Sweet Suite 2016

Board Games Continue Down a Winning Path

by Mary Couzin, founder, SMG Leisure

Many game industry experts consider this the golden age of board games. History will decide if the moniker sticks, but one thing is for sure: Games and puzzles were the fastest-growing toy category last year, climbing 11 percent to $1.6 billion, according to The NPD Group. This year, game sales continue to grow at 24 percent, more than three times the growth of the toy industry overall. And that number could be even higher if you consider all the crowdsourced board games, a category that has become a major player (pun intended) in the publication and manufacturing of board games. Platforms such as Kickstarter allow independent game designers to reach thousands of consumers, and retailers are tuned in to this trend, which will only continue to rise.

Though lots of games sell at retail for less than $20, and some fall into the impulse category at less than $10, other more complicated games are selling for more than $50, contributing to the overall rise in game sales. During a recent trip to Target, I spotted 10 games selling for more than $50 each. Target.com has 67 titles selling for more than $50, including multiple strategy games.

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North Star Games’ Happy Salmon

There is a perfect storm of many trends contributing to strong game sales. Below are the top trends from my research. We could meet over signature cocktails at one of the growing number of board game cafes and enjoy a long discussion on this topic, but it’s tough find an open table!

Getting Social

One of the best things about board games is that they allow for face-to-face social interaction, and many small business owners are seeing the value in this. Game cafes are opening worldwide, bringing people together over cocktails and board games. Specialty game stores have increased their game nights, where friends and strangers can come together to play, and some stores have added workshops to teach people how to play new games. Some local businesses will even send people to your home to teach you and your family how to play games you want to learn. Even larger retailers, such as Barnes and Noble, are getting in on board game events. The specialty retailer recently expanded their game events to all 640 of their stores. This trend is spilling over into corporate lunch hours and after-hours work events. If I had a dollar for every time someone outside our industry mentioned this, I could buy more of those $50 games.

Crowdsourcing Continues

The crowdfunded trend continues to be strong. More than $500 million has been pledged on all types of games (digital, video, projects, board, etc.) on Kickstarter since the platform’s inception, and of that, $265 million went to board games alone, outpacing video and digital projects.

Both independent companies and inventors use Kickstarter to launch their new products, and larger companies use the platform to find products to add to their lines. Looney Lab’s successful launch of Pyramid Arcade decreased many risks for the company. On a larger scale, Hasbro partnered with Indiegogo last year to source new games from independent game designers, and it was so successful that the company will repeat the effort this year. Of all the trends in games over the past few years, crowdfunding has probably had the biggest impact.

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Looney Labs’ Pyramid Arcade

Silly and Simple

While complicated strategy games for adults are populating the shelves, games that require almost no instructions for silly and simple fun are also selling out at retail. The incredible success of Hasbro’s Pie Face last year proves that easy-to-learn, laughter-inducing games are popular with consumers. And this year, North Star Games’ Happy Salmon will be a sure hit in this category. At ASTRA Marketplace & Academy, the fast-paced action card game drew a huge crowd. Goliath Games also has a wide range of products in this genre, which has contributed to the company’s growth in North America.

Adult Party Games

Games aren’t just for kids. Adult party games that gather lots of people together for a good laugh have been gaining traction in the past few years, thanks to mega hits like Cards Against Humanity. And by “adult” I mean “cheeky,” and by “cheeky” I mean “kinda dirty.” This not-so-family-friendly trend continues this year with games such as Galactic Sneeze’s recent release Spank the Yeti, No Kidding’s Rotten Apples, PlayMonster’s Game of Nasty Things, and more.

Going Green

Game companies are jumping on the conservation train this year by using smaller boxes, pouches instead of boxes, and less internal packaging. This not only helps the environment, but it also helps cut costs and allows retailers to expand their offerings since smaller packaging means more products fit on a shelf. Hasbro recently earned Newsweek’s 2016 Green Rankings at No. 1 out of the 500 largest publicly traded companies in the U.S. on overall environmental performance.

Galactic Sneeze_SpanktheYeti

Galactic Sneezes’ Spank the Yeti

The Importance of STREAM

Hot on the heels of the familiar STEM (science, technology, engineering, and math) and STEAM (which adds art to the mix) trends, is STREAM (which includes reading and writing). Games are a great way to help kids learn these important educational concepts, and demand for these products is at a high. This year, ThinkFun’s Circuit Maze, Foxmind’s Pack’n Go!, Griddly Games’ Rocket Lander, Pressman’s Pass the Pen, and Blue Orange’s Dr. Eureka are great options for STREAM learning.

Screen Fatigue

Peggy Brown, game inventor and producer of the upcoming documentary film OPERATION Operation: The Power of Play, believes the rise in the popularity of board games across all genres is because people are unconsciously longing to connect with more meaningful story-based experiences, and desperate to connect with each other. She says, “While board games can be perceived as old-fashioned, there’s no doubt that they bring us together and force us to interact with each other in ways nothing else does. Playing board games, for players of any age, can reconnect us, compel us to discover and invent new and different ways to communicate and solve problems, and refresh our basic social skills which, for most of us, get rusty in the fast and often lonely connections of the interwebs. In an era where we’ve become connected to everybody and are subsequently close to nobody, board games plug us in to each other as we unplug from our devices, even if it’s only for a short time.”

I don’t see an end in sight to the continued rise of board games. At London, Nuremberg, and New York Toy Fairs, as well as ASTRA Marketplace recently, I heard many times from retailers that they were increasing their board game selection and allocated space, all of which is golden news, contributing to a burgeoning golden age.


MaryHeadMary Couzin is CEO and founder of the Chicago Toy & Game Group, with a mission of promoting the importance of play through hosting consumer, fashion, inventor, and media events. Events include Chicago Toy & Game Fair, Inventor and Innovation Conferences, Toy & Game Innovation Awards, PlayCHIC Fashion Show, Young Inventor Challenge, and more.

Construction Toys Build Up Success

by Sean McGowan, founder, SMG Leisure

The construction category accounted for about 10.5 percent of total U.S. toy industry retail sales in 2015, according to The NPD Group. The category rose 9 percent in 2015, on top of a rise of 11 percent in 2014. Over the past 15 years or so, construction toys have been the most consistent growth segment of the U.S. toy industry. Growth has been so strong and so consistent that if you were to exclude construction toys from total industry sales, there would have been essentially no growth in U.S. toy industry sales from 2003 through 2014 (prior to the massive surge in action figure sales last year), especially excluding the effects of inflation. It is the only one of the NPD toy industry super categories not to show at least one year-on-year annual decline during this period.

