Source: Enesco press release

ENESCO NAMED EXCLUSIVE LICENSEE FOR THE WALT DISNEY CLASSICS COLLECTION, ASSUMES MANAGEMENT OF WALT DISNEY COLLECTORS SOCIETY

Itasca, Ill., September 22, 2003 - Enesco Group, Inc. (NYSE: ENC), a leader in the giftware, collectible and home décor industry, today announced the company is expanding its relationship with Disney Consumer Products, becoming the exclusive licensee for the “Walt Disney Classics Collection” and assuming management of the “Walt Disney Collector’s Society” in January 2004.

The Walt Disney Classics Collection is renowned for its sculpted pieces that faithfully recreate unforgettable moments from Disney’s beloved animated films. The collection features sculpted pieces ranging in suggested retail price from $50 to more than $2,000. The sculptures are meticulously crafted out of fine porcelain or resin and are hand-painted according to each film’s original color palettes. The pieces are often enhanced with mixed materials such as precious metals, stones, pearls and crystals. The Walt Disney Classics Collection is available at fine gift and collectible stores globally, select Disney Stores, DisneyStore.com, Disney catalog and Disney Theme Parks and Resorts around the world.

Management of The Walt Disney Collectors Society will also be transitioned to Enesco. The society gives collectors of the Walt Disney Classics Collection special privileges, including opportunities to purchase exclusive, members-only sculptures, advance notice of special events, a subscription to the Walt Disney Classics Collection Catalog, to name a few.
The seasoned Disney team will work hand-in-hand with Enesco, ensuring the standards of quality and magic associated with the Disney brand are upheld.

“This tremendous opportunity with Disney compliments Enesco’s corporate mission and growth strategies,” said Dan DalleMolle, president and CEO of Enesco. “We plan to take the strong foundation we already have with the Disney business and further combine it with our unmatched expertise in the giftware industry. In doing so, we feel we will expand Disney’s consumer base while also poising the Walt Disney Classics Collection and Walt Disney Collectors Society for future growth.”

More expected outsourcing. Soon Disney will just be a rights holding entity.

Originally posted by merlinjones
More expected outsourcing. Soon Disney will just be a rights holding entity. I've been trying to think of what this will mean for Disney, and for retailers.

It's odd, because we are an Enesco retailer. So, now the same guy who sells me Mary's Moo Moos and Precious Moments will be the guy trying to sell WDAC. I'm not sure I'm happy about this. I *like* my Enesco rep, but the man barely has time to keep up with the other 300 licenses Enesco has. How is he, or *any* rep, supposed to learn Art Classics on top of that?

I also want to know what this will mean for the exclusivity of the line. Disney recently cut 1/2 of their Art Classics dealers, and did a million-dollar "buy back" of overstocks, to prevent dealers from dumping unsold merchandise into the market.

Will Enesco expand the dealerships again? Will they do a better job of monitoring the marketplace to prevent discounting than they do with their other big-name licenses?

And as for Disney.... they are cutting their own distribution channels by closing the Disney stores. They are cutting their own manufacturing channels, by licensing SO much merchandise to outside vendors.

When all is said and done, Disney Consumer Products won't make or sell anything - they'll just collect the royalties. And they will have given up control of quality and design in the process.

This is not a good thing, methinks.

AVP