Up Close: Manufacturers' Forecast 2009
By Karyn M. Peterson -- Playthings, 2/3/2009 10:55:00 AM
Just ahead of the New Year, Playthings spoke with dozens of toy manufacturers about their plans for 2009. Here's what they told us was highest on their agendas. [Editor's note: An abbreviated version of this story appeared in the January 2009 issue of Playthings magazine.]
What did they say is on the horizon for the industry? Most executives agreed that the slate of new safety regulations—which some called confusing and many redundant—will have a big impact, requiring many companies to cut internal costs, find efficiencies and reapportion their budgets in order to accommodate added testing expenses without impacting their customers too strongly.
In addition, the anticipated longer lead times likely be necessary to move products from development to store shelves with testing results in hand has also led executives to question whether innovation might suffer in the short term.
At retail, value will also become a buzzword in 2009, with toymakers attempting a number of strategies to court consumers, from marketing the caché of their time-tested, trusted brands and kid-favorite licenses to introducing lower price-point items and increasing efforts at going green.
1. What lessons did you learn in 2008 that your business will be carrying over into the new year?
“As a relatively new company in the toy and gift market, we have learned that listening, really listening, to your customers and retailers is the key to creating and maintaining a successful product line. Our company is fortunate to be able to quickly respond to feedback. What we hope to carry over into 2009 is the ability to significantly grow our business while still keeping our finger on the pulse, never losing touch with the consumers and retailers.” —Beth Daniels, founder, Around the Table Games
“There’s a constant and renewed need to exceed safety and quality demands of our customers.” —Paul Roche, senior vice president of sales, Aurora
“We’re not in a strictly ‘consumer products’ business any longer. It’s so much more than that. And while we can all sit around and long for the days when product was king, only those companies who are willing to innovate across all the areas that impact today’s bottom line will thrive into the future. This means being able to step outside the old models and do business in sometimes an entirely new way, while maintaining the integrity of what the toy business has always been about: great product. It can be a real challenge and I’m not going to say it’s always easy, but it does keep things interesting.” —John Lindsay, president, Cadaco
“In a year with significant challenges within the economic and regulatory landscape, we needed to clearly identify where to be nimble and where to remain steadfast. Despite pressures from higher costs and temptations to straddle a value brand segment, we need to maintain the core integrity of our products and as a result our Creativity for Kids brand promise. Don’t quickly abandon the long term perspective. It has also been a good year to stay in close contact with your best customers to ensure that they are getting the support they need. This support may be in the form of the latest communication regarding regulatory compliance, or by doing an additional in-store activity to help accentuate their key point of difference.” —Jamie Gallagher, CEO, Creativity for Kids
“We have done fantastically with our lower priced impulse items and will continue to aggressively expand our offerings at price points of $5.00 and below. We have also seen our items perform extremely well in a 2-4 foot planned section of DuneCraft items and are working with many retailers on carving out such sections, to everyone’s benefit.” —Grant Cleveland, president, DuneCraft
“I really like it when customers call us and get a chance to speak with us directly about eeBoo products, but I'm realizing that we need a clear website with full descriptions and more information to reach customers. I want potential customers and existing customers to be able to have access to information about eeBoo and eeBoo products at any hour. In spite of the economy tanking around us, I'd say I feel very lucky about eeBoo being positioned where we are. I think we are coming into our own and that the message behind our products is really resonating with consumers. Our commitment to, among other things, encouraging multi-generational play, literacy, story-telling, diversity, no-gadgetry, less packaging, are enjoying a renewed interest.” —Mia Galison, president, eeBoo
“When we started Endless Games we built the company for just this type of scenario. We are lightweight, fast, no big overhead; we do just about everything in house. We work very closely with our suppliers and they support us all the way because we support them. The result is that if the economy dips and falters we can keep on performing all functions as we go further.” —Kevin McNulty, CEO, Endless Games
“Our approach to 2008 was very different than that of 2009. The retail climate and consumer confidence going into 2009 is at an all time low. Store traffic will be down significantly at least for the first half of the year, which will likely have a direct impact on a company in the accessory business, which thrives on an impulse emotional purchase.” —Steve Russo Founder, president and CEO, FAB/Starpoint
“I think that along with everyone else, our troubled economy made us face the challenges related to the consumer’s declining disposable income. We saw the sales of our higher price points dip while sales of lower price points accelerated. Going into 2009 will find us developing more value-packed products at lower price points.” —Elaine Kollias, marketing director, Folkmanis
“I’ve learned that sometimes you have to pass on accounts that are just too difficult to work with. It uses up too many company resources and ultimately hurts the relationships you have with other accounts that do understand how business operates from a manufacturer’s point of view—including the manufacturing, testing and shipping processes.” —Jeff Holtzman, president and CEO, Goldberger Co.
“Hasbro has long understood that strong brands are very important to the consumer, especially in a challenging economic environment, and 2008 confirmed this for us. We are fortunate to have an incredible portfolio of brands that consumers enjoy and trust, while consistently delivering outstanding value. During a period when consumers are being careful and discerning, they often turn to trusted brands that provide them with great experiences when they were kids, and we certainly have a considerable collection of these types of brands. In 2009, we will continue to work very hard at creating immersive brand experiences for consumers around the world to enjoy. Our Family Game Night initiative, which we re-launched in 2008 and will continue in 2009, is a great example of how all family members can enjoy some of our most iconic games brands together as a family. Family Game Night provides parents a unique opportunity to get the family around a table and have fun without breaking the bank—no babysitters, no traveling—while creating vivid memories and experiences for everyone. In 2008, we also saw the on-going importance of innovation, and we will continue to emphasize innovation in all aspects of our business in 2009 and beyond.” —John Frascotti, chief marketing officer, Hasbro
“Plan, plan, plan, plan, plan … and then be prepared to improvise.” —Barbera Aimes, president, ImagiPlay
“Managing the new safety testing standards will be a focus for 2009, as it has been for 2008. Building in the appropriate time lines for testing and being able to react swiftly to any additional changes will be a priority. Another important focus will be having a second and third look at efficiencies and finding the best ways to cut out waste.” —George Irwin, CEO, iToys
“We have learned that you can never be too prepared. With the change in the world’s economic outlook, everybody must investigate new ways of conducting business. This means tightening the controls and trying to be more efficient in every area of our business.” —Michael Rinzler, general manager, Jakks Pacific’s CDI division
“We often think of our business as being very squarely focused on traditional toy giving seasons and occasions, but 2008 showed that we can create shopping occasions and sustain strong demand all throughout the year with the right promotions, feature and marketing programs. We will continue to plan the business with seasonal toy occasions in mind, but also continue to create or chase incremental events. We also attribute our momentum to having some of the best licenses in the industry and to successfully re-establishing or core business to deliver amazing models across several evergreen themes like castle, space and city. We understand the importance of having a balanced portfolio to appeal to all variety of builders and collectors of any age at approachable price points. 2008 marked one of the strongest product portfolios in our recent history, and so we will keep a laser focus on continuing to strengthen the core business and also only bringing the right licenses into the construction category to ensure the best play experiences. Finally, we have consumer insights to validate the strong link that our video games have to driving consumer engagement with the brand in both virtual and physical play, so we will continue to work with our partners to develop strong games that provide a new way to play with the Lego brand that also promotes the more traditional, hands-on play.” —Soren Torp Lauresen, president, Lego
“We’ll introduce more fun and simple products.” —David Naghi, president, MOBI
“The importance of streamlining and maintaining complete focus on the thing(s) we do very best, especially in such a competitive industry. Also, tenaciously planting those little seeds no matter how inconspicuous they might seem; it really does pay off.” —Elena Patrice, co-founder, Nana Star
“We are best at staying true to who we are and that the little details add to our product do matter. Cutting corners on design just makes us look like everyone else. When people tighten their purse strings, they will be looking for quality not quantity and that is where we really shine.” —Barbara Isenberg, president, North American Bear
“Playmobil’s primary concern in 2008 was to keep assuring our customer of the value of the Playmobil brand, and we learned the importance that the extensive testing on the toys and raw materials holds for consumers. With the state of the economy, we want to be sure the consumer knows every penny spent on Playmobil products carries long-term value in terms of the toy’s quality, and ultimately, long-term creative play value for children. The Playmobil assortment includes play themes that inspire long-lasting play at every budget, making it that much easier for parents to still choose Playmobil sets for birthdays and other occasions at any time of the year.” —Andrea Schauer, CEO, Playmobil
“Pressman Toy is a family owned and operated toy company that is built on traditional play values. During 2008, our core company values were reinforced industry wide as consumers sought assurances of product safety and products that offer a lot of play for their money.” —Jim Pressman, president, Pressman Toy Corp.
