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Looking Back to Get Ahead

What industry leaders in toy manufacturing, retailing and licensing have to say about the year ahead

By Tina Benitez -- Playthings, 1/1/2008

In a year chock full of concerns over toy safety and quality, most industry professionals were happy to see 2007 come to an end. This year, Playthings spoke with industry leaders in the manufacturing, retail and licensing fields to get their reflections on last year and some predictions for the new one ahead. Most agree: it's sayonara to '07, and hello to a 2008 of promise and new beginnings for the toy business.

What lessons have you learned from 2007 that you're carrying into 2008?

“It reinforced what we already knew, which is that we have to be responsible for our product at every point in the production process and that quality and safety is the most important part of the process.” —Jay Foreman, president, Play Along, Deerfield Beach, Fla.

“The good news is that there are lots of good licenses. The bad news: it's a tough marketplace out there. Retailers are very cautious and more and more retailers are letting other firms manage their departments, so they have no downside. In this world you still win on promotions. The bigger and better the promotion, the more successful and the more comfortable I feel about buying the license. When you don't promote you know what happens? Nothing! This doesn't mean buying tons of ads and billboards by studios. You have to promote, you need to have good partners for them and licensees have to cross promote. It's one world out there. I find it quite amusing that studios still don't understand that, in today's world, it's still one world.” —Allan Caplan, president, Inkworks, Morrisville, N.C.

“We saw the impact that a challenged economy can have on the toy industry, especially in the form of a very compressed holiday selling season. We will certainly be building a thoughtful flexibility into our plans for 2008 in order to be able to insure success even if there is extended weakness in the economy.” —Eric Levin, executive vice president, Techno Source, New York

“Overall, 2007 was a tough year for the toy industry with the many recalls affecting various manufacturers. However, what resulted is that toys today are safer than ever in the history of the industry. At Mattel, we have taken significant actions to strengthen, improve and tighten our manufacturing procedures, and we will continue to do so into 2008 and beyond.” —Neil Friedman, president, Mattel, El Segundo, Calif.

“I think this year was a wake-up call for many licensors when it comes to selecting partners and holding licensees and manufacturers accountable for safety standards. When a licensed product is recalled, it's often the licensed brand that gets tarnished the most. Consumers do not differentiate between the brand, the manufacturer and/or supplier when it comes to assigning fault. This is a lesson that has impacted everyone in the supply chain—from consumers to retailers to manufacturers to licensees to licensors—and it's something that hopefully will raise awareness and accountability for all players in the kids' products industry.” —Tamra Knepfer, senior vice president, consumer products, American Greetings Properties, New York

“There's this consistent reinvention of the Web that is a crucial angle for kids. Kids today are not afraid of getting on the Web and playing games online. The amount of time they are using the Web and TV is only continuing to rise. We want to continue using these multi-platforms.” —Al Kahn, CEO, 4Kids Entertainment, New York

“It's now harder than ever for small online retailers to compete. Big branded retailers are providing better service than they have in the past and therefore capturing a lot of the online sales growth. For smaller retailers and manufacturers to compete, they have to be laser-focused and meet consumer needs in select areas that large retailers cannot efficiently match. It's all about excellent personal service, building relationships and over-delivering on core promises.” —Jennifer Apy, founder, Compass KidZ, Oakland, Calif.

“The game industry is constantly changing and will continue to be fluid. The classics must be remodeled, DVD game play must raise the bar, brand new concepts must have a compelling hook and licensed product must hit the mark.” —Kevin McNulty, CEO, Endless Games, South Amboy, N.J.

“We have learned that it is really important to communicate to your rep force on a constant basis to enable them to better support your company and product line and ultimately help you succeed. We have learned that asking retailers to provide projections on items they have selected is extremely crucial in being able to fulfill their inventory needs. In addition to this, watching inventory levels as it applies to all other accounts who can't provide projections has to be a priority. The toy industry continues to be very competitive. Offering quality, safe products is the best way to beat the competition along with being able to fill the orders once received. Our focus this year has been to do nothing else. These probably aren't new revelations, but they are keys to being successful, and you truly need to commit to this.” —Lisa Couture, national sales manager, Kid Galaxy, Manchester, N.H.

