Omer Dekel, CEO, PMI Kids’ World, talks toys, licensing, and predictions for the months ahead in this extended edition of The Toy Book’s 2024 State of the Industry Q&A. For our annual roundtable, The Toy Book brings together a panel of industry leaders, manufacturers, retailers, and distributors to discuss the trends, wins, challenges, and opportunities shaping the North American toy industry as it regroups after a tough year and gets ready to rock and roll. Click here to explore the series archives.
The Toy Book: From Pudgy Penguins to Piñata Smashlings, PMI Kids’ World was everywhere last year. How did 2023 play out and what does the future look like for those new brands?
Omer Dekel: We’ve really made a name for ourselves by taking digital products — video games, mobile apps, or Web3 content — and using them to create authentic physical experiences for consumers across plush, collectibles, figures, and more.
For Pudgy Penguins, 2023 was successful for us and we just launched the Series 2 Pudgy Toys. The brand also continues to innovate with the launch of its new “Pudgy World” online experience this year. That gives consumers another touchpoint to interact with Pudgy Penguins.
For Piñata Smashlings, last year was huge! From the Roblox game to Toikido designing a Piñata mascot for the UEFA Euro 2024 to the announcement of a TV show from Nelvana for 2025, consumers will have many opportunities to engage.
TB: What key initiatives should retailers and consumers be excited about from PMI this year?
OD: We’re excited about the launch of our Stumble Guys toy line this month. The award-winning game has more than 70 million monthly players and loads of epic collaborations (MrBeast, Pac-Man, Barbie, etc.), so we couldn’t be more excited to bring this digital world into the hands of consumers. We are also launching a new line this fall called Booksy. This is a PMI owned and patented IP which we are so excited about. We are also launching Series 2 for our Sonic Prime collection in collaboration with SEGA.
TB: What are the biggest challenges and opportunities facing the overall global toy industry this year and how is PMI approaching them?
OD: We see every challenge as an opportunity. Right now there is a global recession, however, thanks to our business model — first to market, quick to identify trends, low price points, and good margins — we’re able to combat this. A large portion of our top-tier brands sell at retail for $10 or less. This makes our toys affordable, accessible, and collectible.
TB: As a maker of licensed products, what emerging trends are particularly compelling?
OD: Consumers crave authenticity. We see it all the time on social media and in ads. They don’t want overly polished, they want real. This is exactly how we approach our physical products. We keep them authentic to the digital experiences that inspired them.
TB: In what ways can retailers best engage with PMI and make a statement with your products?
OD: The benefit for retailers to engage with us is we are quick to market, have great margins, and are flexible in providing POS solutions for retailers — pallet programs, eye-catching displays, quick merchandising solutions to get products on the shelf efficiently, etc. Since they are inspired by the digital space, many of our products come with redeemable codes that take consumers back online to engage with the brand more, which ultimately keeps them coming back to retail!
TB: What are your overall predictions for the state of the toy industry — and toy retail — this year?
OD: We’re fortunate that in 2023 our lines sold well, however, we do know there is a global recession happening and we are mindful of that. Impulse is, and will, continue to be big for consumers which is why we pride ourselves on not only making high-quality products, but ones that are low cost. New trends pop up every day and our model allows us to be agile and change with trends. Whether it’s a new IP that’s gained popularity, a social trend, or a line inspired by a new influencer, we are quick and nimble to pivot.
A version of this story appeared in the 2024 edition of The BIG Toy Book. Click here to read the full issue. Want a copy in print? Click here for back issues and subscription options.
