Resilience of the Toy Industry

The Resilience of the Toy Industry

How has the toy industry, worth over $90bn globally, fared during these most unprecedented of times?

When we attended Toy Fair in New York back in February 2020, Coronavirus was known about and certainly being discussed in the aisles, but there was no way anyone could have predicted the complete disruption to every area of life, business and industry that the global pandemic would cause. In fact, this time last year, COVID-19 was already causing big problems with Asian manufacturers, predominantly in China, and these problems had a huge impact all the way down the supply chain. The future looked very uncertain. However, the toy industry has proved resilient against the challenges, with one of the primary reasons being that demand is still high – and grew during the pandemic, as did online shopping platforms and e-commerce stores, replacing sales from many traditional toy retailers. The absence of all the major trade shows in the first part of 2021 has meant that the industry has had to show resilience and creativity in a way to ensure the industry keep flourishing.

Steve Pasierb, President & CEO,

The U.S. Toy Association, notes that while U.S. toy sales were up 19 percent in the first three quarters of 2020, the actual company-by-company results have varied widely. He comments: “U.S. sales have soared for puzzles and family board games, outdoor play equipment, and educational toys and games to help with at-home learning. Likewise, toy companies well-positioned with major retailers such as Walmart, Target, and Amazon have seen consistently strong sales, as have companies and retailers with strong digital footprints and ecommerce sites. And classic and nostalgic toys and brands have acted as a kind of “comfort food” for families seeking positive outlets in an uncertain world.” Of course, this has been an unprecedented year for everyone, and Steve notes: “Companies that sell primarily to amusement parks, vacation destinations, museums, and other venues have seen little to no sales, as have portions of the specialty retail sector which have either been closed due to local restrictions or have not been able to rely on e-commerce sales. Entertainment companies launching major IP properties have had to pivot and find new ways to drive consumer excitement in the face of an increasingly fragmented audience, and the accelerated rise of e-commerce has forced brands to find ways to interact more closely and dialogue directly with the end-user of their products.” On being asked his thoughts on the future, Steve says: “Looking to 2021, it is expected that many of the positive trends that emerged amid COVID-19 will remain strong; according to our internal trends team, fall previews have shown the continuing impor-

tance of play in family life, retro and classic toys that inspire nostalgia and bring comfort, and laugh-out-loud, silly, and gross-out toys and games that will bring much-needed levity into everyone’s lives. “Through all the uncertainty and retail disruption, The Toy Association is providing direct assistance to those who are struggling and continues to make headway on important issues impacting members of the toy and play community, including advocating for legislation that tackles the threat of unsafe toys sold on e-commerce platforms, breaking down trade barriers, and pushing back on legislation that does not advance toy safety.” As Steve notes, particular success has been seen in the puzzles and games side of the industry, as well as in toys that encourage home-learning – as much of the world’s parent and caregiver population has been, or still is, involved in home-schooling. But there is still a large amount of uncertainty over the coming months, with major studios unable to release their predicted blockbusters, thus merchandizing programs that are planned around the movie side of things are difficult to get into retail. The Trolls movie, released in 2020 on pay-per-view, set something of a precedent for the industry. Released digitally straight into people’s homes, the planned toy schedule could go ahead. There were mixed feelings in the industry about this, and some outright criticism of the decision. However, this seems to be a trend that will not change, and will only increase. While changes were certainly happening, the pandemic has accelerated the way children view content and gain awareness of licensed toys. Netlfix, Amazon Prime and Disney +, among others, are seen as success stories of the pandemic – as well of course as Amazon itself with its retail and quick shipping options. It has become essential that entertainment companies keep their IP and franchises on kids and parents radars – so digital advertising and social media has very much come into play. And the fact remains that parents and caregivers have been buying more toys for their children during the pandemic – with everyone stuck at home, video games, interactive toys and education and learningbased toys have increased.

Innovation, creativity and above all, ability to adapt seem to be the key components to ensuring success during this disruptive time.

Moonbug Entertainment has announced a very wide licensing program around is popular property

CoComelon. CoComelon is an example of how the reach of a property has gone global through YouTube.

CoComelon is the world’s mostviewed YouTube channel with over 3.5 billion average monthly views and over 100 million subscribers.

