During its initial release by Twentieth Century Fox in December 2009, Avatar had one of the most extensive merchandising programs ever- 125 licensed products were manufactured across four categories (toys, apparel, publishing, video games). Since then, retail sales have been booming, recently reaching the $153 million mark. Despite the lack of a confirmed movie sequel, Fox plans to extend the Avatar brand’s long term plans, by producing more licensed products in time for the crucial fall back-to-school, Halloween and holiday shopping seasons. New products will include costumes, board games and bedding items.

Robert Marick, executive VP of Fox Consumer Products, called Avatar “a true game changer,” saying, "We know that Avatar can thrive at retail independent of new movie releases, and we are developing creative ways to engage fans throughout the year."

Avatar has been a game changer in more ways than one; outside the field of merchandising, it has also broken multiple box office records. Six weeks after its release, Avatar overtook Titanic as the top grossing movie of all time. Its $2.729bn worldwide gross benefited from higher prices of 3D movie tickets, as well as its immense success in China and Russia, two markets that were comparatively difficult to crack back in 1997.

By evolving the Avatar movie into a brand extending beyond the film’s narrative, Fox is investing in Avatar’s long term asset value, or brand equity. This seems to follow in the footsteps of the Star Wars movies, another blockbuster-franchise that turned into creator George Lucas’s cash cow. Both films share important parallels: technical novelty, a heroic narrative and complex imaginary worlds, providing a rich foundation for subsequent merchandise launches. Product and service brands often strive to give their brands a story and an experience to connect with consumers on an emotional level. Star Wars and Avatar have already done this through the movies themselves, but it remains to be seen whether the perceptions that have been built can be sustained long term.

As an added advantage, Avatar’s use of the 3D format translates well into the toy and video game industry. Mattel has already produced a line of toys that come with an iTag, allowing buyers to unlock 3D images on their computers. More importantly, this technological aspect makes Avatar’s brand extensions consistent with the movie itself, consistency being a key aspect of building a strong brand. Consumers of Avatar’s 3D-enhanced merchandise will be able to re- experience the immersion into another existence, just as they had in the film.

Will Avatar be able to extend its current popularity to become a product brand, or is the Na’vi-people craze just a fad? While every lucrative brand is centered around a core idea- its raison d’être- Avatar’s complexity may prove cumbersome. It is hard to pinpoint a single overarching concept that the Avatar brand stands for, the way that Nike stands for victory or Volvo stands for safety, for example. Like Star Wars, the long-term success of its product line hinges on its ability to maintain consistency and remain relevant in the minds of consumers and fans in the years to come.