Global Toy News

Game Rooms and the Importance of Play Environments

When you were a teenager you may have had a friend whose family had a place in their house which was dedicated to playing competitive, action games.  Some of these were like pieces of furniture:  There could have been a pool table; a Pinball Machine, Foosball, ping pong or Air Hockey.  That place was called "the play room" and having one (or even knowing someone who had one) was really, really cool. 

In addition, there were games that were big but could be stored away.  There was Nok-Hockey;

Table Top Hockey Makes a Comeback

I love table top hockey.  It’s the game where you pull and turn rods so that the hockey players move and spin and hopefully score by shooting miniature pucks.  It takes terrific fine motor coordination and can be highly competitive.  I am proud to say that at one time I was prettttttttttttttttttty good.  I would get out my Stiga Hockey set, sit it on the floor or table, and facing my over-eager and soon to be nonplussed opponent, spend hours moving the puck back and forth and getting it into position for my “famous” slap shot.

It seemed like the game had disappeared as I saw it less and less in stores and homes.  Fortunately for me and other enthusiasts, table top hockey appears to be making a comeback

According to a Wall Street Journal article by Will Connors, “Table Hockey, on Ice Since Heyday in 1970s, Makes a Comeback:”   “Across the U.S. and Canada, a resurgence of table hockey is under way, drawing younger players and women to a sport that has long been the domain of older men in their basements reliving a game that hasn't been popular since they were kids.” 

What is causing people to once again embrace the game?  It seems that they are being drawn by  “… the sport's retro feel—a throwback to the 1970s—in much the way pinball machines and horseshoes stage comebacks from time to time.”

I think that there is another aspect to the renewed interest.  Virtual play is largely two dimensional

So Many Apps; But Can They Make a Classic Toys Better?

Have you ever seen that Disney movie, Fantasia?  The movie features an apprentice sorcerer played by Mickey Mouse who, because he is lazy, brings his mop to life so it can clean up for him.  The mop goes rogue and eventually turns into legions of mops that pour so much water on the floor that they create a flood.  Mickey has lost control of what he has created.

Sometimes I feel like apps are a bit like those legions of mops.  What started out as a few interesting apps has turned into thousands and thousands that keep coming at us.    Many are interesting but how do they work when combined with traditional classic toys?

I have always loved toy gliders and have written about them in an earlier blog entitled “Play Power.”   They are inexpensive and can provide hours of fun or until you knock the weight off the front of the plane which can take minutes.

How can you possibly improve a classic like the toy glider?  Maybe by adding an app.  WowWee has created “Foam Fighters Pacific;” they sell for $9.99 and they work with a mobile app.  Here is how The New York Times describes them in a complimentary piece entitled “Dogfights on your iPhone:"

…Foam Fighters Pacific from WowWee ($9.99), a set of three-inch Styrofoam gliders that you can suction cup under your iPhone’s outside camera. Align the wings with an on-screen template and the app’s augmented reality features superimpose a WWII dogfight over your living room.

Colors; Why Are They So Important To Children?

Pink, blue, red, green, you name it…every child seems to have a favorite color.  In fact, some children are so passionate about their color choice that they insist that their clothes, room décor and school supplies all match.

This is not news to us in the toy industry.  After all, the wrong color choice can in a product or package can kill a product.  What we may not think about, however, is why.  Why are colors so important to children?  I found some answers to that question in a Slate article by Lucinda Rosenfeld entitled “Red! No, Blue! No, Light Blue!”

As author Lucinda Rosenfeld puts the question this way:  “What makes the topic of favorite colors so darn interesting to the preschool and early-grade-school set? Is it all merchandising and peer pressure, or are particular colors actually speaking to these kids?”

She frames the question around her experience with her daughter’s love of pink. Here is how she relates it:

When my older daughter was close to 4… she declared that her favorite color was pink. From that day forth, she only wanted to wear pink clothing and shoes. Her favorite book was Pinkalicious. She

Marc Bertrand Talks About Barbie, Hot Wheels and Mega Bloks

Late last month MEGA Brands and Mattel shook up the construction toy category with their announcement that the former had securing the rights to create Barbie and Hot Wheels themed construction toys.  To find out more, we went right to the source; Marc Bertrand, President and CEO of MEGA Brands.  Here is our interview:

Richard: Congratulations on what can only be described as a highly significant licensing agreement with Mattel.   Your company, MEGA Brands, will be creating construction sets based upon the Hot Wheels and Barbie licenses.  Can you give us any background on how the agreement came to be?

