They have no income, can’t leave the house alone and in many cases don’t even speak in sentences, yet they comprise one of the most lucrative sectors of the consumer market – and media companies and manufacturers are scrambling to court them.

This month, some of the biggest brands in television, film, toys and licensing will meet in search of the next hit franchises for children, at MIPCOM in France, the world’s annual market for entertainment, and at Brand Licensing Europe in London. Negotiations will move from putting characters on screens to putting them on pyjamas, school supplies, baby equipment, toys and food. The holy grail is to discover the next Dora the Explorer, Bob the Builder or Ben 10, which have not only earned their creators a fortune from international film and TV rights but are worth huge sums as licensed retail products. In some instances, merchandise being bought for and by young children is worth more than sales of the programme they are based on, blurring the lines between content creation, manufacturing and gaming.

Goods branded with characters from Dora the Explorer – the little cartoon girl who teaches pre-school viewers Spanish and English – have generated $11bn (€7.7bn) for Viacom, which also counts SpongeBob SquarePants among its best retail performers. Dora is shown in about 140 territories and nearly 30 languages, and merchandise runs from toys and books to sewing kits, fish tanks and milk.

Laurine Garaude – director of MIPCOM and MIPJunior – says the market for children’s programming is growing by about 7% a year, led by animation. “If you have a universal subject that travels, it works better and it sells. If it has a licensing dimension, even better,” she says. MIPJunior used to be just about programme sales but merchandise is becoming a major part of discussions. The London Book Fair is a partner this year, as books based on TV characters – and TV series based on book characters – grow in importance.

“You see children getting really excited and engaged with the characters and that translates into what they want… they want to sleep under the duvet and have the lunchbox,” says Mark Kingston, vice-president of Nickelodeon’s consumer products business in the UK and Australia. He says merchandise is viewed as a touch of affordable escapism, “especially in a tough economic climate – if families are cutting back on holidays or a new TV, they’re not necessarily cutting back on treating their children”.

Demand not just from children but from retailers is driving growth, as supermarkets and clothing stores partner with the likes of Disney and Warner Bros. Frederique Tutt, Europe toy industry analyst with market researchers NPD, says character clothes, toys, books and DVDs aimed at under-14s were worth £2.4bn (€2.7bn) in the year to March in just the UK, where nearly a quarter of toys sold bear the faces of TV favourites. In Spain, more than a third of toys sold are TV or film merchandise.

Mintel research shows that almost one in six parents buys character-branded toiletries for their baby or child, even though they tend to cost more than regular products. This rises to just over half of consumers buying items such as character shampoos and lotions when they’re on special offer.

Tutt says significantly more merchandise is bought for three and four-year-olds than for under-twos, showing not just pester power in action, but also the huge range of goods available. A decade or so ago, when Teletubbies became a global sensation, merchandising extended little beyond plush toys. No longer. “It's hard to imagine a product category not touched by licensing,” says Sam Phillips, content manager at the Brand Licensing Europe 2011 event. “Yes there’s clothing and shoes and lunchboxes, but other strong categories include health and beauty, accessories, food, gifts and magazines.” Peppa Pig’s first app for the iPad was launched in August. The character is aimed at children aged one to six.

Disney, which globally posted 13% revenue gain in its consumer products division for Q3 – worth $685m (€480m) during the period – is even putting characters on packs of fresh fruit in Australia, working with the Coles supermarket chain. The company is enjoying huge success with sales of Cars 2, Toy Story 3, Disney Princess and Winnie the Pooh merchandise. “Certainly pester power is alive and well and we’re finding that is coming in younger than it used to,” says Kylie Watson-Wheeler, general manager of licensing for The Walt Disney Company in Australia. “Young consumers are saying things like what kind of yoghurt they want perhaps earlier than before.”

