The Walt Disney Company Annual Report 2002
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Disney Licensing

Disney Licensing consists of Disney Toys, Disney Softlines (apparel and accessories) and Disney Hardlines (packaged goods, stationery, home furnishings and consumer electronics).

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Disney Hardlines
In less than one year, Disney juices and juice drinks – developed with the Minute Maid division of The Coca-Cola Company and launched in North America, Latin America and Japan – were on track to achieve global wholesale sales of $400 million. To put that in perspective, less than 1 percent of new brand launches achieve global wholesale sales of $100 million within the first year, according to industry experts.

In February 2002, Kellogg and Disney introduced three new cereals in North America – Mickey’s Magix™, Buzz Blast™ and Hunny B’s™ – garnering an impressive share of the highly competitive cereal market. In the United Kingdom, Mexico and Australia, new cereal and breakfast bars were met with high retailer demand leading to strong sales.

In 2002, Disney Consumer Products (DCP) entered the consumer electronics arena with innovative products combining a unique Disney design language and state-of-the-art technology. The first products, introduced in North America, the United Kingdom and Mexico last fall, were two-way radios and 2.4 GHz cordless telephones manufactured and distributed by Motorola, Inc.

Disney Toys
In 2002, Disney remained the largest-single licensing brand in the toy business, aided by the strong retail performance of infant and preschool toys from Fisher Price, significant expansion of Disney Princess toys and the strong retail performance of the Power Rangers Wild Force collection from Bandai.

Toys inspired by Walt Disney Pictures’ Lilo & Stitch also saw tremendous success, with the Aloha Stitch interactive plush products selling briskly prior to the movie’s release. Toys based on Monsters, Inc., boosted by last year’s release of the title on VHS and DVD, also continued to perform well at retail.

Disney Softlines
As part of DCP’s concerted move toward direct-to-retail licensing agreements, Disney now has relationships with significant retailers globally, including Kmart and J.C. Penney throughout North America and Wal-Mart in Canada. In February 2002, Disney and Kmart launched an exclusive line of non-character clothing – a first for Disney – that has enjoyed exceptional sell-through.

In Europe, Disney’s direct-to-retail agreement with Carrefour, the largest retailer in Europe and the second-largest worldwide, resulted in the launch of an exclusive line of children’s clothing and accessories at Carrefour stores in 30 countries. Agreements with major retailers H&M, C&A and Tesco also resulted in placement of exclusive Disney product lines in key European markets.

Because everything old was new again in 2002, Mickey Mouse debuted on a retro T-shirt inspired by fashions from the 1970s. The tee appealed to tweens, teens and adults, making a splash in fashion magazines, on television and with celebrities.

 


Lilo & Stitch's success launched a number of retail items.
Lilo & Stitch's success launched a number of retail items.
Aloha Stitch is a popular interactive plush toy.
Aloha Stitch is a popular interactive plush toy.
Kmart features a new line of Disney clothing.
Kmart features a new line of Disney clothing.