How Care Bears Became Cool Again: Strategic Lessons from Charlotte Payne on Reviving Nostalgic Brands
After two decades in licensing, I've watched countless brands try to recapture past glory. Most fail. They either cling so tightly to what made them successful 30 years ago that they become irrelevant, or they change so drastically that they alienate their original fans while failing to attract new ones.
But then there's Care Bears—a brand that's somehow managed to be simultaneously a millennial nostalgia play, a Gen Z collectible obsession, and a legitimate kids property. It's showing up in Roblox games, luxury collaborations, TikTok trends, and toddlers' bedrooms. And it's doing this 45 years after launch.
That's why I was excited to sit down with Charlotte Payne, who oversees international licensing for Care Bears at Cloudco Entertainment. Charlotte joined the company just over two years ago with a specific mandate: take a brand that had been "simmering" since its 2019 relaunch and turn it into something that couldn't be ignored.
What struck me most about our conversation wasn't just the tactics—though the IP collaborations with Hello Kitty, Sesame Street, and Wicked are brilliant. It was Charlotte's clarity about why nostalgia brands are having such a moment right now, and more importantly, how to leverage that nostalgia without becoming a museum piece.
Here are five strategic insights from our conversation that anyone working with heritage brands needs to understand.
1. Nostalgia Isn't About Recreating the Past—It's About Making Yesterday's Brands Relevant for Today
The Insight: The nostalgia trend isn't just about millennials buying what they loved as kids—it's about brands earning multi-generational relevance by evolving while staying true to their core.
Charlotte's perspective on the nostalgia wave was nuanced: "I think it's really interesting to see how nostalgia brands have made a comeback. But I think there are also just great brands—brands that have maybe stood the test of time and just have an opportunity to come back in a different way. Care Bears is definitely different though to what it was 45 years ago. And I think that's really important as a brand owner is making sure that you are relevant for today."
She explained how Care Bears achieved this balance: "We brought back classic as much as we brought back the new look. The new look is based on the new TV series, Unlock the Magic, but the classic look is what people remember. So even now, five years later, classic still plays an important part of our business, certainly on soft lines and how we build out our apparel programs. That's because it goes across all those multi-generational audiences."
The strategic thinking behind this: "We're being able to talk to a multi-generational audience. Yes, we have the nostalgia and the millennial original fans of Care Bears, but also how we show up with new content on TikTok has opened more of a Gen Z, teen and tween demo. Care Bears in its nature is a plush toy and bear that people love to cuddle and it's colorful. That seems to be resonating with younger demos."
Charlotte emphasized the underlying reason nostalgia works: "Whether it's post-COVID, we talk about this internally—why is nostalgia playing such an important part? People are gravitating towards brands that had an emotional connection for them as a child, or just brands that they know and they trust, or that they want to pass down that brand love to their kids as well."
Why It Matters: Most heritage brands make one of two mistakes: they either refuse to evolve (becoming irrelevant to new audiences) or they abandon what made them special (alienating their core fans). Care Bears' success comes from maintaining both the classic aesthetic that nostalgic fans remember and creating new content that speaks to today's audiences. This "both/and" strategy is why they can simultaneously appeal to 35-year-old collectors and 5-year-old kids.
The Takeaway: If you're managing a heritage brand, stop thinking of nostalgia and modern relevance as opposing forces. They're complementary. Maintain the visual language and emotional core that original fans remember (this is your authenticity credential), while creating new content, collaborations, and distribution strategies that reach new audiences where they actually are (this is your relevance credential). The brands winning right now are doing both simultaneously, not choosing one or the other.
2. IP Collaborations Aren't Just Marketing Stunts—They're Strategic Tools to Access New Audiences and Retail Doors
The Insight: Co-labs between IP owners used to be unthinkable, but now they're one of the most powerful ways to surprise fans, access new demographics, and create collectible moments.
Charlotte was excited about this relatively new strategy: "If you'd said to me 10 years ago studios are going to work with other studios, even Hasbro working with Mattel, that would have been like an absolute no-go area. So I think there's two ways that we've approached co-labs: IP collaboration and toy collaborations."
She explained the strategic thinking: "Are there key alignments from a brand DNA perspective? Do we have shared audiences? Is it about tapping into new audiences? The surprise and delight aspect is something we've really wanted to dive into. How do you show up in a different way? Unless you're a big movie property with a big release or a new TV series, it's really hard to compete in the licensing space. These co-labs offer real great marketing tools to show up in a different way."
