Licensing II: Attack of the sequels

This year's list is unlike any that's been seen in the licensing and entertainment industry for years. Spider-Man. Star Wars. Scooby Doo. Stuart Little. Harry Potter. Lord of the Rings. Alf. Strawberry Shortcake. He-Man. Care Bears. What's the common thread here? Not one of these properties is a new launch, yet each is expected to contribute significantly to a resurgence in marketing licensed products to the under-12 market.

Let's start with the first six titles above. Each is an evergreen that's been around for years. And each of these properties is poised to play a significant role in the return to prominence of movie licensing, as they combine focused but far-reaching marketing programs, creative execution by licensees and, most importantly, instant consumer recognition.

Of course, for a license to be effective, you not only need sound licensee execution and consumer acceptance, but the retail community needs to embrace the property as well. And these days, with retailers being more selective than ever, a property with a proven track record is a definite plus. Retailers have understandably been skittish about trying something new that hasn't already been market tested. For them, a strong licensing and marketing campaign for a proven entity is a solid investment with excellent profit potential.

In the case of movie licenses—particularly franchises—retailers are going to keep a sharp eye on the studio's marketing efforts. Exclusive retail deals, a trend that has been steadily building over the past several years, will continue to play a major role in movie merchandise marketing. Retailers are drawn to this strategy because it means they won't have to compete on price, which keeps margins up. In addition, it gives them a market advantage of being able to carry a product or line that their competitors don't have a powerful weapon in driving traffic into the store.

Though Spider-Man only reached the big screen last month, the property has been a favorite for two generations. Similarly, Scooby Doo, Star Wars and Lord of the Rings have crossed generations, and Harry Potter is still riding a wave of popularity that cuts across several age groups. This means that retailers not only get to delve into properties with proven track records, they also know that the parents buying these products are or were fans of the property at some point in time. This comfort factor, and the notion that parents are warm to the idea of sharing a part of their youth with their children, is why nostalgia is a very successful licensing trend.

Children of the '80s are today's young parents. They have a lot of affection for the properties of their youth. Parents are recognizing the importance of being actively involved with their children's lives, and what better way than to share with them something they enjoyed when they were young. One of the most successful licenses of the '80s was Strawberry Shortcake, which achieved over $1.2 billion in retail sales. Now that the little girls of the '80s have little girls themselves, the property is primed for a re-launch.

Similarly, such '80s staples as Alf, He-Man and Care Bears are all making comebacks with a variety of licensed merchandise. This month's Licensing Show (June 11-13, New York City) will be a bellwether for measuring whether this nostalgia trend will continue. But with the concept of "everything old is new again" having never been truer than right now, all of these classics from yesteryear—whether they were on the big screen, small screen or on store shelves—should satisfy both retailer and consumer alike.