Mickey and Minnie are the number one franchise for licensing across all categories in India.

From pencil erasers to personal computers, the consumer products division of Disney seems to have left no stone unturned to cash in on the popularity of the characters in its TV serials among its target audience – kids.

In India, the company has a variety of products to offer. It recently licensed Lenovo to launch desktops for kids in India. Under the agreement, Lenovo will offer a limited edition of Power Rangers-Mystic Force-themed desktop at Rs 40,000 upwards.

The business model Disney follows is ‘licensing’, which entails giving out licences to companies to use various Disney brands or character franchise, such as Mickey Mouse, Winnie the Pooh, Disney Princess, Power Rangers, movie and TV properties, and design, develop and market products around them.

“India is a priority market for the entire Walt Disney Company and especially for Disney Consumer Products. We are focused on creating great brand experiences for families across the country. We take global opportunities and apply locally to amplify our creative properties, and with each consumer experience, strengthen our brands,” says Roshini Bakshi, Director, Disney Consumer Products (DCP), India.

Apart from tie-ups with manufacturers of bathroom accessories, rugs, floor mats, cushions, table- and kitchenware, Disney Consumer Products also has partnered with some of India’s major kids’ merchandisers such as New Boy, Weekender, Funskool, Milton, Frank Educational Aids and Art for All to retail rainwear, innerwear, sleepwear, swimwear and accessories such as footwear, bags, watches and sunglasses.

The publishing division of the company has tied up with Sterling Publishing to launch a wide range of comics, storybooks, colouring and activity books.

Disney is also currently test-marketing its range of fast-moving consumer goods such as toothpaste and soaps in some pockets.

“Disney is an intrinsic part of everyone’s growing years. And, this is an exciting phase in the development of our business here. Parents trust the brand and children love it. Disney Consumer Products is committed to delivering an exceptional product range and content which is locally relevant and appealing to Indian kids and their families,” says Bakshi.

According to her, the company is deepening its relationship with licensees. In the last two years, DCP claims to have doubled the number of licensee relationships in the country.

“Over the last three years, our merchandise licensing business in India has been growing at more than 50 per cent. This year, we are forecasting a high double-digit growth again,” says Bakshi. The home furnishings, apparel and accessories generate almost two-thirds of the growth.

She says that for Disney, Mickey and Minnie are the number one franchise for licensing across all categories in the merchandise space, generating over 43 per cent of DCP’s revenue. The Power Rangers franchise, which contributes over 15 per cent, has a sizeable presence across media and merchandise. The Princess range and Winnie the Pooh have tremendous resonance with the consumers.

“Our competitive advantage lies in our tremendous library of enduring content, characters, stories and entertainment experiences whose long-term richness and popularity are unique. We are able to delight people around the world with our toys, clothing and other consumer products and work across our lines of business to amplify our creative properties and with each consumer experience further strengthen our brand,” says Bakshi.

It also aims to extend the brand beyond its character franchises and establish Disney as the preferred fashion and lifestyle brand for kids and youngsters across the world. So, it licensed Indus Clothing to launch non-character Disney jeans, t-shirts and accessories.

According to industry sources, the kids’ branded apparel and accessories market in India is estimated at Rs 2,600 crore and is expected to cross Rs 3,500 crore by 2010.

“While the market is driven by both character and non-character merchandise, the non-character segment in India still constitutes almost 85 per cent share of the total market size. This represents a huge opportunity, making it a perfect time to launch a powerful non-character brand likes ‘Disney Jeans’ in the country,” she says.

On the retail front, DCP is showing significant momentum as it focuses on broadening its geographic reach by expanding product reach beyond key cities through existing licensees, focusing on ‘direct to retail’ relationships, and developing speciality stores across the country. It recently tied up with Big Bazaar to set up special Disney Corners (shop-in-shop) within their stores. It also has tie-ups with Lifestyle, Pantaloons and Westside to sell its range of products.

In addition, DCP signed an exclusive master franchisee agreement with RJ Corp to open nearly 150 Disney Artist Stores nationally over the next five years. RJ Corp plans to invest Rs 80-100 crore over the next five years in opening 150 Disney Artist stores. The company will initially open five stores in Delhi and Mumbai and finally open a total of 15 stores by December 2007. The stores will sell a variety of Disney-branded products, including greeting cards, stationery, arts and crafts and party products.

“With the increasing demand around Disney brands, there is a huge potential to grow in terms of differentiated products and extended reach in this market,” asserts Bakshi.

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