS21 gifts such as tubs of Clay Mask and Bath Jellies. 

“Some might think we are brave (Mad even!) creating so many new collections with the last 12 months, but we are confident that the gift industry will flourish and as a brand we stay fresh and on trend whilst maintaining the Mad Beauty fully compliant quality to give retailers and shoppers something different, which they expect from us and means they come back time and time again.” 

Mad Beauty has seen huge growth in the last 12 months through international expansion and is now following its strategy of further growth through 2021 and beyond.

“Launching such a huge collection for Spring confirms our confidence in the new collections and the beauty gifting industry overall,” the firm said in a press statement.

Chancellor ‘considering tax on online giants’ to help payback Government’s Covid spending

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Amazon and other major online retailers could be facing a new online sales tax to help the UK pay its debts following extensive borrowing during the pandemic.

Treasury sources have confirmed that Chancellor Rishi Sunak is considering initiating a tax that will target companies who have done well out of the coronavirus crisis in order to help pay back UK government debts.

The new tax is being considered as part of a business rates review after a consultation was held last year. It also emerges following calls from business leaders of 18 companies, including Tesco, Morrisons, Asda, Waterstones, and more, for a fundamental overhaul of how retailers are taxed in the UK.

Amazon saw sales in the UK increase by 51 per cent to nearly £20bn in 2020 as lockdown restrictions forced people to shop online. A report last week however, has suggested that the online behemoth paid just £71 million in business rates on its entire UK estate, including fulfilment centres, research and development centres, corporate offices in London, Amazon Lockers, Whole Foods Market stores, and delivery stations.

Furthermore, and according to real estate advisor Altus Group, who conducted the research, this represented a tax to turnover ratio of just 0.37 per cent.

Tesco’s chief executive Ken Murphy has now pushed for a one per cent levy on online sales, a move which could drastically alter the UK’s retail landscape, and a move that is now being considered by the Chancellor as attention turns to plans to help the UK’s high streets survive the pandemic.

Leaked emails showed Treasury officials had summoned tech firms and retailers to a meeting this month to discuss the online sales tax. The Sunday Times reported that Downing Street is also looking at introducing an ‘excessive profits tax’ on companies that have seen profits surge due to Covid-19.

“We want to see thriving high streets, which is why we’ve spent tens of billions of pounds supporting shops throughout the pandemic and are supporting town centres through the changes online shopping brings,” said a Treasury spokesman.

“Our business rates review call for evidence included questions on whether we should shift the balance between online and physical shops by introducing an online sales tax. We’re considering responses now.”

The Centre for Retail Research said that high street retailers paid around 2.3 per cent of annual retail sales in business rates before the pandemic.

Helen Dickinson, chief executive of the British Retail Consortium, said that ministers should not prevent businesses’ ability to recover from the pandemic.

“The key to reviving our high streets is fundamental reform of the business rates system and we oppose any new taxes that increase the cost burden on the industry which is already too high,” she said. “Economic recovery after Covid will be powered by consumer demand – the Chancellor should ensure he doesn’t introduce any new taxes that stifle this.”

Amazon has said that it will not comment on the online sales tax reports.

Viewpoint | WildBrain CPLG’s John Taylor explores the global shift and trends for 2021

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Major changes are taking place across both the licensing and retail landscapes, and it’s not all driven by the pandemic. Yes, the arrival of the coronavirus on a global scale has influenced some sweeping evolutionary moves for businesses the world over, but it has only acted as a facilitator of the inevitable changes that were upon us.

Here, John Taylor, VP Northern Europe and MD UK and France at WildBrain CPLG talks us through a selection of the biggest trends he believes will go on to define the year 2021.

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With 2021 underway and the industry navigating changes to the licensing and retail landscape brought on by the global pandemic and other forces, I’d like to explore five key trends that we at WildBrain CPLG expect to see this year and what we think they will mean for brand owners.

Sustainability accelerates 

For several years, the licensing industry has been discussing how we can make our business better for the environment, and how we can play a part in protecting our planet for future generations. There’s been significant acceleration in this area and a clear shift in priorities, with sustainability now an urgent focus for many businesses.

Plans for developing more environmentally conscious products and packaging are being worked into licensing agreements, which is an extremely positive step. 

