Armed & ready

Even the mightiest heroes have setbacks, times when their ultra-powerful nemeses get the better of them. For action figures the setback seemed due to a slowing economy or perhaps just simply too much of a good thing: more variety than consumers could handle—not to mention unsatisfactory showings for arrivals from a galaxy far, far away. According to Toy Industry Association and research company NPD Group statistics, action figure sales for 2000 were down 26.7 percent from 1999, a disappointing figure that would probably be enough for the strongest heroes to consider a new line of work.

Yet despite the somewhat bleak numbers, retailers at big and small stores alike have been surprisingly optimistic for the most part. Perhaps they're all hoping for the type of heroic return that occurs in almost every comic book or film. One thing is for certain: Next year, plan on seeing a lot fewer Star Wars figures as retailers are still trying to sell off their Phantom Menace stock at discounted prices.

"The next round of Star Wars toys will be much more conservative," Jim Meyer, senior buyer of boys toys at KB Toys, tells PLAYTHINGS. He expects to see fewer SKUs but more toys actually based on the original trilogy of films, rather than items based on the next Star Wars film, Attack of the Clones, due in theaters in 2002. Such characters are important to collectors, but have also become part of pop culture and so appeal to broader audiences. Meyer adds that KB expects to see the classic figures for a very long time and that sales will continue as a result. "We think it will be very good (with) somewhat more limited distribution."

While Star Wars has been back in vogue in recent years, other old time favorites such as Transformers, Power Rangers and even the mighty He-Man are also making a comeback. These classic figures from Hasbro, Bandai and Mattel, respectively, along with newer arrivals from 21^st Century Toys, Dragon, Palisades and especially McFarlane—whose line includes figures from comics to rock stars, sports heroes to movie villains—offer a little something for every taste. But so many figures could also be part of the genre's sudden downturn as well.

"I have noticed it recently," Rick Berry of the Michigan Toy Soldier Company, a specialty shop, tells PLAYTHINGS. Too much of a good thing is still too much, he adds. "I think the market is oversaturated."

Micheal Luckman, owner and primary buyer for New York City's Forbidden Planet, another specialty store, also shares those sentiments about the state of the action figure industry. While Luckman can't rave enough about quality, stressing that collectors have contributed both to the sudden growth and decline in sales, he admits there could be rough times ahead for plastic heroes and those stores that specialize in selling them.

"I have a natural theory of doom for this whole market, because what I'm seeing are more and more action figures with more companies entering the market," Luckman explains, adding that stores like his only have a limited amount of space for the toys—especially for products that don't constantly move. "Unfortunately, if (manufacturers) keep producing more toys, smaller retailers—and even the bigger chain retailers—are going to say 'we can't carry that line, we can't carry this line, where are we going to put it?' After Christmas we could see a problem with this stuff. There is just so much of it."

It is the more mainstream figures that have been hit hardest by the suddenly sluggish sales, especially with two lines that had high expectations: Hasbro's Action Man and Mattel's Max Steel. Each line was supported by its own animated children's series, but failed to attract much of a serious following. The nearly identical product lines with their post-adolescent main characters and high-tech gear cluttered an already saturated marketplace, and neither product appealed to the hardcore collector attracted to the edgier work of companies like bbi or McFarlane.

Forbidden Planet's owner credits Todd McFarlane for the current attention to detail by other manufacturers as well. "The sculpture is so good, it is worth collecting," Luckman says. "I honestly think Todd McFarlane changed action figures. His stuff is so good, and he's brought all the other companies up with him."

The specialty retailers would agree however that it is the adult market that has helped drive the last boom of action figures. Nostalgia is certainly a very big part of it. Luckman sees large amounts of adults buying an action figure or two just to put on their desks at work. Add up those casual buyers and it is easy to see why action figures have become so popular in recent years, despite last year's overall downturn in the category.

"Ten years ago, you collected them if you were fanatical, but you didn't collect them if you were just a regular person," states Luckman, "That's the difference. The fanatical collectors are still there, but now the general public has started to buy them." That general public is also starting to see a wider range of figures, with companies releasing everything from famous rock stars to insidious comic book villains to popular video game characters. In the world of action figures there is a little something for everyone's tastes.