“We stick to our plan no matter what the weather. Despite the bleak news constantly reported, we continue to stay positive and create new wonderful Uglydoll items for our retailers and fans. A positive attitude is key! All of our team members are excited about our plush line, new Action Figures, new books and new stationery so we're going into 2009 with a winning attitude.” —Alita Friedman, director of operations, Pretty Ugly
“It is important to carefully and continually evaluate your cost envelope to make sure that your fiscal decisions provide the flexibility to react in a difficult market.” —Steve Velte, president, RSV Productions (Jishaku)
“I have learned that Safari’s new collections have been very well received by a worldwide audience looking for something different. Yes there are similar toys in the marketplace but there is only one collection like ours. Ours is uniquely child friendly and educational. This combo is very powerful and has been since 1983. Parents want to educate their children about our vanishing wild and fragile eco systems and Safari’s figures and posters provide this information. These themes have and always will be a constant at our company. Why? Because the parents expect it from us.” —Ramona Pariente, president, Safari Ltd.
“As a startup company using new materials, technologies and vendors, the lessons from this year seemed infinite. I think the two most important of these were the design and engineering learnings from manufacturing in North America for the first time in our respective careers and the importance of having a clear specialty vs. mass market strategy. Our backgrounds were with large, well established brands and we now have a much clearer understanding of the challenges facing a new, unknown toy company." —Craig Storey, CEO, Sprig Toys
“If 2008 reinforced anything, it was that the economic environment can change quickly. We need to balance the necessity for long term planning against the reality that by the time products are ready to ship, the market could be quite different than originally expected. After a year like this, contingency planning takes on a whole new level of priority.” —Eric Levin, president, Techno Source
“At ThinkFun we are and always have been about problem solving—its part of our DNA. As we move into 2009—our 24th year in business—we strive to keep living that magic combination of entrepreneurship, nimble thinking and celebration of teamwork that has enabled us to learn, grow, and succeed in spite of whatever economic or political situation is at hand. Lessons learned in 2008 are only a portion of lessons learned along the way and in my mind the major lesson of 2008 is to continue to work smart, stay lean, have the right people in the right jobs doing the right things, and operate to our core values each and very day. We will continue to be pioneering, passionate, smart, fun, friendly and do everything we do with integrity. I firmly believe that it is critical to make difficult executive decisions each and every day in order to have the privilege to stay in business.” —Andrea Barthello, chair/co-founder, ThinkFun
"Understanding the often complex global forces affecting our industry is more important than ever before. Despite the global downturn there are still great opportunities if we continue to look for them and don't adapt a reactive "bunker" mentality. We must work closely with our international partners to understand their markets, and we need to manage inventory, our own and for our retail partners, better and more diligently than we have ever done before." —Frank Adler, executive vice president, Uncle Milton
“2008 was a year in which more lessons were reaffirmed than learned. We found that even in difficult times, great products do well. As a result, carrying over into 2009 we will continue to make a significant investment in our product development.” —Daniel Grossman, CEO/president, Wild Planet Entertainment
“That it is very important to stay involved in the various organizations such as TIA and ASTRA that have made important information readily available to all of us. The change in the toy safety regulations certainly has brought manufacturers closer together to one another which will only help in making the toy industry stronger.” —Esther Novis, president, Young Scientists Club