M.B.: We have always been fortunate to work with top-tier partners on our licensed toy lines, and are very proud to continue this with our association with Mattel.  As the construction category continues to grow, it’s a natural fit to work with Mattel to bring together their iconic brands with the creative fun and benefits of Mega Bloks.

Richard:  What advantages do you feel that these licenses will give MEGA Brands in the construction segment?  

M.B.:   Barbie and Hot Wheels are world-leading brands for kids, and bringing these powerful properties to life in the construction category is a great extension of the play experience.  Mega Bloks Hot Wheels

Neil Friedman Speaks and So Do I

Every time we publish something on Neil Friedman we get a big response.  Last month’s article, “Neil Friedman; The Interview,” was no exception.  Well, if you want more Neil Friedman you can get him at this year’s PlayCon to be held next month in Washington DC at the Gaylord Hotel. 

I will also be speaking at PlayCon; my topic will be “Tools for Doing Business in China.”  I will be looking at the state of the Chinese consumer market and what toy companies need to know to do business there. 

Also speaking will be:

• Richard Barry, SVP, CMO, Toys"R"Us, US
• Victor A. Loustalot, Director General, Grupo Juguetron, Mexico
• Hector Nuñez, CEO, Ri Happy, Brazil
• Jon Witham, VP, North American Retail, Amazon.com
• John Alteio, Category Leader Toys, Amazon.com

If you haven’t signed up, there is still time.  Click here to register.

 

 

Wal-Mart’s Bribery Scandal; Why It Matters

In my last posting, “Wal-Mart’s ethics; it’s a long way from Bentonville to Mexico City” I reported on an investigation conducted by The New York Times on alleged bribery among Wal-Mart’s leadership in Mexico City and a subsequent coverup by the leadership in Bentonville.

Some may feel that bribes paid in a foreign country are just a matter of doing business according to the local culture; it’s simply what companies must do to be competitive.  The US Federal Government does not think so and that is why we have the Foreign Corrupt Practices Act.  Wal-Mart doesn’t think so either.  The New York Times in its article on the subject  quotes Wal-Mart's ethics policy as stating:  ““Never cover up or ignore an ethics Problem…” 

I have, over the years, made many visits to Bentonville, Arkansas and have even written a book, Ambassador to the Kingdom of Wal-Mart.  I care about Wal-Mart because they have to a great degree shaped the business environment in which we have worked. 

So, while for The New York Times and the Federal Government this is an objective matter of breaking the law; for me, and I suspect many others who have done business with Wal-Mart; it’s personal.  You may or may not like Wal-Mart but over the years it has been impossible not to admire the company’s commitment to its ethical standards; even though at times those standards seemed heavy handed.

I can remember hearing second hand that a sales rep who had given a buyer a free ticket to a concert.  Wal-Mart found out and both the buyer and salesperson lost their jobs.  It seemed kind of harsh at the time but any company that forbids a salesperson from purchasing a Coke for a buyer is giving a pretty clear message:  “We have strong ethical standards and we police them.”

While that buyer was losing his job and while all of us were avoiding the Coca-Cola machine, it appears that some in the company at very high levels may have been getting a pass.  Ethical standards should apply to everyone or no one.  They should also be the same everywhere in the world.

A company can, of course, choose to bend or even break its rules but at what price?    For Wal-Mart it may mean a long road ahead of tortuous litigation, destroyed reputations

Major Ethics Violations at Wal-Mart; It’s a Long Way From Bentonville to Mexico City

This morning, April 21, 2012, The New York Times’ page 1 main headline made this allegation:  “Vast Mexico Bribery Case Hushed Up by Wal-Mart After Top-Level Struggle.”  A secondary headline called out:  “An Internal Inquiry Was Shut Down, and the Authorities Were Not Notified.”

The article continued on from page 1 to pages 8, 9 and 10.  I strongly suggest that you read the entire article.  Do plan, however, on blocking out some time.  The article is stunning in its length and depth of coverage.  It is, however, truly jolting in its allegations of routine bribery at Wal-Mart’s Mexico division in the mid-2000’s.  This activity, according to the article, was ordered by those in top positions in Mexico City and kept secret by high level individuals in Bentonville.

