Source talks to Shawn Wada, president and ceo of ADK Emotions NY about the continuing success of Beyblade, the brand’s 20th anniversary and trends from lockdown.
To help set the scene, can you run through a brief background of ADK Emotions NY?
In January 2019, after decades of success, Asatsu-DK Inc, one of the largest advertising companies in Japan, transitioned to a holding company structure and ADK Emotions was created. They then merged with the established content IP firms d-rights and Sunrights to take on a more independent role with a greater degree of specialization in original IP creation, overseas development and new digital ventures.
The New York-based subsidiary, ADK Emotions NY, is focusing on what it has always done best: leveraging its unique expertise by transforming anime into sustainable and robust global franchises. Of course, Beyblade is our most iconic franchise. With the backing of our parent group, ADK Emotions is writing yet another successful chapter of content development, marketing, licensing and promotion.
How has the first six months of 2020 been for you?
The global pandemic greatly altered our plans for this year. There are some formidable challenges that we are facing, but so is almost everyone on the planet. Specifically, a great emphasis for us is the unique value proposition of Beyblade – the live-event aspect of the brand. We have had amazing success in creating live competitive events that have incredible resonance both in-person and on social channels. The global situation in the first half of 2020 meant we had to postpone many of these events until a time when we can safely hold them. Of course, the primary concern was the safety and health of the fans, and everyone who would be involved with holding an event. So, we postponed our calendar of major events and that was a challenge.
However, our overall success as a business is based upon our ability to be nimble and adjust to unforeseen circumstances. In a landscape that is dominated by massive corporations, ADK Emotions NY is a small, specialised entertainment rights management company and as such we are able to adapt and adjust quickly and efficiently to find ways to continue engaging fans. Our mindset is to see the opportunity inherent in each change. I am so proud of our team for embracing new ways to support Beyblade and our other IP.
How have you needed to adapt the business to cope with the impact of COVID-19?
As mentioned, due to the postponement of our major events we’ve focused on other ways to continue our ongoing dialogue with our fanbase. We have done that in a number of ways by releasing new content and creating a regular release of classic material to both stoke the nostalgia of our long-time fans and introduce our newer fans to the origins of Beyblade.
We are very fortunate with Beyblade because the fanbase is so fervent and invested that they want to continue to engage with the brand. Since live events are impossible at this time, they want to interact in other ways. The brand has such an impressive online footprint and community, seeded with well-known influencers and fueled by enthusiastic fandom. These elements have been able to both sustain and even grow the brand while events are on-hold and production of new content has been momentarily delayed.
Can you run through a brief background to Beyblade Burst?
We manage a lot of territories globally, both directly and through our roster of trusted agents and have been very happy with the scope of our programme so far. Of course, we are always looking to build upon it. We have partners in board games, publishing, home video, confectionery and puzzles. We also cover apparel, novelty, outdoor sports and back to school. While that covers a lot of ground, we know there is more out there, and we are always happy to discuss new partnerships. Recently, we participated in several global QSR promotions and the McDonald’s Beyblade promotion is still running in Latin America and Europe.
Generally, we are looking for partners that understand the core attributes and appeal of Beyblade. There must be common ground and a common understanding of what connects Beyblade to its fans. If a partner is cognisant of that, then we can always work together to make something that will be successful.
Let’s talk about the anniversary – what can you tell us about the plans at this stage?
We are so excited about celebrating this massive milestone. We have a lot of plans to mark it. First, right now our classic Gen. 1 content is available to watch on demand on our official YouTube channel for the very first time kickstarting our celebration of the brand and laying the foundations for its 20th anniversary in 2021.
We are focused on exploring the two-decades rich history of Beyblade by embarking on a nostalgic journey back to the origins of the global phenomena. With weekly classic episode drops in both English and Spanish, our YouTube channel is the perfect place to connect with a groundswell of rekindled fandom.
All of the episodes are being promoted by a robust social media campaign that serves both Beyblade demographics: the long-time fans, who have responded to the nostalgia of the campaign, and a new generation of fans keen to discover the classic content for the first time. Beyblades’ fervent influencer community has also been mobilised to produce unique exclusive content that will delve into the storylines and concepts of Gen. 1.
We are also excited to announce that brand new Beyblade Gen. 1 merchandise will be available this summer/fall.
The addition of classic content is the perfect kick off to what promises to be a comprehensive and coordinated campaign of fresh content and new consumer products that will take Beyblade into its third decade.
Where do you see further growth for the brand coming from (both in terms of new territories and CP)?