It is notable that not only does the category not owe its strong and steady growth during this period to the increased use of technology (electronics, Wi-Fi connections, apps, etc.), but also that the growth is actually in spite of an explosion in consumer interest in video games and smart gadgets. The category’s best years actually came after the introduction of the iPhone. (A side corollary here is that the biggest gains in Lego’s profitability came at a time when its main raw material—plastic resins—were undergoing a dramatic increase in costs, although recent years have offered some relief. Lego may be the most “plastic” of all toys, and yet wild gyrations in the cost of the feedstock did nothing to disrupt its growth, even as other toy makers were blaming rising resin costs for their own dips in profitability.)

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Lego Friends Adventure Camp Treehouse

Lego’s category market share, which we estimate at greater than 80 percent, suggests that Lego did not simply ride the strength of the category—it created it. In my view, the company’s success has been based on several key components operating both separately and together. First, it changed its corporate culture (with astonishing speed, given its size, age, and prior success) to become more attentive to feedback from both retailers and consumers. Second, it stepped up its already impressive research and development efforts, developing a team of designers with an uncanny ability to discern what consumers worldwide would be interested in seeing in the way of new themes. Third, it expanded its licensing efforts to incorporate a broad range of topical as well as timeless licenses. However, it is crucial to note that Lego’s growth over the past decade has not simply been the result of a significant increase in licensed toys. This is not all about Marvel and Star Wars. The company’s City line sets have seen growth that keeps pace with licensed categories. Fourth, it introduced Lego Friends, by far its most successful effort to attract girls to the play pattern that for so many years was considered one for boys.

And, in a sense, it is this success that leads to what I consider the fifth reason for Lego’s striking and consistent growth: It effectively expanded the construction category to incorporate elements of play that had previously been associated with other, non-construction toys. The rising popularity of its movie-licensed play sets and figures effectively put Lego in the action figure category, since kids would be playing with the Lego figures and play sets in much the same way that they might play with other licensed action figures. The Friends line tapped into young girls’ desire for dollhouse play, for collectibles, and for mini-dolls. Original themed sets, such as Ninjago and Chima, feature extensive vehicle play. The company even branched out into “board games” (although with less success than some of its other efforts). The Dimensions and Fusion lines are strong entrants in the toys-to-life and smart toy categories. In other words, much of Lego’s growth came as a result of taking the brand into new toy categories. In doing so, it effectively grew the construction toy category by taking over some of the play patterns previously held by non-construction toys.

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Spin Master’s Meccano Micronoid

Looking at the category more broadly than just its bigger player, what is interesting lately is that Lego is not the only construction toy maker that is seeing growth. For most of the years between 2005 and 2015, Lego essentially got more than 100 percent of the category’s growth, while many of its construction toy rivals were seeing declines in sales. More recently, these other brands have seen growth.

• Since its acquisition by Mattel, Mega Bloks sales have stabilized and resumed growth (following a period of forced contraction after the acquisition).
• The Bridge Direct has picked up some share with its C3 line of construction sets (featuring licenses from the NBA, WWE, and Shopkins).
• K’nex may be a fraction of its peak size, but it has resumed rapid growth, benefitting from a shift back to domestic manufacturing, use of key licenses, and expansion of the brand into other play patterns. In other words, following a similar playbook as Lego.
• Meccano, acquired by Spin Master in 2013, has enjoyed a strong surge in shelf space, sales, and innovation.

It is worth noting again that with the exception of some of the Lego and Meccano lines, none of these toys are tech toys. Indeed, I believe a big part of their appeal is that they are not screen-based; they appeal to parents’ nostalgia for their own toys and their desire to keep their kids from staring at screens all day. In this sense, perhaps the future of construction toys has never been brighter.

I’ve learned you can never say never—and that you can never say always—in the toy industry, but it certainly feels like this is a category with a promising future. Construction toys offer boundless hours of open ended-play (even if they are based on licensed themes), a play pattern that is inherently good for a developing young mind, an option that millennial parents see as part of the highly coveted STEM movement, and incredible durability. (My parents’ basement was flooded during Hurricane Sandy, and the only toys that survived were Lego bricks.) I believe Lego is likely to continue to be the dominant player in this category, but the fact that it is no longer the only player that is doing well is a very good sign for the whole segment. »


SeanMcGowanSean McGowan is the founder of SMG Leisure. He has been closely following the toy industry for 30 years, analyzing product trends, cost changes, marketing practices, and other aspects of how products and companies succeed (or don’t). He also follows digital gaming, sporting goods, and juvenile products. McGowan started SMG Leisure in January 2016 to continue this work beyond the parameters of Wall Street. 

Fresh, Fierce, and Fabulous: Innovative and Classic Dolls to Spur Sales Through Q4

by Kristin Morency Goldman, communications specialist, Toy Industry Association

This spring, The NPD Group reported a 16 percent uptick in doll sales for the first quarter of the year, and industry experts at BMO Capital Markets predict that doll sales will continue to grow by about 10 percent overall this year, thanks to a slew of innovative, licensed, and classic dolls hitting store shelves through the holiday season.

“The initial launch of Hasbro’s version of the Disney Princess dolls, the introduction of the curvy Fashionista Barbie from Mattel, and a new line of DC Super Hero Girls action dolls, also from Mattel, appear to be generating strong sales at retail,” says Gerrick Johnson, toy analyst at BMO Capital Markets.

Fashionistas

Barbie Fashionistas, from Mattel

Johnson said this could be the strongest year for dolls since 2009, when Mattel introduced Barbie Fashionistas and the I Can Be… Barbie line; MGA Entertainment brought Moxie Girls to market; and Spin Master introduced its Liv dolls. In 2010, Mattel introduced Monster High, “adding even more firepower to the category,” says Johnson.

“The doll segment went from being a negative trending category for the five years prior, to one of the strongest categories for the next five years,” says Johnson, adding that he is expecting a similar reaction this year. “We’ll see in the fall if kids keep up the momentum.”

Innovations and new licenses in the category are stimulating demand, but the enduring value of classic play is also having an impact on doll sales, according to Adrienne Appell, trend expert at the Toy Industry Association (TIA).

“We know that toys in general are faring quite well, and some of the classic categories—including dolls—are experiencing a surge because kids still love to use their imaginations and role play,” says Appell.

Earlier this year, TIA identified the top trends in toys for 2016, including toys-to-life, which combine technology with traditional play, as well as toys that encourage families to play together.

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Cabbage Patch Kids Baby So Real, from Wicked Cool Toys

“We are seeing tech-driven dolls, as well as licensed fashion dolls that appeal to both kids and adult collectors, which coincide with two of our top trends and tell us that the doll category is one to watch,” says Appell. “And we can’t forget about the enduring popularity of traditional dolls—like the classic baby doll—that allow kids to act out their future roles as parents.”

