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More Consumer Products News
 
Fathead wall graphics’ popularity a slam dunk
By Matt Griswold
PLASTICS NEWS STAFF
 

Cleveland Cavaliers basketball forward LeBron James prepares to deliver a ferocious dunk -- and can also do so in your recreation room.
LIVONIA, MICHIGAN (June 24, 2009) -- The personal mission statement of one of Fathead’s vice presidents: Cover the universe, one Fathead at a time.

Given the limitations of intergalactic space travel, that goal could ultimately prove unreachable. But considering the company’s youth, and the mark it has made on Planet Earth, one must tip their hat to the good start.

Founded in 2004, Livonia-based Fathead LLC has transformed from an unknown company with a funny name and funny television commercials to -- five years later -- somewhat of a household name with sports fans and kids, alike.

For the uninitiated, a Fathead is a large -- sometimes life-size -- wall graphic depicting a famous athlete or entertainment industry celebrity. The high-resolution images are digitally printed on thin, flexible vinyl sheets featuring a proprietary adhesive layer on the back that allows them to stick to walls like wallpaper, be removed when needed without leaving residue, and re-stuck in a new location without losing its adhesive stickiness.

The largest, most in-demand Fatheads sell for US$100 (683 yuan). And at that price in a troubled economy, the company is outperforming gross domestic product by a country mile. Fathead grew about 20 percent in 2008, and officials expect a higher number at the end of 2009.

The vinyl sheets with adhesive layers are supplied to Fathead by Cincinnati, Ohio-based Diversified Converter Materials Inc., whose patented Magik-Stik technology is the secret to Fathead’s wall-sticking success. Joe Esposito, Fathead’s chief operating officer, also credits the company’s printing partners – Milwaukee, Wiconsin-based Kubin-Nicholson Corp. and Battle Creek, Michigan-based EPI Printers Inc.

“It has taken a lot of [research and development],” Esposito said in a telephone interview. “The combination really lies, not only in this Magik-Stik vinyl, and not only the appropriate printing equipment, but also the style of ink that goes into the process. Those three things have to marry up perfectly.”

In addition to the vinyl technology, securing licenses with the major sports teams and various entertainment companies is what has set Fathead apart from other adhesive wall graphic manufacturers.

Fathead started with only a National Football League (NFL) license in 2006 and three different commercials featuring several NFL stars.

The company now has license agreements with every major sports league in the United States and several entertainment companies, including Disney, Nickelodeon and comic firms D.C. and Marvel.

The company has more than 125 licenses, Linda Castillon, Fathead’s chief licensing officer, said in a telephone interview.

While the NFL as a whole remains the company’s collective best-selling items, Fatheads featuring Disney’s Hannah Montana, Spider-Man and various characters from the Star Wars films, have been, or continue to be, among the company’s top sellers. Those of a more political persuasion might prefer a Fathead of President Barack Obama.

Constantly adding and innovating, Fathead now has an endangered species line.

“It has been surprising. You just never know,” Esposito said of what consumers are drawn to.

Fathead has evolved from being a large wall graphics maker into something more. The company is now making a Tradeables line -- essentially mini-Fatheads on 5-by-7-inch (13-by-18-centimeter) cards -- that Fathead officials hope will penetrate the sports trading-card market. Fathead also is offering laptop computer skins.

Castillon, the company official who intends to cover the universe with Fatheads, is working on a way to make automotive Fatheads, she said.

“I spend almost my entire day thinking about Fathead. How to sell it, where to get it placed, and what properties need to be made into Fatheads,” Castillon said. “There are a gajillion cars on the road, and each one is an opportunity to sell a Fathead.”

It’s all about being “Fathead-worthy.” The company’s top brass are constantly asking themselves who and what qualifies.

One of the latest Fathead innovations, just introduced in the past month, is “customized.” Customers can upload high-resolution photographs to Fathead’s Web site and essentially create any Fathead they want. Parents now can get a photograph of their child on the soccer field, or hitting a baseball. Tourists can have their own Fathead of the Eiffel Tower or the New York City skyline. Almost nothing is off limits, Esposito said.

Moving to a digital printing format has allowed the company to virtually print on demand. This has streamlined the operation, and gives the company more flexibility in the products it chooses to design and produce as it no longer requires committing to a large print run or inventory stocking of a particular item.

Scott Engler, president of Fathead vinyl sheeting supplier DCM, and one of the original developers of Fathead prior to its acquisition from Livonia-based investment firm Camelot Ventures LLC in 2006, said the robust growth and popularity of Fathead has given his company instant credibility.

“It took us from under the radar to, all of the sudden, we’re known as the supplier of Fathead. It gives you immediate credibility,” Engler said. “It’s been a great ride. It’s been fun.”

DCM operates out of a 2,320-square-meter plant, with capacity to produce about 100,000 vinyl sheets daily, he said.

The basic adhesive vinyl sheeting technology can also be found in the floor graphic, counter mat, and point of purchase markets, he said.

Castillon said she had a background in the poster industry, and suggested that Fathead is basically replacing that market.

“We’ve innovated an industry that had sort of been dormant for a long time,” she said. “Our product is probably where posters should have gone, but they stopped innovating.

“We’re limited only by our imaginations.”

Esposito said company executives “have really big dreams for the company” and “really fast growth plans.”

Fathead officials do not believe their business model lends itself to any fears of growing too quickly.

“We kind of have endless places to go,” Esposito said. “This is really just the beginning and we’re growing dramatically. There are just a million places to expand and it’s all about priorities and what we want to do next.

“This is a different business model. We have different printers and a lot of capacity. We’re going to grow as fast as we can move. It really becomes as fast as we can negotiate licenses and design products. We do both as fast as we can, and we want to do that exponentially faster. We’re still a relatively small, lean company. We want to grow fast.”

One Fathead at a time.



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