Industry leaders, retailers, and manufacturers weigh in on toy trends, changes, and more in The Toy Book’s annual State of the Industry Q&A.
ISAAC LARIAN, Founder and CEO, MGA Entertainment
What is one of the biggest challenges toy manufacturers face, and how is MGA Entertainment addressing it?
One of the biggest challenges toy manufacturers face in the industry is the mass production of counterfeit toys and other toy companies that knock off the hottest toys on the market. It’s also an easy way out for some toy companies and so-called “inventors” to make a copy of an original idea instead of innovating. Longer term, this will hurt these copycat vendors as well as the retailers who support and buy knockoffs. Our legal team implemented a global anti-counterfeit program that vigorously pursues all types of counterfeit and knockoff cases and enforces our rights to the fullest. We will always protect our rights and our loyal fans who deserve to receive the best quality toys from a reliable and trustworthy manufacturer, such as MGAE. As a leading company in the toy industry for creating innovative product, packaging, and marketing tactics in bold ways, we are growing faster than anyone else. We care about our brand’s fans who support and allow us to continue making creative and groundbreaking toys that become a memorable part of their childhood.
Unfortunately, L.O.L. Surprise! encounters a high volume of counterfeiters attempting to capitalize off of the unparalleled phenomenon, and we are vigilant in responding on social media and taking aggressive legal action as we urge fans to only purchase products from trusted retailers and websites. We also have a unique approach to educating kids about how to spot a fake that is in the tone and manner of our brand on our Unboxed series on YouTube, called “How to Spot a Fake L.O.L. Surprise,” which has received more than 10 million views to date. Maintaining the quality and integrity of our brands is a top priority and essential for the brand and fans.
What are your predictions for the state of toy retail this year?
I predict the loss of Toys “R” Us will have a major long-term effect on the toy industry. Many toy makers will likely not make new and innovative ideas, as major retailers, such as Walmart and Target, simply don’t have room to take new ideas. In addition, these retailers are risk averse to bringing anything onto shelves because their space is so limited. So, I believe the toy business as a whole will be down again this year because of the lack of original innovations that are brought to market. It’s unfortunate, but it’s a reality toy manufactures have to consider.