Some good examples we’ve seen include The LEGO Group pledging up to US$400 million over three years to accelerate its sustainability and social responsibility initiatives, and Hasbro phasing out plastic from new toy and game packaging. 

I anticipate we’ll also see more brands making sustainability a focus not only in product development, but also in marketing activities. Last October, our partner Peanuts Worldwide launched a fantastic multi-year initiative called ‘Take Care with Peanuts’ as part of the brand’s 70th anniversary celebrations.

The campaign directly draws from Charles Schulz’s beloved comic strips and reminds all of us to be good global citizens, with caring for nature and the environment forming a key part of this. The response has been overwhelmingly positive and we’re looking forward to delivering great licensing partnerships which uphold this ethos to support the campaign.  

I’d also like to extend a huge congratulations to Helena Mansell-Stopher, CEO at Products of Change, for her work in pulling together the first Sustainability in Licensing Conference last year. It’s clear the licensing industry is committed to doing more to protect our planet, and seeing everyone come together to share ideas and knowledge was really inspiring.  

Supporting retail innovation 

Retail has always been a huge part of my career, and I have great respect for all those working in the sector – I still find myself tidying shelves and rearranging displays when I’m out shopping! It used to be that the industry would only assess the state of the retail landscape on an annual basis, which then became every quarter as e-commerce began changing the way we shopped. Now, with the current pandemic, retail is being discussed in the news on an almost daily basis. 

Given the pace at which the retail landscape is changing, its important the industry comes together and works closely with retailers to ensure we understand their challenges, needs and ambitions. Now, more than ever, licensors and licensing agents need to provide the innovation and tools required for retailers to stand out and keep their customers coming back for more. 

Navigating through COVID

While we can look to the horizon with optimisim, there is little doubt that COVID will still be affecting the industry throughout the year – particularly when it comes to forward planning and strategies. This pandemic has highlighted how important it is for brand owners and retailers to have not only a Plan A, but also Plans B and C and beyond, which gives them flexibility to effectively react and adapt to changing circumstances. These plans should be centred around aspects of the business they can control and where possible be informed by data and insights.

Consumer buying habits have changed significantly, from both where they are buying and what they are looking for, so staying on top of purchasing behaviours and trends will be very important. Sound contingency plans will ensure businesses of all sizes are equipped to face whatever surprises and opportunities may arise. 

Shifting consumer habits 

With a lot of the population spending much more time at home, we’ve seen notable changes in the types of products consumers are seeking out. Unsurprisingly, there’s been a big spike in home improvements and renovations as people make their surroundings not only more functional, but also more comfortable. 

Licensing has seen positive benefits from this shift in purchasing, with growth in the homewares category and also in toys and games as families spend more quality time together. The World of David Walliams, for example, has shown huge growth for us this year with the brilliant collection from University Games. 

Many new licensing opportunities are also opening up due to the increased time spent at home. Brand owners are exploring categories they previously had not considered or which may not have been a priority. For example, we recently secured a deal on behalf of Osprey London for a garden furniture range, which wasn’t in our plans at the start of 2020. We’re also in discussions with many other potential new licensees who have never ventured into homewares licensing before, but are starting to see the value of this revenue stream and now want to jump into our world. 

Streaming brands blossom

As we’re not expecting any tentpole movie releases until later this year, streaming is currently winning the attention of audiences. The growth of streaming has opened up some exciting retail and licensing opportunities for key titles available on major platforms. We’ve been blown away by the demand for merchandise from streaming shows in our portfolio, such as Sony Pictures Consumer Products’ Cobra Kai and The Boys – both major hits that made ‘most watched’ lists in 2020. In early 2021, we’re bringing fans products from such brands that they’ve been eager to find, and we’re excited to see how the industry capitalises on the potential these type of properties offer.  

Whatever 2021 has in store, this is definitely going to be a year businesses need to unite and support the whole licensing chain. Here’s wishing everyone a healthy and brighter year ahead. 

Toy & Edu China and Licensing China will host digital-physical hybrid fairs this year

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Toy & Edu China, Baby & Stroller China, and Licensing China will be offering a physical-digital hybrid fair experience this March with an online platform to support toy, baby product, and licensing companies exploring business opportunities in the region.

The virtual marketplace will go hand in hand with the physical fairs that will be held in Shenzhen from March 30th to April 1st this year.