“Last year we mentioned a trend toward more active parenting. We've learned that mom and dad are looking for more ways to spend time with their children, which has manifested in a lot of ways for us, expanding into '08. Parents are looking for things to do with their kids, something that can give them experiences.” —Jamie Cygielman, senior vice president, general manager of consumer products at HIT Entertainment, New York

“Retail with licensing—it's challenging. There are more and more properties, and retail space is not getting any bigger. You have to be smart and have a strategic plan for your properties.” —Lisa Streff, vice president, licensing, DIC Entertainment, Burbank, Calif.

“Focus on the customer experience and the customer will respond favorably. We spent a lot of time over the past year improving the overall appearance of our stores to create a more compelling shopping experience for our customers.” —Ron Boire, president, Toys “R” Us, Wayne, N.J.

“2007 has shown that there needs to be a much more cohesive union between manufacturers, licensors and retailers. Many of the challenges that have faced the industry would have been helped had there been a clear voice speaking with conviction on the issues that face us all and what is being done to ensure the safety of all of our products. We have made a conscious effort to keep our eye on the ball, worked to strengthen all of our relationships and, most of all, focus all energies on making great products.” —Marc Goldberg, CMO, Zizzle, Bannockburn, Ill.

”We must pay attention to every detail from design through manufacturing to ensure that we deliver a quality product that can be trusted by the consumer.” —Mike Varda, CEO, International Playthings, Parsippany, N.J.

“When the toy industry goes through a year that it has had with recalls and product failures, it underscores that product quality and safety is everyone's responsibility. As a licensor, we need to be vigilant and take steps to ensure that our licensees deliver on that promise.” —Robert Marick, vice president and general manager, Disney Toys North America, Burbank, Calif.

“Since our start in 1978, we've slowly grown away from our 'bear beginnings' to keep up with the ever changing market. We've more recently focused on growing our core everyday lines, most notably our doll and baby categories. Ironically, it only seems fitting now as we gear up for our 30th birthday in 2008, that we come full circle and return tried and true classic bears to our line once again as an appropriate way to honor the special occasion.” —Barbara Eisenberg, president, North American Bear Company, New York

“For the first time in our history, we took an assertive role in talking directly to consumers on issues they needed to understand, such as safety, accessibility, guarantees, reliability and parent advocacy. We've redesigned our packaging to more accurately reflect our brand and the quality and value of our products. We've expanded as a toy company rather than only a doll company with the introduction of pool and learning toys for our target age group of infants, babies and young children. In 2008, we are breaking new ground in the marketplace by developing a new category of high-quality, high-value toys for this age group (0 to 3).” —Jeff Holtzman, president and CEO, The Goldberger Company, New York

“We're trying to upgrade our status in the current economic world of issues with factories.” —Todd McFarlane, president and CEO, McFarlane Toys, Tempe, Ariz.

“Biggest lesson learned: the value of high quality design, the importance of working with trusted manufacturing partners, tracing materials to their source and having rigorous quality assurance and third-party testing in place.” —Amy Tucker, president and co-founder, Matter Group, Seattle

“In 2007, we re-learned the lesson that product is king as we entered the game aisle for the first time. We were mindful that entering a new category could be very challenging, yet we trusted our instincts and had confidence in our product.” —Daniel Grossman, CEO, Wild Planet, San Francisco

“I learned that you really can't count on anything! I've always believed that change is a good thing—and, there's nothing you can do about it anyway. I think that one thing that I will take from 2007 is the fact that you've always got to keep looking at every facet of a business and keep it up to date.” —Robert Tonner, president, Tonner Doll Company, Hurley, N.Y.