That taste caters to both the children (and adults) who play with them and the adults (and children) who keep them in their original packaging as a prized collectible. "These are toys after all," stresses Jonathan Quesenberry, senior marketing manager at Palisades Toys. "Sophisticated and created with amazing detail, but toys nonetheless. When kids search out their favorite hero or creature, they typically rip into the package to play with the find. As a collector, the hunt is different, but the passion is still the same. The market seeks a delicate balance between thousands of kids grabbing the first figure they see off of the toy shelf, while the collector quietly slinks behind the scenes, hunting and searching for the precious exclusives."

One very popular segment for children and collectors of all ages has remained the military action figures, a long time staple of the category. But instead of generic soldiers from G.I. Joe's bygone days, today's plastic warriors represent almost all facets of military history from ancient Roman figures—whose popularity no doubt was driven by the success of the film Gladiator—to elite special forces of modern times.

Renewed interest in history, thanks in no small part to films like Saving Private Ryan and U-571, as well as the hype surrounding HBO's upcoming WWII series Band of Brothers, has created quite a boom for figures from the Second World War. More so than many other genres there are a vast variety of figures available in numerous price ranges, from 21^st Century Toys carded figures that retail for under $20 to Cotswold Collectible's figures, which sell for nearly three times the price. For the collector, Rick Berry sees that the German figures are especially popular, "I'd say 10 to one over any other type. Although my pre-orders for the new Sideshow ACW (American Civil War) and WWI figures are unbelievable."

The average toddler and young child isn't likely to be a collector of much of anything but there are action figures aimed at this market including Fisher-Price's Rescue Heroes line, which now has support from its own line of video games as well as a TV show aimed squarely at the toys' target audience. Unlike most action figure lines, Rescue Heroes has no good-vs.-evil theme and no villains. Instead, these toys are about man vs. nature. "It empowers the kids in action adventure play but in a more positive way," explains May Chao, director of marketing for Knowledge Adventure, which is releasing original PlayStation and Game Boy Color adventures featuring the Rescue Heroes. Knowledge Adventure has worked closely with Fisher-Price and believes that the toys have really struck a cord with parents and kids alike. "Parents were looking for an action hero that they could feel good about," Chao says, "that's what Rescue Heroes is all about, everyday heroes that moms believe in but kids still think are cool."

After Rescue Heroes it seems that many children, especially young boys, would make the logical next step to popular figures like Mattel's He-Man and Bandai's Mighty Morphin Power Rangers, two brands on the comeback trail. While there are no plans for a new He-Man TV show or movie, Power Rangers has once again become a very hot television property and Bandai is continuing to expand the nine-year-old brand. Unlike Rescue Heroes, Power Rangers have also made an impact with adults. "Bandai has always made toys that focus on high quality craftsmanship," says Colleen Sherfey, director of marketing, Bandai America, "as well as entertainment-driven properties that lend themselves well to being highly collectible.

Other licensed figures tied to films and TV have tended to do about as well as the actual release, but quality continues to play a major role. Specialty stores have seen a huge demand for long-time favorites like The Simpsons by Playmates and Spawn, while new arrivals like Shrek just can't stay in stock. Even licensed figures without ties to an upcoming TV show or movie are doing phenomenally well, with Sideshow's Young Frankenstein a constant sellout and a strange looking sailor being all the rage. "Popeye is selling," says the action figure buyer for New York City's Village Comics. "That line is very popular right now."

Not doing as well, according to the buyer are Playmates' busty figures of Lara Croft. While figures based on the Tomb Raider heroine have existed for the last few years and had always been steady sellers, the latest releases tied to the Paramount big screen film haven't been raided from store shelves. This is possibly due to the quick drop off the film experienced at the box office and the fact that many video game fans agree that the game franchise has gone downhill as more titles were released. "They're doing okay," the buyer says, "but…they're certainly not hot sellers."

More floor space doesn't necessarily translate to larger sales for 12-inch figures. Most chain stores think it wiser to have a wider selection of smaller figures and more of each one—something that isn't always possible with the 12-inch figures, especially when retailers hope to keep the merchandise moving.

"The 12-inch figures are slanted much more to collector type products and we do not do nearly as well with them in the KB stores," Meyer tells PLAYTHINGS. "The 3 ¾-inch figures, and even 5- and 6-inch figures, are more toy oriented, more slanted for younger kids, and better suited for KB stores."

