Sun, Sep 03, 2017 - Page 15 News List

New ‘Star Wars’ toys hit shelves to help Disney strike back

By Christopher Palmeri  /  Bloomberg

Star Wars merchandise is displayed for sale before the “Force Friday” event for the release of Star Wars: The Last Jedi, at the Walt Disney Co store in New York on Friday.

Photo: Bloomberg

Two years after a US$150 rolling robot captured the hearts of Star Wars devotees, Walt Disney Co is betting fans will shell out the same price for the droid’s dark, evil twin.

On the big screen, BB-9E is to face off against the beloved BB-8 in a new Star Wars installment in December from Disney’s movie studio. The toy, made by Sphero, is part of a collection of fancier gadgets Disney expects will help give its flagging consumer products business a boost.

Get ready for a US$200 goggles-and-light saber combo developed by Disney and Lenovo Group Ltd (聯想) that lets customers duel and play holographic chess; US$200 fighter drones from Propel; and a US$100 programmable robot kit from manufacturer littleBits Electronics Inc.

“These are all products at a higher price point that we believe are going to help us continue to expand our audience,” said Jimmy Pitaro, the chairman of Disney’s consumer products arm.

Pitaro said his strategy is to offer merchandise for customers at all income levels, to reach as many people as possible.

Burbank, California-based Disney is pulling out all the stops for its new line of products tied to Star Wars: The Last Jedi, which hits theaters on Dec. 15. The rollout has included early reveals of new characters, a big focus on high-tech toys and product releases at 20,000 stores around the world on Friday, an event it calls “Force Friday.”

Pitaro’s division, the largest entertainment licensing operation in the world, could use a shot in the arm. Sales peaked with the release of Star Wars: The Force Awakens in late 2015, and they are down 15 percent in the first nine months of this fiscal year, as other kid-friendly films, such as Beauty and the Beast and Cars 3 failed to deliver the sales surge of predecessors Frozen and The Force Awakens.

Lower costs have allowed the unit to show increased profit for the past two quarters.

Disney, like other companies, has come to realize that modern consumers are looking for experiences as much as things.

This year’s marketing effort includes an augmented reality function on the Star Wars app that lets people see images of star fighters in the sky above 20 worldwide sites like the Eiffel Tower and the Hollywood sign. It also lets shoppers track virtual images in stores.

There is also an ongoing push for female characters, in particular The Last Jedi heroine Rey. Hasbro Inc this year released Forces of Destiny, an all-female line of US$22, 28cm poseable figures based on Star Wars characters that are also featured in short films viewable online.

“We’re basically partnering with Hasbro here to create a new category,” Pitaro said. “It’s not really a doll and it’s not really an action figure, it’s what we’re calling adventure figures.”

Whether all this allows Disney to top its previous Star Wars merchandise sales and reignite growth in its consumer products business remains to be seen.

The Force Awakens was the first Star Wars film in 10 years, so there was a lot of pent-up demand from long-time fans for new items. The Last Jedi is the third film in three years.

“It’s ludicrous to think this will do the same volume levels as Force Awakens, but it will still be quite a huge number,” said Marty Brochstein, who heads industry relations at the International Licensing Industry Merchandisers Association. “Most companies would love to have Disney’s level of success.”

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