Global Toy News

LeapFrog’s LeapPad Gets Some Challengers

What I found intriguing about the LeapPad Explorer when it came out was that it really wasn’t competing with other toys.  It was, in fact, taking on the Apple iPad, Motorola Xoom, Samsung Galaxy and a multitude of similar products.  LeapFrog had, by their act of developing the LeapPad Explorer, entered the broader tablet market with a product that was priced at $99.  

They were in essence competing for that parent who was letting their child play with their expensive iPad and worrying about it.  I thought it was a brilliant stroke and still do. As Gerrick Johnson, toy industry analysis for BMO Capital Markets put in his latest report on LeapFrog:  “The LeapPad Learning Tablet continues to be in strong demand. It is rare for us to see a hot product from the holiday season continue to sell out at retail in January, February, and March.  But based on our observations, we think this is exactly what is happening with the LeapPad.”

It appears, however, that others are getting into the act.  At least that was my takeaway from a New

Partnership to Raise Profile of China Kids Expo

 

 

 

 

No more baby steps for the China Toy & Juvenile Products Association (TJPA) as its new partnership with Koelnmesse is another strong indicator that the national trade body is serious about developing its domestic consumer juvenile business. The alliance will also enable TJPA to grow its marketplace presence and attract international buyers to the industry event.

As the new co-host of the China International Baby Carriers & Baby Articles Fair (China Kids Expo), the German trade fair organizer will use its expertise and contacts to give the international event a worldwide reach. Koelnmesse is the driving force behind Kind+Jugend – the world’s largest kid’s and baby products fair.

“We are very excited to be part of China Kids Expo. The exhibition industry poses both opportunities and challenges, and one of the reasons for choosing to work with TJPA is partly due to its authoritativeness and status within the industry. The other being the bright prospects of the infant and kids products market,” said David Feng, Managing Director of Koelnmesse.

Slated for October 11-13, 2012 at the Shanghai New International Expo Center in China, the show co-locates with the 11th Trade Fair for Toys & Hobby which is also organized by TJPA. Organizers project over 1,000 exhibitors to participate at the events which span about 80,000 square-meters in total, including 500 companies at China Kids Expo.

Unite & Fight: Brands and Retailers Should Join Forces for More Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mark Grondin has over 15 years of experience in eCommerce, web and mobile technology, having provided eCommerce consulting to firms like the German Stock Exchange, Swissair and Johnson Outdoors, and managing web agency relationships with Hewlett-Packard, Disney, and Apple. He is currently Senior Vice President of Marketing for Shopatron, responsible for business development, PR, demand generation and outbound sales for the #1 retail-integrated eCommerce solution in the world.

 

 

Consider this: according to The NPD Group, in 2011 “nearly 40%  of toy shoppers used a smartphone in a store to scope out websites of other stores.” The question is, how can toy brands and their retailers make this trend work in their favor?

There’s no denying the awesome power and influence of the web, especially with the rise of mobile and smartphone usage. We are in an era of “no boundaries” shopping, where customers can virtually find anything, anytime, anywhere. In order to get their slice of the pie, toy brands also need to be available to consumers anytime and anywhere. They need a website, they need a mobile site and they need physical locations.

When eCommerce first came on the scene, it seemed like it might always be a sideshow to brick-and-mortar retail – a nice place for niche players. But new studies are showing a different trend, one moving toward integration. Customers expect a hybrid shopping experience, where the boundary between buying online and buying in-store virtually disappears. That’s where the importance of quality relationships between toy brands and local toy shops comes in. The brand can provide the name and eCommerce presence and the retailer can take care of the fulfillment and local service.

If toy brands and retailers can create this type of seamless shopping experience between the online and in-store channels, it will reflect in their overall sales. They will even be poised to compete with mega retailers like Amazon and Walmart because they can offer customers more: better product information, comprehensive product inventory and the personalized service of a local shop.

'Etch A Sketch' and the Power of Toys

If you weren’t spending time in a cave last week you were undoubtedly inundated by commentary on the “Etch A Sketch” incident.  You know, that’s the one where Romney’s senior advisor, Eric Fehrnstrom, compared the candidate's political positions to a drawing on an Etch A Sketch.  As he put it:” "I think you hit a reset button for the fall campaign.  "Everything changes. It's almost like an Etch A Sketch. You can kind of shake it up and restart all over again."

I will let others decide if it was a gaffe or a moment of honest lucidity.  Rather, I want to focus on the power of toys in society.  Think about it; virtually everyone in the United States (and maybe the world for all we know) knew immediately what an “Etch A Sketch” was and as a result got the meaning of the metaphor.  The "Etch A Sketch" was a universal touchstone

Why, because toys have power well beyond their moment in the playroom.  They help shape how our

Neil Friedman; The Interview

Last year I posted two blogs about Neil Friedman and in both cases they were among the most widely read of 2011.  Neil had recently left Mattel to go to Toys “R” Us when I wrote “Neil Friedman, Toys R Us and what it may really mean.”  The other came months later and was entitled “Neil Friedman, Toys R Us: what it really meant.” 

