Head of Disney Consumer Products Resigns

[brownie]

From the New York Times:

September 6, 2011, 1:27 PM

Disney Abruptly Loses Its Licensing Chief
By BROOKS BARNES
LOS ANGELES — One of the Walt Disney Company’s most senior executives, Andrew P. Mooney, abruptly resigned Tuesday morning as chairman of the media conglomerate’s sprawling consumer products unit.

Mr. Mooney, who has served as chairman of Disney Consumer Products since 2003, informed staff members of his decision in an e-mail. Mr. Mooney, who was in good standing with the company, said in the e-mail that he desired to move “to a leadership role with another organization and corporate boards.” People close to Mr. Mooney, speaking on the condition of anonymity to preserve their relationship, said he desired to run his own company.

“Today I informed Bob Iger that I’ve made the difficult decision to resign,” Mr. Mooney wrote in the e-mail, referring to Robert A. Iger, Disney’s chief executive. Mr. Mooney added, “I thank Bob for his understanding in my desire to pursue other ambitions as well as his guidance and friendship.”

The loss of Mr. Mooney, who is deeply respected in the licensing and retailing world, is a significant blow to Disney. His accomplishments include significantly improving the quality of Disney merchandise; guiding a budding turnaround at Disney Stores in North America; and stretching the Disney brand to include upscale lines of furniture and apparel.

But his most important contribution may have involved a rethinking of how Disney manages its bedrock princess characters. Until Mr. Mooney arrived, Disney insisted on keeping the likes of Snow White and Cinderella in silos to preserve their individual fantasy worlds, but he fought to group them under one umbrella. Disney Princess now generates $4 billion annually in global sales.

With operating income of $677 million in Disney’s last fiscal year, the consumer products unit is one of the conglomerate’s smallest; television had operating income of $5.1 billion in that period, for instance.

But Disney Consumer Products is more important than it first appears. Disney is counting on the division to help fuel growth in China, a crucial growth market that is not hospitable to the conglomerate’s television offerings. And consumer products can be a surprisingly controversial business; some parents see Disney Princess as having a sinister message for little girls, for instance.

So filling Mr. Mooney’s shoes will be difficult. The challenges on the division’s plate include continuing a deep expansion into infant apparel and merchandise under the banner Disney Baby. And a new leader will need to navigate a difficult relationship with Marvel Entertainment, which became a Disney unit in 2009 and operates its own consumer products business.

Before joining Disney, Mr. Mooney, known for his heavy Scottish accent, spent 20 years at Nike, where he ultimately served as chief marketing officer.

[Ian]

His accomplishments include significantly improving the quality of Disney merchandise; guiding a budding turnaround at Disney Stores in North America; and stretching the Disney brand to include upscale lines of furniture and apparel.Ummmmmmm ... wha?? :confused:

[KylesMom]

Ummmmmmm ... wha?? :confused:

Same reaction as mine, Ian.

[tundramom]

Same reaction as mine, Ian.
Ditto!!!

[Melanie]

His accomplishments include significantly improving the quality of Disney merchandise; guiding a budding turnaround at Disney Stores in North America; and stretching the Disney brand to include upscale lines of furniture and apparel.

Whaaa? is right! And a 'budding turnaround' for the Disney Stores? Gah.

[Disney Hungarian]

He must have the most amazing PR firm ever!!!

[DizneyRox]

Is it April 1st?

They have spiked out probably the three biggest reasons why I DON'T shop at "Disney" anymore. Cheap/Junk Merchandise, no reason to TDS vs Target/WalMart aka exclusivity, and elimination of pretty much their entire "@Home" line.

[Mousemates]

Is it April 1st?

:thumbsup:

[GBBT]

Ummmmmmm ... wha?? :confused:

That's what I said Ian.I bought shirts last year from the Parks,made by Hanes and they shrunk up:mad:.Can't wear them.When Disney had a contract with Russell Corporation,those shirts lasted for years and would always buy more when we went back to the Parks because I knew how they held up(also sold that brand in our tourist location).

[Aurora]

Ummmmmmm ... wha?? :confused:

My "wha??" was in caps and with a lot more question marks!! "Budding turnaround at Disney Stores"???? Under him, they sold to The Children's Place and then took them back only a few years later after that turned out to be a debacle!!! Last time I was in a Disney Store (uhhh, last week), we spent a total of 5 minutes in there. And that was with my 6-year-old, who also had no problem leaving. What the heck are they writing about????