The article reports that: “Neither American nor Mexican law enforcement officials were notified. None of Wal-Mart de Mexico’s leaders were disciplined. Indeed, its chief executive, Eduardo Castro-Wright, identified by the former executive as the driving force behind years of bribery, was promoted to vice chairman of Wal-Mart in 2008.” 

The article goes on to report:

 

 

National Scrabble Day was April 13…and I Missed It

Well, let me begin by saying that I did not know there was a National Scrabble Day.  And, in all honesty, after doing some research I am not even sure what happens on National Scrabble Day.

I did, however, find out why there is a National Scrabble Day.  It is to honor Alfred Mosher Butts, the game’s inventor, whose birthday is April 13. 

Butts invented the game in 1938 and what a game it was. It has been compared by some to Baseball in its perfection.  Just as the distance from home plate to first base is just the right length to ensure that getting there safely is a challenge; the number of tiles and points per letter is also considered to be the perfect allotment.

Part of Butts’ magic was to determine with what frequency letters are used.  In other words, how much more frequently is an “A” used than a “Z.?”  Butts figured that out by using the front page of The

Teenage Births Lowest in 66 Years; What it Can Mean for the Toy Industry

The world does continue to amaze.  Births to teen moms are at their lowest point since 1946.  According to a New York Times article, “Teenage Birth Rate Is Lowest Since 1946,” the reason seems to be that today's teens are using birth control and putting off having sex. 

According to a report from the National Center for Health Statistics, birth rates among young women ages 15 to 19 fell in all but three states and in all racial, ethnic and age groups. From 2009 to 2010, the rate of teenage births fell by 9 percent, to 34.9 per thousand, the lowest rate ever reported in the 65 years for which data is available.

It is interesting to reflect on what this may mean for the toy industry in a couple of years when the babies (or lack thereof) begin to show up as toy consuming children.  Here is my prediction for the toy industry; a short term loss and a long term gain. 

Here is why:  Teenage moms tend to be single and financially struggling.   Accordingly, I would anticipate that those retailers who cater towards this demographic (Family Dollar, Dollar General, Fred’s, etc.) will feel the drop in births more than a Target or a Toys R Us. 

On the other hand, those teens that did not have babies will have the opportunity grow up to be

Inventor Events – Young or Old, New or Professional

 

 

 

 

 

Mike Hirtle is a 36-year industry veteran who started his career at Mattel as an engineer in the Preliminary Design Department specializing in flying toys. Not surprisingly, since he has a degree in Aerospace Engineering from the University of Maryland and a Masters in Aeronautics and Astronautics from Stanford. Over the years, he also held key positions at Fisher-Price, Tyco and Hasbro. In 2011, he became a Game Industry Consultant for his own company, Paladin LLC. Hirtle is in a unique position, traveling the world looking for products for several companies.

An event that I proudly co-chair is the International Summit for Professional Inventors, I-SPI, (www.inventorsummit.com) a part of November’s great week of Toy and Game events sponsored by the Chicago Toy and Game Group. Established inventors from all over the world will gather to hear pitches from and meet with international companies, big and small. I-SPI was a resounding success in its 2011 debut; so much so that we are expanding the program this year to an extra day. I-SPI brings inventor relations executives from dozens of companies and gives them a chance to present their top-secret wishlists to the professional inventor community. The inventors are then able meet with the manufacturers in private meeting rooms to pitch concepts. There are also information-packed workshops and seminars relating to many aspects of the inventing business. For established professional inventors only, attendance at I-SPI is by invitation only and if you have not been invited previously, there is information on the website.

Here's what a sample of past presenting companies and inventors had to say:

“Last year, Ohio Art had the opportunity to meet new inventors at the Inventor Summit and we were extremely impressed with the quality of their ideas. This event is a great opportunity to connect with the best and brightest thinkers in the toy business" - Martin Killgallon, senior vp marketing and product development, The Ohio Art Company.

Trouble in Riverdale; The Civil War at Archie Comics

I like Archie comics.  I have always liked Archie Comics.  In fact, I even admit that I liked "L'il Archie" (I thought that lower case "r" on his shirt was kind of funny). 

I don’t know why.  I guess there is something compelling about the everyman / everywoman qualities of not just Archie but Veronica, Betty, Reggie, Jughead and the rest of the folks at Riverdale High School.  I actually found the Archie marries Veronica series to be more compelling than Superman marrying Lois Lane. 