“For the first time in our history, we took an assertive role in talking directly to consumers on issues they needed to understand, such as safety, accessibility, guarantees, reliability and parent advocacy. We've redesigned our packaging to more accurately reflect our brand and the quality and value of our products. We've expanded as a toy company rather than only a doll company with the introduction of pool and learning toys for our target age group of infants, babies and young children. In 2008, we are breaking new ground in the marketplace by developing a new category of high-quality, high-value toys for this age group (0 to 3).” —Jeff Holtzman, president and CEO, The Goldberger Company, New York

“We're trying to upgrade our status in the current economic world of issues with factories.” —Todd McFarlane, president and CEO, McFarlane Toys, Tempe, Ariz.

“Biggest lesson learned: the value of high quality design, the importance of working with trusted manufacturing partners, tracing materials to their source and having rigorous quality assurance and third-party testing in place.” —Amy Tucker, president and co-founder, Matter Group, Seattle

What new or continuing challenges will your company face in the new year?

“Kids' tastes are continually evolving and what's in today can be out tomorrow. It's a challenge all youth marketers face. We are always looking at product development through the lens of what will inspire kids' imaginations, and what are the unique features of each toy that will create fun and memorable play experiences.” —Neil Friedman, president, Mattel, El Segundo, Calif.

“Younger kids, preschool to 5 years old, still play with traditional toys, but past that age they run to electronics.” —Al Kahn, CEO, 4Kids Entertainment, New York

“We look forward to the challenges that come with growth. We're going into our fifth year with the Uglydoll brand and the growth has been significant. We are prepared to continue to make an excellent line of Uglydoll items and maintain personal relationships we've built with our retailers.” —Alita Friedman, director of operations and sales, Pretty Ugly, Edison, N.J.

“Promotion, marketing and advertising—you need a willingness at the licensor level to step in with the licensee and the product and say 'this is what we need.'” —Allan Caplan, president, Inkworks, Morrisville, N.C.

“We believe that in the New Year, our company and the industry in general will continue to face the challenge of restoring consumer confidence in the safety of toys.” —Daniel Grossman, CEO, Wild Planet, San Francisco

“One of the many challenges facing the industry for 2008 will be cost increases. This is being caused by a combination of a weak dollar and rising material costs. We are now looking at the first significant increases in many years that will have to be passed onto the retailers and then to the consumers. Ultimately, the key, as always, will be having the products that the consumer wants. If you have these, the consumer will buy.” —Jim Pressman, CEO, Pressman Toy, Piscataway, N.J.

“The challenges that all independent producers face is the reluctance on the part of the major retailers to pioneer worthwhile games that deserve shelf space. The continuing branding that the major manufacturers do is the safe bet for retailers. They are loath to support [something] new—and new is what the toy business is about.” —Kevin McNulty, CEO, Endless Games, South Amboy, N.J.

“A plethora of brands from television, motion picture, CGI, animated, live-action, corporate, non-profit and sports, to name a few, compete for a consolidating universe of distribution channels. It is our job to ascertain movie or television opportunities that comport with their unique customer. For Fox to be truly competitive, our retail efforts will become priority one.” —Michael Peikoff, senior vice president, Fox Licensing and Merchandising, Los Angeles

“Striving to make our products, company and message as green as we can.” —Grant Cleveland, president, Dunecraft, Chagrin Falls, Ohio

“I believe that, thanks to pressures from both the world economy and the toy safety concerns of 2007, we will all be faced with inflationary pressures that we have not seen in at least a decade. The challenge is to find ways to adjust to these circumstances and continue to deliver high quality products at the right price points.” —Eric Levin, executive vice president, Techno Source, New York

“Our major challenge is the increased competition from other companies in the science arena. However, due to the unique educational value of all our niche products, we are able to diversify into many other markets besides the retail market and will focus on this aspect of our growth in 2008.” —Esther Novis, president, Young Scientists Club, Jamestown, R.I.

