A Breath Of Fresh Air

Eli Manning may have won this year's Super Bowl, but his big brother Peyton still has the ball.

This season, kids will have the chance to throw like the famed quarterback, thanks to Hasbro's release of two new footballs bearing his name. The Nerf Peyton Manning Vortex Ultra Lite, available in the spring, features an aerodynamic tail designed for long distance throws, while the Peyton Manning Rocket Pass football, which will roll into stores in the fall, has a nose that lights up when a tight spiral is thrown to let little quarterbacks know they've thrown a great pass.

Both products build upon the success of last fall's Nerf Peyton Manning Pro Grip football, which was signed by Manning and packaged with a signature sports bottle. (This year's releases will feature Manning's moniker again, sans the sports bottle.) Items like these helped boost Nerf sales to an excess of $100 million in 2006. The brand continues to grow, with sales reportedly up 23 percent last year, all despite being a toy for tweens and older children—those kids who allegedly no longer play with toys.

Like Hasbro, other manufacturers in the outdoor sports space are relying on the infectious energy generated by new products to further capture consumers' attention and boost overall sales. Vendors must make an extra effort to compete with electronic gadgets and other stationary toys that keep kids inside, as indicated by the recent dip in sales. According to the NPD Group, outdoor and sports toys sales decreased by 4.6 percent between 2006 and 2007—from $2.9 billion to $2.7 billion.

“With growing concerns about obesity and poor health among children, parents today are looking for ways their kids can be more physically active and interact socially,” says Tom Sullivan, director of product and brand marketing—outdoor play, Little Tikes of Van Nuys, Calif. “We are realizing that in order to compete with the growing field of electronic entertainment, we will have to be more creative than ever.”

Katherine Huck, founder/president of Princeton, Mass.-based Happy Kid Co., concurs. “It's more challenging to get kids outside to play for many reasons: electronics, safety, extracurriculars ... active, impromptu play becomes last on a long list,” she tells Playthings.

Despite such obstacles, other vendors believe that the outdoor category can stand on its own two feet, come the warmer weather. “In most parts of the country, kids have been cooped up in the house all winter and are eager to get outside,” says Drew Stevenson, senior vice president of worldwide sales at Wild Planet, San Francisco. “Regardless of whether it's a parent- or kid-driven purchase, affordable outdoor toys can really flourish in the spring, at a time when higher price-point items might not be able to maintain their shelf space.”

And while some companies may have experienced static sales or slow growth in this market, others don't see too much of a negative impact. “I haven't heard of retailers pushing for more space for outdoor toys, sports toys, junior sports products or even sports products in general, but at least there isn't a decrease in space,” says Scott Wisner, vice president of sales and marketing, CoopSport, Vista, Calif. He credits specialty retailers for being ahead of the curve and hopes this trend will continue with the larger stores.

Speaking of retail partners, industry pundits shared relatively favorable opinions about outdoor toys' presence across the board. According to Nurit Amdur, CEO and co-founder of Alex, Northvale, N.J., more space is being dedicated to outdoor toys in specialty stores on a year-round basis. “Outdoor toys also answer the retailer's needs for products for the 6- to 10-year-old boy,” she says of this niche demographic.

And while a company like Wild Planet has found success within both the specialty and online retailing realms, especially with its Outdoor Antics line of pool toys, Stevenson notes that shelf space at the mass level continues to be competitive for all outdoor toy manufacturers.

As a way around that problem, Nathan Keker, CEO of Emeryville, Calif.-based Diggin Interactive, cites the importance of Internet portals as a key business partner. “On the Web, retailers can create whole categories devoted to active products that make it easier for shoppers to find what they want,” he tells Playthings.

Others see opportunities within the non-traditional channels where there is ample room for the manufacturer to be creative with its marketing approach. “If you say you are just a toy company and you'll just sell to toy retailers, you are going to have a hard time weathering poor economies,” says CoopSport's Wisner, whose company counts not only independent toy and sports stores as its customers, but Target, Kmart, The Sports Authority, Ron Jon Surf Shop and Leslie's Pool Supply.

As manufacturers consider distribution possibilities, they must tweak and develop product where it will sell best in a dynamic retail landscape. Wisner notes a change in size and scope in outdoor toys over the last few years. “We are seeing more combinations with pink now and on a wider variety of products,” he says. “As far as play patterns go, we were once seeing 'bigger is better,' but that now seems to be waning.”