Archie seems both timeless and contemporary in its efforts to stay true to its roots in the 1930’s while keeping its cast of characters in line with the times whether they are the 1960’s, 1980’s or 2000’s. 

Riverdale is a fairly peaceful place (except for Moose pounding on Reggie or Mr. Weatherbee flipping that little hair thing on his head)  so it comes as a shock to learn that there is a major corporate battle going on at the very highest level of this privately held company.

According to a major New York Times article, “The Battle for a Comic-Book Empire That Archie Built,”

 [Nancy] Silberkleit, 59, the daughter-in-law of a company founder, Louis H. Silberkleit, is deadlocked in a court battle for control of the company with Jonathan Goldwater, 52, a son of another founder, John L. Goldwater. … Each accuses the other of endangering the family legacy, Mr. Goldwater by wanting to expand Archie into a megabrand …Ms. Silberkleit by vowing to keep the company’s traditions intact and preserve family ownership, ostensibly leading to stagnation.”

She says he defamed her and conspired with their employees against her in order to steal control of the company. He says she poisoned the workplace by threatening longtime employees

Sweden Goes "Gender Neutral"

As those of you who read me are well aware, I am very interested in the role of gender in toys and play.  My belief is that the world is becoming increasingly sensitive to issues of gender and that the toy industry will be wise to pay attention.  The doll aisle is off limits for boys and the construction aisle is as well for girls.  Countless other products are segregated by gender simply because of habitual color choices and merchandising.  Think about it:  How many sales do we lose because we “exclude” rather than “include” by gender? 

Change, however, is in the air.  London’s venerable toy retailer, Hamley’s, earlier this year converted to gender neutral signage and has remerchandised their stores by toy type rather than gender.  Toys R Us reconfigured their catalog so that boys and girls were more equally represented in its pages.

Now we learn that an entire country is going gender neutral.  In a Slate article entitled “Sweden’s New Gender-Neutral Pronoun: Hen;” we learn that Sweden has created a gender neutral pronoun “Hen” so that you can describe someone without giving off a gender indicator. 

Brazil; They Do Things Differently There

I am back from Brazil and after spending a week there and attending the ABRIN toy show.  I can see why Brazil should be of interest to any toy company thinking of expanding its foreign markets.  As I wrote in an earlier posting:  “The Carlyle Group, one of the world’s biggest private equity investment firms, has taken an 85% stake Ri Happy, the largest toy chain in Brazil.  Their reason:  Because they see they Brazilian toy industry as having major growth potential.

I understand why the Carlyle Group thinks so.  Brazil now has the 7^th biggest economy in the world; the fifth largest population and a high birthrate.  That is the perfect template for a great toy market. 

Entering the Brazilian toy market is, however, not so easy.  Why, because it functions differently than many other markets. 

Licensing

David Diesendruck, the owner of Redibra which is a major licensing agency in Brazil, was kind enough to educate me on the Brazilian market.  He told me that Brazil is different than the many other countries when it comes to cable television and movie theatres.  In the US and much of the rest of the world, we have become  accustomed to tying in with children’s movies and popular cable television shows.  That’s because cable is almost universal and movies demand huge audiences.

Not, however, in Brazil.  Only 15% of the Brazilian population is wired for cable.  And then there is

ChiTAG's Toy Mashup - An Invitation to Play!

What do G.I. Joe and broccoli have in common?  They both wear green.  Their heads look similar (at least the flocked hair version of Joe does).  And, they both ‘stalk’ their enemy.   

Like thousands of unexpected combinations, the elements of this remix or ‘mashup’ could morph into almost anything; based entirely on an individual’s imagination, interpretation and spin.  Countless mashup genres exist today ranging from music artists, to videos, TV shows and advertising, to literature and food, just to name a few.  Several Toy Story video mashups exist, but are there any sites entirely dedicated to toy mashups?  Have you seen any?

With the 10^th anniversary of the Chicago Toy & Game Fair happening this November, we have decided to start the celebration a little early and create a fun opportunity for toy and game designers as well as the general public.  This is a unique outlet for EVERYONE to express and display their inventiveness and playful thinking.  This is an opportunity to unleash your wildest, craziest ideas without the worry of manufacturing, marketing or distributing anything!  How often does that combination happen?

