Posted by jim on April 8, 2009 under Consumer Experience, Toy Trends | 
Q: What’s more fun than creatures from an alternate Earth dimension known as Vestroia? (aka Bakugan Battle Brawlers)
A: That’s easy. Those crazy tribes from that distant island of Gorm. The Gormiti.
The Gormiti are Coming!
My ten year old nephew told me months ago that Gormiti was the next “thing”. I don’t think he’s into it – nor is he into Bakugan anymore – but he let me know Gormiti was coming. So being the opportunist that I am, I looked into it. And, I think he has a point.
Convinced that we needed this product, I searched far and wide to find a distributor. It turns out that Playmates Toys is the US distributor of this Italian born product. I found myself an old school distrubutor out of Brooklyn NY – and finally, product is on the way. We should have it up on the web site in a week or so.
In the meantime, check out Gormiti.com and YouTube.com.
Posted by jim on March 10, 2009 under Consumer Experience, Toy Trends |
Amazing! I didn’t see this one coming:
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….
Posted by jim on February 26, 2009 under Consumer Experience, eCommerce, Economics |
Two weeks ago, Toys ‘R’ Us announced that it had acquired eToys.com (as well as BabyUniverse.com and ePregnancy.com). While Toys ‘R’ Us claims that eToys.com will continue to operate as a seperate entity from toysrus.com, this acquisition is another blow to the consumer. As smaller and mid sized toy retailers go bankrupt or get purchased, the consumer will see less and less choices. With fewer companies in control of toy retail, there is less opportunity for product variety, new manufacturers, innovation, etc. And, again, the consumer suffers.
It seems like the current situation with the American economy, coupled with the significant boost in regulations relative to the toy industry, is already resulting in, not the survival of the fittest, but the survival of the biggest. Unfortunately, small toy manufacturers and smaller independent toy retailers may be the ones who end up suffering the most. Hopefully, that is not the case in the long run. Because if it is, the end game is one or two corporations (like Wal-Mart – hint, hint) in complete control of the industry. When that happens, and it is a lot closer than you think, quality goes down, consumer choice goes down, and prices go up.
Posted by jim on October 22, 2008 under Consumer Experience, Economics |
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.
Tags: buy local, economy, hasbro, independent, malachi crunch, mattel, retailer, small business, target, toys, toysrus, wal-mart
Posted by jim on October 18, 2008 under Consumer Experience |
All right, so another post from me bashing Big Box Toy retailer Toys R Us…. But, bear with me. Here’s the quote from Toys “R” Us Senior Vice President:
“At Toys”R”Us, we love kids, and we want to help parents make a big deal about their children this holiday season. Our new campaign shows parents looking for the perfect gift and incredible values that Toys”R”Us has something special for every child and every budget. It also reminds everyone about the magical experience in stores by bringing back the famous, ‘I’m a Toys”R”Us Kid’ jingle.” See Market Watch for more….
If Toys “R” Us is truly so concerned with helping parents make their kids happy, why don’t they revamp their service rather than changing their advertising pitch and reviving their old jingle?
This is how I think of Toys “R” Us. And yes, I sometimes go to Toys “R” Us because we don’t stock and sell every toy brand in the world and sometimes my little girls have their heart set on a toy for Christmas or a birthday that I can’t buy direct and don’t have in stock. In any event, I always thought it would make sense if you could walk into a toy store and say to someone working there, “I have to buy a present for a seven year old boy, can you help me pick something out?” The clerk would then respond with, “Sure, how much do you want to spend? Oh, yes, would you like this, that or we have this over here….”
Actually, we have a local toy store around the corner from our warehouse (yes, I go there too) and you can do pretty much that. But, try that in any Toys “R” Us and you’ll get a blank stare. As a matter of fact, try this one (this is my favorite). “I’m looking for a certain item by this manufacturer, do you have it.” Response: (Employee pointing) “I don’t know, if we have any of those they would be over there.”
That’s the Toys “R” Us I know. No nostalgia there. No love for kids – no help for parents to show them how to make a big deal out of their kids. Just another big box with a bunch of disorganized stuff on the shelves. Always employees that know little or nothing about the product and care little or nothing about the consumer. Most likely this way not because of the employees themselves, but because of another large corporation that believes in spending a lot more money on marketing trying to convince the consumer they care, rather than training employees to do just that.
Posted by jim on October 15, 2008 under Consumer Experience |
It appears that the American consumer is committed to Giving Green this Christmas. According to Plow & Hearth, at least half of US shoppers are planning to buy at least one eco-friendly gift this season. Two thirds of these shoppers even say they will spend more in order to do so.
One of the items I found at the ASTRA toy fair this year that really fills this need is made by DANO2. Not only is the product eco-friendly, but it is also hospital grade and made in the USA. If that doesn’t cover all ends of the spectrum, I don’t what does. We are featuring the product in our Christmas catalog and it will be on our new web site when it is launched in a couple of days. DANO2′s Circus Teethers are an incredibly responsible, affordable and conscientious choice for your own infant or as a gift for another child.
Posted by jim on October 14, 2008 under eCommerce |
Our new web site is just a few days away from launch – cutting it a little close for the Christmas rush. But, as my father always says, “That’s small business.” We chose an open source product this time around called Magento. 
Currently, our site is on an X-Cart platform. I guess I would describe X-Cart as a good A to B product for us. It gave us something that looked pretty good and functioned pretty well. When we started the toy business a couple of years ago, it was a nice fit. I think words like “pretty” and “nice” describe our experience fairly well. It was a big step up from the previous shopping cart solution we were using before, Miva Merchant. Although, in their individual defenses, I think X-Cart and Miva have improved beyond what we ever utilized them for.
In any event, the open source model was a much better fit for us this time around. We needed a platform that was flexible enough for us to change the entire giletoys.com shopping experience. As we set our sights on much more than a “shopping cart”, completely adapting our focus from checkout to engagement and participation – we hope that Magento will be the tool to utilize.
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
Posted by jim on October 9, 2008 under Consumer Experience |
In the wake of WalMart announcing dramatic price drops in the Toy category, KB announced it would drop prices on 200 toys. CEO Andy Bailen explained, “Clearly, more consumers are looking for affordably priced gifts and that is why we also just took over 200 great toys and lowered their prices to $10 or less.” What a great gesture to the consumer in this time of economic crisis!
Not so fast! Let’s look at some of the items on the list. The Are U Smarter Than a 5th Grader? game. This game came out for last Christmas. Toy sellers have been selling that at below cost all year to get rid of it. MLB action figures – it’s October. My Little Pony – it’s 2008.
Big Box toy stores are using the fear put into consumers by the DJIA dropping faster and faster every day (in the wake of any news, good or bad) to convince them to buy toys they can’t sell anyway.
Don’t fall for it. Purchasing toys that kids don’t want in order to save money is not going to help the consumer. Why not make smarter purchases from independent toys stores? Instead of buying a couple of outdated, useless, sub-$10 toys, why not purchase a product with an online component that is only $14.99 and allows children to play for months and months with other children on the web like VIPs or Groovy Girl RSVPs?
Both presidential candidates have gone on record about the importance of supporting small business and how it helps the economy. What will help the economy faster? Helping WalMart or KB unload some old stock before Christmas or supporting that local toy store in your town that can barely pay the light bill?
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