The relationship between Neil and Toys “R”Us has changed since that last post so,  I wanted to know (and I figured you did too) about Neil’s next moves.  I also wanted his views on the toy industry now and in the future.  To find out, I sat down with Neil over lunch and asked him if he would provide Global Toy News readers with an interview.  He graciously agreed.

Why is Neil important?  Because, he is, without a doubt, one of the most important toy industry leaders of his generation.  Just think about it, Neil has held leadership positions with the toy industry’s two most powerful product companies, Mattel and Hasbro, and its most powerful toy retailer Toys “R” Us.  He is justly a member of not only the Toy Industry Hall of Fame but the International Licensing Industry Merchandisers’ Association’s Hall of Fame as well. 

He is also a pretty nice guy.  Neil serves on the Executive Advisory Board for the Children Affected by AIDS Foundation, Board of Directors for both the New York Society for the Prevention of Cruelty to Children and the Northside Center for Child Development in New York City.

Here is my interview with Neil Friedman:

Richard:

People new to the toy industry may not be aware that you were, prior to your time with Toys R Us, President of Mattel Brands; President, Fisher-Price Brands; President of Tyco Preschool; President of MCA/Universal Merchandising; Senior Vice President-Sales Just Toys; Vice President and General Manager of Baby Care for Gerber Products; Executive Vice President and Chief Operating Officer of Lionel Leisure, Inc., and President of Aviva/Hasbro.   Whew!  That is one hell of a resume.  What worlds are there left for you to conquer?

Neil:  

I am continuing to work with Toys“R”Us as a non-exclusive advisor on new ventures, business alliances, etc. and I’m looking forward to advising other retailers, manufacturers and board of directors, sharing my expertise and experience with them. Additionally, as a father of five and grandfather of two, children and children’s issues will continue to be a hot button for me. My focus will turn to working closely with several children’s charities I support, including Rosie’s Broadway Kids, Children Affected by AIDS Foundation and the Children’s Brain Tumor Foundation, to name a few.

Richard:

Very few people, if any, in the industry have your combination of being a high level executive in both the product and retailing sides of the business.  What unique perspectives have you gotten from your dual roles?

Part 2: Toys "R" Us and the rest of us; a look at the 4th quarter report

This is the second in a two part series about the recently released results of Toys "R" Us's 2011 4th quarter (click here for part 1).  Rather than dwell on those parts of the report upon which financial analysts focus, I am concentrating on aspects that are relevant to all of us in the toy industry.

Video Game Sales

We can all remember a few years ago when Toys “R” Us benefited from strong video game sales.  Not this year.  According to the Toys “R” Us press release:  “The net sales downturn was primarily due to a 9% decline in electronics, video game hardware and software.

It is interesting to compare the Toys R Us results with the entire video game industry.  According to NPD “…total industry sales plummeted to $3.99 billion, down 21% from $5.07 billion in December 2010.”  Annual sales for the industry were down 9%.

Obviously, Toys “R” Us suffered from the general malaise in the segment.  Video games and other

Toys "R" Us and the Rest of Us; A Look at Their 4th Quarter Report

Toys “R” Us had a disappointing 4^th quarter in 2011.  As you can imagine, there will be a great deal of commentary elsewhere on the recently released Toys “R” Us 4^th Quarter report.  So, instead let's focus on aspects of the report that are interesting to all of us in the industry rather than just to Toys "R" Us stakeholders and potential investors.

China and Southeast Asia

Yes, the company’s sales were off internationally and domestically.  There were, however, some bright spots.  Specifically, CEO, Jerry Storch, had good things to say about the company’s efforts in China and Southeast Asia.  Here is how he put it in the company’s press release “Toys“R”Us, Inc. reports results for fourth quarter and full year of fiscal 2011:”

We are also pleased with the performance of our international segment, where we are... broadening our reach in emerging economies that are experiencing GDP growth and rising incomes. To this end, we acquired the ownership interest in our licensee

Exclusive Neil Friedman Interview; March 27 in Global Toy News

Make sure to visit Global Toy News next Tuesday, March 27 for an exclusive interview with Neil Friedman, former president of Toys“R”Us and previously serving as president of Mattel Brands and president of MCA/Universal Merchandising. Neil, who has spent 40 years in the toy industry answers questions from Richard Gottlieb and offers Global Toy News readers his in-depth knowledge of the toy business, what he plans to do next and more.  Don't miss it!

Consumer Confidence; Is the Glass Half Full or Half Empty?

American consumer confidence is up for March 2012 to the highest levels seen since the start of the recession. The main drivers of this surge in confidence are improved employment confidence and the associated decline in concern with personal financial health. This is despite continued pressure on the wallet from high fuel prices and international financial instability.

