Elsharad, owned by the Erani family, has won the exclusive franchise for the import, manufacture, and marketing of Walt Disney children’s clothes and accessories. Up to now, and for the past three years, Disney’s children’s clothes were manufactured and marketed by Solog, which has lost the franchise.
Solog manufactured Disney products for British companies, and sold the surplus in Israel. At present, Solog has a contract for a number of items. It finishes at the end of June ’97. Solog will however continue to manufacture and market in Israel sweaters for children up to 12, and to export Disney children’s clothes to retailers in Europe.
Elsharad markets the products of the Italian company Diesel in Israel, and has the exclusive franchise for marketing and manufacturing Fila sports gear. Elsharad will start marketing Disney products in Israel next month.
Elsharad deputy GM, and Erani partner, Yossi Fuchs told "Globes" that in the context of the agreement signed with Disney, the future exports of Disney products to Europe was also discussed. The connection with Disney was formed when Elsharad began importing Disney children’s shoes through Disney’s European franchisee in this field, Pagoda.
Fuchs: "Disney began researching the Israeli market, and lighted on us. Several meetings were held, and they saw the penetration the Diesel brand achieved through us. They were duly impressed by the way we penetrate the Israeli market with international products, and so direct negotiations began".
The franchise agreement which Disney International and Elsharad signed covers import, manufacture, and marketing of clothing and accessories. Fuchs: "What’s special about the franchise we signed is the length of the period: more than two years, less than five. Disney usually awards one year franchises. The diversity of products is also exceptional. Disney divides up its franchises by age group, type of garment, and even by theme. We got the franchise for every kind of children’s clothing". Fuchs does not exclude the possibility of exporting the products to Europe, particularly T-shirts, though the matter has not been agreed as yet.
As to marketing plans, Fuchs says the aim is to capture 20-25% of the children’s clothing market. He doesn’t rule out entering the adult market with Disney products at a later stage. Fuchs: "In the USA, adults have begun using accessories decorated with Disney figures. Ties and T-shirts with pictures of Goofy and Mickey Mouse have become all the rage. We don’t how it will go down over here".
An independent Disney International representative office will shortly open in Israel. Elsharad will be glad to receive marketing support and direct contact with the company's management, as well as support in the war against fakes, and in advertising campaigns
Joint Solog Israel GM Moshe Golos: "We hold the franchise for manufacture and marketing of sweaters for all sizes up to age 12 for the local market. On the export side, we work with those chains to whom we are permitted to export. We make every clothing item for them: sweat shirts, shirts, baby outfits - all the knitted products".
"We lost the local franchise for the rest of the product line, when it was decided to split the franchise up and bring in an additional player. We are currently developing our chain of shops, and we are active in many new avenues. We weren’t interested in continuing to market the other products".
Elsharad anticipates a $3 million sales turnover in the first year of operating the franchise. In Israel, they will market Disney shoes and clothing items in the major retail chains, and in 100 additional outlets. Fuchs refused to disclose his company's total sales volume, but agreed that it is measured in tens of millions of dollars per annum.
Erani expects that each year the craze will be the stars of Disney’s films. This summer, part of the collection will be devoted the new film from Disney: 101 Dalmations.