New introductions from leaders in the doll segment (Mattel and Hasbro) will spur interest in dolls—and sales—across the entire industry. From new innovations to tried-and-true classics, the following are just a few examples that are expected to impact the market through Q4:

Cabbage Patch Kids Baby So Real (coming in August), from Wicked Cool Toys, is an interactive, lifelike Cabbage Patch Kid that combines traditional doll play with groundbreaking technology. The soft and cuddly doll comes to life with animated LCD eyes that open, close, and look around as well as sensors for peek-a-boo, tickle play, and other interactions. An accompanying app heightens the play experience by allowing kids to bring the fun of parenting online with a virtual nursery, games, and video clips.

Little Friends Doll Feli, from Haba, is unlike any other Little Friends doll because her clothes and hairstyles can be removed and interchanged, allowing for customization. The 4-inch tall bendy doll is posable and compatible with all Haba dollhouse furniture and dollhouses.

Asana Yoga Girl, from Azaim Girlz, is an aspirational doll that encourages children to be active and develop lifelong healthy habits. The doll is sold with a pilates ball, hand weights, a yoga mat (which doubles as a slap bracelet), and a hair brush. A percentage of profits from the sale of each Asana doll will benefit the Alliance for a Healthier Generation, which is dedicated to reducing the prevalence of childhood obesity.

Mon Premier Bébé Bath Sail Away (Corolle) is a classic 12-inch doll for kids to play with in the bath, pool, or ocean. The lifelike baby doll is soft and posable, making it perfect for rocking and cuddling. It can also be hung to dry from the tab on the back of its neck after bathing or water play.

Based on the popular line of Star Darlings books and animation, the Disney Star Darlings doll line from Jakks Pacific encourages kids to “be confident, believe in themselves, and to shoot for the stars!” The fully posable dolls are decked out in outrageous fashions, and feature shimmer skin and sparkly eyes.

Betty Spaghetty dolls, from Moose Toys

Betty Spaghetty dolls, from Moose Toys

Harley Quinn, The Joker, and The Penguin are the new DC Comics Fashion Squad dolls, slated to “hit the runway” this fall. Appealing to doll lovers and collectors of all ages, members of the DC Comics Fashion Squad are decked out in couture costumes and represented in Madame Alexander’s 16-inch fashion doll sculpt.

Splashlings, from TPF Toys, is a beautiful line of collectible dolls and characters from under the sea with unique personalities. Collectible items within the line include mermaids and their “splashlings” (pets), treasures, gems, and play sets. Accompanying webisode content can be found at the Splashlings website.

Moose Toys is bringing back the classic Betty Spaghetty doll. First introduced in the late ’90s, the all-new Betty Spaghetty will let kids use their imaginations as they mix and match her outfits and hair to create a personalized doll that is completely unique.

The Hanna, Jane, and Theresa dolls from Little Poland Gallery are beautifully made of 100-percent cotton and other natural resources. The 15-inch tall playmates are perfect for little ones ages 18 months and up. »

Eight Reasons Why Pokémon Go Is Succeeding Where Toys Have Failed

20160706012433!Pokemon_GoIf you haven’t noticed the runaway success of Pokémon Go this past week, you’re living under a rock. Look outside—all those people looking at their phones, glancing around, and walking slowly into traffic (hopefully not) are playing the hottest new augmented reality (AR) game. The word on the street is that this is the future of gaming. Perhaps it is. But it’s certainly not the first augmented reality game. The toy industry has been taking shots at this category for years with little to no success. At Toy Fair 2012, WowWee introduced its App Gear line. [Read more...]

Being Smart About Smart Toys

What manufacturers should do to stay on top of this evolving toy category.

by Sean McGowan, founder, SMG Leisure

Toys featuring tech elements such as sound chips, programmability, or the ability to communicate with other toys are not new, but for the last few years, smart toys are eating up more and more shelf space. In this piece, I will look at several aspects of this burgeoning toy category. Some of these toys are truly groundbreaking, but both parents and toy manufacturers need to exercise a great deal of caution and forethought to make sure these toys safely deliver their intended benefit.

For the purpose of this discussion, I’ll clarify what I mean by “smart toy,” or, just as usefully, what I do not mean. I am not talking about toys designed to make your baby, toddler, or preschooler smarter. Instead, the term “smart toy” focuses on the smartness of the toy itself.

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Sphero’s BB-8 app-enabled droid launched last year and allows kids to control the robotic ball with an app.

Not-So-Smart Toys

Products typified by Tickle Me Elmo, where a child presses a button (or issues a voice command) and the toy runs through a pre-programmed routine, are not considered smart toys. Some people in the industry refer to these as “watch me toys,” but I have provocatively called them “toys that play with themselves.” These toys don’t make anyone smarter, nor do they use technology that is all that impressive.

The broad category of electronic learning aids, which encompasses educational offerings from companies like LeapFrog and VTech, are not smart toys either, even though some of the tech-infused devices are pretty smart, and many of them are now connected either to each other or to the web.

Smart toys interact with other devices and/or programs, such as apps, other toys, or other devices in the area. These toys often have a capacity to learn about their environments and to respond—sometimes in subtle ways—to changes in the environment.

In some ways, products like Furby, Tamagotchi, and Webkins were the precursors to smart toys. They weren’t actually all that smart, especially compared to today’s smart toys. But I consider them to be the original smart toys because they appeared to be interactive, learn over time, and respond to changes in the environment. In fact, they were really just running on pre-set clocks, testing for a small number of changes the user made, even though they seemed to respond to the user, grow (or die, if you didn’t “feed” them), and interact.

Smart Toys 1.0

The toys I call smart toys 1.0 were effectively crude physical extensions of computer programs and apps. Think of those early apptivities—or app-based toys—that allowed kids to scan in some physical product (a little toy car, a figurine, a plastic gun) to cause changes in an app on a tablet or smartphone. In hindsight, these were little more than app-based games that invited the consumer to use a physical object other than their fingers to control the action. Why was this a good idea? It wasn’t, but it gave toymakers and retailers a way to be involved in a segment of the industry that was rapidly evolving away from them. In my view, the fundamental problem with these toys is that they didn’t allow kids to have more fun than they would have simply playing with the app.

Smart Toys 2.0

The toys I consider smart toys 2.0 are those that promote interaction between a tablet or a smartphone and the physical toy, to create an experience that is very different from—and better than—that which can be enjoyed without that interaction. Perhaps the best example is Furby Boom, but Sphero’s robotic ball (and its best-selling BB-8 version) and Ooboly also fit into this category. Plus, the entire toys-to-life sub-category pioneered by Activision’s Skylanders and now also populated by Nintendo’s amiibo, and LEGO and Warner Bros. Interactive Entertainment’s LEGO Dimensions, are also part of smart toys 2.0. While these toys are different from each other in many ways, what they share in common is the focus on both the screen—whether it’s a TV, a tablet, or a smartphone—and the toy.