Consumer Outlook Index: March 2012

I have written recently on the improving economy (“Toy Fair 2012; Animal Spirits”; “The Economy Is Coming Back; just ask Red Lobster and Mitt Romney”).  When I do so, there are typically a few comments on Linked In or Global Toy News questioning the reality of an economic recovery.  

I certainly agree that something could happen to derail the economy.  Gas prices could spike, another country could default, etc.  I do think, however, that the recovery is real.

But what about those who don’t.  There was a good comment from John C. Fusi in response to my posting “The Economy Is Coming Back; just ask Red Lobster and Mitt Romney”.  Here is, in part, what he wrote (to see John’s entire comment go to the comments section under the Red Lobster Mitt Romney posting):

I do see signs that people on the street are trying to believe and act as though things are getting better. I do not however see much in the way of signs from businesses, in terms of hiring and capital investment, showing that the movers and shakers that actually have the power to make things better, are not still scared to death of the impending 'dollar bubble' a double-dip recession if not depression.

I think that John and I are seeing the same thing, “people on the street are trying to believe and act as

Selling Toys in the Ukraine; Yes, I Said the Ukraine

We take the "Global" in "Global Toy News" seriously so we like to provide readers with a look at other toy economies.  It is interesting to see how other cultures choose their toys.  We not only learn about them but we learn about ourselves as well.  That was why I got a kick out of toy industry survey sent to me by a Ukrainian research company, UMG International (Ukranian Marketing Group). 

The Ukraine has a population of approximately 46 million people making it the 29^th largest country in the world.  That makes it bigger than Canada, Poland and the Netherlands.  It is the 51^st biggest country based on GDP which makes it economically about the same size as New Zealand with a population of 4.5 million.  So, Ukraine has some pretty strong growth potential as does the rest of Eastern Europe.

The survey, entitled "Toys in Numbers," provided a breakout by the percentage of sales constituted by each category:

Interactive toys 47.6%

Plush toys 45.8%

Puzzles 35.2%

Vehicles 34.3%

Blocks 29.4%

Board games 16, 2%

Wooden toys 8, 5%

I was surprised that games sales were so low compared to other categories.  I had always thought that board games were popular everywhere in Europe.   The report cites the lack of sales in the game and

Jelly Belly is Game to Evolve its Brand

 

 

 

 

Evolution ..... The word is defined as a gradual process in which something changes into a different and usually more complex or better form.

Having covered consumer products for nearly two decades, I have witnessed and reveled in the evolution of many companies.

The common factor among those manufacturers who have made significant strides were those that embraced, no celebrated, the idea of evolving their brand to make it bigger, better and stronger than ever before.

Those who haven't aren't worth a hill of beans as they have struggled to keep up with the changing ways consumers interact with their brand.

Speaking of beans, Jelly Belly has cultivated a winning formula not only by creating buzz around the real and natural ingredients in its gourmet jelly beans, but focusing its efforts on unique and exciting inbound and outbound initiatives.

Its entry into the board game category via a deal with Mattel is a perfect example of the kind of out-of-the-box thinking companies need to do to keep their brand fresh.

Heading to shelves this holiday season are Jelly Belly UNO and Apples to Apples Special Edition games. Each features bean shaped cards, a mix of Jelly Belly beans and rules integrating the beans into the game.

"The idea behind our deal with Mattel was bringing what we do best with what they do best. We are in the gift business and fun business and this was a natural way to turn it up full blast," said nine-year company veteran Rob Swaigen, vp of marketing.

Recognizing its core attributes also led to new licensing deals and innovative product introductions with Snapple, Sunkist, Sanrio (Hello Kitty) and Beatrix Potter (Peter Rabbit) taking the brand from just an Easter must-have (accounting for 40% of its business) to a Christmas wanna have (a real growing segment) to a year-round obsession.

The Economy is Coming Back; Just Ask Red Lobster and Mitt Romney

Well, despite the naysayers, the economy does indeed seem to be coming back.   I had made the case in an earlier blog (Toy Fair 2012; Animal Spirits) that the rise in headcounts and intensity at February’s Toy Fair indicated that the economy was looking up.  Economic reports since then seem to be bearing that notion out.

And now…and now even Republican Presidential candidate Mitt Romney thinks we’re coming back:  Here is how the LA Times quotes him:  ““I believe the economy’s coming back, by the way…“We’ll see what happens. It’s had ups and downs. I think it’s finally coming back. The economy always comes back after recession, of course. There’s never been one that we didn’t recover from.”

But that’s not all.  Now we learn that people are returning to “real” restaurants and that may be seen as another indicator that consumers are relaxing their grip on their wallets.  Here is how The New York Times puts it in an article, “In Sit-Down Restaurants, an Economic Indicator:”  Over the 12 months through January, sales at what the government calls full-service restaurants were 8.7 percent higher than in the previous 12 months. That was the fastest pace of growth since the late 1990s, when the economy was booming.”