So start creating the wildest toy concoctions you can dream of using all sorts of subject matter:  food, tools, nature, household items, you name it.  The possibilities are endless and the sky’s the limit.  After you’ve created your mashup(s), show us what you’ve got each Friday by posting to The Chicago Toy and Game Fair Facebook page: http://www.facebook.com/ChicagoToyAndGameFair.  Or, stop in and "like" creations posted by others.  

And, if having fun is not reward enough, we will be giving prizes to the winning entries (details to follow on the ChiTAG Facebook page). Prizes will be awarded to toy industry professionals as well as those from the community who participate.

So what do G.I. Joe and broccoli have in common?  Well,…they may both end up on the Chicago Toy and Game Fair Facebook page at some point.  How they are ‘mashed' is entirely up to all of you! 

 

Little Golden Books and Little Red Riding Hood: The Better to Read With You, My Dear

Simon and Schuster published the first Little Golden Books in 1942. Filled with colorful illustrations and appealing tales, these inexpensive picture books hooked kids across America. Thanks to my cousin’s hand-me-downs, my childhood library contained a copy of the series’ Little Red Riding Hood. I confess, I forgot about this book until I began to work on a new display of Little Golden Books for Reading Adventureland at the National Museum of Play at The Strong.

"Nature's Spitball" or "What's the Point of Play?"

A recent issue of the American Journal of Play is devoted to scholarly articles addressing the subject of Free Play as opposed to structured play, organized sports, and the like. One article discusses the consequences of our fearful attitudes toward the world and its dangers to children - essentially the reduction in free play, like the play I engaged in when I was a kid in the steets, backyards, fields, forests, and vacant lots for endless days on end. There are many benefits that may be attributed to such free play.           

The anthropologist Peter Gray examines rule making and rule breaking and the benefits of children playing outside the realm of adult oversight. He considers the reduction in Free Play to be the cause of "the steep rise in the psychopathology of children and adolescents."   

Gray also examines play habits across various species of mammals and the similarities they bear to human children's play. For example, childcare and nurturing play can be seen in primate as well as human female offspring, while more rough-and-tumble play is common in the male young across species. This rough-and-tumble play is a useful means of learning to regulate one's emotions. Anthropologist Peter Gray examines rule making, rule breaking, and the benefits of playing outside the realm of adult oversight.     

You RESIGN?!! I Don’t Understand…

In a moment of extreme weakness I joined Words With Friends.  I was fully aware of how addictive it could become for a self-employed game-addict such as myself, but it was late and I was itching for a word game.  Let’s just say that one thing lead to another and any day now I’m going to need to find a group to help battle my Scramble With Friends addiction.  But I don’t want to talk about how addictive these games are – instead I want to address the “Resign” button that these games include.  

The first Words with Friends games I played I won because the other player “resigned.” The score was 335 to 236 and 13 tiles remained, so I celebrated my victory and looked for another random player.  The second time, the same thing happened only this time there were more than three times as many tiles left and immediately after they resigned they requested to play me again!  I was speechless!  I’ve never been a great Scrabble player and I really struggle with the end of the game because I never bothered to study the long list of crazy 2 and 3 letter words that, when placed correctly on a Scrabble board, may earn a savvy opponent 20+ points to my single-digit moves.  But here, I’ve chalked up two victories in games with loads of tiles left! 

The Brazilian Toy Fair; I Go To a Party

 

 

 

 

 

 

 

Last night was the grand opening of ABRIN, the Brazilian Toy Fair.  I and a thousand other guests attended the opening night party.   As I walked to my table I noted that it (and every table in the room) held a bottle of Scotch, a bottle of Champagne and a bottle of Wine.  It was obvious:  “Brazilians really know how to have a party.” 

There were the usual speeches of welcome and the recognition of companies and people.  The language was Portuguese but the interaction was familiar enough that no translation was needed.

As I looked around the room, I took in the fact that I was in the heart of a thriving Brazilian toy

On My Way to Brazil

Tonight I board a plane for Sao Paulo, Brazil where I will be speaking at and attending the Brazilian Toy Fair (ABRIN).  This will be my first time in Brazil and I am very much looking forward to meeting members of the Brazilian toy industry.

Brazil has long been called the “Country of the Future” and the future has arrived.  They now have the 7^th largest economy in the world and, with 190 million people, the 5^th largest population.  Their economy is larger than every European country with the exception of Germany.