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CogniToys’ Dino is a cloud-based, Wi-Fi connected toy that allows kids to engage in intelligent conversations.

Smart Toys 3.0

As technology becomes even more accessible, a growing number of smart toys either involve minimal screen-time or none at all, which brings us to smart toys 3.0. The emergence of these screen-liberated toys is due in part to backlash from parents who seek to reduce the amount of time their children spend staring at screens (which has apparently been linked to shortened attention spans and difficulty in learning). Additionally, technology that allows the devices to work simply and intuitively without a screen has emerged, such as chip sets, connection technology, and user interfaces. These toys may require a device to control, setup, or program the toys, but the focus is on the toy itself, not the screen of a tablet or smartphone.

We have seen a host of 3.0 toys in the past year, such as Anki Overdrive, which allows artificially intelligent cars to race around connectible track, as well as interactive smart toys masquerading as plain old traditional toys, such as CogniToy and an adorable reworking of a classic, Edwin the Duck. These toys are a break from the prior generation of smart toys because all of the action and fun is in the toys. Kids are not just watching or using a toy to enhance an app experience. Instead, they are using the secondary device to enhance the power of the toy.

One of the aspects I love about the newest generation of smart toys is how some of them encourage all kids to get involved with technology, including girls. LittleBits are designed with a gender-neutral color palette and can be used to create anything kids can imagine. Sphero’s BB-8 app-enabled droid is programmable and can be part of any kids’ play fantasy.

Safety First

Still, some of the same issues that loomed over the prior generations of smart toys continue to linger. First and most important is the question of security. Let’s face it: Anything that interacts with your home’s Wi-Fi network is a potential security risk, but that doesn’t mean it’s pointless to try to make the toys secure—just the opposite. It is imperative that toy manufacturers use security measures that are every bit as secure as those used to secure a teenager’s iPhone camera roll. Adults who purchase connected toys must remain vigilant that they are not serving as Trojan Horses to let hackers into their homes.

While there will almost always be a way to hack a system, the key is to make it so difficult that the hacker will seek more fertile grounds. (Like the old joke about the two campers seeking to avoid bear attacks: The first camper says he plans to wear running shoes. The other camper laughs and says, “You really think you can outrun a bear?” The first one replies, “I don’t need to outrun the bear. I only need to outrun you.”)

And hacking isn’t the only safety issue. For young children, there can be just as much danger if a toy simply serves as an entryway onto the web. Remember Commonwealth Toy’s WikiBear? Unintended consequences can ensue when you let an innocent looking toy surf the web. The idea of a teddy bear kids could use to ask unlimited questions and gain tons of knowledge seemed quite clever, but it wasn’t thought through well enough.

Accessibility is Everything

Another issue to be tackled is cost, and its inherent connection to the widening gap between consumers who can afford costly toys and those who can’t. While a very high percentage of the consumer base has access to smartphones, not all have access to the same phones or the fastest Internet connections, and I believe these toys should be designed to be as widely accessible as possible.

The cost for the consumer is not the only cost to consider—developing smart toys isn’t cheap. They require all of the traditional costs associated with getting a toy manufactured, plus extensive upfront development costs, additional bill-of-material costs, and ongoing costs, such as server costs, higher customer service costs, and the cost of operating an ongoing service: Toys as a service (TAAS).

For larger, well-funded toy makers, these costs raise the risks but can probably be justified. For smaller, less lucrative companies, these costs can be prohibitive. Companies such as Seebo, an Israel-based technology company, provide turn-key solutions that allow even the smallest companies to quickly, efficiently, and inexpensively turn their products into smart, connected toys, lowering the costs and the risks.

Keep Your Promises

Finally—and this is ultimately true of any toy—smart toys must deliver on the promise of fun. They can’t be simply showing off some clever feature, or showcasing a new connectivity breakthrough. In fact, they can’t even be simply replicating traditional play, but in a more tech-enhanced way. They have to provide original experiences that engage kids in new ways. Otherwise, who needs them?


SeanMcGowanSean McGowan is the founder of SMG Leisure. He has been closely following the toy industry for 30 years, analyzing product trends, cost changes, marketing practices, and other aspects of how products and companies succeed (or don’t). He also follows digital gaming, sporting goods, and juvenile products. McGowan started SMG Leisure in January 2016 to continue this work beyond the parameters of Wall Street. 

Summer Toy Trends

New toys and games hitting shelves will inspire summertime play whether kids are at home, on vacation, or at the playground. The Toy Industry Association (TIA) spoke with industry experts to gain insight into what’s trending in outdoor play, what indoor playthings encourage creative skill-building and learning, and the top franchises and licenses expected to impact toy sales this summer.

Outdoor Play & New Destinations

As excitement builds for the “lazy days” of summer, toys sales show that families are anything but lazy. The NPD Group reported that the Outdoor & Sports Toys category saw a 9 percent increase in sales last year to $3.59 billion.

“The traditional outdoor play patterns—especially those related to exercise, like bicycling, running, and jumping—may not change much,” says Adrienne Appell, TIA toy trend specialist, “but toymakers are putting twists on classic toys and activities to keep kids engaged.”

New tech trends are complementing outdoor play, says J. Alison Bryant, CEO and chief play officer of PlayScience, PlayLab & Sandbox, adding that kids and families are using mobile technologies to enjoy navigational techniques such as geocaching, so they can learn about what they see on nature hikes or while playing on a beach.

“This is still relatively nascent, but what is great about it is that families are using technology to augment and enhance their play experience, not replace it,” Bryant notes.

Traveling to specialty toy stores can be perfect summer outings, especially during times when it may be rainy or too hot to be outside. Kimberly Mosley, president of the American Specialty Toy Retailing Association (ASTRA), says this season’s store-based events break up families’ packed schedules and provide venues for fun group activities.

“Specialty toy stores compete by making their stores a destination and providing child- and family-centered experiences that are unique in their communities,” Mosley says. “So, in ASTRA stores you’ll often see creative and fun opportunities pop up in the summer—everything from Make Your Own Garden Stone to a several-days-long Build-a-Fort Art Camp.”

Fun Ways to Play Indoors

Not all summer play takes place outside. Kids also enjoy playing inside, especially with toys and games that will boost their creative and artistic abilities. The new offerings from one of TIA’s main trends for this year, named “Ultimate Creator,” encourages kids to find and build their talents as digital artists, filmmakers, jewelers, and more.

“The season also presents opportunities for kids to explore their passions and interests through play,” says Appell. “Once they’ve returned to the house after a day outside, kids may be inspired to make their own ice cream with their parents, or design swimwear with toys and products under the Ultimate Creator trend.”

