Classic, retro full forward: brands, toddlers, tweens ahead.

A large amount of floor traffic, ornate brand licensor booths and an abundance of cartoon characters and company mascots at this year's Licensing Show provided for a market that was bigger and better than ever. Held last June at New York's Jacob Javits Convention Center, the show celebrated its largest year in history, boasting 520 exhibitors (over 185 of whom were first-timers), 5,700 properties and 20,600 manufacturers, retailers, marketers, promoters and licensing agents, according to producer Advanstar.

This year, the entertainment companies (who represent over half of the entire licensing industry) were joined by a plethora of corporate brands. Currently, brand licensing accounts for the second highest revenues in the licensing business--a fact reinforced by the presence of companies such as McDonald's, Benetton, Procter & Gamble, Jeep, Kellogg's and Coca-Cola wowing passers-by with attention grabbing give-aways.

Because product licensing is so costly, and product launches based on new properties are deemed highly risky, the licensors are banking on tried-and-true classic properties. NBC-Universal is nurturing nostalgia with Curious George and Peter Jackson's updated version of King Kong. MGM is capturing the classics market and boasting of "recognizable and timeless entertainment" with its remake of the 1960's hit, The Pink Panther. A.J. Rhodes, senior manager, worldwide marketing explained the company's commitment: "Classic franchises have an existing fan base. The movie is a gravy force--there is huge awareness and lots of media and promotional deals so that the movie is an extra marketing hit over a whole event." He contrasted classic films with new properties, saying, "With a new property we need about a year to figure out if it's toyetic--if it has play patterns."

This classic trend coincides with a retro retail fad that's causing all things vintage to fly off the shelves. Andy Mooney, chairman, Disney Consumer Products Worldwide pointed out that products such as Classic Mickey and Classic Pooh "continue to see substantial growth." Disney was one of the first companies to bank on the new retro trend, with vintage Mickey t-shirts appearing on the runways, in fashion boutiques and even on Sex and The City. "Vintage Mickey is so hot right now," said Disney's Maria Gladowski, "we are continuing with the retro trend and having people search through old Disney vaults to come out with retro clothing to present to the public."

Sesame Workshop will launch a slew of vintage-style products in honor of its 35th anniversary. Bill Burke, assistant vice president, marketing explained that retro products featuring Big Bird, Elmo and the whole gang from Sesame Street create a win-win situation. "We create accessories and apparel for young adults who think they are cool and parents who are nostalgic about the characters they grew up watching."

And it is parents' approval that licensors seek for one of today's hottest demographics--preschoolers. Sesame Workshop encourages literacy for younger kids in a book line for 6-12-month-olds, which includes parenting tips; they are promoting "Sesame Beginnings," a range of products for kids from 0-2 years old. Canadian companies Cookie Jar Entertainment, Nelvana and U.S.-based Porchlight are all catering to the teeny tykes too with simple, preschool-friendly programming.

Science-Fiction, other-worldliness and magic are back in a big way--in theaters, on the small screen and on store shelves. Disney will launch one of its largest properties to date by diving head-on into the magical world of C.S. Lewis's Chronicles of Narnia. MGM will present Stargate Atlantis, a spin-off of its popular Stargate SG-1 series, as a major licensing event with TV, interactive games, (increasingly essential) cell phone downloads and amusement park events. DIC Entertainment, a brand that stood out throughout the show with the omnipresence of colorful wigs and the "Big Hair is Back" slogan plastered "all over, will build a website, TV show and huge line of products around Trollz--hipper, pre-teen versions of the classic Troll dolls, packed with magical powers and potent potions. Trollz mixes two of the industry's biggest trends: magic and tweens.

Nancy Bassett, senior vice president, worldwide consumer products at DIC, reiterated the importance of the tween demo, "Girls aged 8-12 are a huge market, as proven by the recent launch of magazines such as Elle Girl and Teen People." Disney will jump on the magical tween bandwagon in 2005 with the launch of W.I.T.C.H., a TV series about a group of preteen witches.

Other trends took over the Licensing Show as well. There were animals: Classic Media launched a line of dog supplies in conjunction with a new Lassie feature film and Nickelodeon licensed Fairly OddParents fish aquarium-related products. There were cars: Disney's final Pixar-partnered feature film, Nelvana's Beep Beep for toddlers and the exhibition of the Batmobile at Warner Bros' booth "all emphasized life on the (somewhat) fast lane.

Licensors took a trip down Madison Avenue, licensing upscale products. Disney offers a line of clothing available exclusively at California-based high-end department store Fred Segal. Sesame Workshop has paired up with haute designer Nicole Miller and MGM has grabbed London couturier Thomas Pink as a license promotion partner for the 40th anniversary of Peter Sellers's The Pink Panther and the upcoming 2005 remake. "Thomas Pink was really the perfect company to team up with in an international launch of The Pink Panther products," explained Trish Halamandaris, vice president, worldwide marketing at MGM, "we wanted to target upscale adults who would be familiar with the film, and we wanted to do it in a fun and whimsical way." MGM licensed Pink shirts and cuff-links and the shirts sold out in their first week on sale. The company plans to launch a new Panther-inspired line in Fall 2004.

One company shying away from trends is Alliance Atlantis, according to Jennifer Bennett, vice president of the company that brought kiddie property Dragon Booster to the show. "I tend not to pay too much attention to trends," she insisted, "because we aren't interested in jumping on fleeting bandwagons. If you stake too much effort towards catching the trends, you're always aspiring and not necessarily achieving."

An interesting aspect of this year's show was the impact that the recent DVD explosion has had on the licensing industry. Andy Mooney of Disney Consumer Products explained that their products are now being centered around DVD-releases as much as theatrical releases. David Imhoff, senior evp, worldwide licensing and merchandising, New Line Cinema, explained, "DVDs can be another engine to draw interest in a property. The window is allowing another opportunity to take property into consumer products." He cited Will Ferrell-starrer Elf as an example of a property whose theatrical success led to a large product launch project at DVD-release time. "It's easier to buy into success," he stated simply. LC