The exact opposite in conventional wisdom holds true for the smaller hobbyist stores, with some almost completely dedicated to the larger figures. For specialty shops like the Michigan Toy Soldier Company, bigger is better. Owner Rick Berry only sells the 12-inch figures, feeling that the market is simply too flooded with the smaller 6-inch figures to bother with anything larger. Most popular for him are the figures by Dragon, Marco Polo and 21^st Century Toys.

The 12-inch figures also seem to be successful with the collector's market—a fact that sits well with shops like the Michigan Toy Soldier Company, and Berry sees that the collectors are buying what they knew and loved as kids. The "retro" appeal of the 12-inch figures no doubt brings back memories of the classic G.I. Joe figures.

"Absolutely no doubt about it," comments Berry. "That (retro appeal), coupled with high quality, historically accurate product hooks 'em. I deal with collectors of one kind or another almost exclusively and it seems to always hold true. We collect what we had when we were kids."

Specialty New York retailers Village Comics and Forbidden Planet both agree that the 12-inch historical figures have become especially hot sellers, with Dragon's military figures leading the charge. "They're awesome," says Forbidden Planet's Luckman. "We're absolutely blown away by their quality."

But he also adds that size does seem to matter if it is a parent that is buying the figure. "We're still seeing the 6-inch figures selling more. That's based mostly on cost. There is a big difference between $10 and $30 if you collect." Luckman believes that more and more people probably want to get into the 12-inch figures but are held back by their wallets. "More parents are going to want to buy a $10 toy and not a $50 toy."

For large toy stores, big displays also seem to be a thing of a bygone era. While some larger stores, like FAO Schwarz in New York City, do devote space to displays of figures, most chain stores in malls simply hang their figures on the walls. Specialty retailers are often more able to set up larger displays, with Michigan Toy Soldier Company known for constantly changing battle scenes and parades of soldiers in formation.

It seems that the imaginative nature of creating these scenes is also carrying on to those who play with the figures and a desire to create their own worlds for these figures. This helps explain why playsets, which have often been tied to figures, are also in a bit of a downward slide. "Action figure playsets right now revolve around specific licensed figures like Jurassic Park and are often tied to a compound or other activity," concludes KB Toys' Jim Meyer. "The emphasis is more on specific accessories like vehicles. The older style action figure playsets, cowboys and Indians and military sets for example, are pretty much passé."

Like many classic toys from days of old, action figures seem firmly established as both a plaything and collectible well into the new century. Even with the potential oversaturation that the market faces the plastic heroes and villains, as well as warriors and other colorful characters promise to remain a staple item of mass retailers and specialty stores alike.

From the warriors of the gridiron to the stars of the basketball court, many real world heroes have been deemed worthy enough to be immortalized in plastic, allowing children to act out their baseball or hockey fantasies and letting collectors own a piece of greatness. Sports action figures, which until recently had a very limited appeal, have suddenly become one of the hot up-and-coming sub-genres of the toy industry.

"They're doing relatively well for us," explains Michael Luckman, owner and buyer of New York's Forbidden Planet. While his store caters to a crowd more interested in superheroes than super athletes, he notes that there are specialty retailers who tend to carry sports-related items, including action figures, almost exclusively. But even surrounded by comic book characters and tough looking soldiers at Forbidden Planet the sports figures still move quite well. "We do so well on them because they're just so good. The likenesses (are) just amazing, and even if you aren't into sports you'll love the detail."

Credit that attention to detail to Todd McFarlane. For retailers, his toys go faster than a first round draft pick. Kim Kolomyjez, owner of The Spider's Web in Puyallup, Wash., doesn't see that location has much to do with it, but adds that the better players tend to get picked up first. "Obviously the superstars do better than others, but McFarlane mostly does the superstars."

Specialty retailers are also seeing that non-sports fans are buying up sports figures to add to their growing collections. Kolomyjez adds that most of the hardcore sports fans are also a little older. "It's like…collecting sports cards—they cost so much that only adults can afford them."

Sports fans also tend to shop at those specialty retailers that carry collectible cards, figures and other memorabilia, while action figure fans remain drawn to shops more focused on various varieties of figures.

Mainstream retailers also tend to focus on the home favorites but the specialty retailers and those on the internet, like The Spider's Web, are seeing some unique interest. "It is interesting because hockey does better than baseball especially in areas that don't even have hockey teams," Kolomyjez explains. "Places like Tennessee and West Virginia. It could be that Toys R Us in those areas just don't carry hockey figures, so the fans come to us."