While there, I plan to learn more about Brazilian manufacturing and retailing.  I also plan to meet

Important! New Law Makes it Easier to Raise Capital

President Obama signed a new, bipartisan bill “…on Thursday that will roll back restrictions on the way start-up companies can raise money from individual investors.”  In a New York Times article by Mark Landler entitled “Obama Signs Bill to Promote Start-Up Investments" we learn that …”the bill known as the JOBS Act, for Jump-Start Our Business Start-Ups, was a “potential game changer” for fledgling businesses in need of financing. Among other things, it would allow them to raise small sums from investors via the Internet.”

I was interested in how it actually works so I found an article entitled:  “How the JOBS Act Turns Ordinary Joes Into Venture Capitalists.”  It explains that:

The first change, coming in 90 days, will allow businesses engaged in private offerings to publicly solicit funding -- in short, they'll be able to let the broad community of investors know they are raising money. Previously, it was illegal for a small private startup to solicit funding like that, unless it was ready to make an initial public offering. And IPOs are major proposition, typically reserved for startups well beyond the early stage, with serious capital behind them.

It goes on to say: 

The Pricing Paradox: To Promote or Not to Promote, That Is the Question

Are running sales and couponing going the way of the dinosaur?  J.C. Penney and a number of other retailers think so.  I am not so sure, at least for the near future.  Here is why:

In January I wrote a piece entitled “J.C. Penney moves away from “Fake Pricing.”  That article gave insights into J.C. Penney’s plans to end promotions and to go to Everyday Low Pricing.  Ron Johnson, the J.C. Penney CEO, was blunt in stating that “Though retailers use promotional pricing to attract shoppers… the method used … “fake prices” — artificially inflated prices that are on near-constant markdowns.”

At the time I wondered why J.C. Penney was being so honest.  New York Times reporter, Stephanie Clifford, has some interesting insights on that very subject in a follow up article entitled “Knowing Cost, the Customer Sets the Price.”  It seems that those “fake prices” Johnson spoke about actually worked well until consumers got iPhones and various apps that allowed them to check competitive prices.  Checking prices means that shoppers are either walking away or haggling for better prices.

And it’s not just J.C. Penney that’s lowering prices. “…Mango, the fashion retailer, has cut all prices by one-fifth. Stein Mart, the specialty chain, has reduced its coupons. Supervalu, the grocery chain, has

Digital Kids Conference Sure to Engage Attendees

 

 

 

Chris Sherman is on the cutting edge of play and technology. He is the founder and ceo of Engage Digital, a company that executes trade shows featuring the latest in business-to-consumer commerce. His latest event is the 6th annual Digital Kids Conference in Los Angeles on April 25-26. Formerly called Engage! Expo held alongside Toy Fair in NYC in 2010 and 2011, Digital Kids is endorsed by the Toy Industry Association and is the largest gathering of professionals engaged in building online and mobile products and services for kids.

 

With the skyrocketing use of mobile and online devices by kids, our re-brand from Engage! Expo to Digital Kids really says it all. We're now intensely focused on helping companies position themselves for success in the hyper-connected youth market space.

Kids these days are growing up with instantaneous access to information and communications across a variety of platforms. Recent studies by the Pew Research Center, the Joan Ganz Cooney Center at Sesame Workshop and Common Sense Media help paint that picture.

Toddlers and Preschoolers Drawn To Apps

The Pew Research Center tells us that 77% of teens have cell phones today and that the average teen text user sends 60 texts per day - up from an average of 50 texts in 2009. We also know that digitally connected children and "screenagers" are among the most active users of smartphones and tablets. Apps for toddlers and preschoolers alone grew by 23% over the last two years, according to the Joan Ganz Cooney Center. And a recent study by Common Sense Media tells us that half of children under 8 have access to mobile devices. 

5 Tracks, 70 Speakers = Education and New Business Opportunities

In light of this, the Digital Kids Conference will provide unparalleled exposure to best practices, trends and business strategies and successful techniques for developing and marketing toys, games and more to digitally connected kids and youth. The event is an ideal opportunity to connect with peers across various industries and get new business done while attending conference tracks focused on Business, Content, Market Research, Operations and Safety.

Do Toys Promote the Status Quo?

In a little Parisian toy shop, of which the city has almost 800, there are toys so beautiful that it takes my breath away. Wow. I am transfixed by the elegance of the designs - more art than toy, almost. It suggests that children play differently in France, and thus grow up generally to be more gentle and refined, perhaps?

These beautiful French toys are to be played with gently, treasured by parents, and perhaps by the children, as well? Certainly they are meant to be passed down to succeeding generations. Even the displays in the toy shops are elegant, artistic even.

