Totally Stylin’ Tattoos Barbie?

Before commenting, I thought I would go right to the source – the Mattel.com press release archive.  I did a search for “tattoo” and nothing.  Hmmmm….

Well, if you do a Google search, my favorite headline belongs to wagerweb.com (not normally where I go for toy news): Barbie gets a tramp stamp!!

This is my favorite photo:  buzzfeed.com.  Although, I think the “Indonesia” tattoo is worse than the “Ken”….

In any event, I am not going to comment about whether this Barbie is a bad influence on children or a sign of the apocalypse.  Nor, am I going to say all these people up in arms are out of their minds.  Too easy.

I just want to say I think it is an absolutely fascinating choice by Mattel.  Turns out they are sold out almost everywhere….

]]> http://blog.giletoys.com/2009/03/10/la-ink-plus-mattel-toys-equals-totally-stylin-tattoos-barbie/feed/ 0 http://blog.giletoys.com/2008/10/22/toy-retailers-victims-of-the-malachi-crunch/ http://blog.giletoys.com/2008/10/22/toy-retailers-victims-of-the-malachi-crunch/#comments Wed, 22 Oct 2008 17:45:46 +0000 jim https://www.giletoys.com/blog/?p=48 For those who didn’t grow up watching Happy Days, the Malachi brothers were two demolition derby drivers whose infamous move was the Malachi Crunch.  Well, this year it’s not Fonzie who’s getting the squeeze, it’s the toy retailers.

Over the past year, manufacturers have seen rising costs due to the increasing prices of raw materials and labor as well as safety concerns.  But don’t feel bad for Mattel and Hasbro, the two largest toy manufacturers in the world.  They just pass the costs onto the retailers.  Normally, I would say don’t feel bad for the retailers, because we’ll just pass the costs onto the consumers.  But, not this time.  Consumers are scared.  The extortion of the American people on Wall Street and the lack of hope relative to the election of either presidential character, I mean candidate, is causing parents to panic and plan to cut back this year for Christmas.

So who really loses?  Again, poor Mattel, in the face of rising costs, “profits grew by a sluggish 1 percent, to $238 million“.  How about Wal-Mart or Toys “R” Us?  They are playing the same game as usual, loss leader items to lure you into the store and then charge more on other products.  This leaves two losers this year, the independent retailer and the consumer.

The independent retailer now has to shrink margins in response to low price demands and the increased costs from manufacturers.  As a result, retailers cannot take as many chances, so they do not buy as many “risky” items from smaller manufacturers.

The consumer loses big because they now have less choices.  Going to Wal-Mart and Target, the consumer is limited to only the toys that these stores carry – the “top sellers”.  In the interest of saving money, they settle for lower priced toys that their kids didn’t want.  Even when the consumer goes to speciality retail stores, there is not as much alternative product because of the risk factor for the retailer this year.  Certainly, this will put some small, independent retailers out of business this year, which will mean even less choice for the consumer in 2009.

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.

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.