Nick Mowbray, CEO at ZURU, discusses growth in new business areas, retail merchandising, and more 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: What are the biggest challenges and opportunities facing the industry this year and how do you plan to tackle them at ZURU?
Nick Mowbray: Beginning last year and continuing into this year, the industry has faced increasingly stronger economic headwinds. Despite that, newness and innovation are still winning with consumers. While innovation slowed following the pandemic, ZURU doubled down on new product development, positioning us with a great line-up of launches in 2024. At the same time, ZURU’s end-to-end control over the production process allows us to minimize retail price increases for the customer.
TB: International toy retailers have upped their merchandising game in recent years, what can retailers in the U.S. learn from them?
NM: The quality of merchandizing activations ZURU can achieve internationally is much stronger than what can be done currently in the US. Retailers should work to create more brand activation opportunities in store, clearly map out the shopping experience to make aisles easy to shop for consumers, and make sure to stay on top of newness and innovation.
TB: When we last spoke, Mini Brands were poised for another big year and this year you released fresh assortments right out of the gate. How much growth is left in the miniature space?
NM: The miniature community is thriving, and our commitment to newness and attention to detail continues to drive the category. Retailers need to lean into the new and exciting Mini Brands categories emerging in 2024 to grow with it. Our most recent launches of Mini Books and Sneakers have smashed expectations, experiencing early sell-out at many major retail stores, and bringing new fans into the world of miniatures. The level of detail we deliver, down to the readable text in a miniature novel, is what the community loves. With even more licenses from today’s hottest brands, we are committed to our mission to make everything mini in 2024!
TB: Last year was challenging for many, but there were also some bright spots. What were some big wins for ZURU?
NM: 2023 was a win for ZURU. In a declining market, we managed to hold most of our share and grow in multiple markets. Our launches of Snackles, X-SHOT Insanity and Hyper Gel, Rainbocorns Mermaidcorn, and Foodie Mini Brands exceeded projections substantially. This is credited to our innovation coupled with exceptional value. During a time of across-the-board economic turbulence, we take pride in intentionally maintaining price stability. This enables us to continue delivering the same, if not better value for consumers.
TB: ZURU was one of the major companies missing when Toy Fair returned to New York last fall. With no show in 2024 and a new campus in Los Angeles, what are the odds of ZURU heading back to the Big Apple in March 2025?
NM: Our new revolutionary L.A. showroom has been specially designed with custom software to provide a digitally immersive showroom experience. Industry feedback for the new experience was overwhelmingly positive, and as such, this new format is preferred for product previews. Our more than 30 showrooms around the globe are busy working to replicate the L.A. format ASAP. At this stage, our attendance at the 2025 Toy Fair in New York is currently being deliberated.
TB: How has success in toys helped ZURU to accelerate growth in other sectors like ZURU Edge and ZURU Tech?
NM: Success in toys has earned ZURU a reputation of trust with our retail partners. Toys being a fast-paced sector with constant innovation has created a culture that serves us well in slower categories. As a result, ZURU Edge continues making tremendous gains and is now a substantial brand within ZURU group. Our automation expertise has also really helped in new categories.
In 2024, ZURU continues to invest in technology: ZURU Tech is revolutionizing housing construction through automation and software.
At the same time, ZURU Studios makes its debut in the animation space. With a 100% in-house fast-growing team comprised of over 100 specialists, we are thrilled to be releasing our first-ever preschool show this year, Eggy Wawa.
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.