Additionally, products that teach or reinforce Science, Technology, Engineering, Arts, and Math (STEAM) are providing ways to keep learning fun outside of the classroom. Kids wishing to visit exotic and atypical places can arrive there almost instantly with new virtual reality (VR) products and content. Whether with a brand’s VR kit or by assembling cardboard glasses to connect to a smartphone, the sector breaks new ground in terms of offering 360-degree experiences.

“The essence of VR is to be immersed in a location it will teach children about, and transport them to places they couldn’t otherwise visit—deep in the ocean, the edge of a volcano, into a rain forest, or even into the nucleus of an atom,” says David Kleeman, senior vice president of global trends at Dubit. “It’s inexpensive, comfortable, and simple for [kids] to use, and we anticipate a growing amount of content for kids beginning this spring and summer, as the devices become widespread.”

Summer Blockbusters

Licensed toys account for 32 percent of U.S. toy sales, according to The NPD Group, and that number is expected to climb as various new entertainment reaches fans on the silver screen. This summer, theaters will be packed with blockbuster films featuring new and classic characters.

“Fans and industry professionals have high expectations for Captain America: Civil War, while families will likely make an outing for PG movies like Finding Dory,” Appell notes.

Other family-friendly summer blockbusters slated for release include The Angry Birds Movie, and sequels to Ice Age and Teenage Mutant Ninja Turtles. The licensed toys and games they inspire will run the gamut from tech to traditional and will keep kids busy playing for hours.

“Films’ toys often further the family fun even after the credits roll because they tend to be engaging and appropriate for all ages,” says Appell. “The play experiences offered by life-size accessories, mobile games, and everything in between should be able to keep toy sales strong and kids playing for hours.”

TIA tracks trends on a year-round basis to provide industry stakeholders with insight into what’s new and what’s on the horizon in the toy and youth entertainment product industry. Visit www.toyassociation.org/trends for more information.


Justin_HeadshotJustin Smulison is the newest member of TIA’s Marketing Communications team, after years as a journalist and custom content producer in legal publishing. A proud husband and father, he is thrilled to report on toys and characters that he and his 2-year-old daughter play with together, and to be involved in an industry that positively impacts her and future generations.

A New Landscape: How Smart Toys Are Changing the Toy Market

by Mykola Golovko, toys and games project manager, Euromonitor International

Technology has a transformative impact on countless aspects of our everyday lives. The list of markets disrupted by technology and rapid innovation continues to grow, and as smart toys become more prevalent, significant shifts are expected in how the global toy market works. The changes will be driven primarily by digital natives entering and overtaking the toy consumer base.

Digital Natives

By 2017, annual sales of smartphones will surpass 1 billion units. Tablets and—more recently—wearable electronics have also become mainstream products. In 2016, mobile Internet subscriptions are expected to top 3 billion, and will likely surpass the 4 billion mark by 2019. This puts a smartphone with an Internet connection in the majority of households, in addition to computers, smart TVs, and other connected devices, which are rapidly gaining in popularity. Children worldwide are growing up surrounded by technology. For them, it is a natural component of everyday life, and toys that offer interactive features and integrate virtual components into gameplay will feel natural to this audience. Manufacturers will respond with increasingly sophisticated products that blend physical and virtual gameplay.

Web

Source: Euromonitor International

Software and Content Gain Market Power

So far, the most commercially successful products blending virtual and physical gameplay have been in the toys-to-life category, but going forward, we expect to see expanding physical playability to be the focus of development. Making smart toys more interactive in the real world will require the integration of contextual computing and elements of augmented reality. This will make the software platforms for toys increasingly complex, causing a shift away from the walled garden model of toys-to-life products toward more open platforms that minimize development costs.

This is exactly what happened with mobile phones. As these products became increasingly sophisticated, there was significant consolidation in software platforms, to the point where the market became essentially a duopoly of two operating systems. As software, content, and services gained importance in mobile computing, hardware became commoditized, with significant declines in prices. Similar dynamics are expected in toys and games as smart toys become mainstream products. The value of a toy will be a combination of the physical product, the capabilities of the software platform, and the content this platform can deliver.

Adjusting to Changes

Toys are already becoming more complex products, as licensing becomes an ever-expanding part of the global market. The most successful toy lines are no longer stand-alone products, but integral parts of entertainment franchises that can span feature films, TV shows, and video games, along with apparel and other licensed products.

Smart toys will add software platforms to the total value proposition of a toy. The role of software will enable interaction with digital content in meaningful and engaging ways. Products that integrate new technology for the sake of technology itself have typically done poorly. Products that use augmented reality and contextually aware software to allow children to interact with their favorite characters in new ways will be the must-have toys of the future.


mykolaMykola Golovko is the toys and games project manager at Euromonitor International, a provider of strategic market research. Golovko studies the ways in which technology diffusion rates accelerate and permeate a growing number of aspects of the daily life of consumers.

WIT Stories: June 2016

Wi-Stories_Logo-1Every month, Women in Toys, Licensing, and Entertainment (WIT) turns the spotlight on members who are making an impact in toys, licensing, and entertainment and within the organization. These members exemplify leadership, commitment to the industry and the mission of WIT, and it are proud to recognize and celebrate their diverse talents and contributions through their WIT Stories.


NICKELODEONFarnaz Esnaashari-Charmatz
Creator and Co-Executive Producer, Shimmer and Shine, Nickelodeon

Farnaz Esnaashari-Charmatz is the creator and co-executive producer of Shimmer and Shine at Nickelodeon. She has been a WIT Southern California Chapter member since 2016.

What is the single best piece of business advice that helped shape who you are as a businesswoman today and why?
Stay true to your vision and know that the devil is in the details. There will always be a lot of information and opinions coming at you from every direction, but if you know the vision for what you are trying to accomplish, always keep that in sight. Also, it’s important to use the advice from others as guidance to get you to where you need to be.

What’s the biggest challenge you have faced in business, and how did you overcome it?
It was very challenging at first, to make the transition from my previous role at Nickelodeon to my new role as series creator. It took time to understand my new responsibilities, but I just kept working hard at it every day.

What advice would you offer women wishing to break into the toy/licensing/entertainment industry?
Soak up as much information as you can, review mommy blogs, watch YouTube, look in the toy aisle, and learn the industry from every angle possible.  And always keep that love for toys in your heart when you do it.

What inspired you to start your business?
I always like having goals to work towards, no matter how big—the bigger the better.

What is one of your most memorable career accomplishments?
Getting a series with Nickelodeon and being part of this amazing brand. Having grown up at Nickelodeon and worked on different shows, it’s been a dream come true to see Nickelodeon’s support in making my vision come to life in Shimmer and Shine. This show has been my passion because it’s so close to my heart. So now, not only do kids and parents get to share my love for the adorable twin genies-in-training through the show but they will also be able to see the characters come to life with the debut of an entire line of consumer products, including awesome toys from Fisher-Price.