It appears that since numbers on restaurant eating habits began appearing 20 years ago, where people

Cash Mobs and the Local Retailer; An Update

Back in December, 2011 I wrote a piece on the “Cash Mob” phenomenon (“Cash Mobs; a new way to promote local retailers”).  “Cash Mobs,” as you will recall, are a bit like “Flash Mobs” except that they have an economic purpose:  To help local retailers. 

Here is how “Cash Mobs” work:  The organizer chooses a local retailer he or she wants to help.  They alert the targeted retailer and then use social networks to let participants know the location of the store and the exact time to show up.  Then, at the appointed moment everyone shows up, buys something and then goes off to have a drink.  The result is business for the store and frees public relations.  What do the participants get out of it; new friends, a lot of fun and the feeling of helping their community?

I wanted to see if the phenomenon was continuing and I am pleased to report that it is.  In fact it is spreading.  Inc. magazine in an article entitled “A Good Kind of Mob,” reports goings on in Los Angeles, Buffalo and Cleveland.  Here is a great quote from the article that not only gives the nuts and bolts of putting on a “Cash Mob” but the emotion and energy as well:

“Wearable Technology;” Maybe the Next Step in Crafts and Costumes

Whatever is cutting edge technology today seems to be a toy tomorrow.  That was why I was so interested in a New York Times article by Anne Eisenberg entitled “Which Way to the Ball? I’ll Ask My Gown.” 

From couture to do it yourself kits, textiles and technology have converged to produce “Wearable Electronics.” A woman can now wear a ball gowns that doesn’t just glow but changes its intensity as she moves (It looks like Cinderella’s Fairy Godmother was way ahead of her time).  “Wearable Electronics” don’t just provide fun and beauty they also provide functionality.  How about a handbag that provides directions?

Here is how the article puts it:

Wearable electronics are starting to dress up gowns, handbags and even tuxedos... by way of conductive thread, sensors, batteries and small microprocessors. And daytime computerized wearables are on the way, like T-shirts and coats that can show full-length videos or use GPS to point you to your destination.

How cool is that.  It appears that over the last decade, “…the use of soft, flexible circuitry in clothing has grown as technology has improved….”  We now have “conductive fabric” and thread.   In fact there are actually processers that can be sewn into garments.

Where I see opportunities for the toy industry are in the use of technology is taking Halloween costumes and Dress Up to the next level.  Not only that, but there could be a market in craft kits.

Here is why, it appears that there is now an active DIY (Do It Yourself) market in technology and

Queen, Country and Toys; A View From the UK

 

 

 

For those of you who are thinking "I know that face," I have been involved with the toy trade press in the UK for the past 30 years. Last year saw some major changes in my world; I left the magazine which I’d worked for since 1983 (yes, I know that you get less time for murder!) to launch my own toy magazine, Toy World. Our first edition was published in September, and since then my working life has been a whirlwind – but a thoroughly enjoyable one. I worked with Richard "in my previous life" and after meeting up again in Hong Kong, we both agreed that it was high time we rekindled our collaboration. So from time to time I’ll be bringing you news from the UK, and giving you a flavor of what’s happening in the toy world on the other side of the Atlantic.

It has certainly been an interesting start to the year. Like many Americans, a significant number of toy trade "Brits" also decamp to Hong Kong as soon as the New Year is upon us; this trip is followed swiftly by our own Toy Fair and then Nuremberg, before some lucky individuals round things off with a trip to New York. Six weeks – four dedicated toy shows. Six weeks in which the template for the year is set. The mood in the run-up to Christmas was reasonably good; the UK actually enjoyed a relatively successful festive trading period, and ended the year 3% up at just under £3 billion. This was a highly satisfactory result, especially when compared to general non-food trading results in the UK (which increased 0.2%). The performance also compared favorably with other European territories. Perhaps most importantly, the retail trade appears to have finished the year with little stock carry-over, which always gets the year off to a good start.

These, then, were the positives. But it would be disingenuous not to consider the other side of the coin: general economic woes in Europe, driven by the Greek debt crisis, are not going away any time soon (and that, in a nutshell, is why you won’t be seeing the UK adopt the Euro any time soon!); UK unemployment continues to grow and the austerity measures which the government has put in place are having a significant impact on the level of disposable income and, ultimately, customers’ spending habits. On an industry-specific level, aggressive price reductions on toys - mainly from grocery accounts - throughout the pre-Christmas period presented many specialist toy retailers with the difficult challenge of actually making a profit by selling toys.

Why Were Darth Vader and Mickey Mouse Missing From the Fictional 100?

What makes for a great fictional character? To those of us in the toy industry this is no small question.  We definitely have a dog in this fight because a lot of our revenue derives from licensed products.  A great character (Sponge Bob for one) can sell a lot of toys.

So, my attention was drawn to an article Matt Richtel.  Published in The New York Times and entitled:  “We’ll Always Have Darth;” the article questions why the author’s son and millions of little boys like him are fascinated by Darth Vader without ever having seen the movie. 