2. What will you be doing differently in 2009?
“In 2009 we will be lowering prices! Surprisingly we are not lowering prices as a direct result of the economy. We’ve worked hard in 2008 to establish relationships with key manufacturers that share our vision for safety and efficiency. Plus, we are lowering our prices because we want our products affordable for all families.” —Beth Daniels, founder, Around the Table Games
“Aurora will be expanding our green product lines to reach niche customers and keep pace with important initiatives.” —Paul Roche, senior vice president of sales, Aurora
“Cadaco will focus on strengthening its profile in the industry with creative marketing strategies and will develop some innovative products that are designed to stand out from traditional toys and offer parents and kids unique play opportunities. We will also be aggressively pursuing the specialty industry with products designed to appeal to this market and it consumers.” —John Lindsay, president, Cadaco
“We will be revising our product development lead times in order to accommodate extra time required for regulatory compliance. We need to be reliable in our delivery timelines and this will require that we build in more time to navigate the steps required within CPSIA. We will also look to expand into new adjacent product segments to generate incremental growth and build our brand in 2009.” —Jamie Gallagher, CEO, Creativity for Kids
“We started focusing on efficiency, productivity, and cost savings methods as well as growth in 2008. In 2009, we will be executing many initiatives we began in 2008 including the rolling out of new custom designed enterprise-wide software and perfecting our incentive based pay system for our production staff. We have reapportioned our marketing budget to allocate more funds to direct customer visits and service at the expense of peripheral trade advertising. We have found that strengthening our relationships with our existing customers is a very effective way of growing revenue.” —Grant Cleveland, president, DuneCraft
“One of my favorite parts of having my own business is the ability to try new things whenever I want. I usually try to introduce a few new formats for each catalog. In past years I¹ve even produced things I didn¹t think would really sell because I just wanted to see certain beautiful things made. I definitely will have to curtail some of that this year. In the short term we will be focusing on expanding our stronger categories. Overall, we are watching expenditures, and trying to work smarter.” —Mia Galison, president, eeBoo
“In 2009, we will keep our ears to the ground to understand trends, we will continue our austerity program, and enjoy everything we can in the business we chose. We may change from tuna sandwiches to chicken salad sandwiches.” —Kevin McNulty, CEO, Endless Games
“We, as an industry leader, will need to continue to provide impeccable service to our retail partners and be there to support them in every way possible. We will have to do this with a leaner more cost effective organization that is focused on the company’s goals.” —Steve Russo Founder, president and CEO, FAB/Starpoint
“While we’re cautiously optimistic about 2009, we will cut unnecessary spending. However, we will not cut back on product development, the number of products we introduce, our quality standards, attendance at trade shows and our marketing efforts. In fact, we’re ramping up our web presence, designing a new site for both retail buyers and consumers. The enhanced website will allow us to streamline our internal processes and offer our customers more options and even better customer service.” —Elaine Kollias, marketing director, Folkmanis
“The Goldberger Company will be doing much more to connect directly with our consumers in 2009. We want parents, grandparents and caregivers to know what we’re about, what our products are about, and we want to become their go-to resource for information and advice about caring for children ages 0-3. Our Web site will prove to be instrumental in branding ourselves and connecting with these consumers. At GoldbergerToy.com, parents, grandparents and caregivers will be able to interact with our full-time family advocate. They will also benefit from our blog, podcasts, and the online forum we provide.” —Jeff Holtzman, president and CEO, Goldberger Co.
"We will not be making any radical departures from our long-term strategies in 2009. First, we will continue to innovate and focus on creating compelling, immersive brand experiences for consumers around the world. Our philosophy continues to center on re-imagining, re-inventing and re-igniting our brands in a variety of ways. As an example, two major, feature length motion pictures based on Hasbro brands—Transformers: Revenge of the Fallen, and G.I. Joe: The Rise of COBRA, are scheduled to debut this summer. We are very excited about these films, which are prime examples of how we are re-imagining our brands and creating immersive brand experiences beyond traditional toys and games. We will also continue to work very closely with Universal as part of our strategic partnership to produce at least four motion pictures based on some of Hasbro’s best-known and beloved brands. We expect that the first movie from this agreement will be released in either 2010 or 2011. We are also accelerating our efforts in two other key areas of strategic importance for Hasbro: First, our alliance with Electronic Arts brings together two highly creative companies, and this relationship is enabling us to broaden the reach of our brands on all key digital platforms. In 2009, we will launch some great new Hasbro brand-specific games into the marketplace on the heels of some incredible introductions in ’08, which were based on brands like Littlest Pet Shop, Nerf, Scrabble and Monopoly. Secondly, we also will continue to invest in our emerging markets, including Brazil, Russia and China. We believe that our brands have truly global reach, and we will continue to place an emphasis on these important markets.” —John Frascotti, chief marketing officer, Hasbro
"We have already made great strides in better communications with our partner factory this year, but will be working even more closely with them in 2009. Our biggest change will be better organization. We are working on creating a definitive roadmap of our business that will guide us—and our factory—through the year.” —Barbera Aimes, president, ImagiPlay
“From the beginning, the focus of the company has been to integrate new and unique technologies into basic toys, leading to the development of innovative, multi-media products that will delight and engage the consumer in a new way.” —George Irwin, CEO, iToys
“Due to the struggles with the economy, it’s a no-brainer that we will be tightening our spending next year. As a public company, it is our duty at Jakks to control our expenses and ensure we are looking out for the best interests of our shareholders, while being careful to maintain our high standards for quality control and product playability for our customers. Company-wide we will take an even closer look at every penny we spend, but are always careful to make sure the product integrity remains consistent. Also, with the rising costs of testing and increased labor costs out of China, we will need to revisit our cost structure on a continual basis.” —Michael Rinzler, general manager, Jakks Pacific’s CDI division
“We always strive to deliver world class customer partnership, and will continue to focus on creating joint business plans that reflect the trends we have seen, the momentum we have experienced so that we don’t miss opportunities to deliver success for our retailer partners. We will be investing more in marketing, and in so doing, focusing our programs and marketing innovation to be as targeted as possible while driving not only awareness, but also engagement.” —Soren Torp Lauresen, president, Lego
“We’ll introduce environmentally safe and low-cost items at retail.” —David Naghi, president, MOBI
“We will be more tightly defining who we are as a company. Creating a more complete solid base in order to successfully forge ahead to the next level.” —Elena Patrice, co-founder, Nana Star
“We will be doing more consumer marketing to help stimulate business for both us and our retailers. We are not new to adversity in the marketplace and we are more than capable of weathering this storm. We look forward to going headlong into the new year!” —Barbara Isenberg, president, North American Bear
“We don’t plan to make many changes for 2009 in terms of how we work with our retailers on a daily basis.That has worked well for us for years; however, with a soft economy, we may be more mindful about providing additional promotional opportunities to our retail base to help them bring more consumers into their stores. We will continue to offer various toys with great play value at multiple price points throughout the year for all budgets.” —Andrea Schauer, CEO, Playmobil
“Nothing really different. As a game company with roots in traditional table and board games, our focus has always been on the family. We expect that in the coming year, families will be watching budgets and entertaining more at home and so we’ll continue to bring to market innovative new games as well as family favorites such as Rummikub that deliver high entertainment value.” —Jim Pressman, president, Pressman Toy Corp.
“We have a full lineup of new product that we are extremely excited about. Toy Fair is just around the corner and we will release new Uglydoll plush characters in fantastic bright new colors and a super line of Uglydoll Action Figures. We've dedicated a healthy amount of time making these Action Figures over 2008 and they are tremendous. We are very excited to present them to the retailers for their stores. The packaging and marketing appeal is a standout. Retailers always want the 'new' and we are well prepared to give them something new!” —Alita Friedman, director of operations, Pretty Ugly
“Choosing promotional opportunities very carefully so that discretionary money spent provides the maximum benefit for the dollar.” —Steve Velte, president, RSV Productions (Jishaku)
“Due to the success of the last several years, I would not say what I would do differently, but rather that I would continue to build upon the collections that have proven to be the most dynamic. The enormous amount of recognition of our new collections has been unprecedented and we are determined to never disappoint our buying public.” —Ramona Pariente, president, Safari Ltd.