The move follows the heightened demand for online exhibition services against the backdrop of the ongoing Covid-19 pandemic. As a result, Messe Frankfurt’s E-connect 360 will feature a series of digital solutions that ‘go beyond geographical locations and time differences’ to help boost business interaction on a global scale.

A dedicated website will be available by the end of February, giving exhibitors and buyers access to the services all in one place.

Ms Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd, commented: “We are finding innovative and effective ways to help our stakeholders embrace the digital possibilities driven by the pandemic. As an extension of the three in-person events, the online platform will present brands with valuable opportunities to establish connections and maximise coverage.

“Meanwhile, livestreaming of concurrent conferences and the fair tours will be employed for the first time during the fairs to enhance online participation.”

To replicate face-to-face interactions for those who cannot travel to China, a business matching service will be available on the ‘E-connect 360’ platform four weeks before and after the fairs, allowing industry players to interact virtually and build new relationships in a more flexible manner.

Users can check out business profiles based on AI-powered recommendations or manual searches, and reach out to their preferred business partners using the built-in instant messaging tool. Moreover, it can be used to pre-arrange and hold video meetings during the fairs.

Buyers visiting the fairs in person, meanwhile, can use the business matching programme to schedule appointments with online exhibitors.

Click here for more details and to pre-register for the business matching service.

In addition to business matching, exhibitors can utilise the ‘E-connect 360’ platform to promote their company and product offerings. Brands can submit their product shots along with descriptions and video content which will be made available for viewing on the website.

Moreover, an information centre that highlights the latest developments about the toy, baby product and licensing sectors will provide valuable insights to industry players.

When the fairs open, virtual participants can enjoy livestreaming from the fairground. Fringe programme events such as conferences and the fair tours will be broadcasted live on the platform.

Toy & Edu China, Baby & Stroller China and Licensing China are organised by Guangdong Toy Association, Guangzhou Li Tong Messe Frankfurt Co Ltd and Messe Frankfurt (HK) Ltd. The three fairs will be held at the Shenzhen World Exhibition & Convention Center from 30 March to 1 April 2021.

Retail warns of “revenue-crushing” impact on sector should click-and-collect ban spread

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The British Retail Consortium and Scottish Retail Consortium have warned that the curb on non-essential click and collect services could prove ‘disastrous for an already beleaguered retail industry,’ with far wider implications for the UK’s retail sector should the ban widen.

The warning has been issued since yesterday’s breaking announcement that Scottish first minister, Nicola Sturgeon was to impose a ban on non-essential click and collect services for shops across Scotland.

It followed plans detailed by John Lewis Partnership to halt its own click and collect services across the UK in a bid to help the government drive down non-essential travel.

Both moves have been met with disappointment by the retail industry who has united in voicing concerns over the impact it would have on the sector, should the ban spread UK-wide. Until now, retailers have relied on their click and collect efforts to weather a relentless storm of lockdowns and social restrictions that have heavily impacted footfall and business as customers turn to online shopping.

Click and collect services of the non-essential retailers have been their life-line and, in many cases, their last remaining link to local communities, themselves driven to spend more with online giants such as Amazon.

Tom Ironside, director of business and regulations at the British Retail Consortium, said: “Click and collect is used by a wide array of companies and allows the public to get many of the goods they need in a safe, convenient and timely manner.

“Retailers have implemented systems to ensure people are kept safe while queueing and collecting goods, and we have seen no evidence to suggest otherwise.

“Preventing people using click and collect services would harm the viability of many retailers, already suffering under lockdown, as well as severley limiting the choice for some consumers.”

David Lonsdale, director of the Scottish Retail Consortium has called the restrictions now set to come into force from Saturday, January 16th as “revenue crushing”.

“The situation with the pandemic is fast moving and we fully recognise government wants people to stay at home. However, these further revenue-crushing restrictions and the fresh complexity they bring, together with constant chopping and changing to the Covid Strategic Framework, are disconcerting and come at an incredibly difficult time for retail.

“Firms operating click and collect or food to go takeaway have taken every reasonable step to make their operations as safe as possible, complying with every twist and turn to government guidance and often at pitifully short notice.

“They have demonstrated they can operate safely and have invested significantly to make their premises Covid-secure, and it appears no evidence to the contrary has accompanied this announcement.”

