Material Girls

Retailers, take heart: The women of the world still play with dolls, and that's more than okay with the world's doll makers. In fact, the adult collector demographic remains largely responsible for existing sales in the collector doll category, one that continues to wane in response to a dwindling market and a shift in consumer buying habits. According to the NPD Group, Port Washington, N.Y., dolls purchased as collectibles rang up sales of about $610 million during the 12-month period ending last September—down from $650 million during the previous 12-month period.

“Five years ago, the collector doll market was in the midst of a golden age,” says Robert Tonner, owner/CEO of Hurley, N.Y.-based Tonner Doll. While eBay was establishing itself as a key supplier in this space, the category took off, enabling collectors to locate hard-to-find dolls. On the manufacturing side, technology advanced, resulting in dolls designed with more intricate features and accessories.

But today, that progress has plateaued. Higher production costs in China and the rising price of materials and labor have taken a toll on manufacturers. “American doll buyers have been spoiled by the relatively inexpensive Orient pricing, and that is about to change,” warns Tonner.

Pricier supplies, coupled by fewer brick-and-mortar retail partners, have also impacted the collectible doll industry dramatically. “With more people looking to purchase products of all types online, specialty stores are struggling against all categories,” notes David Lin, president of Edison, N.J.-based Adora Dolls.

Paulette Goodreau, designer for Goodreau Doll, Cypress, Texas, recognizes that the overwhelming majority of collector-targeted dolls are being sold online; she works to support retail customers, both online and off, in selling more product. “While we discourage Internet sales at a discount, we allow our retailers to use all means of selling on the Web,” she says.

Other manufacturers are also attempting to embrace the changing retail landscape. Adora helps boost business for its existing storefront partners by hosting annual Make Your Own Baby events. “These types of events bring shoppers back into the stores to buy product,” Lin says.

Tonner believes the ever-changing market is definitely forcing companies to better keep abreast of who is selling their product. “Keeping up to date with what's going on is more and more important,” he tells Playthings. “We've seen more than a few retailers who were very strong just a few years ago go out of business.”

While a well-known, upscale retailer like FAO Schwarz remains a core distribution point for Tonner's company, he is quick to stress the importance of smaller mom-and-pop merchants in maintaining a connection to the collector audience. Mid-tier players are also developing a noteworthy presence, as department stores like Macy's begin to look at collectibles again.

With these channels of distribution also comes a revised customer profile. “Those collectors who were in it for investment are all but gone,” observes Tonner. They can often find original versions on eBay, making reproductions of vintage designs practically obsolete. As a result, the manufacturer's job has become increasingly difficult. “Product has to be new and different and at the same time have a great perceived value, or it's easy for the collector to stay away,” Tonner notes.

What's more, trying to determine the core buyer has made it challenging for suppliers to gauge who they are servicing. Anita Frazier, toy analyst at retail sales tracking service The NPD Group, notes that women ages 18 and up account for 45 percent of all collectible doll sales.

“More of today's collectors are working women who collect substantially by the Internet and/or mail order, and do not join as many clubs nor attend as many doll collecting events,” says Goodreau. Many of the manufacturers interviewed agree that as Baby Boomers complete their collections, there is increasing concern about whether subsequent generations will express a similar interest in dolls.

While adult collectors are an undeniably key demographic, some companies are beginning to make concerted efforts to appeal to a younger clientele. “Today's children are the next generation of collectors, and it's important for them to touch [the dolls] while they are young,” says Lin, whose company has started pairing storybooks with some of its dolls. “We are also making the dolls more realistic and playable, in addition to hosting events just for kids via Girl Scouts programs and more.”

For Tonner, the the release of its character figures based on DC Comic superheroes, Marvel's Spider-man and Disney's Pirates of the Caribbean allows it to appeal to a younger audience and also attract male collectors.

Goodreau notes the importance of its kid customers, as evidenced by its corporate tag line, “Opening the Door to Imagination.” She tells Playthings, “We would love to inspire today's children to be tomorrow's doll collectors.” Goodreau Dolls has introduced a children's doll line called Snappy, a customizable collectible doll in a smaller size that is also a building toy. Snappy comes packaged with a head, legs and arms on a torso, so children can put her together themselves.

Also for the younger market is Goodreau's American BJD (ball jointed dolls) line, constructed from vinyl to make them more affordable for tweens, and outfitted in what she describes as an “edgy” wardrobe.

Speaking of clothing, many manufacturers cite the importance of keeping current with women's constantly changing apparel trends to maintain their foothold in the collectible doll business.

“I believe that any company that makes dolls and doesn't follow what's happening in fashion will be left in the dust,” says Tonner, whose colleagues look to Women's Wear Daily and other key industry sources to glean information. These resources may even result in new product development, says Tonner, pointing to the recent Ghosts of Christmas line inspired by John Galiano's Fall '07 collection.

Adora also follows the fashion forecasts and previews its upcoming line at select locations across the country, inviting the public to help select which dolls should be brought to market. “Fashionably costumed dolls are a hit with collectors and non-collectors alike,” says Lin.