Season two of Shimmer and Shine premieres Wednesday, June 15, at 12 p.m. (ET/PT) on Nickelodeon. The hit CG-animated series, which follows the magical adventures of twin genies-in-training, is currently the number-one preschool show in its time period on all TV. The first-ever consumer products line inspired by series will debut nationwide in July.

What is the most rewarding part of your job?
Seeing kids enjoy the series and products that we work so hard to create.

What’s the ONE thing you recommend ALL businesswomen do right now to take their business or career to the next level?
Practice speaking—firm, clear, but still kind—because it can be a little hard to be heard.  If you practice, the way your message comes across will be heard exactly the way you intend.

What advice would you offer working moms?
We are all working moms in one way or another. Just always remember to make the time you spend with your kids full of love, kindness and good memories.

What do you do during the first hour of your business day and why?
I try to make the rounds with my team to make sure I’m caught up on everything I need to know before the day starts.

What one thing helps you prepare (and relax) in the minutes leading up to a big pitch/presentation?
I practice out loud in my office and to relax, I surround myself with people on the team who make me laugh and put me at ease.

How do you recharge/reboot?
I like to go on walks during my lunch break. It helps me reset mentally and keeps me happy throughout the day.

What’s your favorite mobile app?
Instagram

What is your favorite productivity tip?
I like to keep active as much as I can throughout the day.  If I’m moving, my brain is moving too.

What is the one thing you couldn’t live without?
My family!

Who is your hero (in business, life or both)?
My Mother.

What does WIT membership mean to you? How has it impacted your career?
A membership with WIT opens new opportunities with other women in the industry. It’s an organization that helps us support and guide one another.

What has surprised you most about WIT?
I was so surprised to see how many chapters there are across the world.

What do you wish other people knew about WIT?
I wish more people were aware about the many different types of support WIT can offer women in the industry, including scholarships for undergraduate programs in toy design.


AshleyMadyAshley Mady
WIT President
President, Brandberry Inc.

Ashley Mady is the President of Brandberry, Inc., and has served as president of WIT since 2014. Brandberry creates, builds and licenses brands, with key areas of focus on toys, candy, cosmetics, children’s entertainment and interactive experiences. She has been a WIT South Florida Chapter member since 2010.

What is the single best piece of business advice that helped shape who you are as a businesswoman today, and why?
To never give up and never grow up. The business of play is ever changing and both companies and consumers are fickle, so I’ve learned to constantly reinvent my pitches and my concepts. Half of the game is showing up and being okay to fail over and over again, your odds get better as you go along. If you can find the fun in the challenge, you’ll enjoy the journey too!

What’s the biggest challenge you have faced in business, and how did you overcome it?
Going out on my own. In 2009, I started Brandberry to follow my passions to create and build brands. Although my network was small, my dreams were big. I decided to make it my mission to build a rich network quickly and one of the avenues that really helped was getting involved in WIT.

What advice would you offer women wishing to break into the toy/licensing/entertainment industry?
The industry is small, so once you are IN you’re IN! Start building and fostering relationships early and getting involved in the industry at large. People move around a lot, so you never know what doors will open for you as time goes on.

What is one of your most memorable career accomplishments?
Becoming president of WIT. When I got involved with the organization back in 2010, I had no idea it was going to play such a big part in my life. In 2014, the idea of chairing the board was presented to me and I decided it was my chance to give back to this amazing organization that had already given so much to me. Serving in this role is an absolute honor.

What do you do during the first hour of your business day and why?
Review my to do list, then work on something that inspires me. I find doing something I am passionate about in the morning charges my energy and helps set my intention for the day.

How do you recharge/reboot?
Getting moving! Really, anything that takes me away from the computer. I’m always working and thinking, but changing the environment is what gets me inspired and refuels my creative juices. It could be walking in nature, travel, doing some window shopping or even just spending time with the people I love.

What does WIT membership mean to you? How has it impacted your career?
It’s a game changer, if you use it properly. Very similar to a gym membership, if you don’t do anything with it, you won’t see the results. For me it has multiplied my network and opened lots of doors for new deals. I’ve made some great friends along the way too and like they say, people like to do business with their friends.

What has surprised you most about WIT?
That it is largely powered by volunteers. The inspired action has been snowballing for over 25 years and if you speak to anyone who is (or has been) involved in WIT, you’ll learn that if they give a little they get a lot out of it.

What do you wish other people knew about WIT?
That there are so many ways to get involved (in ways that benefit your business). So if you’re not already involved or not reaping the benefits you want, let us know and we can change that.


Karen KilpatrickKaren Kilpatrick
Vice President, JazWings; Creator of Pumpkinheads

Karen Kilpatrick is VP of Marketing at JazWings and the creator of Pumpkinheads. She has been a WIT South Florida Chapter member since 2014.

What is the single best piece of business advice that helped shape who you are as a businesswoman today, and why?
Relationships matter. Leveraging relationships has provided more opportunities, both personally and professionally, than I could have imagined! I always try help others as much as I can, without expectation of anything in return, because that’s how I hope to be treated. People have helped me so much along my journey and I can only hope to pay it forward to others. Plus, when you treat the people you work with and for you well, you become more of a leader and less of a boss. And that’s important for a myriad of reasons, only one of which being you will inspire the best efforts of others, which is great for business!

What’s the biggest challenge you have faced in business, and how did you overcome it?
I tend to have a difficult time letting go of control, which can be an impediment to progress and growth. It’s vitally important to surround yourself with people you trust who have skills that you lack. I have learned that building a great team is a must!

What advice would you offer women wishing to break into the toy/licensing/entertainment industry?
Show up, show up, show up. When I first entered this industry, not to long ago, I just made sure I was everywhere I could possibly be, from dinners to conferences to trade events. I introduced myself to everyone. I tried to learn as much as possible. I joined WIT! Learn the industry. Meet the people. Then make your moves!

What is the most rewarding part of your job?
I love creating things – from stories to characters to products. And I love helping people build and market their own creations. Seeing brands progress and grow is extremely satisfying but the most fun will always be when I get that new idea and imagine all it might become!

What advice would you offer working moms?
Don’t be too hard on yourself. It is never possible to be all things at once so it’s okay to stop trying! I try to view my life as a whole and not compartmentalize as work versus home. Sometimes my role in business may command a lot more time and attention than I am able to give my role as mom, but other times I have to elevate my role at home over my business priorities. It’s important to not feel guilty and to realize you’re setting a good example for your children that women can accomplish a lot in the working world while still being a great mom. Just not all days will be equal!

What do you do during the first hour of your business day and why?
Whatever I want to do the least or whatever takes the most mental acuity. Usually if I’m procrastinating on something or not wanting to address it, it means it is something important to me that I’m subconsciously trying to avoid for fear of not doing well. Tackling difficult things in the morning when I’m most clear and least likely to be interrupted makes the rest of the day much smoother (usually!)