It was a great question so I began researching characters and found a book I have never heard of, The Fictional 100 by Lucy Pollard-Gott, PhD.  Pollard-Gott’s book ranks the 100 greatest fictional characters of all time.  One of Pollard-Gott’s major criteria is that great characters have a life of their own outside of the book.  In other words, they are known by people who have never read the book or books they inhabit.  Let's say I am trying to describe someone to you and I say he is like Tarzan.  You immediately know what I am talking about wihtout ever having read the book or seen the movie.  That is a great character. 

Aha, this book, published in 2009, must have the answer.  A perusal of her list, however, does not show Darth Vader, nor does it show The Cat in the Hat or Pooh.  I won’t list the entire 100 but you can find it by clicking here. 

Here are her top10:

Doing Business in Brazil; What You Must Know

Stacey Bowers, MILS, is a Global Regulatory Specialist at Compliance & Risks, Ltd., which provides regulatory monitoring and management services and solutions to retailers, brands, and their supply chain partners. Stacey supports companies in developing and implementing global "compliance philosophies," with a specialty in assessing the business potential of new geographic markets and new product categories.

With Brazil recently surpassing the United Kingdom (UK) to become the sixth-largest economy in the world, as well as the country's plans to host the 2014 World Cup and the 2016 Olympic Games, the country has become one of the most attractive geographic markets to foreign retailers and brands.

In particular, Brazil is attractive to toy retailers and brands, given that the country’s toy market doubled in sales between 2005-2010. In fact, to capitalize on this opportunity, the Carlyle Group, a global private equity firm, recently bought a majority stake in Ri Happy, Brazil's largest toy retailer http://www.globaltoynews.com/2012/03/brazil-and-toys.html).

However, before importing or selling toys in Brazil, it is important to understand the country's unique approach to toy compliance. This is more important than ever, as the US Consumer Product Safety Commission (CPSC) and Brazil's National Institute of Metrology, Standardization, and Industrial Quality (INMETRO) recently renewed their memorandum of understanding (MOU) on product safety.

Beyonce, Breast-feeding and Promoting Play

This week’s Time Magazine has an article about Beyonce and other celebrities promoting breast-feeding - that breast-feeding is more cool and hip if celebrities are doing it. 

Beyonce also loves playing board games. Jay-Z said he went out and bought an armful of board games to keep her home when she was pregnant. Beyonce, Jay-Z and Kanye West play Connect 4 into the night and very competively. 

There are a lot of other celebrities who play board games (didn’t find any celebrities who still play with toys). I have collected articles over the years and did an internet search for this blog – all easy to find and very public. 

Promoting play as cool and hip is another strategy along with promoting our inventors as celebrities and
the importance of play to our wellbeing to better compete with other entertainment options. 

 

Celebrity              Toys/Games
Adam Sandler        various board games
Al Gore                  Cranium
Alan Alda               Spite and Malice, Chess
Albert Einstein       Go
Alyssa Milano         Taboo
Amy Winehouse      Boggle, Scrabble and Pictionary
Angelina Jolie         various board games
Arnold Schwarzenegger Chess
Ashlee Simpson      Monopoly
Ashley Judd            Go Goddess, Pictionary
Ashton Kutcher       Dominoes
Barack Obama        various board games with daughters
Beastie Boys           Scrabble, Mahjongg
Ben Affleck             Poker, Chess

Part 2: Are Girls Smarter Than Boys

In my last posting, “Are Girls Smarter than Boys?” I pondered statistics from China and the United States that suggested that girls were smarter than boys.  After all, how do you account for so many more females than males attending and graduating from US colleges (57% female and 43% male) and for a major Chinese politician asking that standards for male students be lowered so they can compete with females?

I did some research on the subject and found that, despite the above, males and females score pretty much the same on IQ tests.   One article I found, “Gender Differences in IQ Smaller than Believed,” referred to a meta-study by researcher Adrian Furnham, a psychologist at the University of London.  His research showed “… that in all actuality, men and women are fairly equal in terms of IQ. … Men tend to score higher on spatial tests, and women score a bit higher in language development and emotional intelligence. Neither of these things seems to make for a real difference when it comes to intelligence and gender.”

So, at least according to various studies of intelligence and gender, all things are equal.  If all things are equal in intelligence (assuming that IQ tests are reliable) why is there a difference?  Is it because women are more confident?”

Well, no, the funny thing is that Furnham’s studies show the exact opposite.  Here is how Furnham puts it:

There certainly is a greater male ego…Men are more confident about their IQ. These studies show that on average, women underestimate their IQ scores by about five points while men overestimate their own IQs. … The results were essentially the same whether women were from Argentina, America, Britain, Japan or Zimbabwe.”

Are Girls Smarter than Boys?

I was having lunch with a friend last week, a well-known and highly respected news commentator.  He is extremely up to date (maybe ahead of the date) on what is happening in the world and has a very inquisitive mind.  He asked me about my work with gender and toys and when I told him about the concern some women have over the lack of girls in the sciences he responded with this:  “Society’s concern should not be with girls but with boys.  Males are falling way behind in almost everything.”  