Wow! Stuff is moving into the preschool category by partnering with

Moonbug, and will unveil a range of products based on the popular kids’ show during 2021. “As we look to bring new ways for fans to engage with their favourite characters, we need partners who can create toys and products that truly bring them to life,” said Simon Philips, senior in-house advisor, Moonbug. “Wow! Stuff’s reputation in developing innovative toys is unparalleled and we look forward to bringing them kids worldwide.”

Head of Product Development and Licensing at Wow! Stuff, Kenny McAndrew continued, “We have been working with CoComelon for some time and have seen how the brand has captured families around the globe with its educational and engaging content. Now that it’s a Moonbug brand, we’re delighted for what’s to come from our relationship and the new ways in which we encourage play.” Moose Toys has announced it is launching a brand-new Octonauts toy line in partnership with Silvergate Media. The collection will support the popular preschool animated TV property and the upcoming release of its anticipated new spinoff show, Octonauts: Above & Beyond. First launched on screens in 2010, Octonauts has a global broadcast platform spanning multiple territories and huge fanbases in the UK, US and China, more recently the show extended its reach by debuting in Latin America and the Middle East. Octonauts appeals to audiences around the world due to its storytelling, educational narratives and compelling characters that cross cultural divides. The upcoming new series Octonauts: Above & Beyond will take the much-loved crew of intrepid explorers beyond the sea and onto land with an exciting array of new locations, vehicles and storylines to enjoy. Kids will learn real facts about amazing creatures, extreme new environments and the challenges of water and weather phenomena. As part of the deal, Moose Toys will create a full range of Octonauts toys including figures, vehicles, playsets, plush, games and more. Additional details about the range will be released closer to launch. Octonauts: Above & Beyond, the brand-new spin-off series combines the high-octane action, educational content and stunning creative that has come to define the brand and will debut in 2021. With this latest partnership, Moose Toys continues to expand its licensing portfolio and acquire highly coveted shelf real estate in the booming preschool aisle. Along these line, Moose Toys also recently announced Kindi Kids Minis, a brand-new scale offering a whole new way to play in the Kindi Kids world. Moose Toys Senior Vice President, Head of U.S. Marketing & Strategy Alex Ries: “Kindi Kids has quickly become a beloved preschool brand, and we are delighted to introduce our fans to the adorable new world of Kindi Kids Minis. These pint-size minis are rich with the fun, quirky details kids love and expect from Kindi Kids, and we are certain that this engaging world will encourage hours of imaginative play.” Bluey is another popular property which is seeing interactive play and innovation at the heart of the toy range. romoting active and imaginative play and inspired by the episode, “The Pool,” Bluey Pool Time Playset playset includes a pool ready to be filled with water, plus a diving board and cabana for one of summer’s favorite activities. In Bluey’s Hopscotch Race Card Game, players build a hopscotch path using cards, then spin the spinner to match the color and be the first to the finish line. Includes 44 colorful picture cards, color spinner and the four Bluey family characters as game movers. Daniel Tiger’s Neighborhood has many interesting toys based on the series, due for release this year. TCG Toys has created Daniel Tiger’s Neighborhood Puzzle 8 Pack; and Cottage Door will release Daniel Tiger’s Neighborhood Explore & Find So Many Ways to Play; where kids can join Daniel Tiger and friends as they explore all the wonderous seasons in this interactive “Explore & Find” board book that is filled with engaging search-and-find matching games, counting, new vocabulary words, and lively scenes. Far Out Toys has revealed new brands planned for 2021 – including new toys under their successful Ryan’s World; Love, Diana; and Crash Circuit brands as well as innovative surprise product introductions planned for fall. Love, Diana collectibles including dolls, pets and playsets debut in Spring 2021. Ryan’s World has over 27 million subscribers on his popular YouTube channel, and to continue their line of Ryan’s World offerings, Far Out Toys has created the Ryan’s World Tour Board Game. The game will allow children to fly around the world learning about different countries and cultures. As they travel, kids pick up power-ups and collect Micro-Figures and rarity stars -- the player with the most rarity stars wins. Also new under the Ryan’s World umbrella is the Crash Circuit Junior Pro: Race with Ryan racetrack.