Cartoon Network claims a growth rate 25-30% year-on-year

The consumer products division of Turner India has some plans chalked out for the year

Cartoon Network Enterprises (CNE), the consumer products division of Turner India, was launched in 2001 with the mandate of translating content from the network channels into consumer products across various consumer touch points. Although businesses worldwide are seeing tough times, CNE claims to be growing at 25-30 per cent in India.

Fundamentally, CNE is divided into three businesses – merchandising (apparel, stationary, publishing and console gaming), home entertainment and toys. With a wide presence in some of these categories such as toys and apparel, CNE hopes to consolidate with new offerings.

In India, more than 8.55 lakh toys were sold in 2008-09 across CNE’s properties and its revenue from toys up went up by 60 per cent, while revenue from apparels went up by 50 per cent through its key properties such as Ben 10 and Power Puff Girls.

Now, the division will focus on other areas such as publishing, home video and gaming, and take it to the magnitude of the toy business. Besides, new properties on Cartoon Network such as Gwen, Secret Saturday, Bakugan and FAQ will also be expanded across categories. Entering the food and beverages and personal care markets is also on the agenda.

“We would like to foray into the publishing segment in a big way in India. There is a strong demand and we are launching books not just in English but also in regional languages,” says Dulce Lim Chen, vice-president, Asia Pacific, Cartoon Network Enterprises, adding that this will make the content more accessible for kids. Publishing will have brands such as Ben 10, Power Puff Girls, Dexter’s Laboratory, Johnny Bravo, MAD and Sesame Street.

As a practice, all of the original properties on the channel are extended to physical products, but depending on the nature and popularity of the show, a mix is decided upon. “Not all of them will be as expansive as Ben 10, but will be present in at least two-three categories,” says Jibi George, associate director, licensing, India and South Asia, Cartoon Network Enterprises.

For its foray into the food and beverages category, CNE may partner an existing local player or look at emulating a global licensee model. “With Ben 10, what’s available in some regions is a variety of flavoured drinking water. A whole lot of companies in India are interested in partnering us, and we are evaluating the best mode to operate in – whether to manufacture locally or import,” George states.

India contributes about 10-15 per cent of the total revenue from Asia and Lim Chen hopes that in two-three years, India will contribute about 25 per cent of the division’s revenue. “The reason why we have grown in the past and are expecting to do well is manifold – strong channels, CN and Pogo, strong brands that transcend multiple platforms, innovative product range that appeals to various demographics and strong retail relationships,” she says.

Besides, growth of organised retail has helped immensely. While CNE products are available in more than 4,000 retail outlets, the retail penetration will be increased by 27 per cent. “Emerging consumer base and increase in choices and availability as well as consumer affinity and awareness towards brands are what will see growth in this category,” George adds.