ASTRA’s Insights: Introducing Licensed Products at Specialty Retail

by SUE WARFIELD, President, American Specialty Toy Retailing Association (ASTRA)

Over the years, licensed products have been a “hands-off” commodity for many specialty stores. Licensed toys cost more, are sometimes of lower quality, offer little play value, and don’t have the overall look that specialty toy stores want to present. These are all understandable reasons to avoid licensed products at specialty stores, and as a former sales rep, I heard them all the time. But as a mother and a grandmother, I know that kids and adults often gravitate toward licensed products. 

As we are forever working to increase our market audience in our specialty toy stores, a curated selection of licensed products can draw in new customers and age up your target audience, especially with the growth of the “kidult” market. 

For those retailers who have continued to shy away from carrying licensed products, the key is to curate your selection carefully. A store full of only licensed products? Of course not. That’s not what specialty is about. However, selecting key licenses that will resonate with your consumers and fit in with your existing product mix will make a difference in your sales. Consider Harry Potter, which is big for all ages. The LEGO Group’s Botanicals series is a huge success, and more licensed products from Santoki are on the way. Brands like Hot Wheels, Barbie, and Pokémon are well-known and drive sales. 

My children were raised in Montessori preschools and in a school system that followed the Montessori principles, so I was adamant about the quality of the products I purchased for their toys at home. I continue that practice when I purchase things for my grandchildren. At the same time, when kids (and adults) have favorite characters or there are licensed products that provide the same play value and quality as the unbranded versions, I want to go the licensed route to add that extra little bit of magic to the gift.

As with all things, balance is the key — especially for specialty stores. ASTRA stores, staff, and members are often asked, “What is specialty?” Years ago, we considered only unique products unavailable at mass retailers or anywhere else to be “specialty” toys. Some toys still fit that bill, but product assortments have shifted a lot to include other categories. Specialty stores are about making each customer feel special, whether through a curated selection of products, elevated customer service, or unique and interactive experiences beyond a traditional shopping model.

Licenses can make an immediate impact because these are the brands and characters customers know, recognize, and hear about on all the various social media and influencer outlets. If consumers can find some of their favorite licenses in specialty stores, they won’t have to go to a mass merchant, where they will most likely buy other toys as well. Curate your product assortments carefully to remain special and encourage customers to come to you before heading to a big box retailer or clicking “add to cart” online.