“Costs are increasing in China due to increased labor costs, currency devaluation and the rise in raw material costs. It's hard to imagine that in a country of 1.4 billion people that labor would be tight, but it is! The government controls the flow of manpower and right now, light industrial industries in general and the toy industry, specifically, are not priorities for the government labor ministry. They are not directing labor in the same degree to toy manufacturing districts like we've seen in the past. Locking in prices and securing labor is going to be very critical in the coming year.” —Jay Foreman, president, Play Along, Deerfield Beach, Fla.

“One of the biggest challenges is gaining consumer confidence after a tough year in the toy industry. It's getting people excited about brands and reminding them why they loved them in the first place. In the preschool area, we're always working on bringing in new viewers and new customers.” —Jamie Cygielman, senior vice president, general manager of consumer products at HIT Entertainment, New York

“Our toys are manufactured in China. Although we are confident in their safety, we know we will continue to face a certain level of scrutiny. We are fortunate that our parent company is also our factory, so there is tight oversight on safety and testing. I am confident that not only Kid Galaxy but the rest of the toy industry will be able to deliver.” —Lisa Couture, national sales manager, Kid Galaxy, Manchester, N.H.

“Costs are a rising challenge to all of us. Manufacturers and retailers must understand that to make the best product, costs cannot be cut to no end. Delivering the best, safest and most fun toys may cost more than in recent years, but parents have to have a level of confidence that they can trust our industry again. Secondarily, but also critical, is that the writers strike must be resolved. Many don't understand what is at stake without new content coming.” —Marc Goldberg, CMO, Zizzle, Bannockburn, Ill.

“The industry continues to face the challenges of shrinking retail space with more licenses competing for less shelf space—particularly in the preschool toy space.” —Sherice Torres, senior vice president, hard goods, Nickelodeon, New York

“What is wonderful about this general business is that it's cyclical, so whenever it goes down, there will inevitably follow an up side. There's lots of opportunity in traditional retail. There's a proliferation of wonderful shopping on the Internet and shopping on TV is growing. Brick and mortar is shrinking, but there are all these alternatives that are really a source when there's a lack of retail.” —Paula Miller, vice president marketing U.S., Granada Ventures, Los Angeles

“Since 2006, we have been implementing a strategy centered on the growth of our business. As part of this strategy, we've already seen success with the changes we've made to improve the customer experience, such as training our store associates to place a greater focus on customer service, identifying toy trends and altering the layout of our stores to make them easier for customers to navigate. At the same time, we are growing as a company and will continue with that trend in 2008.” —Ron Boire, president, Toys “R” Us, Wayne, N.J.

“The continuing challenge for all toy companies is the consolidation of the toy retail community to only a few key players.” —Jeff Holtzman, president and CEO, The Goldberger Company, New York

“In today's strengthening mass market, with so much emphasis on low price coupled with the growing command for more sophisticated designs (which has historically been the backbone of specialty retail), it has become increasingly more difficult for smaller independent retailers to compete and maintain business as usual. For us, the challenge lies in maintaining our design edge ahead of the mass market and cultivating new customers—both retailers and consumers—who have a discerning eye for our innovative, more creative styles.” —Barbara Eisenberg, president, North American Bear Co., New York

“There are so many great brands, so it's all about smart timing with launch and reaching that target audience. You have one chance to do it right and make sure you correctly position the property to the consumers. The launch at retail should be timely. It's all about timing and strategy, because it's so competitive.” —Lisa Streff, vice president, licensing, DIC Entertainment, Burbank, Calif.

What do you expect to be the major trends in 2008 in regards to products and/or licensed properties?

“Brands consumers know and respect will continue to be appealing. Innovation is also desired, but consumers likely won't buy a novel product unless they receive a recommendation or are motivated via promotion.” —Phil Orbanes, president, Winning Moves Games, Danvers, Mass.

“Learning and developmental toys will continue to be important to the specialty retailer in 2008 and beyond. The success of the new generation of video game systems is interesting because they combine video game play with physical activity. I believe that this particular play pattern of traditional toy and physical activity can be expanded across the full spectrum from infant toys that encourage movement to preschool toys that engage older children in fun activities.” —Mike Varda, CEO, International Playthings, Parsippany, N.J.