He is of course correct when it comes to college.  According to a USA Today Article by Mary Beth Marklein, women now dominate enrollment in and graduation from college with a split of 57% for women and 43% for men.    Prior to 1991, men dominated in these areas so the shift is historically speaking a recent one.

I saw this as an American or western issue until I chanced upon an article in this week’s China Daily entitled:  “'Bars should be lowered' for boys in exams.”  According to that article, a high level Chinese politician has expressed grave concerns that  “…male students are increasingly under-represented in the country's (China’s) leading schools and colleges, and are outperformed by female students in college entrance exams.” He sites the following statistics in making his case:  “80% of China’s poor students are males; males students in Shanghai score on average 25 points lower than females on standardized tests and male representations in Shanghai’s top high schools is more than 10% lower than females.”  His solution, have lower standards for boy then from girls.

Good News; The U.S. Economy is Coming Back!

I was so struck by the upbeat mood at Toy Fair that in my blog posting “Toy Fair 2012: Animal Spirits” that I wrote:   “I think it may mean that the economy is stronger than we think and that what happened at Toy Fair maybe a leading indicator of an uptick in the nation’s economic recovery.  I hope I’m right.”

Well, it looks like I may have been right.  In a New York Times article, “Economy Shows Solid Job Gains For a 3^RD Month” the opening paragraph contained these words:  “three consecutive months of solid employment growth have begun to lift the mood of consumers and the unemployed.”

The article by Shaila Dewan went on to state: “The economy added 227,000 jobs in February, the Labor Department reported Friday, and though the unemployment rate held steady at 8.3 percent, that was largely because nearly half a million people had joined, or resumed, the search for work in hopes their prospects had improved.”

 

Children's Movies for 2013; Yawn

2012 has not been a great year for toy industry movie tie-ins.  There have been too many movies chasing too few dollars and the result has meant disappointment at the box office and on toy store shelves.   

Making it more challenging has been  a lack of creativity by the movie studios.  There were just too many sequels and too few fresh concepts.  So, how are we looking for 2013?

“Movie Insider” has a list of movies that are to be released in 2013. I have to tell you, I am not excited by what I am seeing.

For starters, there appear to be more sequels than ever.  In fact, there are six numbered sequels:

1.     Iron Man 3

2.     Despicable Me 2

3.     Smurfs 2

4.     Grown Ups 2

5.     Thor 2

6.    Star Trek 2 (really number 12)

There is also a prequel:  Monster University (a prequel to Monsters, Inc.)

If that was not enough to make you yawn, there are eight do overs of classic properties:

The Terrible 2s: When "2 or More" Player Games Should Just be "or More"

 

 

 

Last year there was some research that revealed that the average American has only 2.03 good friends despite having hundreds of “friends” on Facebook (see article HERE).  While I don’t know why they it felt necessary to include the .03, what I do know is that 2 is not a very big number.  What this research indicated was that our circle of good friends has been dwindling over the past decades despite the increased online connectivity.  Sure, we play Words With Friends with all sorts of “friends” online, but how many of these people would hang out at your home and play a board game?  Outside of designated “game nights” it can be hard for most adults to wrangle more than a player or two. 

In gaming one may be the loneliest number, but two doesn’t feel much better.  Sure there are classics like chess and backgammon and a handful of great new games like City Square Off (Gamewright) that are intended for 2 players, but how many times have you and a friend played a game that said it was for 2 or more players and found the game was a dud?  There are many games that say “2-X players” but really what they mean is “it’s playable with 2 players, but you need at least 3 to really enjoy it.” 

How Writers Play

I just returned from the Association of Writers and Writing Programs (AWP) Annual Conference in Chicago. When I explained to a friend that an AWP conference falls short of a stroll through Willy Wonka’s chocolate factory, he responded, “who said writing is fun?” In an attempt to publish a few of my short-stories, I struck-up conversations with various journal staff. I learned that editors provide ambiguous responses as to their journals’ literary interests. To some extent, I understand why—10,000 writers in one space begging for a minute of your time is exhausting. However, these conversations jaded the reason why, as a kid, I began to write: it’s fun, and a form of play.

Board Games in China

I was doing some research on the Chinese toy and game market when I happened upon an article on a website called China Decoded.   The article’s title, “Board Games – a Growing Trend in China,” says it all.  Modern board games as an industry, almost unknown in China ten years ago, are finally having their day. 

According to the article, “…board games did not become popular in China until ...the first board game club [was opened] … in 2005." Since then, there has been an explosion in clubs and game play.

It appears that one of the keys to success in China is keeping western play patterns but overlaying them with Chinese themes.  The article gives as an example a Chinese game called “Fengsheng.”  It is based upon a western spy game called “Die Kutchfahrt zur” but the theme overlay is based upon a popular Chinese movie, “The Message.”

