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The Honolulu Advertiser
Posted on: Saturday, October 28, 2006

Hollywood is Halloween's bright star

By Abigail Goldman
Los Angeles Times

LOS ANGELES — Years ago, when the president of Rubies Costume Co. journeyed to Hollywood seeking the rights to make costumes based on movie characters, studio executives mostly were puzzled.

"They looked upon you as if you were wasting their time," said Marc Beige, president of New York-based Rubies, one of the largest costume designers, manufacturers and distributors in the U.S. "They didn't understand why you'd want to license costumes; they were familiar with toys or T-shirts, but they didn't really know this industry existed."

Since then, Halloween has grown into a $5 billion industry and Hollywood is playing a starring role.

"It's an opportunity that the Hollywood studios would be foolish to turn their backs on," said Marty Brochstein, executive editor of The Licensing Letter, a trade publication based in New York. "And they're in a position to drive demand."

What's driven the run on all things spooky, orange and black, as well as the entertainment industry's interest, is Halloween's increasing influence both on the fall season and on a wider group of people.

Over the past few years, retailers have stretched the Halloween selling season from a few weeks to more than two months.

Although the big day is Tuesday, themed displays appeared in stores as early as August. Bags of bite-size candy have been on grocery shelves for at least a month. And decorative skeletons, spider webs and tombstones have dominated some front yards for much of October.

What's more, the holiday has grown from being an evening for children into a festive excuse for partying for preteens, adolescents and adults — starting the weekend before Halloween.

Adding to the longer season are "Day of the Dead" celebrations in Hispanic communities, which extend festivities into early November.

The older folks, in turn, have been willing to plunk down for decorations and costumes that are more elaborate, detailed — and expensive — for themselves and for their kids. Even the household pet has gotten in on the costume craze.

This year, consumers will spend $4.96 billion on Halloween treats, costumes, decorations and other merchandise, according to the National Retail Federation. That's up almost 34 percent from last year, with the average consumer spending $59.06 on the holiday this year, up from $48.48 a year ago.

"It used to be that a little kid would use a costume for trick-or-treating — one and done," said NRF spokesman Scott Krugman. "Now, I think you're more likely to spend more on Halloween knowing that you're going to get more out of it. That goes for home decorating and for costumes."

Princess costumes are this year's top choice, according to the NRF. That's a trend that helps Walt Disney Co.'s whole line of character dresses, including Little Mermaid and other favorites such as Cinderella.

Even better for Disney is the fact that pirate costumes have sailed to the No. 2 spot on this year's top costume list. The resurrection of the classic buccaneer costume came directly from the success of Disney's "Pirates of the Caribbean: Dead Man's Chest," which has tallied more than $1 billion in worldwide ticket sales.

In all, consumers in 2005 bought $13 billion worth of licensed products based on entertainment characters, including movie and television figures, said newsletter editor Brochstein.

While that business profited some studios more than others, the entertainment industry overall reaped about $780 million from those sales, based on an average licensing fee of 12 percent of wholesale prices.

"It's a significant revenue stream for the studios," Brochstein said. "Halloween is still a fraction of that, but it's a growing fraction."

At the Disney Store, which this year is offering costumes based on 30 of the studio's movies, both a $40 pirate costume and a more elaborate $80 version have been selling well, said Enrique Atienza, regional director for California.

The stores, which are owned by Children's Place and licensed by the studio, put out their costume displays in August and are likely to be sold out before Halloween, Atienza said.

"We've been setting up a little earlier every year; five years ago it wasn't as big or as early," he said. "'Pirates' was definitely a driver this year."

Time Warner Inc.'s Warner Bros., which owns the rights to Harry Potter, Superman, Batman and other costume favorites, said its business with Rubies costume store has grown 30 percent a year over the past several years.

"Halloween really helps extend the brand because it gives people the reason and the excuse and the opportunity to become our characters," said Brad Globe, president of Warner Bros. Consumer Products. "It's very much factored in to our marketing strategies and our product line strategy."

Beige, who is co-owner of Rubies, which was started by his parents more than 50 years ago, said his business has grown 300 percent over the past decade.