British exports have also been huge successes. Peppa Pig has its own UK theme park, Peppa Pig World, and as the music festival season ran across Europe this summer, some parents were heading not for Glastonbury but paying £25 a ticket to see Rastamouse, Charlie and Lola and ZingZillas play live in London’s Regent’s Park. Demand for off-screen engagement with children’s TV characters is likely to grow globally, as the penetration of pay television – and therefore dedicated children’s programming – deepens in emerging markets, and as consumers become gradually more affluent. Cartoon Network’s chief content officer in Asia, Mark Eyers, says they have a good sense of what travels well and what might be lost in translation. “In India we have a lot of success with Mr Bean, we call that slightly more borderless content, and Tom and Jerry is one of our highest-rating shows there,” he says. Sometimes, jokes that would be lost in translation need what Turner calls “transcreation” – changing jokes during dubbing so they’re equally funny, but in a more locally relevant way.

In Russia, meanwhile, the sector is ripe for growth, as products are mainly limited to books, back-to-school items and toys, with little clothing available and overall revenue from licensed products reportedly at less than 1% of that generated in the US.

Even in the US, there’s always room to sell more licensed goods. Timothy Dowd, senior analyst for market researchers Packaged Facts, says Americans are expected to spend $18.6bn on furnishings, equipment and toys for pre-primary-aged children this year, plus another $19.5bn on clothes and footwear. Growth in this sector, he adds, is being driven by “yoga moms” buying big-ticket luxury children’s equipment and sophisticated toys to be seen with and admired. They’re not generally the people who go for TV merchandise, “but kids are going to demand them anyway”. There’s also the nostalgia factor for parents wishing to relive their own childhoods; look out for a relaunch of Teenage Mutant Ninja Turtles in the coming year.

As new markets open up, so too do sources of programming and characters. Brazil’s animation industry, for instance, is emerging as a strong force, churning out successes like Sea Princesses, now seen in more than 150 territories, and My Big Big Friend, a Brazilian-Canadian co-production. And in Asia, much of Cartoon Network’s content made primarily for India is being used in other regional markets, Eyers says. While they’re made in Hindi or Tamil, they’re also being produced in English for export to other regions. The film Johnny Bravo Goes To Bollywood, produced in India, will be shown around the world, and Cartoon Network has just announced a made-in- Asia Ben 10 TV movie.

But the shifts taking place are not just geographical. The business of creating characters, video content and associated merchandise is being transformed. Toymaker Hasbro, for instance, is attending MIPCOM as an exhibitor this year – it owns the rights to Transformers, which are both toys and animation. Lego, as well as creating ranges tied in with Harry Potter and Star Wars, has launched Ninjago, a range of ninja-inspired collectible toys and playing cards, a film, an animated series, a video game and a virtual world, due for launch this month.

“The world of licensing is changing,” says Tutt. Toymaker Mattel is behind books, music and online games to support its Monster High toys, and the LA-based footwear company Skechers has developed an animated series for kids, Zevo-3, and two direct-to-DVD animated features targeting kids aged six to 11.

“It’s the IP (intellectual property) that counts and the way you develop that is in many ways, including TV production,” says MIPCOM’s Garaude. “It’s not all merged, but the technology means it does converge. People do need to work together in new ways and they need to meet at early stages. TV productions are expensive… people are looking at different ways of monetising their property right from the beginning.”

Nickelodeon has co-produced two of its up-and-coming releases with Sony Music. VICTORiOUS, a live-action series about an aspiring singer, and Big Time Rush, about a boy band, both have obvious potential as earners from music sales as well as television. In the case of Robot Arpo, a Korean-Malaysian co-production being distributed internationally by Spain’s Motionpictures, a range of merchandise has been marketed as a kind of warm- up act for the animated show. Products include a dental care range, an online game and software for LG phones.

In this market, says Disney’s Watson- Wheeler, success hinges on the quality of the storytelling. “Out of great stories come great characters,” he says.

Ones to watch

1 Anpanman
Japanese parents recently named Anpanman – whose name translates as ‘bean-paste- stuffed bread roll’ – their young children’s favourite character in a survey by toymaker Bandai. While many kids have outgrown this doughy superhero (who gives away bits of his head to hungry characters he meets) by the time they’ve hit six, they’ve convinced their parents to buy from a vast range of merchandise, and there’s an Anpanman Children’s Museum in Yokohama. The cartoon is known in the Arab world as Ar-ragheef al’ajeeb, and is shown in India as Anpanman Breadman.