“Consumers are hurting right now. They are looking for products that provide extended play for their kids at price points that don’t strain their pocketbooks. We will be carrying the Adventure Series next year, but we have shifted the focus of our new lines to lower priced items that still address the open, active, imaginative play mantra upon which Sprig Toys was founded.” —Craig Storey, CEO, Sprig Toys
“When the economy was strong, we saw a real openness from consumers to try new things, as well as a fair degree of price elasticity. When money is tight, consumers tend to cut risk out of their buying decisions. While Techno Source will continue to focus on innovation in 2009, our line will also have a "back-to-basics" simplicity to it. We want to make it as easy as possible for both retailers and consumers to feel comfortable with our value proposition.” —Eric Levin, president, Techno Source
“We will do more of what we always do which is to ensure that our operations are efficient, reduce costs where we can, listen to our customers even more and make sure we are producing products that speak to the needs of families, educational values, and affordability. Partnering with our retailers will continue to be our focus so that we can ensure they are able to feature ThinkFun products in the best way possible. 2009 is a year where you will see families getting back to basics, prioritizing how they spend money, creating more family time, reducing screen time and putting a premium on education. We hope that ThinkFun can be a participant with the new Obama administration as he focuses more on our education system and it evolves. We truly believe—and we know from our work in schools—that ThinkFun products can help generations of kids learn the critical skills of problem solving. If we have the impact across the country that we have had regionally in schools, we know we can help generations of kids keep this country on the right track going forward. I know it’s a big statement but that is what we are about and this is why we do what we do. Teaching today’s kids to solve tomorrow’s problems.” —Andrea Barthello, chair/co-founder, ThinkFun
“Working harder, if that is possible! We'll continue to improve efficiencies in all aspects of Uncle Milton’s business. We’ll work to drive efficiencies across our supply chain, ensuring our retail partners benefit from those improvements, all the while finding innovative ways to promote our product offerings, including more utilization of the Web.” —Frank Adler, executive vice president, Uncle Milton
“The main thing we’ll do differently in 2009 is we’ll take a harder look at our return on investment. We will put more effort into creating partnerships that will allow us to continue to bring innovative products to market.” —Daniel Grossman, CEO/president, Wild Planet Entertainment
“We will most likely run more specials to entice customers to buy our products as well as diversify as to where we will be selling our products.” —Esther Novis, president, Young Scientists Club
3. What new or continuing challenges will your company face in the new year?
“The challenge for Around the Table® is to increase our distribution channels while striking a balance between our rep groups and the needs of our growing company.” —Beth Daniels, founder, Around the Table Games
“Freight costs are a problem and it seems that the monopoly that is FedEx and UPS just continue to raise prices with no regard for its customers. Fuel prices have dropped significantly but neither company changed its pricing to reflect that.” —Paul Roche, senior vice president of sales, Aurora
“With the way the retail landscape is looking, Cadaco will find niches in larger categories that are not being taken advantage of by some of the larger manufacturers. Innovative and proprietary products like our biodegradable Enviro Blox building activities and Big Draw sidewalk chalk art sets are designed to 'fill the gaps' in those areas for retailers.” —John Lindsay, president, Cadaco
“The pinch created by rising costs in a flat consumer environment will continue. We will take a close look at all costs throughout the company in light of what is expected to be a relatively low growth retail year. It actually becomes an excellent exercise in identifying which activities truly deliver value to the brand and our customers.” —Jamie Gallagher, CEO, Creativity for Kids
“Finding good, talented, hard-working employees has always been a challenge. A company is always limited by the number of great partners they have, or do not have. Another challenge that we all will face will be in the continuing consolidation of retail and the inevitable bankruptcies that the current economic climate facilitates. Knowing who to ship to and who not to will be key in the coming year. Controlling costs, as always will be an issue. Since our items are made in the USA, this is easier to do for one primary reason. We use different suppliers on all components and can separate and replace suppliers with increasing costs.” —Grant Cleveland, president, DuneCraft
“Our two biggest challenges are increased prices and managing inventory. We¹ve seen a tremendous rise in costs in everything from manufacturing to warehousing and we have to gauge how we are going to adjust our prices to accomodate this rise. I've always been pleased that eeBoo has been able to remain very competitive with our price points, and we are struggling to maintain this while still maintaining profitability. Managing inventory is always one of my biggest challenges, but this year defied all known patterns for us. We were down in months we are usually up and vice versa. Late November and early December brought a huge rush and we are usually almost done by then These changing patterns made planning reprints even more of a challenge than usual. On a separate note: health insurance costs are crazy and I'm hoping for some government reforms that can help out small businesses that are trying to do right by their employees.” —Mia Galison, president, eeBoo
“There are new challenges every year and 09 will be no different. Independent stores will be harder to write business with as they see first hand diminished profits from discounted sales. On the other hand the nationals will be or should be looking at lines that provide richer margins to offset their discounted retails. Board games, while not thriving in this environment, will hold their own.” —Kevin McNulty, CEO, Endless Games
"One continuing challenge that we welcome is the development of new products that will appeal to a wide range of consumers as well as our niche markets. The rising cost of materials in Asia is a challenge that luckily we don’t face alone as our entire industry faces it together. Complying and keeping up with the major toy safety changes will definitely keep us busy! We will be vigilant in communicating with our customers regarding the new CPSU compliance act and convey to the consumer that our products not only meet but exceed federal regulations. I believe that all toy companies will need to cultivate the trust that consumers require and deserve in their purchases.” —Elaine Kollias, marketing director, Folkmanis
“The Goldberger Company, like many mid-sized companies in the toy industry, will face the challenge of keeping the cost of manufacturing down while other costs continue to rise. In this tough economic environment, our goal will be to continue to create the best product at the best price for our customers.” —Jeff Holtzman, president and CEO, Goldberger Co.
