Streetwise
Lauren Rudd
Sunday, December 21,
2008
Even The Toy Industry Is Not Immune
It was midnight and I was considering calling it a day when
there arose such clatter that I jumped to my feet to see what was the matter.
You would think by now I would have learned. "Nice to see you, I was getting
worried," I said, with a sideways glance at the old calendar.
"Reindeer were a bit rusty. Besides, landing a sleigh on a
rooftop in Florida without snow is no easy task. Having a chimney would also
help, not to mention a fireplace. No matter, get your notepad," he said settling
back at my desk, "and I will tell you about the state of affairs in the land of
make-believe."
“Wait as second,” I said, “You look even worse than last
year. I know times are difficult, but this is the holiday season after all. No
‘bowl full of jelly’ thing?”
“This has been a disappointing year, he said.” “And despite
my best efforts it will likely be a difficult season for both children and
adults.”
He went on to tell me that in the battle between Barbie and
Bratz, Mattel received a $100 million judgment for copyright infringement. Now
Mattel wants a judge to ban Bratz dolls forever. That request will not be
decided until January, so Bratz holiday sales are not affected. Barbie sales
have fallen since Bratz came on the scene in 2001, down 15 percent in 2007
alone.
If that was not enough, 80-year-old KB Toys, a subsidiary of
Prentice Capital Management, has filed for bankruptcy protection and is
going-out-of-business. So you see, although toy sales were thought to be
recession proof, even they have succumbed to the current economic crisis.
According to a recent poll by America's Research Group, 48.4
percent of consumers bought toys in 2008 as compared to 54.7 percent in 2007.
The NPD Group recently reported that through September, toy sales were a flat
$11.89 billion when compared to the first nine months of 2007.
Meanwhile, there is some good news on the safety front.
Manufacturers are committed to instituting tougher quality controls to avoid a
repetition of last year’s prominent recalls. Yet, adults need to consider the
age factor with toys, especially if you do not deal with small children on a
regular basis. Remember that children share toys with younger siblings and
friends.
Unfortunately, children are losing interest in toys at a
younger age as they turn to video games, iPods, iPhones, the Internet and
instant messaging for entertainment. Nonetheless, there is still hope for
traditional gifts such as Barbie. In fact, Barbie is still the top toy for
girls, with one being sold every three seconds.
Furthermore, in times of duress parents want to see their
children happy and toys are always one of the most wished for gift categories.
According to the NPD Group, in households with kids age 6 or under, 100 percent
purchased a toy and spent more than $485 on toys in 2007. In addition, 88
percent of households without children under the age of 18 still purchased at
least one toy last year, spending an average of $113. And there were 107 million
toy-buying households in 2007, up from 105 million in 2006.
Helping the industry’s bottom line was a continuing
acceleration in sales of web-connected toys, which more than doubled to just
under $312 million when compared to the first nine months of 2007. Toys are also
becoming greener. Mattel’s “green” Barbie joins other eco-friendly products such
as Aurora’s eco-plush stuffed animals, an alternative to chemically manufactured
stuffed animals using 100% soy bean fiber and stuffed with Kapok, HaPe with its
bamboo Rapelli game and the Natural toy line from Toys “R” Us.
"Fascinating," I said as I scribbled furiously. Then, just as
I was about to ask a few questions, he finally smiled and with a quick nod of
his head he was gone. However, I am sure I heard him say as he drove out of
sight, "Seasons greetings to all and to all a good night."