 

Games Workshop valued at £3.8bn as hobby demand fuels its latest sales surge

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Games Workshop, the British firm behind the wildly popular Warhammer tabletop miniatures gaming franchise, has reported blockbuster sales and profits driven by the stay at home messaging of the last year and the surge in the hobbyist and gaming markets.

The company’s chief executive, Kevin Rountree has billed its 2020 results as “another cracking performance from a truly amazing global team”, as it rang in sales of £186.8 million and a profit of £91.6 million for the six months to November 29th, 2020.

The results outstripped the estimated figures, equating to around a 25 per cent surge in sales and a leap of 53 per cent in profits year on year. Games Workshop is now valued at £3.8 billion on the stock market – £1 billion more than Marks & Spencer.

The group managed to turn around the initial impact of the Coronavirus pandemic that saw Games Workshop stores closed during the UK’s first lockdown period last year. Most of the group’s 529 shops around the world have been closed, causing some initial concern over how it will reach its active customer base over the course of the year.

A surge in demand for the hobby market, and a particular rise in board gaming and the gaming sector, as well as the lean into online shopping saw Games Workshop’s online sales grow by 87 per cent. To meet customers in the digital space, the group also hosted a series of live-streamed online preview events to showcase new products and its own team of creatives.

Covid-19 has delayed production on some of Games Workshop new releases, such as titles like Death Guard Codex and pieces for the Age of Sigmar franchise, however the firm has promised fans that these will go on sale fortnightly from next week.

Chief executive Rountree has commended the global team for the success of the Games Workshop brand over what has been a challenging year for the retail sector overall, and has said that the company will continue to “focus on what is in our control” as it builds upon the success over the coming months.

“Like every other company we have our internal plans as to our future performance, which show a range of outcomes which are not shared with the stock market; predicting the future is always a risky business,” he said.

“We will focus on what is in our control; delivering on our operational plan rather than worrying about, for example, any short term share price or the weather.

“Our biggest risk is senior management becoming complacent, I will continue to do my best to ensure that does not happen.”

Looking to the months ahead, Rountree gave little away: “Like every other company we have our internal plans as to our future performance, which show a range of outcomes which are not shared with the stock market; predicting the future is always a risky business.”

“We will focus on what is in our control; delivering on our operational plan rather than worrying about, for example, any short term share price volatility or the weather.”

Perhaps referring to the garlands it receives in the retail and games industry for its stellar success around the world, he added: “Our biggest risk is senior management becoming complacent. I will continue to do my best to ensure that does not happen.”

Chancellor details £4.6bn relief package for retail, hospitality, and leisure as England enters third lockdown

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Chancellor Rishi Sunak has detailed a £4.6bn relief package for the retail, hospitality, and leisure sectors that will offer UK businesses a one-off grant worth up to £9,000.

The measures were announced this morning, following a public message from Prime Minister Boris Johnson last night that England is to enter a full lockdown period for a third time in the ongoing fight against the coronavirus pandemic and the latest developments surrounding a new strain of the virus here in the UK.

The payments, detailed by the chancellor on Tuesday, January 6th, are expected to support 600,000 business properties across the UK. A further £594 million will be made available to councils and devolved nations to support businesses not covered by the new grants.

Sunak said: “The new strain of the virus presents us all with a huge challenge – and whilst the vaccine is being rolled out, we have needed to tighten restrictions further.

“Throughout the pandemic, we’ve taken swift action to protect lives and livelihoods and today we’re announcing a further cash injection to support businesses and jobs until the spring. This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they able to reopen.”

The third national lockdown will once again see the closure of all retail, hospitality, and leisure facilities deemed non-essential. A lesser blow to the toy industry than the previous national restriction measures imposed in the build up to the Christmas shopping period, its impact will still likely be felt across the indie retail network.

The cabinet secretary, Michael Gove, this morning said that he hoped the gradual lifting of restrictions could begin mid-February, but that the time it will take for the vaccines to take effect meant it was likely to be at least another couple of weeks before measures could start to be eased.

It is likely the measures will be in place until March this year.

“We can’t predict with certainty that we’ll be able to lift restrictions the week commencing February 15th,” he told Sky News this morning. “What we will be doing is everything we can to make sure that as many people as possible are vaccinated so that we can begin progressively to lift restrictions.

