Wall Street Plus Elmo Equals More Fear and Trepidation

Posted by jim on October 10, 2008 under Economics | Be the First to Comment

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.

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.