Amdur, however, sees more of a trend toward oversizing traditional outdoor activities. “Our new Monster Bubbles lets kids make really huge bubbles to fill the backyard,” she tells Playthings.

Also following suit is Easton, Pa.-based Crayola, which is expanding its line of outdoor arts and crafts to include the Giant Inflatable Easel. Available now, the easel inflates to 5 feet wide by 5 feet high and features a water-filled base to keep it sturdy.

Technology too plays a key role in product development, perhaps in response to the popularity of the Nintendo Wii gaming console. Stevenson points to Frisbees being made with fiber optics, while Hasbro's Nerf footballs, once the ultimate in low-tech fun, often feature electronic light effects.

Another way to stand out is to add performance-based innovations to traditional outdoor products. CoopSport incorporates TPR (thermoplastic rubber) technology into its line of Nitro Footballs to make them easier to grip, and produces a line of dog toys that also uses TPR. “We find we can do things with it that other materials can't do,” Wisner says. “Plus, with more and more steps toward a ban on phthalates, we feel we offer [products with] great alternatives.”

Like CoopSport, outdoor toy manufacturers are finding ways to distinguish themselves—and their merchandise—in the retail marketplace. One player, Wild Planet, will take its well-known spy line outdoors for the first time in the brand's 10-year-history.

“We talked with kids and learned that they don't limit their spy play to nighttime missions in the house,” says Stevenson. “They wanted a way to send messages to kids in other backyards.” As a result, the company designed the Signal Launcher, which sends whistling foam signals 40 feet into the air. The product will be available in stores this spring and will be advertised on television, a first for a spring-released SpyGear toy.

For Happy Kid Co., the main thrust of its Original Fortamajig playspace is its indoor/outdoor capability. “Regardless of the space, kids can always create a playground with it,” says Huck, adding how the product works in the backyard, as well as the park.

“We saw a definite hole in the marketplace offering open-ended options for portable play spaces,” she explains, noting that most similar products were either static or difficult to manipulate.

This year, the company will expand its collection to include the Fortamajig Connectables, featuring small panels of fabric with a locking tab system that enables kids to create mazes, tunnels and forts. The product will be marketed to families who are going camping, hiking or biking, as its lightweight design is durable and easy to pack. “We will work with our retailers, offering seasonal promotions geared to this type of play,” Huck tells Playthings.

Also adding a new item in the playspace arena is Little Tikes' Arcadia Ultimate Playground. Available this summer, the product boasts a three-tier climbing playground and Turbo Tunnel slide. Because the wooden playground category has grown over the last few years, Sullivan believes this item is a solid choice for the company.

A couple of companies will be coming to market with a tremendous number of new SKUs in the outdoor space. According to Bill Bordegon, national sales manager for Toysmith, the Auburn, Wash.-based supplier has dedicated over 80 pages of its 2008 catalog to this category, and will be concentrating its merchandise in four key areas: foam-based fliers, soft balls, kids' gardening and backyard exploration. Standouts in these collections include Splash Skushi Balls, Paint Your Own Flower Press and a Bug Vacuum Set.

Among Alex's whopping 125 new products for 2008 are 12 outdoor toys, including two parachutes, two styles of sack racing, three bubble blowing sets, a racket game, a dart game, jumbo foam disk, a Turtle Sprinkler and Jungle Croquet. Amdur describes the ensemble as giving “traditional outdoor activities a fresh twist so that kids can have fun while they run.” She notes that Alex has increased its outdoor toy offerings three to four times over the last few years, and expects this growth to continue.

As outdoor manufacturers speed ahead with their new offerings, many are hopeful for a strong year of sales. And while they must contend with a variety of factors, from limited shelf space to increased consumer interest in electronic gadgets, perhaps nothing is more daunting than the production crisis in China. Says Wisner, “We've had colleagues over there for the last month and the situation is going to affect lots of companies in the toy and sport business. There are going to be significantly fewer factories supplying goods … that has to affect the industry.” It's a situation that his company will monitor closely, as no doubt will the rest of the industry.

But for now, companies are remaining optimistic and confident that despite these worries, consumers will continue to seek out quality merchandise. “Toys that engage kids in active, creative and involved play will always be in demand,” Huck says.