“We will continue to challenge ourselves to exceed our consumers’ expectations by delivering great, immersive experiences that provide them with hours and hours of fun and enjoyment. We also will continue to challenge ourselves to grow our global brands and extend the reach of these brands beyond traditional formats.” —John Frascotti, chief marketing officer, Hasbro
“Continuing to educate consumers that toys made in China are safe and that workers there are taken care of with fair wages, health insurance and retirement funds – more than many U.S. businesses can say.” —Barbera Aimes, president, ImagiPlay
“The entire industry is facing serious challenges in price fluctuations, reduced vendor availability and increased testing requirements and timelines. In addition, it will be critical in the coming year to manage and justify the new price/value relationship that has emerged in the past 12 months.” —George Irwin, CEO, iToys
“Though toys have historically been recession resistant, and may not be as affected as other products, we are experiencing a negative phenomenon that most of us have never seen before. Retailers are going out of business at a rapid pace and the unemployment rate is at an all-time high. All the key stakeholders—manufacturers, toy companies and retailers—will need to hold hands and figure out how to get through what is likely to be one of the toughest business years ever.” —Michael Rinzler, general manager, Jakks Pacific’s CDI division
“We have tremendous momentum to carry from 2008 into the new year. Uncharacteristically strong demand, sustained over the course of 2008 across all of our brands creates a situation where we have to carefully plan for 2009. Of course the economy will continue to create uncertainty for our industry, and though we are planning for growth in 2009, we also are building in scenarios for various macroeconomic variables. We have been lucky to often end up recession-proof as families revert to familiar brands, classic toys and those products that represent the best play value for their money.” —Soren Torp Lauresen, president, Lego
“We’ll be continuing to absorb the added cost of products and business in order to offer same or lower cost to consumers.” —David Naghi, president, MOBI
“Just to remain visible and considered as serious contenders in this industry is always a challenge.” —Elena Patrice, co-founder, Nana Star
“After 30-plus years in the industry our challenge is to always be fresh and new while still offering the ongoing legacy product consumers expect from us. Our new Everyday 2009 catalog is a great example of this commitment.” —Barbara Isenberg, president, North American Bear
“With the continuing economic crisis, Playmobil will face the same challenges as many other toy manufacturers; however, the company believes that, especially in difficult economic times, strong brands such as Playmobil that have consistently offered consumers high-quality products will sustain their customers. Even with the recession as a factor since December 2007, our product has continued to sell consistently throughout the year – a reminder to our retail base that Playmobil remains a viable brand through tough economic times." —Andrea Schauer, CEO, Playmobil
“Our challenge is always to create the next must-have game.” —Jim Pressman, president, Pressman Toy Corp.
“We are still in a growth mode so we will always face the challenges that come with growing our staff and our product line. We have a healthy growth plan for the specialty market and we expect a strong start after holiday for retailers to restock their shelves.” —Alita Friedman, director of operations, Pretty Ugly
“Our game (Jishaku) uses strong magnets, all carefully labeled and targeting an audience that should not have any problems with them. However, there has been such a strong backlash regarding toy safety that some level of reasonable common sense needs to be injected into the debate. Not only are some of the new regulations onerous and a major cost driver- they seem to have become disconnected from reality and the real threats that prompted the debate initially.” —Steve Velte, president, RSV Productions (Jishaku)
“In 2009, we will all have challenges to face. Presently, we are stuck between an out-going, lame duck President and an in-coming one while an economic whirlwind is whirling. In such an environment as this, the best direction to take is to be conservative and weigh all options when making business decisions. Keeping costs down by spending smarter. Running the business based on a future slow down whether there will be one or not in the toy industry. I remember the economic slow down in the late 1980’s at Safari. We weathered it fine because we sold in such diverse markets that if one was soft the other ones compensated. Again, carefully watching all facets of my business to stay business healthy." —Ramona Pariente, president, Safari Ltd.
“Understandably the current worldwide economic turmoil has a significant impact on consumer and retail buying patterns, which makes forecasting demand very difficult. This has a trickle down affect on our manufacturers and material suppliers which has highlighted the importance of regular communication with our partners and careful tracking of POS information.” —Craig Storey, CEO, Sprig Toys
“2009 is sure to be the most challenging economic environment in decades—especially the first half. The challenge will be to manage the business at the most granular level possible. That means efficient execution every day—on every project, on every SKU, with every retailer. This will be Techno Source’s obsession in 2009.” —Eric Levin, president, Techno Source
“Evolving ThinkFun into a company that bridges the channels of retail and education. We have a strategic plan that involves engaging children, families and schools in a new and radical way that will create community around purposeful methods of problem solving. Bringing together the research that we have been doing over the past few years and combining the power of social networks will enable us to engage at the local, state and national levels in a way that is pioneering and fun. We have had teachers and families knocking on our doors to create programs and we believe 2009 will be the year of evolution for ThinkFun to start to fulfill our potential.” —Andrea Barthello, chair/co-founder, ThinkFun
“The world economy will continue to create a challenging environment in which to operate. It's our hope that that good holiday sales materialize, but the reality is that some of our retail partners may have a tough go of it and this may extend into next year. Consequently this creates a challenging environment for the manufacturing community. The toy business is still a viable business and our challenge is to find innovative ways to continue to be a reliable economic resource for our partners.” —Frank Adler, executive vice president, Uncle Milton
“One of the challenges we’ll all face in the new year is staying on top of legislation in regard to toy testing and safety standards. We also have to overcome hesitation from consumers in this marketplace and around the world.” —Daniel Grossman, CEO/president, Wild Planet Entertainment
“I believe the economy will be a major challenge this coming year for all of us and the challenge will be to be able to balance low prices with the continuous cost increases due to testing, materials, and manufacturing.” —Esther Novis, president, Young Scientists Club