2 The 99
This cartoon, derived from a comic-book series, tells of a golbal team of superheroes who between them possess 99 stones that give them special powers. Made by Endemol and Teshkeel Media Group, it originates in the Middle East and although the religion of the characters is not stated, it focuses on Islamic principles. The series, which has been sold to MBC3 in the Middle East, RTE in Ireland and ATV Kids in Turkey, is heading to southeast Asia as part of a deal with Turner Broadcasting Asia Pacific. The Middle East’s first theme park, The 99 Village, is in Jahra, Kuwait.

3 Upin & Ipin
This Malaysian production tells the story of twin boys Upin and Ipin and their friends. It began as a six-episode special in 2007 for the Ramadan/Eid festivals by Les' Copaque Production, but is now huge in Malaysia, Singapore and Indonesia. Distributed by Disney, it has been spun off into magazines, food products, music and a themed restaurant. Merchandise includes T-shirts, drink bottles, backpacks, stationery, toys and, bizarrely, car air freshener.

4 Jobi’s Room
A humorous, animated production by Brazil’s 2D Lab, Jobi’s Room is aimed at children aged six to 11 and follows a 10-year-old boy, Jobi, and Oscar, a talking frog, as they embark on imaginary adventures around the world in the safety of Jobi’s bedroom. The series was acquired this year by Canadian distributor Portfolio International, with plans for sales worldwide.

5 Pucca
This franchise looks likely to appeal to little girls, teens and young women who hanker after cuteness. The creation of Korean company Vooz, it tells the story of Pucca, the niece of the owners of a village noodle house in the mountains. The plot usually revolves around her trying to steal a kiss from Garu, the ninja she’s in love with. Books, toys, clothes, accessories and a Nintendo video game have been produced, and as it also courts older consumers, Pucca has been advertised in Italian Vanity Fair and was part of a capsule collection at last year’s New York Fashion Week.

6 Kikoriki
This animated show – a hit in Russia, where it was created eight years ago by the Riki Group – is featured on more than 3,500 products. There are even plans for a theme park in Moscow and a theatrical release dedicated to the Kikoriki characters, who inhabit a fantasy land where their creativity and sense of adventure turn snores into energy and make the sun shine on a rainy day. MTV Networks International (MTVNI) this year bought the rights and plans to roll it out worldwide, aimed at children aged three to eight. It’s already showing in China, Germany, the US, Finland, Italy and Portugal.

7 Rob the Robot
Co-produced by Singapore- based One Animation and Canada’s Amberwood Entertainment, Rob the Robot follows Rob and friends Ema, TK and Orbit as they explore the planets of the robot galaxy in a computer-generated animation. Disney Channels Southeast Asia this year announced it would broadcast the show on its Disney Junior pre-school channel. Distributor Entertainment One has previously sold it to Norway, Korea, France, to Discovery Familia in the US and to Discovery Kids Latin America.

8 Dino Dan
Trainee palaeontologist Dino Dan uncovers clues about dinosaurs in a way that combines computer animation with live action. The show is a hit in Canada, where it was made by Sinking Ship Entertainment, and shows on Nick Jr in the US and Australia. Its website features a 'dig site' where users search for fossils and unlock new dinosaurs for online games.

9 Winx Club
In a style that borrows from Japanese anime, Winx Club is set for export under the banner of MTVNI. In Italy, its characters have been the subject of two animated feature films. The stories follow Bloom and her fairy friends who come up against a coven of witches. Dolls, perfume, toys, costumes and beauty products are all big sellers.

10 Jake and the Never Land Pirates
This fresh incarnation of the Peter Pan story draws on characters such as Captain Hook and Smee, but introduces a group of two boys and a girl who explore Never Land. Each episode of the animated show, launched in the US in February, is followed by a live-action song from the Never Land Pirate Band.