Viewpoint - Andrew Matjaszek

Andrew Matjaszek is head of Marketing at Toikido, a new kind of entertainment company putting toys at the heart of games.

Captivating the Toy market: navigating challenges and seizing opportunities

The toy industry is a fiercely competitive market. Companies face the daunting task of not only creating captivating and innovative products for the most discerning consumers— children—but also keeping pace with rapidly evolving trends. The advent of digital marketing has further accelerated the rate of change, presenting challenges and exciting opportunities alike for those bold enough to adapt and embrace the dynamic landscape.

Traditional marketing channels now have to compete with newer channels thanks to the widespread use of social media, search engines and direct-to-consumer platforms. In response, toy companies are increasingly turning to social and influencer marketing strategies to stand out in the crowded marketplace. But, with numerous companies vying for attention, breaking through the noise is no small feat.

To achieve this, many toy companies have harnessed the power of online personalities. Influencer marketing enables them to connect with specific, highly engaged target audiences, promoting their products directly. Influencers, with their substantial followings on platforms like TikTok and YouTube, possess the remarkable ability to sway consumer opinions and influence purchasing decisions. This influence is particularly potent among children, who view influencers as role models and trust their recommendations. Additionally, influencers have the capability to foster a sense of community around a brand, cultivating loyalty and support. This aspect proves crucial when launching new intellectual properties, such as our own creation, Piñata Smashlings, on a global scale.

However, while partnering with influencers presents tremendous opportunities, marketers must exercise due diligence. Ensuring the content remains authentic and appropriate, and resonates with the target audience, is paramount. This includes verifying that the toys being promoted are age-appropriate and safe, while also ensuring the values of the influencer align with those of your company. Compliance with Federal Trade Commission (FTC) guidelines is essential, requiring influencers to disclose any brand relationships; transparently labelling sponsored content mitigates potential legal complications.

Another challenge toy companies face is the need to stay in tune with ever-changing consumer preferences. As children's interests and hobbies transform, companies must respond with agility and innovation. The growing interest in STEM fields has led toy companies to develop products that foster children's curiosity in science, technology, engineering and mathematics. Likewise, as children become increasingly environmentally conscious, toy companies are creating toys that promote sustainability and eco-friendliness. Guesswork is no longer sufficient. Instead, companies must leverage data to gain insights into consumer behaviour and preferences, crafting targeted marketing campaigns that deliver the right message to the right audience.

Furthermore, the rise of e-commerce has opened new distribution channels for toy companies. By leveraging their own websites and online marketplaces like Amazon, companies can directly reach consumers, as an alternative route to market to traditional brick-and-mortar stores. This shift levels the playing field, enabling smaller toy companies to enter the market and compete with larger, established players.

To thrive in this dynamic industry, toy companies must not only develop innovative products but also leverage digital marketing channels, explore new distribution avenues, and forge influencer partnerships with care. By doing so, they can position themselves for long-term success, capturing the hearts and imaginations of children around the world.