4. What impact will 2009's new toy safety requirements have on the ways you do business?
“The new safety requirements and the complexity of those requirements mandate that all of us in the industry work diligently to educate ourselves, our employees and our agents about the changes and to advocate as appropriate. For Around the Table, planning and communicating clearly with our manufacturers will be key.” —Beth Daniels, founder, Around the Table Games
“There’s a lot more paperwork and expense associated with the new requirements. Aurora is a very safety conscious company and I realize others do not hold their partners to the same safety standards. This makes added steps for everyone in the industry. Eventually these expensive tests and the added administration costs will raise prices on the consumer.” —Paul Roche, senior vice president of sales, Aurora
“Obviously there will be a significant increase in the cost of safety testing. What we’d like to see happen is for toy manufacturers and major retailers sit down and hammer out a unified system of testing and certification to harmonize the entire process and reduce costs for the industry as a whole.” —John Lindsay, president, Cadaco
“Extended timelines, added compliance costs, greater management resources to oversee this process. The current transition period is challenging due to the lack of a clear understanding by governing bodies as to the impact of their decisions on small business. If clarity and a deeper understanding is not soon established, this will be a growing negative impact on the retail market for children’s products.” —Jamie Gallagher, CEO, Creativity for Kids
“The laws are confusing, ambiguous, and subject to change. They have added a great deal of complexity, cost, and undue burden on us and our retail partners. After reading every word of the new law, I cannot help but to be let down and disappointed. This obviously is a case of not seeing the forest for the trees and a vague knee-jerk reaction that we, in the Toy Industry, are all forced to live with. While this won’t drive us or anyone else out of business, it certainly is inconvenient, expensive, and ineffective. We have not had a price increase in several years and do not anticipate this causing one, but it is a loose cannon issue that could end up costing all of us in the future.” —Grant Cleveland, president, DuneCraft
“We were already extremely proactive and always tested and then retested our products. However, new legislation in China requires that additional, sometimes redundant tests be done on every product and that can become very expensive. Luckily, we had already modified our designs to eliminate any use of "paint" and we eliminated the use of any plastics that would have to be tested separately for lead or phthalates. Even so, the testing of paper, ink and greyboard costs thousands of dollars per format. The tests also generate staggering amounts of paperwork and getting the results to everyone that needs them is almost a job in itself. Our customers, and consumers in general, will have to accept that the new safety guidelines are going to raise the price of goods not only made in China and Europe but even in the US." —Mia Galison, president, eeBoo
“The new toy safety requirements continue to confuse and baffle manufacturers. There isn't one defining body that compels us to test for certain materials that we can follow. There are government groups, consumer groups and retailers with their own standards, there are groups with initials that I never heard of demanding toy product be removed from shelves. As per usual it's the old pendulum swinging back from lax requirements to overkill.” —Kevin McNulty, CEO, Endless Games
“FAB has already been addressing the safety requirements for lead over the past 2 years. We have been internally testing raw materials and finished product for all products produced in 2009. Aside from new procedures and third party testing costs and timing issues, we feel the impact will be manageable and are committed to meeting the challenge.” —Steve Russo Founder, president and CEO, FAB/Starpoint
“We have reorganized some duties internally to respond to the added paperwork, filing and posting of the CPSUIA. We were using the European Standard of “Safety of Toys”, EN71 exclusively, but are now required to add the ASTM, so now we have double testing. Our website will host the posting required by the CPSUIA and I predict that within the first quarter, all will be running smoothly.” —Elaine Kollias, marketing director, Folkmanis
“Right now, there is no consistent format for testing. The Goldberger Company will strongly advocate for one standard testing format in 2009 to eliminate repeated, and costly, testing of the same item. This single standard should improve the overall reliability of the product tested without passing unnecessary costs on to the consumer. That said, we remain committed to providing our customers with the safe and well priced toys they have come to expect from Goldberger.” —Jeff Holtzman, president and CEO, Goldberger Co.
“Safety has always been a top priority for Hasbro. Hasbro continues to meet or exceed all federal safety standards, and we will continue to do so going forward.” —John Frascotti, chief marketing officer, Hasbro
“This new focus on safety is great. I think it’s given the industry a real shot in the arm—which as we all know can be painful at first. It has encouraged us to scrutinize our design and production procedures and to really go over our quality control with a fine-toothed comb. We’ve also updated our record-keeping.” —Barbera Aimes, president, ImagiPlay
“Ultimately, the new safety requirements necessitate much longer lead times in order to accommodate all of the additional testing obligations. This means that products will need to be ready sooner, changing the total development and buying lead-time cycles. As a result, the entire flexibility of the supply chain and product delivery will be severely limited, possibly leading to shortages in the market.” —George Irwin, CEO, iToys
“Although Jakks always took toy safety testing very seriously, making sure our toys all meet or exceed all US toy safety standards, like our peers, retailers and licensors, we have seen testing fees greatly increase over the past year. With the new CPSIA requirements, we expect costs will certainly increase in this area and are planning accordingly. Because every single component of every single shipment must be tested as a result of the new legislature, it is going to be more difficult to justify doing the amount of specials we do unless we figure out a way to manage these costs better.” —Michael Rinzler, general manager, Jakks Pacific’s CDI division
“We are fortunate to have a strong history in quality and safety afforded by processes and standards we have voluntarily been following for years, so we head into this process ahead of the curve. We are working with all relevant parties to understand what things we’re already doing work and what things will need to be added, like certification labels. Because we already have a strong protocol in place, I don’t foresee any major changes to the product development or manufacturing process; however, we are bracing for how much time could be added to the turnaround of goods to market due to the certification and additional costs that we may incur. I’m optimistic, however, that the policies being put into place are the right ones to ensure that consumers need not worry about the safety of their children’s toys.” —Soren Torp Lauresen, president, Lego
“The result will be added expense, slower product introduction and fewer new items.” —David Naghi, president, MOBI
“Well, we work only with manufacturers that comply with the new consumer product safety standards, such as third party safety testing. As well, from the very beginning, we have worked diligently to have safety as top priority so this isn’t too daunting a task for us or much of an additional worry.” —Elena Patrice, co-founder, Nana Star
“Safety has always been important to us, so the only impact is being able to roll and react with the ever changing legislation with the least amount of inconvenience to our retailers.” —Barbara Isenberg, president, North American Bear
“Playmobil has always been conscious of toy safety, and is already in compliance with the new, stricter regulations. For years, the toy market has been under enormous pricing pressure; however, increased costs of doing business should not affect quality or safety in products for children. Playmobil proprietor Horst Brandstätter and his team make this issue their top priority, taking product safety into account through product development into manufacturing according to American and European toy safety standards. Since 2001, all Playmobil products have been marked with the LGA's test seal. Numerous awards for its products attest to the Playmobil team’s consistent pursuit of quality, safety and educational play value.” —Andrea Schauer, CEO, Playmobil
“The new safety requirements will add an additional month, on average, to bringing new products to market. This will be the most significant immediate effect. It will result in additional costs both in personnel and in lab tests. There will be a lot of confusion about these new laws that create issues with retailers and others. It is a Pandora’s Box that has been opened and no one knows what exactly has been let out.” —Jim Pressman, president, Pressman Toy Corp.
“We always tested our toys and will continue to stay abreast of the CPSC changes on a regular basis and implement them into our production and reporting as necessary.” —Alita Friedman, director of operations, Pretty Ugly
“Maintaining reasonable margins while dealing with increasing costs. Keeping the consumer in mind and not losing sight of acceptable price points. Longer payment cycles from customers struggling with this economy can, predictably, cause a ripple effect in the industry.” —Steve Velte, president, RSV Productions (Jishaku)
“Fortunately, many years ago, Safari Ltd had already converted our PVC into phthalate free due to stringent import laws in Europe and Japan. Since we have been exporting worldwide for many years, we have already established procedures of continuous safety testing. Some of the new requirements do make conducting business more costly and often very difficult. I do hope that these new regulations will not be so inflexible to impede upon our businesses especially in this economic environment.” —Ramona Pariente, president, Safari Ltd.