[Ian]

That's what I said Ian.I bought shirts last year from the Parks,made by Hanes and they shrunk up:mad:.Can't wear them.When Disney had a contract with Russell Corporation,those shirts lasted for years and would always buy more when we went back to the Parks because I knew how they held up(also sold that brand in our tourist location).Yeah their t-shirts are a disgrace anymore. I'm seriously considering buying XXL's next time I go, because every XL I own from WDW has shrunk to the point where it's unwearable.

And when you're paying like $30 a shirt that's annoying!


My "wha??" was in caps and with a lot more question marks!! "Budding turnaround at Disney Stores"???? Under him, they sold to The Children's Place and then took them back only a few years later after that turned out to be a debacle!!! Last time I was in a Disney Store (uhhh, last week), we spent a total of 5 minutes in there. And that was with my 6-year-old, who also had no problem leaving. What the heck are they writing about????Yeah again I totally agree. There is so little of interest in TDS these days that, if it was solely up to me, we wouldn't even go anymore.

I will say, though, that my kids still find a few things to buy in there from time to time. Honestly, it's junk, though, if you ask me.

[faline]

I also had a reaction to the sentence about the qualify of merchandise. When I travel, I want to purchase things that reflect where I've been. A few years back, I bought NOTHING at Universal in California because they sold NOTHING that recognized I was in California and not Florida. Since then, Disney has been heading in the same direction. When I can buy the same thing at the Poly as at Fort Wilderness as at the Magic Kingdom etc. and there is nothing to distinguish between any of them, I lose interest in buying anything.

And, speaking of the Disney stores..I used to go out of my way to go to them. They were charming and lots of fun to visit. Now, they are quite boring and a quick visit more than suffices.

[Melanie]

When Disney had a contract with Russell Corporation,those shirts lasted for years and would always buy more when we went back to the Parks because I knew how they held up(also sold that brand in our tourist location).

It's funny you mention this because I'm up visiting my mom this week and my brother is here as well. He came out dressed this morning in a WDW resort shirt we brought to him from our honeymoon in 1995!! It doesn't even have Animal Kingdom on it. We proceeded to have a conversation on how merchandise used to be such excellent quality, and now it's junk. Generic junk.

And the new/reimagined Disney Stores are very disappointing. They are asthetically nice, but the merchandise is junk. Generic junk.

[wildernesslady]

The best part of the Disney store is the occasional comercial they show for the parks. We very rarely visit our local store anymore.

I completely agree with the park merchandise. It is impossible to find a good quality shirt.

[Polynesian Dweller]

Got to agree with everyone, don't know how they can be talking about improving quality. I have golf type shirts from Disney that are 10 years+ old that have kept their shape and color. Right next to them are ones bought in the last 4 years that simply haven't held up and look shabby in comparison, even year old ones.

We can hope, but not holding my breath, that this resignation becomes a positive with them getting someone who cares about quality. Actually, all of Disney has got to start thinking about improving quality again.

[DisneyKim22]

I had all the same reactions as everyone who posted before me.

I'm going to keep an open mind and believe that they will hire someone who will bring not only quality to the merchandise, but INTEREST as well! Show me something I can't possibly leave WDW without....like it used to be years ago when I spent way more money than I should have on things that were unique and fun.

[GBBT]

I follow the Disney Store President on twitter and have tweeted him my concerns about the shirt quality at both the Parks and the Disney Store and he just basically blew it off.He said they don't use the same shirt at the Disney Store that the Parks use.I told him that was not true,I know the difference and I told him they both needed to go back to Russell Brand shirts.I had no quams paying $25-$35 for a t-shirt before 2007(that's when the Hanes contract was signed).I wanted the shirts I bought last year to be quality,but I knew it was too good to be true.:( The last Russell shirt I bought was the Captain Hook Sketches t-shirt,guess I've had it for 6 years.As the Raven said "Nevermore".

[Stevadore]

Maybe success is not having to close all the chain down. They shuttered ours almost a decade ago.

[brownie]

Yeah again I totally agree. There is so little of interest in TDS these days that, if it was solely up to me, we wouldn't even go anymore.

