Along with publishing, now in nine
countries, Disney Retail also includes the Disney catalog and
DisneyStore.com. MAny of the successes are being attributed to the
store’s new merchandise strategy centered on Princess,
Toy Story, Winnie the Pooh, Mickey Mouse and standard characters,
as well as its emphasis on key hollidays or events such as
Halloween.
Disney Princess remains a year-round focus for the Disney Store.
The Princess collection brings Disney’s beloved heroines together
in fantasy-based products for girls ages 4 to 10. Many of the
favorites such as Ariel, Belle, Cinderella, Jasmine, Mulan,
Pocahontas, Sleeping Beauty and Snow White are all now featured
on pajamas, dress-up gowns, dolls and toys. What girl would not want to dress-up
and become her favorite princess?I know I would love it!
Disney Store’s
international businesses continue to grow through solid per-store sales gains
throughout 2002, along with flagship stores in Paris, Rome
and London helping to contribute to the overall success of
the business.
Disney Store North America also continues to test Disney Play –
a new store concept that focuses on play time, fantasy and fun for
children. Toys and dress-up themes take main priority, while
the plush “Cuddle Kingdom” is featured prominently at the entrance
at the store.
Disney
Retail
Disney Interactive
is alo rising for the company. Disney Interactive broadens Disney’s core
demographic, helping the company reach children, teens and
adults with Disney content.
One of the most curreent Disney interactive products contains Donald, Goofy
and more than 100 characters staring in the innovative interactive
adventure Kingdom Hearts. Selling 2 million units after
launching in the United States, Europe and Japan in 2002, the
highly anticipated, award-winning title is on track to sell
up to 3 million units during its lifetime.
Last year, Disney Interactive and Sega Sports incorporated ESPN branding
into sports titles, including NCAA and National Football League
titles. Moving forward, ESPN integration will continue with
products based on the National Basketball Association, National
Hockey League and Major League Baseball.
Disney
Interactive
Disney Licensing
consists of Disney Toys, Disney Softlines (apparel and accessories)
and Disney Hardlines (packaged goods, stationery, home furnishings
and consumer electronics). 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.
Also in 2002,
Disney remained the largest-single licensing brand in the toy
business, aided by the strong retail performance of 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 now has
relationships with many 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.
Disney Licensing
Letter to the Shareholders
October 17, 2003
Brynn duBois
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