The future is bright for Beyblade because it is a brand that is uniquely situated in the nexus between content, toys and live events. That is a great competitive advantage and it’s a great place to be and helps us attract major new partners who are interested in innovation and creativity.
Geographically, the brand has a strong presence in European markets including France and Spain, as well as in North America. Growth potential is substantial in Mexico and Brazil among others, with one prosperous region soon to be added to our repertoire.
With our expertise and focus on expanding Beyblade footprint outside the Asian market, we are developing a new approach with its content strategy. While traditional episodic animation is currently in production for major broadcast platforms around the globe, we understand the value of providing a wide array of content options including shorter form content, influencer testimonials, music videos and other social media assets that connect to today’s audiences wherever they are. The global (ex. Asia) YouTube strategy has garnered more than 360 million views worldwide and over two million global subscribers. Beyblade can boast a heavily engaged and active audience and is looking to leverage it with the help of partners in a number of business areas.
Are there any trends which have emerged from the lockdown period which can be seen as a benefit to you? For example, children spending more time at home has, in a vast amount of cases, meant more time gaming, on YouTube, etc?
Due to the inherent play pattern of the Beyblade Burst physical tops and the game apps, as well as with our established presence online, we were able to entertain and engage. We even heard from our toy partners that the demand for the Beyblade Burst toys was stronger because families were able to play at home during this lockdown period.
There is also a logical connection between more time at home and more time for gaming or spent online so we will see what kind of unforeseen trends emerge over time and be ready to react flexibly to them.
Our approach is to constantly engage with our fan base, so we know what they want and how their lives have changed. We all have the tools through online and social platform to get real-time information about these trends so there doesn’t have to be as much of a guessing game. We are fortunate with the Beyblade fans that they are invested and engaged and let us know what they want out of the brand
How important has YouTube become to the brand?
It is hard to overstate the importance of the platform. As I mentioned, our global YouTube strategy has garnered substantial viewing figures and over two million global subscribers. We have such a heavily engaged and active audience that YouTube is a perfect place for them.
Our classic episode drops are on YouTube and we are always looking at the platform to discover the next popular influencer. We leverage not only the platform itself, but the community. That is not to diminish our partnerships with more traditional broadcasters. Beyblade Burst has been championed by international broadcasters and has enjoyed a profile presence on streaming platforms. These are all very important partners and give us the access to audiences that we need to sustain Beyblade.
But it is fair to say that we have some focus on YouTube this year as we have seeded more than 1,600 videos – that’s a lot of content!
Anime itself is a growing category when it comes to the licensing and merchandising space – what is the appeal of anime brands to consumers do you think?
It comes down to creativity. Anime is so elastic and inclusive. It fills a wide spectrum of genres and niches, spanning from the sublimely beautiful to the baroquely bizarre and almost everywhere in-between. There is such depth and strength in storytelling, in the characters and the worlds they inhabit. It is also a great vehicle to express a point-of-view and make the audience see something they might have never even considered before. As such it can capture any demographic and with a little innovation can be leveraged successfully in the licensing and merchandising spaces. Especially now, we have seen aspects of anime filter into the mainstream and that only adds to the allure and cache of genuine and authentic anime.
Today’s anime fans are incredibly sophisticated, and they can scrutinise and evaluate the form at such a high level that the onus is on the creatives to keep pushing the artistic and technical limits to create something new and fresh. It is a very fruitful pursuit and, I believe, an area where the cream really does rise to the top. Personally, I see a sustained growth in anime. It has such a rich and storied history that it is far more than just a fad of the moment. It has proven to be much, much more.
You took on License to PR earlier this year – how does this fit into your growth plans?
We discovered a real kinship with License to PR because like us they are a nimble, highly creative and extremely agile firm. They understand the core attributes of our brands and always look beyond the obvious to find the right way to craft and express a message. Of course, right at the outset of our partnership we both faced the tremendous challenge of postponement and rescheduling. I think working through that together was helpful for our relationship. We are on the same page and feel that License to PR is a good fit for us. We are excited to have them on-board as we look forward to sustained growth and our big year celebrating the 20th anniversary of Beyblade.
What challenges do you believe your business – and the wider licensing industry – will face through the summer months and into autumn?