I really miss the original design of the Disney Stores. They stressed the experience over the sales and there was something for everyone in it. You could even make some rare finds.

[BrerGnat]

I completely agree with the park merchandise. It is impossible to find a good quality shirt.

It's not impossible. I have a few that I have purchased within the past two years. I hang onto them like leeches. And, they are not Hanes brand.

And, that's the problem. If they can produce *some* excellent quality merchandise, why can't it all be?

They need to reevaluate their quality control standards, and hire some buyers who understand the concept of offering up high quality merchandise that people will WANT to buy!

Maybe this guy leaving will bring in some real talent, because PR spin aside, he wasn't doing this job well at ALL!

[texas211]

Good. Just too bad he got rich before he went.

Bad, lackluster park souvenirs. Are there Disney Stores anywhere other than NYC and the parks?

[DizneyRox]

Yes, there are still quite a few The Disney Stores open in major shopping centers. Like the NYC store however, they are no longer worth a trip.

I don't go to our local mall often and the past couple of times I was there I passed right by TDS as it doesn't catch my fancy anymore (and I used to work there!).

[Ed]

It's been announced that his throng of supporters here on INTERCOT are holding a farewell party to wish Mr. Mooney well. To accommodate the anticipated crowd, it's being held in a telephone booth.

Merchandise quality and selection has definitely declined. I've got several polo shirts bought many years ago that still look like new, and some that are only a few years old that are ready for the rag pile.

[RBrooksC]

Well, from a pure business aspect, the homogenization of the park merchandise is a great cost savings move.

The more items that can be purchased in bulk allows for a smaller cost per item. This creates more profit for the company and happier stockholders.

With that being said, there is a pov where a company can go too far with that, especially when certain things lend itself NOT to be homogenized. Resort clothing, for one and Park specific items, for two.

I would hope the next person to hold this position tries to balance the homogenization to allow for the maximum savings for the company can get while still allowing for unique items in the parks.

[Ian]

Here's the problem ... that approach works if you're selling vaccum cleaners or light bulbs but Disney is selling an idea and a lifestyle, not a real consumer product. It's not soap!

So they hired a consumer products guy to try and do the work and what they've seen is, even as the cost per unit has been consistently driven down, the revenue from the products has declined steadily as well.

When people buy Disney items they want a couple things ... uniqueness and quality. Disney currently offers neither, so people are shying away. Hopefully the replacement figures this out and doesn't perpetuate the mismanagement and bad decision making of the last decade.

[GBBT]

The more items that can be purchased in bulk allows for a smaller cost per item. This creates more profit for the company and happier stockholders.



I'm a stockholder and it doesn't make me happy.I would much rather have better quality products to buy than Disney worry about bigger profit margins.THAT keeps customers happy and keeps them buying more product,which in turn gives bigger profit margins.I would much rather buy a shirt made by Russell Corp. that costs $25-$35 than one by Hanes that cost $15-$20.

[RBrooksC]

I'm a stockholder and it doesn't make me happy.I would much rather have better quality products to buy than Disney worry about bigger profit margins.THAT keeps customers happy and keeps them buying more product,which in turn gives bigger profit margins.I would much rather buy a shirt made by Russell Corp. that costs $25-$35 than one by Hanes that cost $15-$20.

Ahh, but you are just one person. The profit margin is something most stockholders whose only interest is investment look at.

I didn't say it was a good thing. From a pure business aspect it is what most companies try to do.

And, there is no reason NOT to have much of the merchandise homogenized. But areas where it would lend itself to be specialized, it should be done.

I think there should be resort specific merchandise and some park/attraction specific merchandise. But to make everything unique and special would not be cost effective.

There needs to be a balance between homogenization and specialization.

[DizneyRox]

True...

I'd like to let the masses buy the cheap stuff which gives me a choice to buy the more spendy items if I wish. Since there isn't a choice as mentioned above, my choice is to keep my wallet in my pocket.

I've always understood that some profit is better than no profit. I guess I'm old school though...

[Ian]

But to make everything unique and special would not be cost effective.They managed to do it for about 30 years and oddly enough they sold merchandise like hotcakes.

You'd think it would be pretty obvious to anyone with half a brain at Disney that the minute their products lost their special-ness they pretty much stopped selling them.