"We had already been complying with these requirements with our existing lines of product, so the impact on the way we do business has been minimal. Our only concern is the affect that the 3rd party testing requirements will have on the time it takes to get approvals from the limited number of testing labs that will be overwhelmed with product.” —Craig Storey, CEO, Sprig Toys
“Techno Source has been gearing up for these new regulations all year, and we are ready to go. Cleary, there is a lot of additional work required and expense incurred. The one variable that we still need to get a better handle on is coordinating the additional testing required by each retailer with the testing required for typical importation. The cost, timing, and regularity of this process creates a big impact. I think this is an area that will have to be refined as the year goes along.” —Eric Levin, president, Techno Source
“We have been tracking this all along the way with the CSPC, TIA, our factories and networking with other companies. There are certainly a lot of new cumbersome requirements and we have embraced the change and implemented the necessary changes to our operations so that it’s less of a burden and more of an extra few steps in the process. The TIA has been very helpful and responsive to these new challenges as has the CSPC. It doesn’t hurt to be in Washington because it’s even easier to engage in a dialogue with the CSPC for clarification. I believe that 2009 is a year when it is even more important for companies in our industry to be involved in TIA—volunteer—engage with your peers—and be willing to share information and learn from each other. Although we are all competitors, we are also in an industry that can benefit from working together on tough issues, and we at ThinkFun make it a practice to help smaller companies as well as ask for help when we need it.” —Andrea Barthello, chair/co-founder, ThinkFun
“Uncle Milton has worked very hard to meet and exceed all mandated requirements. These new requirements are ultimately positive for the industry however, we'd still like to see more unified programs versus so many individual and costly tests.” —Frank Adler, executive vice president, Uncle Milton
“With the new toy safety requirements in place, we will continue to invest in quality assurance and quality control. We believe that these investments pay off.” —Daniel Grossman, CEO/president, Wild Planet Entertainment
“We have always thoroughly tested our products by third parties and have been testing all products for compliance with the new toy safety requirements since the summer of 2008 so that our products are compliant by February. The new regulations certainly have come with a high cost for all the extra testing but we are pleased that we are still able to maintain our 2008 pricing.” —Esther Novis, president, Young Scientists Club
5. What do you expect to be the major products and licensed property trends in 2009?
“Despite the uncertainty of the economy, families and children will remain busier than ever. In 2009, it will be imperative that the industry offer products that are realistic for today’s busy families – thus creating products that can easily be incorporated into the daily lives of children, parents and grandparents. Yes, let’s not forget grandparents! Grandparents are becoming more involved in the day to day happenings of many families. Our industry will be challenged to find ways to bring the generations together with purposeful games and activities.” —Beth Daniels, founder, Around the Table Games
“Trends in colors and fabrics change from year to year. Our R&D teams study the trends thoroughly each year and we are prepared as we head into the next.” —Paul Roche, senior vice president of sales, Aurora
“Licensed properties will continue to be a major component of the industry, however, costs associated with acquiring these licenses will have to fall to match the reduced demand and price points the industry will be facing in 2009. We also expect to see fewer big-ticket items this year, which is why Cadaco is focusing on the $10-$30 sweet spot for retail pricing.” —John Lindsay, president, Cadaco
“We can expect that in this environment of increases costs, lower margins, and evolving regulatory compliance , that innovation could suffer. Products which are truly breakthrough may not receive a chance in such a risk averse environment. This could result in licenses being more critical as a way to launch “new” without necessarily innovating the nature of the product concept.” —Jamie Gallagher, CEO, Creativity for Kids
“I expect Made-in-the-USA items to continue to grow in popularity and demand. I expect to see an increasing demand for green, educational, and exploration products. As always, the appeal of a licensed property remains relative to each individual consumer category. What is hot in action figures may not be hot in puzzles, games, or themed terrariums. In the Science and Themed terrariums categories, I have seen a tremendous response to the Curious George Properties so far." —Grant Cleveland, president, DuneCraft
As far as trends, I'm sticking to my own parental instincts, which have guided my product development from eeBoo's inception. Everything eeBoo makes should be useful, beautiful, well made--and safe. I'm keen on the old-fashioned concept of wholesomeness and of basic toys that teach something even if it is a simple lesson. One of my greatest priorities is to use beautiful illustrations on all of our toys in the hope that children can appreciate the thoughtfulness and care with which our products are made. eeBoo produces products that encourages reading and story telling, good manners and good citizenship and, most of all, getting down on the floor to play. I¹m happily feeling right now that these values are coming back into style. We are always working to reduce unnecessary packaging and I would hope that the rest of the industry sees that as a positive trend. We don't license art, we commission original art for all our toys, but I would think characters that celebrate our diversity as Americans would be a popular commodity in today¹s world." —Mia Galison, president, eeBoo
“This will be the year of the basic staple. Game products that are based on forward thinking but classic game elements, less branding, licenses that actually relate to and improve the game experience. It could be an opportunity for game companies to look at their line-up and go forward only with games that have their own soul and leave behind the fluff.” —Kevin McNulty, CEO, Endless Games
“Trends in 2009—we see 2009 to be a strong year for boys’ licenses. It has been a while since we have had so many strong properties. That coupled with a continued dominance by Disney in all consumer segments and evergreens such as Hello Kitty and Paul Franks should make for an exciting 2009 and beyond.” —Steve Russo Founder, president and CEO, FAB/Starpoint
“There may less innovation in the toy industry due to fear of compliance and the additional costs associated with testing. Fortunately, in our category of plush, there won’t be as much pressure as most plush products are fairly compliant already. I do foresee a lot of “green” products. New alternative materials such as bamboo and soy as well as the movement towards organic and recycled fibers should really hit the mainstream next year. We’re thrilled to be part of this movement as we explore these materials—and in fact our headquarters went green in 2008. Folkmanis is totally running on solar power these days and it feels great!” —Elaine Kollias, marketing director, Folkmanis
“I believe this year’s green toy trend will continue to be one of the major product trends we see in 2009. The Goldberger Company recognizes this and will be introducing a line of natural fiber dolls called Seedlings™. Because of the economy we’re facing, I think parents will lean towards more traditional and comforting toys that offer children a sense of security and love. Parents will also be looking for high-quality value-priced toys that offer greater play value—something The Goldberger Company has always been known to deliver. Licensed properties will continue to play a major role in the success of children’s toys, with the tried and true brands being most popular in 2009." —Jeff Holtzman, president and CEO, Goldberger Co.