There will be no shortages of challenges. Foremost, we will have to deal with the issue of consumer confidence and the public’s willingness to resume, in some fashion, old behaviours. I think it is imperative that those of us in the licensing industry should consider what retailers are going to have to do to reopen stores and re-stock shelves. There is going to be costs associated with creating more space in stores, in altering layouts and re-imagining the shopping experience. In the licensing industry, we should at least be mindful of those challenges and offer ways to mitigate the challenges as much as we can. Getting people back into stores in the same numbers as they were before is going to be a difficult. So, perhaps that creates another challenge of feeding online platforms in a different way than has been done before. Will online options fill the gap? How can the licensing community help that transition? These are all things that have to be considered.
Beyond that, and extremely relevant to our business, is how to get live-events up and running in a safe and healthy way. Live events are a huge part of the licensing industry whether they are concerts, sports, or, in our case, competitive tournaments. These events are key places not only for the sale of licensed goods but, perhaps more important in the long run, in building brands and communities. Our Beyblade tournaments were a focal point and the energy that grew out of the face-to-face interactions and then surged and amplified online was unparalleled. So, it will be a challenge to ramp them up again and get to a place where people are comfortable to engage in that way again. It is no small task but I’m confident that real solutions and viable alternatives will emerge. This is where creativity and innovation are so important – that is the exciting part of the equation. In the meantime, we are doing all that we can to engage fans digitally for the remainder of the year into the next.
What are the key conversations you think the licensing sector needs to be having right now in order to move forwards?
As with every sector, I think the conversation has to be centred around how we can move forward together. The future has to be informed by a sense of community. Licensors, licensees and retailers must engage in frank and open conversations about the best path to take. Decisions can’t be made in a vacuum; everything is on the table. Topics that were non-starters a few months ago should no longer be off limits. This is not the time to entrench and stick with outmoded ideas or conceptions. It is a great opportunity to forge new ideas, new partnerships, new relationships and make positive gains. This relates to every aspect of the business whether it’s marketing partnerships, lead times, guarantees and down to the smallest details of retail displays and social media campaigns. It is a wonderful opportunity to reconstitute the way business is done. I really believe that every link of the chain can benefit.
There has been much talk of the positives which may come out of the global response to the pandemic. What is the single biggest positive take-away from all of this for you, both personally and on a business level?
On both a personal and business level the biggest positive has been the time to slow down and contemplate. The very act of contemplation is therapeutic even beyond whatever is arrived at as a result. Obviously, there was a sincere sense of trauma at the outset and there is no denying the stress and anxiety on a personal and business level. However, having the time and ability to take a moment (or many moments as it turns out) of pause to consider what is of value, and what isn’t was truly a positive experience. When things are always ‘business as usual’ they tend to fall into routine. When you are on ‘auto-pilot’ it is hard to see yourself in that state. In both business and personally, you continue to do what you have always done, and that includes things that perhaps should be reconsidered or revaluated. Being released from the time constraints that seem to dictate so many decisions was freeing. I am confident that there are lasting positives of the lockdown that will be evident both personally and in business.
What would you most like to achieve by the end of 2020, so that you’re set up to enter 2021 in a strong position?
This year was about setting the table for what we are confident will be a robust, multi-pronged celebration as we enter the third decade of Beyblade. We were thrown a curveball that altered how we would like to prepare for 2021, but I believe we have adjusted and come out on the other end of it. Hasbro’s new toy line, our first-in-class partners and our Gen. 1 content drops as part of the 20th anniversary, have all helped create the right conditions so that we can jump in with two feet in 2021 and make it a banner year. As we march into the third decade, there is so much to be excited about. The pent-up demand for our live events will be palatable when they return in 2021. The enthusiasm for all aspects of the brand will be growing as our fans re-emerge from engaging with Beyblade online and apart to being able to continue that and start participating with friends again and at our live events. I look forward to applying all the lessons we learned this year to fine-tuning and focusing our programs in 2021. Discussions with our existing and new partners are already underway and I am very excited to find out what the future holds.
Is there anything else you’d like to add?
I would just like to stress that Beyblade lives in many different spheres and that is what separates it from the other franchises in the marketplace. We have four seasons of animated adventures that can be found on major broadcasters and streaming platforms like Netflix around the world. The production, animation, voice talent, stories and execution of that product is absolutely top notch and can stand on its own. But perhaps the element that separates Beyblade from other anime properties is competitive game play. That aspect propels the franchise and keeps it fresh, evolving and always relevant. A key component is the game that can be played with our Beyblade products. Our master toy partner Hasbro has teamed up with us to launch innovative products that cover every aspect of the gameplay. Leveraging this differentiator will be pivotal as we look forward to entering our third decade.
I also want to thank you for your questions and time and giving me the opportunity to discuss ADK Emotions and Beyblade. It is a truly a great time for the brand.
