"Disney fashion was the exclusive prerogative of kids not so long ago but today, even fashion-conscious youngsters are choosing to wear Disney inspired apparels and accessories. Having seen the market potential Gucci at a recent runway show held at Le Palace in Paris by unveiled a $4,500 plastic purse shaped in the form of Mickey Mouse’s head as a part of its Spring/Summer 2019 collection. This ode by Gucci to Mickey Mouse was an attempt to widen its reach to individuals of all ages and income groups Thanks to its arsenal of licensed goods and the third party products that bear the names and images of the assets under its umbrella, the brand is able to cater to wide pool of consumers."
Disney fashion was the exclusive prerogative of kids not so long ago but today, even fashion-conscious youngsters are choosing to wear Disney inspired apparels and accessories. Having seen the market potential Gucci at a recent runway show held at Le Palace in Paris by unveiled a $4,500 plastic purse shaped in the form of Mickey Mouse’s head as a part of its Spring/Summer 2019 collection. This ode by Gucci to Mickey Mouse was an attempt to widen its reach to individuals of all ages and income groups Thanks to its arsenal of licensed goods and the third party products that bear the names and images of the assets under its umbrella, the brand is able to cater to wide pool of consumers.
Licensing deals give intellectual property rights to brands
Disney licensed goods are incepted from the various deals the Walt Disney Company forms with brands that give them the right to use its intellectual
property in exchange for a lump sum and royalty payment based on sales of these goods. These products are a big draw amongst consumers and generated nearly $60 billion in retail sales in 2018. The California-headquartered company’s princess merchandise ranging– from dolls and toys to clothing and home décor – is a $5.5 billion enterprise and Disney’s second-most-profitable franchise. Similarly its licensed Frozen franchise sold $531 million worth of dolls and dresses in 2014.
However, according to Bloomberg, even this frenzy for Frozen products could not usurp the power of Disney’s top seller Mickey Mouse which raked in almost $1 million a year in sales within just five years of its debut in Walt Disney’s 1928 animated short film Steamboat Willie. Since then, Disney has added many new assets to its portfolio, some of them created in-house while others acquired. The company’s licensing deals with Star Wars in 2015 generated $5 billion in 2016.
Deals help Disney set new fashion examples
The deals also enabled Disney to amass a large pool of license-able assets, from the wildly valuable Star Wars trademarks to the names of its characters and their copyright and trademark-protected appearance. Star Wars specific elements were later translated into high fashion examples by brands and designers like the London based label Preen and designers Kate and Laura Mulleavy who imbued the classic Star Wars imagery into their creations such as t-shirts from Hot Topic and Target, alike.
By acquiring Lucasfilm, Disney not just gained rights to the characters and insignia associated with the iconic “space-opera” franchise, but also gobbled up the company that was responsible for transforming the market for movie merchandise since 1977. Its deal with Star Wars aims to focus on selling its goods to fans of the franchise no matter their age.
Besides introducing and/or acquiring new blockbuster franchises, Disney also employs an extensive network of marketing gurus who come up with new ideas to maintain the brand’s relevancy. And Disney relies heavily on its licensing partnerships with brands like Gucci, Sephora or Supreme to ensure the enduring relevance of its intellectual property assets over time. Though toys are still its top selling products, Disney’s sale of licensed apparels is also strong which reitereate the fact that fashion-centric deals are among some of the most lucrative in the licensing space.
