JAR at Toy Fair, Discussing Toy Trends
Toy Fair is one of the world’s largest trade shows for the industry. Toy manufacturers preview their new products and take orders from retail buyers planning for holiday 2010. Looking at over 100,000 toys sounds like a lot of fun, but it is hard work for the buyers.
Over 40% of their annual sales come in the last two months of the year, and retailers need to stock the right inventory if they want to have a profitable season. Zhu Zhu Pets were a hot seller last year, and retailers that bet big at Toy Fair 2009 on these little hamsters sold out their inventory. But that big bet could have been a dud if they selected the wrong product.
The challenge is to predict the trends eight months ahead of the holiday season. In such a competitive market, manufacturers need to show buyers more than just a good product. There are many good products, but marketing can make a huge difference in a product’s sales. While traditional advertising (TV, Radio, Print Ads) is a key factor for mass market toys, specialty toy manufacturers need to assure buyers that they have a strong PR plan, social media outreach and brand recognition.
The JAR Group works with several toy industry clients, including Corolle Dolls, ASTRA (American Specialty Toy Retailing Association) and RosieHippo.com, so I had the pleasure of attending the 2010 Toy Fair.
A few noteworthy trends from the 2010 Toy Fair:
Increasing Online Focus: I heard from multiple manufacturers that online sales are their fastest growing segment. Manufacturers are shifting money into social media campaigns, but social media is maturing as well. At the 2009 Toy Fair, manufacturers told me that the felt they “had” to have a Twitter presence. Last year, manufacturers wanted to “test” the new technology. Now, they talk about the importance of “measurable results” from Twitter, Facebook and Blog Outreach. Many manufacturers, including our client Corolle, were actively tweeting during Toy Fair to create buzz about their products.
Specialty toy retailers who have lost business to sites such as Amazon.com in recent years are fighting back with improved websites and innovative curbside pick-up programs. Despite the economic downturn, they are investing in search engine optimization and social media campaigns. As one retailer explained, “Investing with an agency is equivalent to paying rent and opening a new location, but it may be more profitable.”
I agree with her assessment because I have seen our efforts in search engine optimization, search engine marketing, media buying, social media, affiliate marketing, email marketing and web-design increase our clients’ revenue. Working with a marketing agency is an investment. Clients have found that The JAR Group’s focus on performance marketing makes us a safer investment because we are personally invested in meeting revenue numbers.
The First Lady of Toys: While magazines laud Michelle Obama’s trend-setting style, her influence on the toy industry hasn’t gotten much coverage aside from articles on Ty’s controversial Sasha and Malia dolls. Play Things But Michelle Obama is a trend-setter. Her organic White House garden made appearances on Sesame Street as well as a hyped episode of Iron Chef America. And she is actively promoting her campaign to prevent childhood obesity on TV shows and with personal appearances.
It’s not surprising that toys designed to prevent childhood obesity and to encourage gardening were hot this year. And manufacturers were pushing the Michelle Obama connection when demonstrating their products. A highlight to me was meeting two-time Olympic Gold Medalist Gigi Fernandez, who was unveiling Baby Goes Pro.
Green Innovations: Toy Fair had several green initiatives- including the first ever “Earth Friendly Product Zone.” I was excited to walk the floor with Kim Bloom, CEO of RosieHippo.com and a JAR Group client, as she selected several exciting new products to add to her eco-friendly store.
My favorite innovation was the Virtual Totebag Virtual Totebag for exhibitor materials. I hope to see this technology at future tradeshows.
Technological Marvels: Do you miss your dog while you’re at work or school? With Mattel’s Puppy Tweets (available for pre-order on Amazon), you’ll be able to follow your pooch on Twitter. Simply attach the Puppy Tweets tag to your pet’s collar, and you’ll get a tweet when your pet moves, sleeps, barks. With 500 phrases, this collar isn’t sophisticated as those worn by the dogs in Disney’s Up, but it’s a good start.
I was particularly impressed by Roboni-i, the world’s first programmable gaming robot. Roboni-i can navigate on its own, avoid obstacles, play games and do tricks. Like many popular toys, Roboni-i also has a virtual world where users can control their robot avatar. Users can customize their robot using the Command Center to control its actions in both the actual and the virtual world, and any mods users make will work both online and offline.
Blogger Backlash: Manufacturers recognize the power of bloggers, but the proliferation of review blog sites is a challenge. One manufacturer told me that they get such a high volume of requests from bloggers asking for samples of their DVDs and software for review and giveaway that they delete all requests. A year ago, they provided samples to every blogger who requested one, but they were disappointed in the poor quality of the reviews and the low ROI. But ignoring all blogger requests isn’t a solution as the company’s traffic from referring sites has dropped. Clearly, neither approach is ideal.
The JAR Group works with its clients to measure the influence of bloggers and to identify the right bloggers based on a client’s goals, budget and demographic targets. At times, a client’s budget has not enabled us to send a review sample to every requestor, but we respect their time and their professionalism. The key is to be upfront with the blogger. As a result, we are able to maintain a strong relationship and are frequently able to involve that blogger on a subsequent campaign.
Want more Toy Fair insights? Contact bizdev@thejargroup.com to set up a meeting. We’d like to learn more about your 2010 marketing goals and any challenges you may be facing.
If you are a specialty toy retailer, we recommend that you join ASTRA and attend their Marketplace and Academy in June ASTRA Toy. I will be leading a Retailer Session: “Marketing Strategies & Media: Retail Marketing Goes High Tech.” Here’s the session description: In the face of tough competition from big box stores and online powerhouses such as Amazon, retailers need to think beyond traditional marketing and PR strategies. This session will focus on online marketing techniques that boost sales and attract new customers. Social media, Twitter, Facebook, SEO, CPC Advertising, CRM and affiliate marketing can positively impact your brick & mortar store as well as your e-commerce efforts. We’ll help you decipher these buzzwords and offer strategic and practical solutions to your marketing challenges.”