“With the economics of the retail market combined with what's happening over in China, companies are forced to think in the future. Maybe it's not in '08, but some people may have to find alternate ways to do their business model, or at least pieces of business models.” —Todd McFarlane, president and CEO, McFarlane Toys, Tempe, Ariz.

“Science products will continue to increase in popularity as more and more customers realize the importance of a solid science foundation for their children.” —Esther Novis, president, Young Scientists Club, Jamestown, R.I.

“A trend I hope to see is the return of more toy manufacturing to North America.” —Amy Tucker, president and co-founder, Matter Group

“2008 is another huge movie year for the toy industry, and I actually believe that some of the movies are more 'toy friendly' than we have seen for many years, which bodes well for toy industry growth. In particular, there are several major movie events that should boost the industry in the 2nd and 3rd quarters. For Lego Group specifically, a continued and very strong Star Wars property, the launch of Indiana Jones and Speed Racer and the continuation of Batman, will make for an exciting and impactful year. We also expect that the renewed focus on safety among toy consumers and buyers will continue to impact our industry in 2008. We will continue to see consumers sway towards 'safe harbors' in the toy market.” —Soren Torp Laursen, president, Lego, Enfield, Conn.

“Overall, of course, the toy industry needs to regain momentum after the significant loss of credibility in 2007, and that challenge cannot be underestimated. As with our toy industry peers, we face the challenge of higher oil prices and the added cost of doing business as a result of new and pending safety regulations.” —Soren Torp Laursen, president, Lego, Enfield, Conn.

“If pricing issues are that big of a deal and prices go up significantly, the consumer pays attention to that. They don't want a crappy product for $12, and they don't want $6 worth of value at a $12 price tag.” —Todd McFarlane, president and CEO, McFarlane Toys, Tempe, Ariz.

“Big year for kids entertainment! Kids love characters that speak to them, and stories that are rich in content. Technology continues to be a big part of kids play experiences. Classic brands will surprise you with new twists.” —Neil Friedman, president, Mattel, El Segundo, Calif.

“Obviously, there are tremendous amounts of pressure. Retailers don't take a lot of new things anymore, and the amount of retailers has gone down. We as licensors have to do more to get into the retail business of things. Licensing is just getting more difficult. Of course, good properties are always successful, but there are not enough retailers. We as an industry have to understand that this problem is not going to change.” —Al Kahn, CEO, 4Kids Entertainment, New York

“In the new year, I see our product line going more and more towards mass and hobby. Hobby shop numbers have gone down, and to get the widest distribution and to push people into these hobby shops you need mass. Once you create that collector, they will go to hobby. A lot of children's book materials are getting noticed more. For years, it was let's get that comic book superhero. Now, everyone is looking for a good children's book series. Another trend in licensing is that there will be more 3-D in 2009.” —Allan Caplan, president, Inkworks, Morrisville, N.C.

“Clearly children are moving into the virtual world, and we need to be where kids are, delivering fun to fit this movement. However, we also need to recognize that parents and kids seek the “comfort food” of toys. They want to intuitively understand their toy and have it remind them of simpler times. We see this trend reflected in many of the retro products in the market, such as Cabbage Patch Kids and Transformers, and it tracks with our plan to re-launch Waterbabies in 2008.” —Daniel Grossman, CEO, Wild Planet, San Francisco

“I have stated many times that 2007 was just the beginning in terms of the Internet/toy connections. I think this will continue to be both a powerful and evolutionary force in our industry. New licenses will become very important with their basis in the Internet rather than TV or the movies, and licenses rooted in traditional media will be rushing to evolve their brands into the online space in engaging ways.” —Eric Levin, executive vice president, Techno Source, New York

“I think the challenge will be to develop more franchise-type brands. There are too many one-off movies, me-too TV properties and here-today-gone-tomorrow programs. The trade is looking for staying power.” —Jay Foreman, president, Play Along, Deerfield Beach, Fla.

