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Disney Consumer Products Poised for Growth

Disney Consumer Products Poised for Growth

Disney will expand its retail presence with a wide variety of franchises and supporting entertainment properties. Sales of Disney-branded merchandise have grown at a compounded rate of 12 percent per annum over the last 10 years, according to Andy Mooney,

Disney will expand its retail presence with a wide variety of franchises and supporting entertainment properties. Sales of Disney-branded merchandise have grown at a compounded rate of 12 percent per annum over the last 10 years, according to Andy Mooney, chairman of Disney Consumer Products, and the company unveiled its plans for growth in a press conference yesterday.

Mooney also outlined the division's strategies to increase global sales and market share, including a Disney Baby retail store strategy; the growth of mega franchises such as Disney·Pixar Cars; and the evergreen property Mickey Mouse, the company's largest earner with $9 billion in global retail sales.

Disney is making investments to build Disney Baby as a brand and a business, including creating a two-way dialogue with new moms through a digital platform, social media, product seeding and a loyalty program. Additionally, Disney will expand the business into retail. 

The Cars franchise has generated more than $10 billion to date, making it among Disney's top franchises. Retail merchandise for Cars 2 began to roll out globally in mid-May and is already on track to meet retail projections that will exceed Toy Story 3's sales last year, positioning it to become the largest merchandise program in licensing industry history. 

DCP will produce new Cars Toons short-form content that will be shown in movie theaters as a preview to animated films, featured as a bonus on Disney DVDs, on Disney Channel and Disney XD. Next summer Disney Parks & Resorts will open 12 acres of Cars Land, three new immersive attractions at Disney California Adventure.

Disney·Pixar will produce short-form content for Toy Story as well. The first Toy Story Toon, "Hawaiian Vacation," will debut this summer in movie theaters as a preview to Cars 2 and will then be seen on Disney Channel and Disney Online, plus it will be included in the Cars 2 DVD this fall.

Disney's evergreen Mickey Mouse property is on track to generate $9 billion in global retail sales this year. DCP's second largest franchise, Winnie the Pooh will return to the big screen in the United States next month.

Disney Princess merchandise sales have grown for a decade, and Disney has a rich slate of content and events designed to keep Disney Princess current. Next spring, Rapunzel will marry her true love Flynn Rider in a short-form Disney animation special set to air on Disney Channel. Walt Disney Studios will release Beauty and the Beast for the first time in mesmerizing Disney Blu-ray 3D. 

Next fall, Disney Junior will premiere "Sofia the First," a new full length animated special and series pilot set in the storybook world of the classic Disney Princess characters, including Flora, Fauna and Merryweather of Disney's classic "Sleeping Beauty" and classic Disney Princess characters including Cinderella, Sleeping Beauty and Snow White.

Disney Fairies, targeted to girls 6-9, appears on multiple platforms including direct-to-video films; dedicated air time on Disney Channel; Pixie Previews short-form content on Disney Channel; the DisneyFairies.com website and beginning next month, Disney Fairies digi-comics.

"Our primary objective in franchise development has been to diversify our portfolio to connect with a broader range of consumers," says Mooney. "We've not only grown the number of Disney franchises from only two in the year 2000 to 13 in 2011, but classic franchises have not suffered because of it. This is evidenced by global retail sales of Mickey Mouse and Friends merchandise on track to generate $9 billion and the incremental retail space devoted to Cars 2 in addition to the already substantial Cars line."

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