How do toys differ from country to country, I would like to know. How do they differ from culture to culture, and how do these toys promulgate cultural mores and distinctions? How does toy culture differ from Germany to France to Italy? How do these countries' cultures differ, if that may be dispassionately ascertained? How do different cultures influence the toys enjoyed within them, and how do those resulting toys influence and sustain the respective cultures, reciprocally?

China Steps Up Its Game in Product Sourcing

 

 

Rich Stern has over 25 years operational involvement with the importation of goods from around the globe. Stern spent a good part of his career with a privately-owned importer and distributor of toys, giftware and housewares. He is currently doing consulting work, having recently completed a project with a large toy importer.

China has managed its manufacturing growth to remain the No. 1 source for product which is exported all over the world. Yes, prices are increasing, factories along with production capacity seem to be shrinking, quality seems to be slipping, transportation costs are constantly changing and regulations have made it much more difficult for us all. Plenty of reason for concern, but for now, and in the distant future, I do not see an alternative. As we combat the ongoing challenges, we know all along, that there is no other country that can produce these types of products at the aggressive pricing we negotiate.

To better understand Chinas explosive growth, it is interesting to see how it evolved. When I look back at my earlier days of importing product, during the early '80s, my company was focused on sourcing product from Taiwan and Hong Kong, with the higher percentage of goods coming out of Taiwan.  Then, in the mid ''80s, as the political pressure eased in China, the business trends started to shift heavier to Hong Kong, with a sharp reduction of product coming out of Taiwan. It was also during this transition when we were introduced to factories in Shenzhen and Dongguan, China. I was skeptical of this new region, as I was afraid the infrastructure was not in place to produce product to our required specs, along with efficiently having the goods transported for shipment.  My gut was saying to stay out of this region.  No way would they be able to produce what we need. I was fearful of the quality and what the product would look like coming out of production. Well, my gut was wrong. The product was produced to spec, done timely, the quality was decent, and the pricing was phenomenal.  Sure, we had to stay on top of things, but if you’re in this business, you had better be hands on as to what is going on in the factories. 

Surprising Information on Who Goes to the Movies and Why We Need to Know

We in the toy business are highly dependent upon the success of the movie industry.  With so many movie tie-ins as well as so much creative interaction between the studios and the toy companies, we all need to pay close attention to what were once arcane concepts like box office results.  So, in case you were wondering what kind of year the movie theatres had in 2011, you can learn a lot from this headline from The Wrap:   “Global Box Office Up, Domestic Box Office Down in 2011”

But who goes to the movies?  Box office figures are one thing, but don’t we need to know who is actually seeing these movies?  Shouldn’t our movie tie-in toys reflect the tastes of those who go to the films?   I think so and for that reason I wanted to share some of what I learned from the article about US movie goers:

10% of the population purchases 50% of the tickets.  That 10% is classified as “frequent movie goers.”  One gets that designation by going to the movies at least once a month.  .  If you think about it, all you need to do is cater your toys to that vital 10% and you increase your chances of success.  But, who makes up the 10%?

Latinos (Hispanics) attended an average of 5.3 movies; Caucasians went to an average of 3.5 movies African Americans an average of 3.7. 

Latinos make up 24% of “frequent movie goers.”  What makes that number impressive is that they constitute only 16% of the population. 

56% of “frequent movie goers” are Caucasian.  Caucasians, however, make up 65% of the population.  

The article did not break out child attendance but we do know that the Hispanic birthrates are higher than for most groups.  I did some research and found a piece I wrote in September of 2011 with the headline:  “Hispanics and Asians Make up 98% of Population Growth in Big Cities.”  Here is what it said:

The non-Hispanic white population is aging… Hispanics, by contrast, are much younger, with a

Barbie, Bratz and the Dilemma Over Bald Fashion Dolls

 

 

 

Michelle Spelman is a Live Wire! An urban mom of three, she is editor and inventor relations liaison for Chicago Toy & Game Group. She is co-founder of Flying Pig Games LLC, founder of Cincinnati Game & Toy Industry Professionals group, and is the Cincinnati Children’s Toy Examiner. Spelman works with schools, organizing family game night fundraisers and brings toy making history lessons into classrooms. She is also an independent marketing consultant providing contract services, executive coaching and strategic direction that helps firms leverage and integrate new media into their marketing objectives.