How do you recharge/reboot?
Exercise! I run, I do yoga – I really try to stay active daily. This is my time alone with myself, focusing on myself, and it’s important to my sanity!

What does WIT membership mean to you? How has it impacted your career?
Being a member of WIT transformed my career in the toy industry. A month after joining, I was presented with the opportunity to co-chair the S. Florida Chapter and immediately said “Yes!” This was an impactful decision. Through volunteering and helping as much as possible, I made connections and friends that have propelled my business and professional life beyond what I could have imagined. It is an incredible organization full of accomplished, amazing women who support each other that I’m proud to be a part of.

What has surprised you most about WIT?
In my previous career in the legal industry, there was no organization for women to join to receive support and guidance in navigating their legal careers. Even though women in the industry face a lot of challenges and impediments to growth, it was extremely difficult to find female mentors or other women willing to help professionally. WIT is the exact opposite of my experience in the law. WIT members genuinely support each other personally and professionally. It’s a place where you can learn the ropes if you’re new to the industry, and simultaneously a place where you can find new positions and opportunities as an industry veteran. It’s such a great and viable network.

What do you wish other people knew about WIT?
The more you give, the more you will gain! WIT is not an organization you should just join and then forget about – you have to participate and contribute in order to get the most out of your membership. Everyone is willing to help. You just need to ask.


Jodi Norgaard headshotJodi Bondi Norgaard
Founder and CEO, Dream Big Toy Company

Jodi Bondi Norgaard is the Founder and CEO at Dream Big Toy Company. She has been a WIT Chicago Chapter member since 2014.

What is the single best piece of business advice that helped shape who you are as a businesswoman today, and why?
Conquer your fears and trust your intuition.

What’s the biggest challenge you have faced in business, and how did you overcome it?
Going against stereotypes is never easy. Many industry leaders told me my product would fail because it was not mainstream, it was not a fashion doll and girls like fashion. As a woman and a mother of a daughter I was positive girls like more that fashion and knew mainstream ideas never create change. In 2015 my product was in Walmart stores.

What advice would you offer women wishing to break into the toy/licensing/entertainment industry?
It is not easy and be prepared to work very hard. Make as many contacts as you can and always ask questions. People want to help.

What inspired you to start your business?
Nothing makes me cringe quite like “Lovely Lola”. I have told the story countless times when I first encountered “Lola” while shopping with my then 9-year-old my daughter, sitting on a shelf in a crop top, high heels and make up. It still makes me angry. I thought there is not one parent that wants their daughter to look, act or be called “Lovely Lola.” As angry as I was, Lola inspired me to create change and shatter stereotypes in the toy industry. Girls are strong, smart and adventurous and it is important to emphasize what a girl’s body can do versus what her body looks like.

What is one of your most memorable career accomplishments?
Having the opportunity through WIT to pitch my product to Walmart buyers. At the end of my five minute pitch they said yes!

What is the most rewarding part of your job?
Every letter, note, email I receive from girls and parents saying ‘thank you.’

What’s the ONE thing you recommend ALL businesswomen do right now to take their business or career to the next level?
Find a mentor…or two! A mentor can help you answer simple and difficult question. They can help you through the business highs and lows and there are many.

What advice would you offer working moms?
I am a working mom. Like all of us, we a juggling a lot. Outside help is beneficial. My kids are older now, but when they were younger, I would work before they got up in the morning, during school hours, then again after they went to bed. It was choppy, but it worked.

What do you do during the first hour of your business day and why?
I answer emails and clean out my inbox. For the most part, I feel like I am getting a clean, fresh start in the morning.

What one thing helps you prepare (and relax) in the minutes leading up to a big pitch/presentation?
>Oddly, I have never been nervous minutes leading up to a big pitch or presentation. It is usually the night before that I tend to be nervous. The more I am prepared for my pitch/presentation, the less nervous I feel. Yoga helps me too!

How do you recharge/reboot?
I work out! Whether it is going for a bike ride, yoga, or a walk with the dog, exercising helps me recharge and focus.

What’s your favorite mobile app?
My favorite is the Go! Go! Sports Girl app…then Directory Spot and Fooducate.

What is your favorite productivity tip?
I’m going say it again, exercise. I am more productive when I incorporate exercise in my day.

What is the one thing you couldn’t live without?
My gym shoes!

Who is your hero (in business, life or both)?
Billie Jean King

What does WIT membership mean to you? How has it impacted your career?
WIT has helped to take my business to the next level by giving me the opportunity to pitch to Walmart. I have met amazing women who inspire me. I have been involved with a lot of organizations over the years and WIT is one of my favorites!

What has surprised you most about WIT?
The amount of passion, organization, and all the women wanting to help other women.

What do you wish other people knew about WIT?
How they are changing the toy industry.


Genji LeclairGenji Leclair
Merchandising Director, The Product Greenhouse

Genji Leclair is Merchandising Director at The Product Greenhouse. She has been a WIT Chicago Chapter member since 2014.

What is the single best piece of business advice that helped shape who you are as a businesswoman today, and why?
My client’s perception is my reality! To always look at the project from their point of view. This is so important for generating collaborative problem solving and creating results.

What’s the biggest challenge you have faced in business, and how did you overcome it?
My biggest challenge has been transforming my communication skills from being self empowered to empowering others around me. It’s a forever process that started when I realized I couldn’t run my business on my own. I had to start developing people around me, listening to their commitment, and trusting them to manage the business. I did this through communication courses, reading and practice.

What advice would you offer women wishing to break into the toy/licensing/entertainment industry?
My advice is to view yourself as an inventor, a toy maker, a development genius! Whatever it is that you do – that’s who you are. In this role, you are NOT A WOMAN, you are a PERSON contributing to children around the world by being in the toy industry, and you are unstoppable. You also have the resources of WIT to light the path.

What inspired you to start your business?
I was 19 and thought I knew everything! Honestly, I believed I could run a great company, better than what I saw available to me. And so – I decided to give it a go. 38 years later, I’m still enjoying being a business leader.

What is one of your most memorable career accomplishments?
There are a few. One was hitting 25 million in sales! That was a fun milestone. Getting our first million-dollar order was another, and getting an order for 10 million pieces of one item. I also remember walking through the airport in Germany and saw 2 people carrying bags we had designed and produced for Spiegel/Eddie Bauer. It’s always a boost to see our products out in the world. 

What is the most rewarding part of your job?
Seeing people use and enjoy the products we produce. Watching our team high five when a tough project wraps up and ships. Getting kudos from a client for a job well done. Knowing that we helped an inventor get their product into the world. Meeting the incredible people in this industry who are my friends forever!

