Andrew Wagar, President & CEO at Swerve/Chair, Marketing and Communications, The Canadian Toy Association, spoke with senior executives from a number of Canadian toy companies to share insight for this extended edition of The Toy Book’s 2023 State of the Industry Q&A roundtable. Want more insight from the all-stars of the toy industry? Click here to explore this year’s lineup!
The Toy Book: What are the biggest challenges facing the toy industry in 2023?
Andrew Wagar: Continued cost inflation and interest rates make it difficult to innovate at opening and mid-tier price points and to innovate in merchandising systems and retailtainment. Additionally:
- Changing Media Consumption Habits: The continued expansion of new platforms and channels has made it difficult to navigate and prioritize to effectively and cost-efficiently reach your target consumer.
- Supply Chain: Container availability, shipping costs, and delivery times continue to be a challenge.
- Credit Insurance for toy retail customers: Insurance companies are becoming more reluctant to provide workable limits without higher costs or by simply refusing coverage for certain retailers and orders.
TB: How is The Canadian Toy Association (CTA) addressing these and other challenges?
AW: The CTA’s mandate is to advocate on behalf of the industry through our government relations and communications efforts. We will continue to keep our members informed, educated, and connected on the impact this work has on their businesses as we face the above challenges together.
TB: Last year, Toys for the North managed a record-breaking season of giving. To what do you attribute the vast increase in toy donations?
AW: The Toys for the North has seen donations increase more than 840% since 2019 thanks to growing awareness of the program, increased education and awareness of the challenges facing Canada’s northern communities driven by the Assembly of First Nations and NGOs, and the time and effort invested by the Royal Canadian Mounted Police, the Royal Canadian Air Force, Thomson Terminals, and the Board of Directors of the CTA.
TB: What are the CTA’s key initiatives for the year ahead?
AW: [CTA’s goals include] expanding the number of networking opportunities and events following 2022’s successful Canadian Toy Hall of Fame and Rising Star recognition ceremony, continuing our work with the Genius of Play program, and continuing to grow and expand the Toys for the North while executing our mandate of advocating for the growth and health of the Canadian toy industry.
On the government relations side, [our leading priorities are] ongoing work by the federal government regarding plastic waste mitigation, proposed recycling labeling requirements, proposed new chemical labeling requirements for consumer products, and a department review of the Toy Regulations’ chemical testing requirements.
Apart from the update to the Toy Regulations, the toy industry is not a direct target for these policy initiatives, but the CTA will maintain its engagement with regulators due to the precedent being set as it could have implications.
TB: What are your overall predictions for the state of the toy industry and toy retail this year?
AW: Canada continues to experience strong population growth and a resilient economy. Despite increased interest rates and some challenging times ahead for consumers, we expect the toy industry to continue to outperform other general merchandise categories for the remainder of the year.
A version of this Q&A was originally published in the 2023 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