The collectibility factor is crucial: "The combination that people want to collect something—collectability is bigger than ever right now. Us creating something that only has a really short shelf life has been really interesting to watch how fans engage. The Hello Kitty one in the US, for example, was only live for six months. Once it's gone, it's gone. That frenzy feeling that people have to get it now while they can and collect it—that was really interesting to watch."
Charlotte shared impressive results: "We did a collaboration with Barbie this year—blind cylinder Barbies on their QT reveal series. This was actually their first license that they did on the QT reveal series. And it hit number one globally. It was the number one selling doll globally."
She also highlighted different types of collaborations: "Some are tailored to that kid-old market, some are younger. For us tactically, we look at what's it going to bring to the brand? How do we open up a new audience or a new space at retail? How do we maybe cement some of those partnerships that we have already?"
Why It Matters: In a crowded licensing marketplace where every brand is fighting for attention, IP collaborations create genuine surprise and conversation. They give fans something they didn't know they wanted but immediately need. More strategically, they allow brands to access each other's audiences, retail relationships, and geographic strengths—creating opportunities that neither brand could achieve alone.
The Takeaway: Stop thinking of other IP owners as competitors and start thinking of them as potential collaborators. Identify 3-5 brands that share your core values but reach different (or adjacent) audiences. Reach out with specific collaboration ideas that benefit both parties. Make these partnerships limited edition and time-bound to create urgency. And don't just think entertainment IP—some of the most successful collaborations combine entertainment with lifestyle brands, toys, or even food and beverage.
3. When Evaluating Potential Licensees, Authenticity and Retail Relationships Trump Revenue Projections
The Insight: The licensing deals that work long-term aren't built on who promises the biggest guarantee—they're built on authentic brand alignment and proven retail execution.
When I asked Charlotte what she evaluates when companies approach her for licenses, her answer revealed a sophisticated decision-making process: "I think firstly, whenever we're talking to a prospective partner, it's always about whether they see the vision that we see. Having that alignment is really key. Authenticity is absolutely fundamental to everything we do. Does the product category make sense? Does the partner make sense? Does the market make sense?"
She emphasized Care Bears' values: "We have very strong values for the franchise around care, joy, that emotional connection. So they play important parts in any decision making we have. For us, it's about figuring out whether that partner sees the same potential, but whether they have the right reach as well."
The retail consideration is critical: "We're always looking at how we open up new categories, whether we can service a particular retail account. That's all the way from mass to specialty to luxury. Do they have the right reach? Are they a preferred vendor? We think a lot of retail first. How does that partner work with different retailers? A lot of the time retailers will share with us their preferred suppliers."
Charlotte also values innovation: "I would put a lot on innovation and creativity. If a product is incredible or it stands out as a completely new product to the market, we're always excited about that. We've just done a Care Bears virtual pet which plays into that nostalgia of the Tamagotchi, but it has totally new technology. Innovation plays an important part."
She identified red flags: "If there's no alignment with the brand or it feels like a label slap, that's off-putting. Anything you do at retail has to have storytelling. Consumers now see through something that isn't authentic or doesn't feel true to a brand. If someone was pitching volume over storytelling or brand alignment, that would be a big flag for us."
Why It Matters: Too many licensees focus their pitch on revenue projections and minimum guarantees, thinking that's what licensors care about most. But sophisticated licensors like Charlotte know that a partner who doesn't authentically understand the brand or have proper retail relationships will ultimately fail—regardless of what numbers they put in their pitch deck. Failed licensing programs cost more than just lost royalties; they damage the brand's reputation at retail.
The Takeaway: If you're pitching for a license, spend less time on your revenue projections and more time demonstrating: (1) Deep understanding of the brand's values and how your product authentically extends them, (2) Specific retail relationships and why they're the right doors for this IP, (3) Innovation in your category that makes this more than a generic licensed product, (4) Long-term vision for the partnership beyond just one collection. Licensors can build financial models themselves—what they can't do is make an inauthentic partner suddenly understand their brand.
4. E-Commerce and Social Commerce Are Fundamentally Changing How Licensing Deals Get Structured and Executed
The Insight: The rise of Amazon, TikTok shops, and influencer-driven sales is creating entirely new models for licensing that didn't exist even five years ago.
Charlotte acknowledged this evolving landscape: "E-commerce is a really interesting retail channel at the moment. Amazon's played an important part. We have a very unique working relationship with Amazon to look at not only how we can build out a bigger marketing strategy with them, but also how we actually support licensees."
