A report released today by Dubai-based research firm BrandTrends report finds that that kids’ love of licensed products doesn’t fade, but it does evolve. So companies need to innovate their consumer products programs by expanding into new categories in order to keep young consumers engaged as they age. In this piece from our June/July 2023 magazine, toy expert Christopher Byrne shares strategies on how to maintain kid appeal in the lucrative world of licensed products.

By: Christopher Byrne

I’m fond of saying that brands are communities. And indeed they are, as engagement with a brand is part of an expression of identity, often shared with others (e.g. Comic-Con). However, in this dynamic market—particularly when it comes to entertainment franchises—savvy marketers and IP owners are looking to create consumer experiences that foster closer relationships with brands, beyond traditional licensing categories. This has led to categories that didn’t exist a few short years ago.

Maura Regan, president of Licensing International, says that the interpretation of brands into experiences is “really ramping up now,” adding that “brands are doubling down.” Key to this rising trend is that fandom is now often shared across multiple generations, with all the opportunities that entails. (Baby Yoda, we’re looking at you.)

A good example is century-old brand Ringling Bros., which unveiled its completely revamped circus in March ahead of a new tour this fall. The animal acts are gone, replaced with storylines and incredible human feats (à la Cirque de Soleil). The goal is to have the performers—and the show—forge a personal connection with the audience, so circus-goers will want to take the experience home in the form of licensed goods. In addition to traditional souvenirs, Ringling is going a step further and looking into licensing apparel, social media platforms and more. If that strategy works, a trip to the main event will be just one part of an ongoing relationship with the brand.

“Consumers want a reason to buy,” explains Regan. “Particularly in [the US], we’re consumers. If you’re the owner of a brand, you want to take full advantage at every step of engagement.”

Of course, retail remains a powerful platform for experiential marketing, and the trend is towards a focused and immersive experience. Within a few city blocks of where I live, the family-focused Camp store is an incredibly popular destination. Billed as a “Family Experience Company,” Camp stores offer kids hands-on interaction with toys, events and play, all of which has led to a very loyal consumer base. In fact, when Silicon Valley Bank failed last winter, putting the store in jeopardy, Camp’s customers raced to buy products so the store could make its payroll.

This demand for (almost) 24/7 engagement is rife with opportunities. We’re really impressed with a relatively new company called Facer, which allows brand owners to create unique faces for smartwatches (pictured). It’s an easy and relatively inexpensive way to stay in front of fans—and reinforce the brand 80 times a day. (Facer says that’s how often consumers check their smartwatches on average.)

Now, I’m not going to suggest that every brand needs a toaster (though the Hello Kitty ones are pretty darn cute), or that Angry Birds golf club covers (so clever) are for everyone on the links. What I am saying is that as brands become more integrated into consumers’ lives, seeking out creative new ways to deliver an experience will be an essential strategy.

It’s also important in a world where shopping is increasingly happening online. This may be efficient, but it comes at the cost of a more personal connection to a brand or property. It’s why people love stores like Camp, The LEGO Store, American Girl and FAO Schwarz—the human connection and hands-on experience simply can’t be replicated in a virtual world.

At the end of the day, your customers are showing you how they interact with your brands. It’s a good idea to listen to them.

Christopher Byrne (a.k.a. The Toy Guy) is a toy expert, consultant, author and co-host of The Playground Podcast.