Because infants and toddlers have limited abilities when it comes to play, many of the basic toys in this category have remained the same for years: rattles, stackers, shape sorters, push toys and plush—playthings that have been proven classics for generations. But today's savvy parents are looking at more than just the entertainment factor when it comes to buying toys for their baby or toddler. In order to capture the attention of modern mothers and fathers, a toy for these days must provide other benefits if it's going to appeal to parents of newborns.

A 2005 American Baby survey found that 84 percent of new and expectant moms and 79 percent of toddler moms believe it is "extremely important" or "very important" to seek out toys that will aid in the intellectual development of their child. And manufacturers of such products have taken notice.

"Today's parents are so much better informed and look for so many developmental aspects that manufacturers really have to stay on their toes," says Tali Ben-Ezer, co-owner of developmental toy manufacturer Tiny Love USA, Garden Grove, Calif.

Retailers are seeing this as well. "Anything that seems to have an educational twist to it is big right now," says Brian Green, general manager for Gaithersburg, Md.-based retailer Great Beginnings. But rather than the electronics-enhanced toys that were all the rage a few years ago, the hottest trend in infant and toddler toys now is a return to simpler, more classic toys that add intellectual stimulation by engaging a child's imagination, he says.

"There's been a satiation on electronic products with all the bells and whistles and too much emphasis on early literacy," says Michael Ziegenhagen, owner of Playmatters, a chain of four specialty stores in the metropolitan area of Cleveland. "There's been a swing back to open-ended, creative, explorative play."

Green agrees. "There is a shift to simplicity in products versus the ornate, obnoxious toys that were on the market a few years ago," he says.

"It's more about development, and not just technology for technology's sake," adds Debra Fine, CEO of Small World Toys, Culver City, Calif. "Lights and sound are really annoying to parents. The trend is turning back to curiosity and learning."

At his Playmatters stores, Ziegenhagen says that offerings like German-made Selecta hard wood push toys, Learning Resources' line of cash registers and clocks, and Northvale, N.J.-based Alex's Little Hands line of arts and crafts kits have been good sellers for toddlers, and Manhattan Baby's Carousel line, soft toys from Käthe Kruse, and Taggies items all do well in the infant category.

At Portland, Ore.-based Kids At Heart, manager and buyer Sarah Green says her store does well with wooden rattles and teethers from companies like Haba and Mossy Creek Woodworks, as well as baby cozies from Käthe Kruse and lacing cards and matching games from eeBoo. She looks for products that are made from basic, organic materials—something her customers ask for, too, she says. "I try to get stuff that's not only age-appropriate, but appropriate globally as well."

At Great Beginnings, developmental toys from Tiny Love and Sassy consistently do well, says Brian Green, as well as books and puzzles. Particularly popular are wooden puzzles and toys from Newport, Conn.-based Melissa & Doug, which he says are "on fire." Baby boomers may also have a part in driving this return to simple, classic toys, he says. "They're big grandparent purchases. It strikes a note of the past with them; it may be that [those toys are] something they bought for their own kids."

Wooden toys and others of a similarly simple design can be as educational as more explicit "learning toys," their manufacturers say. Puzzles, for example, help young children understand shapes and objects, whle blocks help them develop skills in spatial relations—but these toys also allow for more imagination-driven learning, rather than simple rote teaching.

At Alex, a focus on curiosity and creativity has translated into the company's Little Hands line, a new category of arts and crafts kits for children as young as 2. It debuted last year with 21 arts and crafts products and 10 developmental toys, and the company has just added 10 new arts and crafts SKUs and more than doubled its offerings of developmental toys for 2007.

"Through our research, we came to the conclusion that most arts and crafts products are directed at children aged 5 and up," says Nurit Amdur, CEO and creative director for the company. "Preschoolers do not possess the dexterity and ability to comprehend instructions, and they're not able to do the projects on their own."

Based on this concept, the company focused on creating product specifically designed for 2- to 5-year-olds, with simple activities that take age limitations into consideration. Little Hands features fully illustrated instructions that small children can follow, no small parts and washable pieces. New this year is the E-I-E-I Dough, which includes pre-printed, pre-punched laminate paper parts along with sculpting dough to create 10 different barnyard animals; a tabletop easel with non-spill paint containers and chunky brushes and chalk holders for little hands as well as a no-tool-or-hardware assembly; a sticker arts and crafts kit; and a collage kit. New puzzles in the line feature stackable, lacing and mix-and-match pieces to foster learning and spur creativity.

"Parents really feel that it fosters self-confidence," says Amdur of the line. "There's no right or wrong, and a child can make something without following complex instructions. Art demonstrates itself as a developmental vehicle."

And for babies, manufacturers are improving on classic toys' functionality with features that add an extra punch to proven winners. Tiny Love, for one, has revamped its successful Musical Stack & Play classic activity toy and renamed it the Musical Stack & Ball Game, which it says helps develop multiple skills including stacking, sorting, opening, closing and threading. The game comes in either a penguin or a chicken shape, and features colorful rattling balls that can be dropped through the stacker, giving toddlers musical feedback for positive reinforcement and to encourage repeat play.

"Parents are so much savvier, and they're looking for so many more skills," says Tiny Love's Ben-Ezer. "We're looking at simple products that take the child through different developmental stages."

Tomy, Santa Ana, Calif., is also moving forward with classic, age-appropriate infant and toddler toys, including pull-along toys, shape sorters, stackers and the Ball Party Symphony Tower for the 6-months-plus age group. For the 12-month-plus age group, Mother and Baby pull-along toys as well as continuing favorites Hide 'n' Squeak Eggs and Push 'n' Go Vehicles are available.

Meanwhile, Oakbrook, Ill.-based RC2's Lamaze brand offers a new Learn to Sign Friends assortment designed to appeal to parents' desire to combine learning with play, while tapping into the latest infant-learning fad—sign language. The system features cute animals on one side expressing a state of being, such as "hungry," "sleepy," "happy," "thirsty" or "sad," while the flip side of each card features a picture of how to sign the feeling in American Sign Language.

Learning Curve has also recently revamped its Lamaze infant products line to reflect fresh colors and patterns for today's first-time parents, and to capitalize on the company's higher-end brand name. The company sought outside trend advice on colors and looks, and designed new packaging that is "bright and white, and very fresh-looking in the aisle," says Greg Miller, senior vice president for consumer teams for RC2/Learning Curve. The revamped line started shipping in January, and has already been very strong at retail, he says.

And in a marketplace that's so crowded with infant and toddler products that all offer such similar functionality, it's the color, texture, design, logo and brand that will really speak to the consumer in the end, says Miller. "That's what makes her feel like the product is tuned to her style."