A few months ago, a grassroots campaign gained steam lobbying Mattel to make a bald Barbie doll for children suffering from medical conditions that cause hair loss. The movement gained notoriety very quickly by leveraging social media, especially Facebook, to create awareness. Mattel just announced it will produce a new fashion doll, yet to be named, that will be a “friend of Barbie.”

Here is Mattel’s official announcement, as it was published on its Facebook page:

“Play is vital for children, especially during difficult times. We are pleased to share with our community that next year we will be producing a fashion doll, that will be a friend of Barbie, which will include wigs, hats, scarves and other fashion accessories to provide girls with a traditional fashion play experience. For those girls who choose, the wigs and head coverings can be interchanged or ... completely removed. We will work with our longstanding partner, the Children’s Hospital Association, to donate and distribute the dolls exclusively to children’s hospitals directly reaching girls who are most affected by hair loss. A limited number of dolls and monetary donations will also be made to CureSearch for Children’s Cancer and the National Alopecia Areata Foundation.

Image courtesy of BarbieMedia.com

Through a thoughtful approach, we made the decision not to sell these dolls at retail stores, but rather get the dolls directly into the hands of children who can most benefit from the unique play experience, demonstrating Mattel’s ongoing commitment to encourage play as a respite for children in the hospital and to bring joy to children who need it most. We appreciate the conversation around this issue, and are interested to hear what you think!”

It’s been a bumpy path for Mattel navigating this issue in the social media space these last couple of months. They were slow to respond to the public’s appeal, and when they did, they found their answer harshly criticized in the media as being inadequate. 

The New Consumer; Can MTV Help General Motors?



 

 

 

In a survey of 3,000 consumers born from 1981 to 2000 — a generation marketers call “millennials” ... Not one car brand ranked in the top 10, lagging far behind companies like Google and Nike.

“As Young Lose Interest in Cars, G.M. Turns to MTV for Help”

Amy Coizick, New York Times, March 22, 2012

 

I have been writing for some time now that millennial generatiin consumers are different than any generation of consumers before them.  For one thing, they don’t care about cars.

In my last posting, “General Motors, MTV and the drive to get more kids to drive,” I wrote about the end of the love affair between teens, young adults and cars.  In this posting, I want to look at what G.M. and MTV are trying to do about it.  A substantial part of the toy industry revolves around toy cars.  This is no small issue.  How the big car companies handle the issue will tell us a lot about the future of that segment of the business.

The New York Times article “As Young Lose Interest in Cars, G.M. Turns to MTV for Help:” tells us that General Motors is concerned enough to bring in MTV Scratch, a unit of the Viacom (which also owns MTV), to consult about connecting with millennial generation consumers.    “The strategy is to infuse General Motors with the same insights that made MTV reality shows like “Jersey Shore” and “Teen Mom” breakout hits.”

GM is making no small plans.  They and Motors and MTV Scratch plan to “…transform things as diverse as the milieu at the company’s steel-and-glass headquarters, the look of its Chevrolet cars, the dealership structure and the dashboard technology. Even the test drive is being reimagined, since young consumers find riding in a car with a stranger creepy…”

But how do you make such a massive cultural change in a company as old as GM?  It’s certainly not easy but GM got motivated after the company almost went under. 

Is it going to work?  It looks like we won’t know for a while.  As the article puts it:  “Car designs have around a three-year lead time. The paint has to dry (colors are baked in the Arizona desert for a year

General Motors, MTV and the Drive to Get More Kids to Drive

When all of us were teens, the greatest moment in life was the day we got our driver’s licenses.  It meant freedom, power, love / sex, and the open road.  Frankly, today’s kids don’t give a damn. 

And the car companies are worried.  We should be worried too.  After all, a powerful interest in driving is reflected in toy car sales.  As goes GM and Ford, so goes Hot Wheels and Matchbox. 

General Motors is trying to do something about it.  According to a New York Times article by Amy Chozick, “As Young Lose Interest in Cars, G.M. Turns to MTV for Help;”  “forty-six percent of drivers aged 18 to 24 said they would choose Internet access over owning a car…”

The phenomenon has been going on for a few years now (see “Fewer Teens Getting Drivers Licenses; what it might mean for Wal-Mart”).  “According to a, Tampa Bay on Line article  from 2010: ‘…Statistics from the Federal Highway Administration show that one in every three teens now has a