The New Toy Chemical Data Requirements

 

 

 

 

Joseph Rinkevich, an entrepreneur and consultant with over 15 years experience working with manufacturers and retailers on environmental and sustainability strategy across many product categories, is co-founder of SciVera, a chemical safety assessment solution provider based in Charlottesville, Va. SciVera is active in the US and European toy industries helping manufacturers and their suppliers respond to new chemical requirements like those in the revised European Toy Safety Directive (2009/48/EC).

I recently had the opportunity to speak as part of the TIA/TIF educational sessions at Toy Fair. My presentation was a summary of the data requirements for new chemical regulation of toys in the US and Europe based on recent trends in these markets.

I hoped for a lively discussion and was not disappointed. Session attendees consisted of representatives from large and small toy manufacturers, retailers, and a few entrepreneurs. Several participants expressed surprise at the new requirements in Europe that took effect on July 20, 2011. Others seemed quite well informed about what documentation is now needed for compliance.  

 For those who have not had the opportunity to catch up on the recent changes in chemical safety data requirements for Europe and the US, here is a summary of three key developments:

• New regulations in US and Europe require significant business process changes for the toy supply chain;
• Companies now must gather much more detailed data from suppliers to validate safety of all chemicals in toy materials;
• Gathering and evaluating these product chemical data require scalable processes, automation, transparency, and scientific consistency.

The TOTY Awards: The More You’re Nominated the More Likely You Are to Win

I would like to thank everyone who has written to the “Comments” section;  the various social networks and to me personally about my articles on the Toy of the Year Awards.  (“Let’s Fix the Toy of the Year Awards”).   I have greatly appreciated your encouragement as well as your insights. 

The vast majority of you responding have been in agreement that there is, at the very least, a perception problem that so few companies win so many awards (Three companies won 70% of the awards in 2012 and four companies won 80% of them in 2011).      

But what is causing this to happen?  In order to try to figure that out, I have continued to drill down into the data.  My analysis of that data shows that there appears to be a direct correlation between the number of times a product or company is nominated and the chances of winning.  

More than one company nominated in a category

As it stands now, a company can have more than one product nominated in the same category.  You may well say, what is wrong with nominating the same company more than one time as long as they have the products to support the nomination.  I would agree with you if there were an infinite number of nominations per category but there are not.  There are only 7. 

As an example, consider the “Girls Toy of the Year” category.  Two companies held 5 of the 7 nomination slots (I am counting parent companies and not subsidiaries).  Not surprisingly, one of those companies won.

In fact, four companies had multiple nominations in seven categories (Boys, Educational, Game, Girls, Infant/Toddler, Preschool and Outdoor) and in every instance they won.

The same product nominated in more than one category

Hexbug, a great product, was nominated in four different categories (Activity,  Boy, Educational

Brazil and Toys

I am honored to be invited by Synésio Batista da Costa, President of ABRINQ, the Brazilian Association of Manufacturers of Toys to speak at this year’s Brazilian Toy Fair (ABRIN) which will take place in Sao Paulo from April 9 through 12.  

I have to admit, that other than referencing Brazil as one of the BRIC countries (the others being Russia, India and China) I have not paid sufficient attention to one of the fastest growing economies in the world. So, I decided to do some research and was impressed to see that Brazil, with a population just under 200 million has the 7^th largest GDP in the world.  Here are the top 10:

1. United States
2. China
3. India
4. Japan
5. Germany
6. Russia
7. Brazil
8. United Kingdom
9. France
10. Italy

But what about the toy industry?  Well, things seem to be looking up, at least the Carlyle Group, one of the world’s biggest private equity investment firms, thinks so.  According to a March 2, 2012 Wall Street Journal article, “Carlyle Group Acquires 85% Stake In Brazil Toy Chain Ri Happy,” the company see the Brazilian toy industry as having major growth potential.”

Smokey Bear, Me and the Lingering Power of Childhood

Like many of you, I receive notices from Twitter that someone has decided to follow me.  I always feel honored and a bit inquisitive as to who has chosen to do so.    I was, however, surprisingly excited to receive this message from Twitter:  “Smokey Bear @smokey_bear is now following you.”

Smokey Bear (didn’t it used to be Smokey the Bear) was a constant presence in my youth encouraging me and little kids all over the country to prevent forest fires.  With that big round hat and stern furry face, he was the guardian of the forest.  Anybody who screwed with Smokey was going to feel the fury of bear law (or get eaten).

“Let the Bullets Fly;” When a Chinese Movie Is More Than Just a Movie

I sometimes find meaningful information in the most interesting places.  This week it was in a movie review I found in Slate about a Chinese film, “Let the Bullets Fly.” The movie takes place in 1920’s China when the country was overrun by warlords.  It opened in December of 2010 and quickly became the second highest grossing movie in Chinese history (Avatar still holds that record).

The movie, which sounds like a Chinese version of a western, sounds like fun.  But what, you might ask; does a film about Chinese bandits have to do with the toy industry?