Perhaps no other doll is more renowned for her sense of style than Barbie. The iconic play doll launched her own collectible series in 1980 with the introduction of Dolls of the World; 1988 saw the debut of Holiday Barbie, which, according to Elizabeth Grampp, director of Barbie Collector Marketing, continues to be one of the most popular collectible Barbie dolls. Today, the collection is still alive and well, with the addition of two new dolls per year.

“Barbie Collector dolls are designed more for display rather than play,” Grampp tells Playthings, “and some collectors keep their dolls inside their original packaging to avoid exposure or damage.” She attributes the allure of this doll line to its ability “to reflect the trends, fashions and pop culture of the times.”

To date, more than 65 world-renowned designers, including Armani, Reem Acra and Diane Von Furstenberg, have outfitted Barbie Collector dolls.

And since fashion changes daily, manufacturers are forced to re-examine trends in the collectible doll category. “A few years ago, if you made a doll out of porcelain, it was almost a guaranteed sale,” recalls Tonner. “Today, porcelain is all but dead.”

Instead, plastic and resin reign supreme, as do fashion dolls and designs based on pop culture. Following the success of its aforementioned character figures, Tonner will expand its Super Heroes line and its figures from The Golden Compass, as well as releasing an extensive collection of Narnia dolls.

Baby dolls and limited edition international dolls will continue to be the main thrust for Adora. To add to the latter's collectability, the dolls will be downsized, a move the company thinks may also draw attention away from similarly sized mass market dolls. “I think parents will be paying more attention to the dolls their daughters are playing with,” Lin says. “Our wholesome dolls give parents an alternative to the 'sexy' dolls on the market.”

Customization is key for Goodreau, which has amassed strong sales for its resin American BJDs series featuring changeable eyes, hair and limbs. “Collectors end up with a versatile doll that becomes many characters from one day to the next,” says Goodreau. “They can become that favorite anime character or a duplicate of their daughter or son when they were young.”

This year, the company will add more sculpts to its BJDs, and introduce both a new vinyl line and a collection of ball-jointed critters, including teddy bears, rabbits, cats and dogs.

In honor of the 30th anniversary of Grease, Mattel will debut its Pink Label Grease Barbie dolls inspired by favorite female characters from Rydell High: Sandy (as a cheerleader), Rizzo (as a Pink Lady) and Frenchy. Also marking a special anniversary—the 35th—is the Pink Label Dallas Cowboys Cheerleader Barbie dolls, outfitted in their signature blue and white uniforms.

Finally, designers Mark Badgley and James Mischka will be added to the roster of fashion-focused Barbie dolls with the release of the Pink Label E! Live from the Red Carpet doll (see cover), donning a midnight blue evening gown made of crepe and chiffon.

As manufacturers scurry to ready their dolls for this month's IDEX show (see sidebar at right) and next month's Toy Fair, retailers are revealing their own perceptions of the current doll business.

One specialty store owner in Austin, Texas, says she's seen a noticeable decrease in sales over the last five years. “A lot of people I know have more dolls than they know what to do with, and I'm not sure new people are joining the ranks all that fast,” she tells Playthings.

Colleen Richardson, owner of The Doll Mercantile in Petaluma, Calif., says her business has remained largely the same. But rather than relying on doll sales alone, she also sells new and used doll clothing and repairs damaged products. “This brings in customers who would not otherwise buy dolls, but need old dolls fixed,” she explains.

While her customers are primarily adult collectors, Richardson does have a small clientele of young girls who come in specifically for doll clothing, and to have their dolls and teddy bears repaired.

Like Richardson, Susan Merchant has been noticing a fair number of customers bringing in their daughters and granddaughters to pick out their first collectible dolls. The owner of Classic Dolls & Gifts in Oakdale, Calif., cites an increase in sales of dolls that are 12-inches and under and produced in small editions.

“Collectors are looking for limited edition dolls that will hold their value and are high quality,” she explains. “They are running out of display space, which is why the smaller size appeals to them.”

Among her store's most popular sellers are Vogue Doll's Ginny and Mini Ginny, Effanbee's 14-inch Toni, Tonner Doll's Kickits and select baby dolls from Adora and Lee Middleton. Her sales of baby dolls, she notes, have remained consistent over the last five years.

Baby dolls are also hot at Diane's Doll Shoppe in the tony Connecticut suburb of Greenwich. According to owner Diane Drake, many one-of-a-kind (OOAK) artists are designing baby dolls for specific companies, which then produce a mold and manufacture a limited number of the babies at a much lower price.

“The high-end collectors buy the expensive OOAK babies, and the collector who does not necessarily want to spend $2,000 on an OOAK will buy the less expensive ones,” she tells Playthings. Silicone babies from Masterpiece are currently a favorite with her collectible doll clientele.

Overall doll sales have diminished over the last few years, which Drake attributes largely to the volatile economy. “When the stock market is up, collectors tend to treat themselves, but when it's down, money is just used for necessities,” she says.

And while many of the customers who discovered doll collecting in the '90s have subsequently seen the novelty wear off, the truly experienced collectors remain a customer base Drake relies on. To maintain her business, she says, simply takes a little more effort. It can be something as easy as staying in touch. “I have an e-mail list of my core customers, and I notify them when new dolls arrive at the store or send them photos,” she says.