“There's a shift towards more personalization, interactive and multigenerational appeal. All industries are pretty cyclical. There's always a need for innovation. Personalization can also work its way into the toy industry. New technology can help when applied to new categories. In toys, interactivity is big. It's playing in a different way. Multigenerational play will continue to be a trend as parents look for new ways to play with their kids.” —Jamie Cygielman, senior vice president, general manager of consumer products at HIT Entertainment, New York

“There has been an increase in the number of product lines and extensions that address multicultural themes and diversity, and new products designed especially to serve special needs, and that's a really, really good thing. Toy manufacturers are realizing that supporting underserved product niches can be profitable since there is a lot of great product competing for the same general audience. Kids naturally want to share and compare their lives with others. The Internet provides an excellent extension for product experiences. We're going to see more and more products where what you buy in the store is your ticket to a broader experience online, and product sites where fans can truly interact with each other. Kids' safety and privacy is of utmost importance, however, and manufacturers need to think this through carefully. Those that do will grow and build a loyal fan base that kids love and parents trust.” —Jennifer Apy, founder, Compass KidZ, Oakland, Calif.

“…A better marriage of licensed product to game treatments.” —Kevin McNulty, CEO, Endless Games, South Amboy, N.J.

“I think the trends will continue to be electronics and radio control. Classic toys will probably become increasingly popular due to the sentiment of back to basics. Licenses that will continue in popularity are Hannah Montana, High School Musical along with for young kids, Dora, the Explorer and Diego.” —Lisa Couture, national sales manager, Kid Galaxy, Manchester, N.H.

“Recalls have affected retail, and there's going to be a slow down in toys. It will be slower than other years. It's going to put manufacturers to the test to step up and show proof of safe toys. It's up to licensors to mandate this, showing the property safety and quality.” —Lisa Streff, vice president, licensing, DIC Entertainment, Burbank, Calif.

“Though difficult to really know as trends and fads sneak up in the marketplace without warning, some key indicators to me have been the ultra growth in the consumer electronics and technology areas for licensing opportunities. We are seeing everything including Web-based toys or connectivity to the Web, custom televisions or iPod/MP3/digital photo frame SKUs that are license branded, computer peripherals and R/C. The classic, low- tech toys will continue to have a place in the hearts of consumers with technology evolving as kids and their families consume media content much differently in 2008 than in years past.” —Michael Peikoff, senior vice president, Fox Licensing and Merchandising, Los Angeles

“Technology plays a big part in boosting the bottom line of companies. Digital media is important in everybody's plan.” —Paula Miller, vice president marketing U.S., Granada Ventures, Los Angeles

“I think that pop culture will continue to be a very important trend—and therefore licensed characters. I see a darker turn (less sweetness and light) in product subject matter.” —Robert Tonner, president, Tonner Doll Company, Hurley, N.Y.

“We will continue to see an increase of tech toys on the market as kids emulate the gadgets and electronics that their older siblings and parents have. At the same time, there will be a return to basic play such as wooden toys, building blocks and open-ended activities as parents seek to fuel their children's imaginations in a more organic way as a countermeasure to the increase of technological influence.” —Sherice Torres, senior vice president, hard good, Nickelodeon, New York

“The market craze for personalized keepsakes extends beyond the traditional concept of embroidered monograms.” —Barbara Eisenberg, president, North American Bear Company, New York

“I see an industry with some huge holes in the market especially in regards to products for girls and more gentle products for all children. Licensed products will continue to play an important part in retailers' programs however, non-licensed brands like Goldberger will continue to offset the lower margins experienced by retailers for those licensed goods.” —Jeff Holtzman, president and CEO, The Goldberger Company, New York

What most excites you about the coming year?

“What excites me most is that 2008 is not 2007. This has to have been one of the toughest years in the history of the toy industry. It will be great to leave 2007 behind.” —Jay Foreman, president, Play Along, Deerfield Beach, Fla.

