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Disney licensed merch nears the US$30 billion mark


Lana Castleman

KidScreen Daily

June 11, 2008

Disney Consumer Products chief Andy Mooney announced yesterday at Licensing International that Disney merch is currently on track to generate US$30 billion in global retail sales in fiscal 2008, marking a record for DCP and its licensees. Mooney added that he expects that number to grow to US$40 billion within three years.

Standouts for 2008 fiscal include the one-two punch of Hannah Montana and High School Musical that have helped DCP grow its tween retail product sales from US$400 million in 2007 to an estimated US$2.7 billion in 2008. Up next for the demo is the roll out of Club Penguin merchandise this fall with Mooney announcing Toys 'R' Us as the property's biggest domestic retail partner.

Mooney also indicated that DCP still has much room to grow in most category segments. Currently, Disney licensed goods make up 5% of all toy sales and 2% (roughly US$3 billion) of the children's apparel market. He said growth will come from convincing key retail accounts (i.e. Wal-Mart and Target) to embrace quality goods with higher price-points. Mooney then pointed to some current examples within the DCP portfolio such as its licensed TV business which has continued to up the ante in both price (units have gone from roughly US$130 to more than US$250 in the past decade) and technology, and has witnessed growth in unit sales and category value.





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