Kingsmen Creatives Ltd (SGX: 5MZ) is a leading communication design and production group with a network of 21 offices serving global clients such as Chanel, Fendi, LVMH Group, and Tiffany and Co. The group has four major divisions: exhibitions and thematics (E&T), retail and corporate interiors, research and design, and alternative marketing.
The group has, for many years, been acting as a contractor to global brands in the interior fit-out space and has provided high-quality and timely fit-outs for major brands across Asia. Its E&T division has also provided installation and fabrication services for events such as Singapore Air Show, Bicentennial Event, Singapore F1 Grand Prix, and the National Day Parade. The group has worked on both Universal Studios Singapore and Disneyland Shanghai theme parks.
Even with such a busy line-up of events and clients, Kingsmen is not standing still. Last year, it started a new Intellectual Property (IP) division, the intention of which is to garner major IP by working with international brands and companies and to conceptualise and operate attractions for visitors. In February 2018, Kingsmen signed a licensing agreement with Hasbro Inc, one of the leading toy companies in the world, to create, build, and operate NERF Family Entertainment Centres (FEC) attractions across Asia-Pacific.
Here are three new catalysts for the group that have emerged recently.
1. Animal Planet traveling shows
In April 2019, Kingsmen entered into a worldwide development agreement with entertainment company Discovery Communications Inc for the development of Animal Planet traveling experiences. This is in line with the group’s new IP focus on shows with an edutainment theme.
Kingsmen will co-conceptualise, create, build, and operate multiple Animal Planet traveling shows, with the first to open in Singapore by the end of 2019. This will be the very first Animal Planet-branded experience for Discovery Inc, and it will allow Kingsmen to showcase its design and conceptualisation skills to make the exhibition attractive and vibrant for visitors.
2. NERF FEC goes to the USA
In early June, Kingsmen announced it had expanded its licensing agreement with Hasbro to open NERF FEC in the United States (US). This will be Kingsmen’s second NERF FEC attraction, and it’s slated to open in late 2020 at an as-yet-undisclosed location in the US. Targeting Hasbro’s home ground would expand Kingsmen’s global reach as the FEC will garner much more attention and international interest this way.
The financial details and financing model have yet to be announced, and Kingsmen should provide more information closer to the date of opening — and once the first NERF FEC in Marina Square has broken ground.
3. Launch of Hasbro edutainment-inspired FEC
In the same week, Kingsmen also announced it had entered into another licensing agreement with Hasbro to create, build, and operate a new edutainment concept that incorporates Hasbro brands such as PLAY-DOH, LITE-BRITE, and TINKERTOY into an FEC across Asia Pacific. The first FEC will open in 2021, but the first location has yet to be announced.
Each FEC will adopt multiple Hasbro brands to create an immersive, interactive, and experiential edutainment experience with multiple activity zones, merchandising, and food and beverage areas. These elements will serve to attract more visitors to the FEC as the global trend has been shifting towards more experiential-based attractions for stand-alone shops as well as shopping malls.
Adding new IPs over time
Kingsmen’s strategy is to continue to build up its IP portfolio over time with the addition of new IP from iconic global brands. The group has a good start with Animal Planet, NERF FEC, and Hasbro’s edutainment-inspired FEC as its three initial IPs, and there may be many more to come.
However, investors need to pay close attention to the financial aspects of these transactions. As of now, it’s not known how these new IPs might contribute to both the top and bottom lines for Kingsmen. One thing’s for sure, though: The future is set to look more and more interesting for the group as it continues to grow its IP portfolio.
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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. Motley Fool Singapore contributor Royston Yang owns shares in Kingsmen Creatives Limited.