What’s the ONE thing you recommend ALL businesswomen do right now to take their business or career to the next level?
I have two. First, take a look at your brand and create stunning packaging. Second is to find a mentor, someone who’s been in your shoes – older than you, and use them up!

What advice would you offer working moms?
Balance your time and make sure your kids know you love them. Feed them and hug them in the morning, and be there when they come home. And if they’re little, surround them with family and a great caretaker who can bring them around your office to see what Mom is up to. My kids grew up in my office, and they are both working in the business now. It was fun, and hectic, and all worked out just fine.

What do you do during the first hour of your business day and why?
Get present to your overall goals. Why are you in this business, who are you to your employees, clients and the world. Read through your short- and long-term plan, every day Then take a moment to be with the universe (or whatever inspires you). Review your schedule, and make a list of your 6 priorities (actions). Leave a little room for surprises throughout the day, but resist doing anything else until you accomplish the 6. Then move on to another 6. That’s the secret – 6!

What one thing helps you prepare (and relax) in the minutes leading up to a big pitch/presentation?
If you are prepared, you won’t be nervous. Create your pitch, and practice it on others until it’s right where you want it. Be sure to have clarity of the outcome you want, and what you will be watching for and listening for throughout your presentation. When you get on the big stage – you’ll be focused on others, and not on yourself as much, and for that reason, you’ll do great.

How do you recharge/reboot?
Bourbon and a trip to the beach! A little yoga and time in the garden is wonderful too.

What’s your favorite mobile app?
Right now it’s Imago – but I also love to keep up with everyone on Facebook and LinkedIn.

What is your favorite productivity tip?
Be clear on your priorities for the day. Limit your to-do list to the top 6 ONLY. Do those and then choose 6 more. Use Smart Sheets and Outlook or Google to organize tasks and priorities.

What is the one thing you couldn’t live without?
Besides the internet? My husband? The kids – my Jack Russell and bees? Hum….. I can live without everything except my husband Steve, a little Sunshine and my Mac!

Who is your hero (in business, life or both)?
My hero in business is Martha Stewart. She has built an empire on empowering people, beauty and creativity. In life – my hero is my husband Steve. He never waivers, he’s my rock and my business partner, and I can’t imagine anyone else I’d rather be on life’s journey with.

What does WIT membership mean to you? How has it impacted your career?
It means sisterhood, empowerment, confidence and power! I’ve been fortunate to sponsor WIT and from that, meet and work with so many talented and passionate women in the industry.

What has surprised you most about WIT?
The reach, the size, the high level of talent and leadership.

What do you wish other people knew about WIT?
I wish for people to know that WIT is there to empower people in the toy industry to succeed and reach the world with their products. And we have a lot of fun along the way.


Click here to nominate someone for WIT Stories.

Swedish Toy Retailer Believes Toys and Baby Products Should be Sold Together

Lena Hedö, swedenBy Lena Hedö

Kungen’s Kurva Shopping Centre, just outside of Stockholm, is Sweden’s largest commerce site. This is where Peter Stenlund opened his sixth store one year ago—only 600 meters from another shop in the same retail chain, and with several other competitors close by.

“If you are confident and believe in your concept there is no reason to be afraid of competition. On the contrary, it is positive to establish your brand where the traffic is,” Stenlund says.

The large shopping center originally came together by several different malls that over time grew in to each other. Kungen’s Kurva, which can pride with having the largest Ikea in the world, also has a brand new shopping arcade and there are plans to double the amount of shopping opportunities. Additionally, there are two other centres in the area: Heron City and Skärholmen’s Centre. “The catchment area is very large,” Stenlund explains, “and tells us there are about 1.7 million potential customers. This opportunity was just right, as the development during 2014 was very strong.”

Stenlund’s business has reached a critical point as it’s become too large to handle without some essential areas being covered. “The fifth store was probably the most difficult,” he says. “We were still working in a small scale and couldn’t hire a Regional Director, but [it was] too big for me to handle myself. It was up to me to delegate the workload, have self-sufficient stores, and to trust the staff. A Store Manager is completely necessary and also functions as a Deputy for the store.”

Lekia kk bp gavel

The competition in the new establishment is grand, however Stenlund says that Lekia’s double establishment isn’t remarkable in the context, and there are several strong examples to mark this. They are contending with the in-size, largest Toys ‘R Us in the Nordics, Big Baby, a large-scale child and baby store, and not to be forgotten—Ikea. ”If I’ve learned anything, it comes down to observing the traffic and most of all customer frequency. Competition can drive customers for each other and at the same time it pushes the retailers to become better and better,” Stenlund says.

The store is located on the second floor in Kungen’s Kurva Shopping Centre and holds 630 square meters of retail place. It is a combined area of Lekia and Babyproffsen, which are both Voluntary Specialist Retail Chains that Stenlund is a member of. This is something he finds both convenient and natural. At our visit to the store, the baby section isn’t fully ready but everything else has found its place. The staffs are fully trained and a walkway is prepared in the center of the store.

“We want the line between ‘play’ and ‘baby’ to be a bit blurred, but it’s essential that it’s easy for the customers to find what they are looking for,” Stenlund says. About 40 per cent of the revenue comes from ‘baby,’ according to Stenlund.

Stenlund is a spokes person who strongly speaks for the sake that toys belong together with child- and baby products. “This is a necessary qualification to achieve profitable stores,” Stenlund says. “You have to see it from the customer’s point of view. The advantage with ‘baby’ is that it requires a deeper knowledge, which means you can’t sell it everywhere.”

Lekia kk barn i bil

As previously mentioned, the employees are an important resource for Peter Stenlund, who works after the principle of “team power.”

“Everyone helps out, and everyone has knowledge of the different areas, even if some have specific responsibilities,” Stenlund explains. “It’s important that you are a sales person in a positive and true sense. For example, we have an extra large retail expertise, as both the Store Manager and the Deputy in charge have a background of working at large retail chains. There is a difference in selling and to have goods for sale.”

On Stenlund’s to-do list we find staff supplementation, as well as to continue having recurring phone meetings with the Store Manager every week. When and if the long-sought-for Regional- or Sales Director can be hired, all depends on when the next store comes to life. In terms of the turnover Peter don’t want to rush to conclusion.

“I expect it to take 24 months before we reach a reasonable level,” Stenlund says.

Game of Drones

Drones compete to be top dog in the R/C aisle by adding extra features, gaming, and more.

Winter is coming—well, at least for the toy industry, which is constantly looking forward to Q4—and toy manufacturers are always competing to provide the best products at the best price.

Last year, we saw an influx of drones hit the market. A lot of companies were jumping on the trend, from traditional R/C companies to newcomers to the game that were importing in unknown brands. Retail shelves and online retailers were flooded with a variety of drones, making it a bit of a struggle for consumers to sift through all the options to find the one that suited their needs. [Read more...]