by SUE WARFIELD, President of the American Specialty Toy Retailing Association (ASTRA)
What makes a store relevant to the families it serves? In the toy world, kids are the ones whose eyes light up when they receive a gift or enter a toy store holding the hand of a parent, grandparent, aunt, uncle, or good friend. But what exactly is it that sparks that moment of pure joy? Is it finding products that are new, of great quality, and have high play value? Yes, those are important factors, and likely the most important ones to the person purchasing the toy — but what exactly is it that catches the eye of the child in an instant?
Kids often ask for the toys they see advertisements for, but more often than not, they are looking for their favorite characters they see on screen — whether from traditional TV shows and movies, or their favorite YouTube personalities. And here’s where licensed toys come into play.
For years, many specialty stores avoided selling licensed products often due to the higher costs associated with these items thanks to licensing fees — but not stocking these key items means potential customers will turn to mass merchants to find them, instead.
Things have changed in recent years as our specialty toy stores realize the importance of a varied product mix that includes licensed items based on customer demand. After all, why send them elsewhere to spend their money?
Here’s what a few ASTRA members have to say about the importance of stocking licensed products in ways that make sense for neighborhood toy stores:
Stephanie Sala, Owner, 5 Little Monkeys, California
“We used to be strict about not carrying licensed products, but now see Star Wars, Disney, Marvel, DC, and Sesame Street as classics. When customers come in ready to spend their money in my store, why am I sending them away? They are willing to pay a little more because they want to support their local neighborhood toy store that donates to their school and they can have it gift-wrapped for free. Once the customer pays for wrapping paper or a gift bag at a big box store, they’ve actually saved money by buying it from us!”
Steve Aarons, Founder, Child’s Play Toys and Books, Virginia/Washington D.C.
“We have carried licensed products for more than 30 years. I feel it is imperative for a proper product mix. It is also a way to tell your customers that they do not need to go shopping elsewhere. I have always felt it was essential to pick and choose from specialty and mass products. On many licensed products, you may have to cut your margin some as you do not want to seem like your prices are too high — I like to use the phrase ‘pigs get fat, hogs get slaughtered.’ Your turns will usually be higher on these products and the most important thing to focus on is profit per linear foot.”
Tom Kelly, Senior Vice President U.S. Sales, Spin Master
“In addition to characters from our premium plush brand, GUND, iconic characters from PAW Patrol, Gabby’s Dollhouse, Hello Kitty, and Pusheen continue to perform well. There is strong, built-in demand for these characters, and with specialty retailers being a key destination they do not want to miss out on the opportunity to capture the sale.”
From my perspective as a grandparent, I see my two granddaughters, ages 7 and 4, obsessed with anything Barbie and PAW Patrol, respectively. While I certainly buy other things for them that are not licensed that they also love, at the end of the day, I need to be the “cool grandma.” Luckily, for their Christmas and birthday presents, I have found licensed products featuring their favorite characters at my local neighborhood toy store, and have spent a good amount of money to support them. At the retail level, remember to do what you do best. Get them in the door, have what they want, and “wow” them with unmatched customer service so they keep coming back!
A version of this feature was originally published in The Toy Book’s 2024 Licensing & Entertainment Issue. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