Well, if you read the full article you come to this statement:

How Teenage Girls Talk; Why its Important

Have you ever noticed that there seems to be a generational shift in how girls talk?  For example, there is “uptalk.”   The statement that sounds like a question because the speaker inflects up at the end of the sentence.  Or how about the use of “like” in sentences as in:  “You know, like, the use of “like” in a sentence makes me crazy. Like, you know what I mean?  Once "Valley Girl" modes of speaking, they now permeate all generations. 

Well, that type of speech may or may not irritate you but the fact that teen girls and young women create these shifts is apparently more important than we thought.  Here is how the New York Times writer, Douglas Quenqua, puts it in his article “They’re, Like, Way Ahead of the Linguistic Currrrve:”

NASCAR Races to Drive Retail Excitement

 

 

 

Now that the dust has cleared from Toy Fair, new products will begin racing toward store shelves, all with the hope of driving foot traffic into retail stores.

Speaking of racing, a new deal inked between NASCAR and Spin Master will likely pump some adrenaline into retail shelves during the upcoming spring and fall selling seasons.

I was fortunate enough to sit down with NASCAR driver Jeff Gordon at Toy Fair to get the scoop on the new deal. The famed race car driver was there to rep NASCAR Team Properties which manages the intellectual property rights for NASCAR and participating teams in the key licensing categories of apparel, die-cast collectables, toys and track-side retail.  

The goal of its new multi-year exclusive agreement with the first-time licensee is to maximize the brand's exposure with NASCAR enthusiasts, collectors and kids alike. It will also bring the brand back to the mass market in a big way thanks to Spin Master's clout with the retail channel. "The partnership between Spin Master and NASCAR has allowed NASCAR to tap into the core play patterns of the youth market through Spin Master’s leadership in toy innovation. Through this Spin Master has been able to bring the thrill and excitement of the racetrack back into mass market retailers,” said Harold Chizick, vice president of global communications and promotions Spin Master Ltd.

Come spring, Walmart will roll out a "Chase the Race" program with merchandise and products filling pallets in key race markets for the entire race season. Exposure is also planned via online e-commerce sites and specialty retailers nationwide.

The Perfect Pitch will Score Big with Media

 

 

 

Samantha Martin is the founder and ceo of Media Maison, a New York City full-service public relations firm. As a third-generation toy industry specialist who works one-on-one with Hong Kong’s top toy manufacturers, she has a deep grasp of the ever-changing toy business, and is uniquely qualified to provide her clients with the benefit of her industry knowledge, expertise, and far-reaching personal connections both in media and the toy industry.  Sam can be reached at samantha@mediamaison.com.

Are you a smaller toy and game company in need of a little PR Therapy?

In case you missed it at Toy Fair, Media Maison hosted the seminar “PR Therapy,” a no-nonsense insider look into the world of PR featuring guest speakers Sara Haines, TODAY Show Correspondent (and Media Maison client) as well as the founder of FUBU and investor on ABC’s Shark Tank Daymond John. Emailing editors, sending samples to Mommy Bloggers, and finding time to tweet. Building your brand is exhausting.

Take some tips from the PR pros.

TODAY Show Correspondent Sara Haines’ Pitching Pet Peeves:        

• Do your homework – watch the show!  
• Cater your pitch. Does your product or story fit their beat? If not, it’s a no-go.
• Outline the product or service into an actual segment. If you just send a product pitch, it probably won’t go far. If you craft it into a segment, it will have a better shot.

•  Be personal. Referencing past segments and stories is a good way to show that you have done your homework.

• Don’t overpitch – especially if you don’t have a relationship with the recipient. Overpitching is a good way to be forever destined for the junk folder. Pitching 10 ideas in one email is not going to get you far.
• Don’t send unsolicited samples.

 

Daymond John’s Shark Success Tips:

• S: Special - PR teams tell people how special you are.
• H: Homework - Know who to pitch. Know how to pitch them.
• A: Affiliation - Gain trust.
• R: Relevant - How relevant are you?
• K: Keep - Keep reinventing yourself.

An Inventor's Guide to Toy Fair

Recently my team and I tackled the 109th International Toy Fair in New York City - the 30th Toy Fair of my career (I've only missed a couple since 1979, don’t’cha know). What used to last three weeks is more like three or four days today. We knocked 'em dead! We worked feverishly, pitching our products in 23 presentation meetings in addition to a number of other line viewings and meetings over the span of 3½ days of what seemed like real, honest-to-gosh work. 

Please excuse me if I take a moment to strut and crow like a rooster at dawn. It was a highly successful Toy Fair for our Lund and Company team. People loved our products and I predict we will be delighted with the results over time. We wowed 'em, we did, with the variety and innovation of some, and the elegance and humor of other products we showed. We worked harder and more effectively at this Toy Fair than at any other in our company's history. Go team!

So, how does an inventor best tackle a Toy Fair? Should you spend your time on tours of showrooms seeing what others are bringing to market, as we have for so many years? Should you leave Toy Fair with so much information overload that it leaves you struggling afterwards to remember what you saw, where, and what value that information might have, and what new ideas it might suggest, if any?