She highlighted emerging opportunities: "We're seeing that on social commerce as well. How we work with partners across TikTok stores, you've got influencers built into that now on social media. We have high engagement on social media too. TikTok has helped us open up an appetite for health and beauty. So it's really fascinating to see how e-commerce, social commerce is having an impact."
The shift in consumer behavior is dramatic: "Influencers are just having such an impact on how people are consuming brands, how they're purchasing, having that direct click as well. It's so easy now to purchase online versus making that choice going into a retail store. You're probably going to see more in that space from us, but certainly in the licensing industry as a whole."
Charlotte also noted the strategic implications: "They're definitely parts of any discussions that we would have with prospective partners. I'm not gonna sit here and know the whole world of how TikTok social commerce works, but it is fascinating to see how influencers are having an impact."
Why It Matters: Traditional licensing was built around the retail buyer as gatekeeper—if you couldn't get a Walmart or Target buyer to say yes, your licensed product never reached consumers. Now, brands can go direct to consumers through Amazon, their own D2C sites, TikTok shops, and influencer partnerships. This fundamentally changes the value proposition of different types of licensees and requires licensors to evaluate partners on different criteria than they did even five years ago.
The Takeaway: If you're a licensor, start evaluating prospective partners on their social commerce capabilities, not just their traditional retail relationships. Can they drive traffic through influencer partnerships? Do they understand TikTok shop mechanics? Can they execute successful Amazon launches? If you're a licensee, don't assume retail distribution is your only path to success—invest in building direct-to-consumer capabilities and social commerce expertise, as these may become more valuable than your retail relationships.
5. Heritage Brands Need Constant Innovation to Stay Relevant—Especially in Experiences and Storytelling
The Insight: Having 45 years of brand equity isn't enough—you need to constantly find new ways for people to experience and engage with your brand beyond products.
Charlotte was clear about Care Bears' future direction: "You're definitely going to see more of us in that emotive learning space. How can we be a brand that really helps educate families and children in a bigger way, with a bigger purpose? Care Bears can be more than just a bear and emotions. How can we actually be a positive force in understanding your feelings and emotions? You're going to see more of us in that space."
Publishing is a key focus: "We are definitely building out our publishing program. I know a lot of people talk about publishing is a really tough space right now and people are buying less books. I actually think there's nothing better than that magical moment when you read your kids stories at night and early readers and how you can be a positive brand."
But experiences are where she's most excited: "How do people get more up close and personal with the brand? Definitely experiences are going to be in that world of how do we tap into the sensory experience? How do we look at exciting ways that you can live and breathe the world of Care-a-Lot or get a little bit of a snapshot of what it's like to be in a Care Bear's world? We've got some really exciting partnerships coming up in that space from next year."
She also teased anniversary plans: "We've got our 45th anniversary in 2027. It's not going to be a typical anniversary year. It's going to be a moment to bring something back for the diehard fans. We're bringing back something really exciting which I think you'll find exciting as well, given the history you have with the brand."
And there's a feature film: "We are working on a new feature film with Warner Brothers. There's no official greenlit date. Given the respect and the brand's deep and long history, now feels like the best time to bring something exciting and new like a feature film."
Why It Matters: Product licensing alone isn't enough to keep a 45-year-old brand culturally relevant. Care Bears recognizes that they need to show up everywhere their audiences are—in games, in experiences, in collaborations, in content, and yes, in products. Each touchpoint reinforces the others, creating a flywheel of awareness and engagement that keeps the brand in conversation.
The Takeaway: If you're managing a heritage brand, audit how many ways consumers can experience your brand beyond buying products. Do you have content strategies? Experience partnerships? Educational programs? Collaborations with unexpected partners? If licensed products are your only strategy, you're one trend cycle away from irrelevance. Invest in the full ecosystem of brand experiences, and use licensing as one piece of a bigger engagement strategy.
The Bottom Line
Charlotte Payne's work revitalizing Care Bears offers a masterclass in how to manage nostalgic brands in the modern licensing landscape. It's not about recreating what worked in 1985—it's about understanding why Care Bears mattered then and finding new ways to make them matter now.
The key lessons? Respect your heritage while evolving for today. Use collaborations to surprise fans and access new audiences. Prioritize authentic partnerships over pure revenue. Embrace new commerce models. And constantly innovate in how people experience your brand beyond just products.
As Charlotte put it: "The world has changed in 45 years. Brands have to adapt and make sure that they're relevant for today."
That's the tension every heritage brand must navigate—and Care Bears is proving it can be done without compromising what made the brand special in the first place.
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