SUPPLIER PROFILE Ground swell
Underground Toys saw annual global sales soar by over 120 per cent last year, with licensed lines from Teenage Mutant Ninja Turtles to Ted hitting the spot. And there’s more to come for 2014, too. Samantha Loveday speaks to MD Andy Oddie about Funko, wooing independent retail and further expansion
Firstly, how was 2013 for Underground Toys? Last year delivered way above expectations for Underground Toys. We further expanded our mainline European operations, and our annual global sales surged by over 120 per cent. The scale of business
that we’re now operating on has substantially increased and the Underground team has subsequently grown to 82 members of staff worldwide. Demand for our products is high and we’re working on a much larger scale than in 2012.
What were some of your highlights? Our Doctor Who merchandise has become increasingly popular in Europe and the US. We’re creating in-store Doctor Whobranded promotional and POS programmes for large retailers. Barnes and Noble have a full in-store Doctor WhoFSDU space and Hot Topic have dedicated window displays and further extensive retail plans. Our Teenage Mutant Ninja
Turtlesproducts are also now stocked internationally in Tesco, Target, Asda and Toys ‘R’ Us, HMV, The Entertainer. Our Star Warsfeature plush line is relentless, and we had full retail distribution in 2013. With Star Wars
Rebelsand the new movies on the horizon, we are now seeing a large uplift in commitments for 2014.
What were some of your top performing products? Among our best sellers of 2013 were our Teenage Mutant Ninja Turtles Talking Soft Bag Buddies. We’re predicting continued high sales for 2014 with
Another 2013 success
was Ted. He was extremely popular for someone so offensive. The life-sized talking Tedand other sizes in the line flew off the shelves, so we’re excited to be expanding the range to meet consistent demand. New items will include
Ted Talking Plush in different outfits, Ted aprons, towels and a range
We’re keen to work with independents
who have a real passion for the industry, the brands we’re working with and our products.
the release of the new Paramount film. Our collaboration with
PPW LLC, BBC and Hasbro on the Doctor Who Mr Potato Head range has also proven prosperous and we’re looking forward to expanding the range further with more character additions. Then there was the move to team up with Funko last year, which expanded Underground’s horizons deeper in Europe. The vinyl collectables are very popular and they cover a variety of properties which appeal to both mass and niche markets. Underground has total exclusivity on the Funko ranges across Europe, and this has generated new partnerships.
of gift accessories which all received a good response at London Toy Fair this year.
What’s your focus for this year? Underground’s focus for 2014 is to really drive growth into mainland Europe. We’re pushing to achieve further partnership into mass market retail, and we’ll be attaining this through building and strengthening relationships with retailers. We’ve already found success through strong coalitions with UK and US traders and it’s important for us to continue along this path, alongside our European ventures. We’re off to a good start with new partnerships with Target, Walgreens and Asda. We’re signing up to a few more licences
and taking on new product categories that complement our existing ranges.
What can we expect to see from the deal with Funko? Our European exclusive agreement with Funko sits well with the growth of the European division and it’s helped us convert some new customer relationships into sustainable programs. The extent of
Underground’s expansion will start to show in mid-2014. We’ll soon be announcing at least two new categories which we’re adding to our existing agreement.
How many licensors do you now work with? And how many licences do you carry? Underground’s currently partnered with over 30 licensors and has around 45 licences. We’re in a strong position now where our long-term and newer relationships have really paid off for both us as the licensee and for our licensors and we’re really enjoying the outcome.
Are you looking to grow this in 2014? Definitely. We will be looking for more focus in 2014 and are keen to add additional licences that have a good resonance with our existing product base.
Are you looking to increase your retail distribution further this year? We are currently in detailed talks with sales representatives
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about increasing our reach into the independent market. We’ve realised this is an important channel and we’re keen to work with independents who have a real passion for the industry, the brands we’re working with and our products.
Where do you see further expansion for Underground Toys coming from? We’re going to continue to grow in much the same way; we’re going to take on additional categories that we’ve already dipped our toes into and we’ll continue to create merchandise which complements our existing ranges. Core areas of focus will continue to bounce off the animated plush and pop culture toy market as well as homeware.
What are the challenges you face in 2014? Managing the continued growth of Underground Toys from an organisational perspective is a new challenge for us. The rising cost of goods is something else that we’ll be confronted with. With more manpower and industry insight coming in from all angles, however, I’m confident that we’re going to finish 2014 a lot stronger and wiser.
What do you want to achieve by the end of 2014? I’d like us to have reached at least double digit growth again in 2014. The new strategies and ventures for this year make this an achievable goal.
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