[big blue and hairy]

You'd think it would be pretty obvious to anyone with half a brain at Disney that the minute their products lost their special-ness they pretty much stopped selling them.

I agree completely. Some of my favorite things to buy were resort specific cups or shirts. Now that they aren't available, I buy a lot less.

Hopefully, this change will bring in some new/old ideas.

:sulley:

[PopPhan]

But to make everything unique and special would not be cost effective.They managed to do it for about 30 years and oddly enough they sold merchandise like hotcakes.

You'd think it would be pretty obvious to anyone with half a brain at Disney that the minute their products lost their special-ness they pretty much stopped selling them.

You certainly didn't see the Brazilian families leaving, like I did last week.....Two different families of 4, visiting for one week, left for the airport, each family with 12 LARGE BAGS! The baggage handler at Pop said that this was a normal situation -- they bring up as many empty bags as they can afford/handle, fill them with things purchased at the parks/DTD and take them home to sell for 4 - 5 times the ticketed cost. He told me that was how they paid for their trips!

[brownie]

Here's the problem ... that approach works if you're selling vaccum cleaners or light bulbs but Disney is selling an idea and a lifestyle, not a real consumer product. It's not soap!

Nope, it's not soap. It's all about the experience. I just finished reading Reinventing the Wheel: The Science of Creating Lifetime Customers by Chris Zane of Zane's Bicycles. He's not selling bikes and accessories; he's selling experiences (use INTERCOT's amazon.com (http://www.amazon.com/exec/obidos/redirect?tag=intercotcom&path=subst/home/home.html) affiliate link if you'd like to check out the book.) I think the Disney Stores have lost sight of this.

[phlo8810]

Must agree as well. Last christmas we bought our kids the monorail playset with cinderellas castle and spaceship earth. All complete and utter junk. For the prices they charge for them I thought the quality would be better than all the other stuff we've continued to buy over the years. Boy was I wrong. Total garbage is the best and only way to describe these toys. Each one broke within the first month. My kids are afraid to touch them anymore because everytime they do something new breaks.

[Ian]

Must agree as well. Last christmas we bought our kids the monorail playset with cinderellas castle and spaceship earth. All complete and utter junk. For the prices they charge for them I thought the quality would be better than all the other stuff we've continued to buy over the years. Boy was I wrong. Total garbage is the best and only way to describe these toys. Each one broke within the first month. My kids are afraid to touch them anymore because everytime they do something new breaks.I could have typed this post myself. Had the same experience more than once.

And you know it really breaks your heart as a parent, too, because the kids are soo excited for the stuff since the box/ads make them look so great. You can see they're disappointed when they realize how junky they are.

And you know what, Disney? That's your next generation of potential customers and that's the first impression you're making on them. Disney doesn't stand for quality and the ultimate in guest experience. It stands for cheap, made-in-China, plastic, fall-apart-the-first-time-you-play-with-it, garbage.

[DizneyRox]

So, what are you trying to say? Stop beating around the bushes... :D

[Granny Jill A]

I also had a reaction to the sentence about the qualify of merchandise. When I can buy the same thing at the Poly as at Fort Wilderness as at the Magic Kingdom etc. and there is nothing to distinguish between any of them, I lose interest in buying anything.

And, speaking of the Disney stores..I used to go out of my way to go to them. They were charming and lots of fun to visit. Now, they are quite boring and a quick visit more than suffices.

I couldn't agree more. My last two trips to Disney I bought NO SOUVENIRS. Not even a keychain, which I collect. The Disney Stores used to be a little "taste of Disney" back home, but they are one big cheapo toy store with most things made in China.

[Mrs Bus Driver]

We can hope, but not holding my breath, that this resignation becomes a positive with them getting someone who cares about quality. Actually, all of Disney has got to start thinking about improving quality again.
I collect pins last trip to WDW I did not buy any. Years ago I bought sweatshirts and jackets but haven't seen anything I would pay the extra bucks for last few trips. Last unique thing I bought was a baseball cap at DL. Last trip to DL over 5 years ago, been 2x to WDW since no hats. I used to buy hats every trip. Am planning a trip to DL in January if I can't find what I want in the parks guess I will shop across the street or at the outlet store. :sob: