Posted by jim on October 19, 2008 under Economics | 
Sometimes in the toy business we actually make a good decision on what to bet on for the Christmas season. Sometimes it’s a well informed, well researched choice of product that sells like crazy. Other times it’s just a good guess or a hunch that pays off. Of course, the flip side of this (that happens far too often) is the calculated risk that flops, or the educated guess that collects dust in the warehouse for two years.
Iron Man Mighty Mugg by Hasbro
As a speciality toy retailer, we have always believed in the importance of providing unique product that distinguishes us from “Big Box”. So, much of our focus has often been on educational games, made in America product, small innovative manufacturers and award winning toys. But, we have also always believed strongly in the consumer’s right of choice. Relative to toys, customers often have brand preference, and rightfully so. As a result, we have always tried to make sure we carried the brands that people wanted, especially at Christmas time, in addition to the rest of our sometimes eclectic offerings.
From the beginning, we chose to feature Hasbro toys prominently at Christmas time. While Mattel is the largest toy manufacturer in the world with Hasbro the second, we have always felt more strongly about the brands and selection from Hasbro. We have placed a couple of small orders with Mattel over the last couple of years but have not been enamored with their selection or with their customer service. While we have had our issues with Hasbro, we have found their brands stronger, products more inventive and enjoyed the fact that many of their board games are still made in the USA.
In any event, it turns out that we are not alone. While Mattel’s stock has plummetted this year along with the rest of Wall Street, Hasbro is one of less than 30 companies in the S&P 500 that has actually seen their stock rise in 2008.
Posted by jim on October 10, 2008 under Economics |
As if the consumer wasn’t scared enough already, now we have to fear that the world’s largest toy manufacturer and the world’s largest toy retailers might not make all the money they had hoped for on yet another version of Elmo. It appears that Tickle Me Elmo, TMX Elmo, Stretch and Fun Elmo, Ba Ba Baby Elmo, Up Up Elmo and Elmo Knows Your Name have not completely satisfied the public’s appetite for all things Elmo. This Christmas, Mattel thought the answer was Elmo Live.
Elmo Live is Scary!
But wait, Mattel (Fisher Price), had to cut some corners to keep the price point at $60. Mattel “made several concessions. Its final version sacrificed some movement to reduce the toy’s complexity. It also eliminated, for example, the ability to swivel at the hip. Elmo Live blows kisses, but other gestures were ruled out.”
And now, with the DJIA devastation plaguing the US economy, Wal-Mart and Toys R Us may not sell enough Elmos. Wouldn’t that be terrible? Forget the speciality toy store that can’t just “always invest heavily on Elmo” like Chief Executive Officer of Toys R Us Gerald L. Storch does. The independent retailer actually has to take risks on unique products, by innovative manufacturers. Products that the speciality retailer knows are exceptional because they have played with them and researched them. The only problem is that they haven’t been shoved down the public’s throats like Elmo – often in the name of “education” by PBS’s Sesame Street.
In any event, as consumers we should not fear for Mattel (who just one a monstrous lawsuit against MGA, makers of Bratz), as if spending $60 on Elmo Live at Wal-Mart might some how stabilize the economy and thrill the child that only currently owns a meager 4 out of 400 versions of Elmos. If Big Box toy companies can’t move enough Elmos at $60, they will just drop the price to $55. If that doesn’t work, $49.99 sounds about right.
Tags: big box, bratz, buy local, consumer fear, DJIA, educational toys, elmo, elmo live, mattel, mga, speciality toys, toys, WalMart