“There are many exciting things in the horizon. I'm a guy, so I am particularly looking forward to celebrating Hot Wheels 40th Anniversary in 2008, and we'll be unveiling what's in store for the year ahead at Toy Fair.” —Neil Friedman, president, Mattel, El Segundo, Calif.

“I think all will start to reinvent in 2008 and develop media brands that will help garner a significant amount of business. I think we are in the right church. Whether we're in the right pew, that's another story.” —Al Kahn, CEO, 4Kids Entertainment, New York

“We are excited about the new connections being created between traditional play patterns and technology. It is fascinating to see the ways that technology can take these play patterns to the next level and really tap into the way that today's child plays.” —Eric Levin, executive vice president, Techno Source, New York

“Working with our wonderful existing customers and reps to bring over 100 new products to consumers all over the world.” —Grant Cleveland, president, Dunecraft, Chagrin Falls, Ohio

“It thrills and amazes me every year to see so many new product inventors entering the market, full of the energy and passion for their creations that spurs innovation. That's what keeps the toy business vibrant and alive. We need equally innovative ways to bring these products to the masses. I can hardly wait to see what hits the market this year!” —Jennifer Apy, founder, Compass KidZ, Oakland, Calif.

“If you have the right product with a strong license and a sound promotion, the combination means success. We will be looking for other opportunities of this kind.” —Jim Pressman, CEO, Pressman Toy, Piscataway, N.J.

“The thing that excites me the most is the challenge of growing in the game industry which I do love and care about. The other thing that keeps me up is that every year something strikes me as a most worthwhile project to get involved in. Because we do accept submissions from the independent game inventor we have literally hundreds of game ideas and they keep coming.” —Kevin McNulty, CEO, Endless Games, South Amboy, N.J.

“It will be interesting to get involved with our customers to understand their challenges and needs.” —Mike Varda, CEO, International Playthings, Parsippany, N.J.

“I'm also looking forward to Granada Adventures becoming a major licensing force in the states. The past few years, we've been building the company and awareness of the company in the territory. Just because it's huge in the U.K. it does not translate into anything here in the states.” —Paula Miller, vice president marketing U.S., Granada Ventures, Los Angeles

“I am most excited about the evolution of the toy industry as more and more toys are adopting on-line and technology components in order to expand the experience and innovation. It seems more and more toys now have a parallel on-line world. This opens up endless opportunities.” —Robert Marick, vice president and general manager, Disney Toys North America, Burbank, Calif.

“I am excited about what successes we will have if we continue to work hard and focus on product and service for our retailers. I am happy to see the toy industry join together in an effort to come up with solutions to the toy recall dilemma that has hit the industry this year. I am confident that as a team, the toy industry will fix this problem, and we will be able to put it behind us.” —Lisa Couture, national sales manager, Kid Galaxy, Manchester, N.H.

“Knowing that brighter days are ahead…our business is one that has weathered many storms and always comes back stronger. We need to work together, without self interest to start to rebuild. With it being an election year, the political banter will be high and lots of shots will be taken. It is up to all of us to make sure that we are prepared to move ahead to deliver great product to bring smiles to millions of kids around the world.” —Marc Goldberg, CMO, Zizzle, Bannockburn, Ill.

“I like it when people start stacking the deck against you and the game gets tougher and you have to be on your toes a bit more. Although it can be weary at times, overall, these are challenges, if you can get past them, can be more satisfying than catching lightning in a bottle. There's a steep road coming up in front of us, and to some extent there may be some casualties in next few years. The excitement comes in thinking are we ones to live to tell about it in the next three years? Retailers are starting to be more selective. As a result, my product may get more competitive and perceived as more valuable. [Retailers] need a little diversity to bring people in. That retail diversity has been a benefit for me. What may be a glass half empty to some is a glass half full to us. We're going to continue to look for more of those opportunities. It may be predicated on the agenda of retailers, but at times it works in my favor.” —Todd McFarlane, president and CEO, McFarlane Toys, Tempe, Ariz.

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