Cover Story: First Look at Halloween 2009
By Mary Ford, Editor

Vendors are emphasizing lower-priced collections as a way to woo budget-minded shoppers in 2009.

Forecasters predict that the U.S. economy will remain in the doldrums next year, but Halloween industry veterans are hopeful that Halloween sales will turn out to be a bright spot in an otherwise bleak year for American retailers.

Although the economic news continues to be unrelentingly grim, Halloween suppliers contacted by Selling Halloween report that their 2008 sales were generally strong and that they are hoping the industry truism - weak economies can bring strong Halloween sales - proves true in 2009 as well. The fact that Halloween will fall on a Saturday next year also bodes well for business. Weekend Halloweens are generally more celebratory; there are typically more adult parties and a concomitant increase in adult costume sales.

However, even the most optimistic vendors believe that even if, as in the past, Americans turn to Halloween festivities as an escape in troubled times, shoppers at all income levels will almost certainly be far more budgetconscious than they have been in recent years.

For this reason, many vendors are either expanding their lower-priced collections or debuting new lines at lower price points than they have previously offered. No matter which segment of the market they are targeting, Halloween companies are featuring products designed to appeal to recession-era shoppers.

"What we're preparing for is a strengthening of sales of products at opening price points," says Howard Beige, executive vice president of Rubie's Costume Co. He notes that, unfortunately, consumers' stepped-up demand for lower prices comes at a time when the cost of production in China is increasing due to higher labor costs and new product-testing regulations.

Beige says his retailer customers reported good sell-through in 2008, and he believes the Friday Halloween was a major factor in their success. "It brings you almost an additional week of business," he explains.

Beige predicts that next year's Saturday holiday will also have a positive effect on sales. Rubie's 2009 offerings include fiberoptic children's costumes with twinkling lights; new high-quality baby and toddler costumes; an expanded line of shoes and other accessories; and new and continuing licensed properties including Batman, Friday the 13th, Disney Channel's Wizards of Waverly Place, Watchmen and Gone With the Wind. Beige predicts that sexy costumes will still be in demand but may not be as significant a factor in the market as they were a few seasons ago. He notes that in response to demand for less revealing ensembles, Rubie's is debuting a line of "more modified" sexy costumes for teens.

Michele Oumano Powell, vice president, Franco American Novelty Co., says that her retailer customers were ordering and reordering right up to Halloween day in 2008. "I'm cautiously optimistic that next year's Halloween will be OK. Halloween can be a fun distraction for people; they can have a memorable day with friends and family for not a lot of money." She notes that the company's 1950s and 1960s costumes were particularly popular in 2008 and that Franco will be extending its line of "decades" ensembles in 2009. Also in the works: more goddess costumes and more "strong, cool, realistic women characters."

Price-Conscious Shoppers
Robert Berman, president of Rasta Imposta, says he recently overheard a woman in Kmart's costume department turn to her companion and ask, "Can you believe spending $40 on a costume?"

Says Berman, "I don't think of $40 as a lot for a costume, but it made me realize that people are being much more careful about what they spend." He notes that he and his colleagues at Rasta are being more attentive to price issues as they prepare the company's 2009 line. "We are trying to do things that are price conscious. We're doing some simple costumes that offer a lot of bang for the buck," says Berman.

Because of the Saturday Halloween, Rasta is also expanding its adult humor line, which includes R-rated costumes beloved by fraternity-party attendees - the company's new "Catch of the Day" costume falls into this category - as well as G-rated costumes more suitable for family parties.

Disguise's licensed properties for 2009will include a new "Women of Marvel" collection. Characters in the line includes Emma Frost from X-Men; American Dream, one of the Avengers in A-Next; and Spider-Girl and Black Cat from Spider-Man. The line debuted at Comic-Con International in July 2008. Bernice Nesbit, senior marketing manager for Disguise, says it was well received at the event, which covers comic books, graphic novels, anime, gaming, film and other popular culture categories. "Everyone was really excited about the collection. The costumes are sexy, powerful, flattering and stylish," says Nesbit.

She notes that licenses continue to be particularly important in the children's costume market and that licensing is driving sales even in the toddler market. "Power Rangers used to be popular with 7- and 8-year-olds. Now, even 3- and 4- year-olds are interested in Power Rangers," she notes. Nesbit predicts that the company's GI Joe license will be strong next year, driven by the summer 2009 release of GI Joe: Rise of Cobra.

"It seems like sales trends right now are regional," says Scott Perry, vice president of Funny Fashion, USA, noting that whereas some of his retailer customers experienced sales gains in 2008, others, notably in New Jersey and Texas, reported decreases compared to 2007.

Perry reports that Funny Fashion is expanding its line in 2009. "Currently all our costumes are in the $20 to $70 retail price range, but in 2009 we will be offering a budget line with costumes priced under $19," says Perry. "The way the economy is, there will be demand in that category."

InCharacter Costumes is also expanding its line to include more lower-priced costumes. "We specialize in very deluxe versons of classic costumes and that will continue to be our focus, but we want to also add more popular price points," says Chuck Martinez, executive partner of InCharacter Costumes.

"Over the past few years, costumes prices have been increasing," says Christopher Scharff, CEO of Dreamgirl International. "However, for Halloween 2009, the mood will be different. There will be more emphasis on lower-priced costumes and on value." Dreamgirl International is offering two collections that are designed to appeal to newly thrifty Americans. The first is a collection of "special-value" costumes that will retail for about $29. Characters in the line include a vampire (Sheila Tackya) and a devil (Hotter Than Hell) for women and a priest (Father Will U Tell) for men. Also offered is a collection of reversible costumes that will, if effect, give the consumer two costumes for the price of one. "Which Witch" (two different witch costumes) and "Miss Hellen Back" (an angel and a devil costume) are among the costumes in the line. //