“Value will certainly be on the minds of the consumer as we enter 2009. With the majority of our products continuing to sell for $20 or less at retail, we believe that we are delivering great value to our consumers. From a licensing perspective, Hasbro is very fortunate to be a licensee of both Lucasfilm and Marvel, so stay tuned for some great new offerings in Star Wars, Spiderman nd more. Of course, two of the most exciting events in 2009 are the Transformers and G.I. Joe motion pictures, and we know these will continue to be highly-sought after licenses for companies outside of the toy and game arena." —John Frascotti, chief marketing officer, Hasbro
“Licensing is growing up and everyone is learning how to harness its power. For example, we will be partnering with the World Wildlife Fund later this year producing some licensed WWF product. This is the same as donating part of our profits to them, but is more formalized and gives them better control.” —Barbera Aimes, president, ImagiPlay
"The major focus for the coming year will certainly include electronic products with innovative technology. Licenses continue to be very important to the consumer, and the 'tween category will remain a dominant trend for 2009. Other trends for the coming year will likely include lower price point items and a return to traditional toys. Something to watch for is the value and impact of ethnicity, as the awareness has been significantly raised in recent times. As a result, ethnically specific products may begin to play a more dominant role in consumer selection.” —George Irwin, CEO, iToys
“As always in the toy business, product will continue to be king. Even in a tough economy in 2008, we have seen shining stars at JAKKS. Our Night Vision Goggles and Girl Gourmet Cupcake Maker are examples of new product introductions that were able to break through the clutter at retail and become significant successes. We are looking forward to introducing exciting new line extensions for these two brands at Toy Fair, as well as new product launches in both our licensed and non-licensed businesses. Good product that is well-priced will continue to sell, and I expect low price points based on evergreen and classic licensed brands will reign supreme. License wise, I expect that Hannah Montana, Disney Princess, Transformers and Toy Story 3 will lead the way in terms of toy sales.” —Michael Rinzler, general manager, Jakks Pacific’s CDI division
“Licensing continues to be important in the business of toys, as we have seen with the wild success on Lego Star Wars and Lego Indiana Jones. We see both of those continuing to deliver growth in 2009. We will also rely even more heavily on our bolstered portfolio of classic, Lego-owned core themes and stories to deliver growth, like City, Bionicle, Power Miners, Space Police, Racers and Creator. With the economic uncertainty, we know parents turn to those toys and experiences that provide the best play value and create opportunities for togetherness and fun, and we fortunate that the Lego brand, regardless of the set or theme, delivers in a big way on both of these dimensions.” —Soren Torp Lauresen, president, Lego
“Products will be safer.” —David Naghi, president, MOBI
“We believe that there is a surfacing trend of more modest, simple toys. Less electronics particularly in regards to younger girls and boys. There is a definite need for these new products especially in the licensing arena. Just look at all the recycling of the classics. Something new and fresh is needed that conveys/emulates those basic nostalgic messages and feelings.” —Elena Patrice, co-founder, Nana Star
“People will be looking for high quality comfort product and we are VERY excited about the opportunity to fill that need.” —Barbara Isenberg, president, North American Bear
“Playmobil continues to develop products that will pique children’s imaginations. In 2009 we will be introducing multiple new items, including Animal Clinic, Egyptian, Wedding and Road Construction themes that will be great new introductions to our the Playmobil assortment. Coupled with our existing favorites such as the Circus, Pirates and Knights lines, we anticipate that the Playmobil 2009 line will once again be one of the strongest presentations to date. We also anticipate that, similar to the trend of 2008, our Playmobil 1-2-3 line will continue to grow with our smallest consumers (ages 1 and older). The 1-2-3 line continues to grow in sales with our specialty retailers, and we hope for that trend to continue in 2009 as well.” —Andrea Schauer, CEO, Playmobil
“We see two major trends that started in 2008 and will intensify in 2009: 1.) Value. This would benefit companies like Pressman Toy who have always focused on under $20 retails, and in many cases under $10; and 2.) Nostalgia. In unsettled times like this, comfort received by games, toys and licensed characters that we have known for long parts of our lives resonate more than ever.” —Jim Pressman, president, Pressman Toy Corp.
“We tend to create our own trends and maintain consistency. People know that they will always get a chuckle from our product line and it keeps them coming back for more. Especially now...we all need a good laugh!” —Alita Friedman, director of operations, Pretty Ugly
“I think there is going to be a strong push towards "retro toys' and also new less complex games and toys that deliver fun and excitement but that fit into full, busy lifestyles. Complex rules and hours of game play are hard to come by. I think we'll see a return to a more simplistic gaming environment.” —Steve Velte, president, RSV Productions (Jishaku)
"My thoughts about the trends for next year are based more on, not one particular toy, but the feeling of the buying public. As we enter into this slow down, I believe parents will stay closer to their children and family traveling to nearby parks, botanical gardens, zoos and aquariums sharing these rich environments together. For me to watch an exotic animal or smell fresh flowers in a botanical garden with butterflies fluttering nearby is so reassuring and calming to know that there is this wonderful world out there to experience. The National Wildlife Federation calls it the “Green Hour.” A Green Hour is giving your child an unplugged experience i.e. unstructured in green spaces to explore, imagine and discover. In conclusion, toys that complement this idea will be the ones sought after. Toys that can be shared amongst children and with their parents." —Ramona Pariente, president, Safari Ltd.
"Between mandates being handed down by retailers and shifts in consumer eco-awareness, I expect we will see more and more products using less packaging and more eco-friendly materials and processes. My hope is that the industry will quickly embrace this trend. Aside from the tremendous amount of waste our industry is responsible for producing, we have a great opportunity to help this generation of children understand the importance of sustainability.” —Craig Storey, CEO, Sprig Toys
“As mentioned previously, when money is tight, consumers become more risk averse. They want to be sure that the money they spend will provide a good return on that investment. "Safer" purchases are one way to do that. We at Techno Source expect to see a lot of "back-to-basics" purchasing—trusted brands, well understood play patterns, and strong value propositions. That said, the toy industry is still a trend and fashion oriented business. We fully expect to see some break out products and brands, just as we do every year in this business.” —Eric Levin, president, Techno Source
“After years of extravagance and paying too much for convenience, we expect to see a renewed appreciation for some simple things that focus parents, kids, grandparents and extended families on the simple elegance of engaging with each other. Going on walks, going to the library, focusing on things that really matter like health, education, volunteering, and general community engagement. So as far as products go, moms are already telling us how much we fit into this kind of thinking. ThinkFun does not focus on licensed products however what I hear is that moms are all about the value not the character so I would be careful about overextending a license because too many times it can be oversaturated before having a chance to be celebrated.” —Andrea Barthello, chair/co-founder, ThinkFun
“There will be some unusual but effective marriages between licenses and product categories. As an example, our new Star Wars Science line is being very well received. The crossover between consumer electronics and toys will continue to grow, as kids outgrow toys earlier. After all, what 8 year old doesn't have a cell phone these days? I know, just for emergencies, right?!” —Frank Adler, executive vice president, Uncle Milton
“We expect 2009 to be a year in which consumers look to brands and licenses they know and trust. People are seeking safety, which they find in familiarity. The anticipation of this trend played into our new licensing partnerships with Disney and Crayola.” —Daniel Grossman, CEO/president, Wild Planet Entertainment
“We have had a lot of success with our licensed property The Magic School Bus and we expect to continue this trend. This year we are adding products to our lines with a green theme which I believe will continue to be a major trend in the future.” —Esther Novis, president, Young Scientists Club
For a forecast of 2009 by licensing executives, see the February 2009 issue of Playthings magazine.
Talkback
Related Content
Related Content