“I think it’s right to say that, as we enter March, we should be able to lift some of these restrictions – but not necessarily all.”

School closures of course mean that children will now be spending time at home, offering up more opportunity to the toy industry to capitalise on the need for home learning resources and toys. Many independent retailers are already primed for yesterday’s news, having implemented click and collect and delivery services throughout the course of England’s lockdown throughout the spring/summer of 2020.

Emoji Company partners with Vistaprint to launch new face masks range and support businesses in the US and Canada

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The Emoji Company has partnered with Vistaprint to produce a new line of face masks featuring some of the most recognisable Emoji brand icons. Ten per cent of the total sales made by the masks will be donated to help empower small businesses across the US and Canada.

To date, Vistaprint has raised more than $5million in cash and in-kind product donations to support small businesses through its mask sales.

Available in the United States and Canada, the Emoji collection features a variety of designs including some of the most popular Emoji brand icons giving consumers plenty of options to choose from.

“We are excited to be launching this playful collection of masks in collaboration with Emoji- The Iconic Brand that will bring some light and fun to people’s everyday attire,” said Vistaprint’s North America market director, Erin Shea.

“We use digital icons every day to express ourselves on social media, in text conversations, and emails. Self-expression is important and we believe that a mask should not limit a person’s ability to express themselves. Our mask design partnership with the emoji® brand is one way we’re helping people do just that.”

Vistaprint’s RFS masks have a three-dimensional chin structure, a bendable nose bridge, and adjustable straps to give your reusable face mask the perfect fit all day long. Designed with wearability in mind, the masks are available in a wide range of colors and prints for both adults and children. Sold separately in packs of ten, filters can be inserted into the RFS masks. Each filter can be used for up to 12 hours.

“With face masks such an important part of daily life, we welcomed the opportunity to partner with Vistaprint for high quality face masks that empower consumers of all ages to express themselves in unique and fun ways,” said Marco Hüsges, CEO and founder, the emoji company.

Hyve Group reveals dates for the all-virtual Spring Fair @ Home 2021

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Hyve Group has confirmed the dates of its Spring Fair @ Home virtual event, an all-digital show that will take the place of the in-person Spring Fair 2021 that was cancelled last month over the continued uncertainty surrounding covid-19 restrictions.

Running from February 8th to 10th, Spring Fair @ Home has been designed to ‘bring the industry together, even when we remain apart’ by providing a hub for industry professionals in the UK and around the world.

Bringing together the key elements of what makes the show, Spring Fair @ Home will provide key industry insights, as well as a first-hand look at the latest products, trends and collections. Among the exhibitor line up are names such as Coach House, Puckator, Moulin Roty, Paper Salad, T & G Woodware, and Alexander Thurlow.

Julie Driscoll, managing director for Hyve’s retail portfolio, said: “We are delighted to be offering a digital platform for the Spring Fair community this February. Whilst we are working hard towards the return of our physical events, I am so proud that the team have been able to develop a virtual offering that has proved so valuable to both retailers and brands during such a challenging time for retail both here in the UK and abroad.”

Spring Fair exhibitor Steve Cox, UK sales director at Keel Toys, said: “Spring Fair is undoubtedly the most important fair of the year for Keel Toys. At the start of 2021 we all need to get creative to meet with all our key buyers effectively with the lack of physical shows. The Spring Fair Virtual show will be an important part of our mix to present the new ranges for 2021.”

An exclusive content programme will provide access to of-the-minute industry intel, trend insights, peer-to-peer panel sessions, and more.

Dedicated Virtual Showrooms will also provide buyers with an easy and accessible way to discover new brands and see what their current partners have to offer. The Virtual Showroom will provide carefully curated brand line-ups on the Spring Fair website. Dynamic profile will allow brands and designers to put their best virtual foot forward, with capabilities to host videos, lookbooks, brand imagery and more.

Spring Fair @ Home will also see the return of the Product Showcase concept. Giving brands the opportunity to take buyers on showroom tours, or simply talk through their latest collection, the Product Showcase offers exhibitors the chance to submit a five-minute video to be shown to buyers during a sector-specific time slot.

Spring Fair @ Home is open to all buyers and takes place on 8th – 10th February 2021.