Feature - Construction Toys

Look what I made…

With the construction toys category experiencing a boom during the past year amongst both children and adults, toy manufacturers and retailers are hoping to build on that momentum for the rest of the year ahead. Sam Giltrow finds out more.

According to the NPD Group, building sets experienced significant growth in 2020 – up 18% on the previous year – and sales are still going strong. Lego saw its global consumer sales grow a staggering 21%, claiming this was largely driven by more people of all ages taking to brick-building during lockdowns.

Marius Lang, UK & Ireland head of marketing at Lego, says: “We have an incredibly strong portfolio which offers creativity for all ages and interests, and, in addition, we also began to see the benefits of large-scale investments designed to support long term growth, such as in eCommerce and product innovation. Our agile supply chain allowed us to fulfil huge online demand and our Lego colleagues around the world worked incredibly hard to bring opportunities for play to children and families.”

During this time, Lego enjoyed many successful launches including Lego Super Mario, Lego Dots and Lego Vidyo music video maker which, through Lego’s partnership with Universal Music group, combines children’s creativity and passion for music with Lego.

Marius says that during the past year, The Lego Group has seen more people of all ages building with Lego bricks including many new adult builders, and it has been developing new Lego sets which tap into passions and interests in different ways, providing a more sophisticated and immersive building experience. For example, the company recently launched the Lego Art World Map which allows builders to immerse themselves in creating a stunning representation of the earth from 2D Lego tiles, even pinpointing where they have travelled.

Licensed properties remain a key part of the company’s product portfolio and, with the 20th anniversary of Harry Potter this year, the Lego Group has announced eight new Lego Harry Potter products, plus the arrival of exclusive minifigures. The Star Wars portfolio has also seen a number of new additions, and the Lego Super Mario range will continue to evolve and expand.

Licences are gaining more importance for Mattel too, which also enjoyed a great year according to UK marketing director Kelly Philp. Its popular Mega construction range grew in share and value in 2020 and Mattel not only ended the year as the number two manufacturer in the building sets supercategory, but its renowned 60 Piece Bag remained the number one item in junior building sets.

“We are in a fantastic position to continue this success in 2021 and have already seen this momentum continue in the first half of this year within junior building sets,” Kelly tells Toy World. Indeed, Mega’s sales value was up 23% YTD, whilst it also saw continued share growth (NPD Report April 2021).

As with any toy category, Kelly says innovation is key, and Mattel has continued to add to its existing product lines and introduced some exciting new ranges to its portfolio. “We are seeing licences as a particularly important area to continue to innovate, with a number of new items planned for launch this year, not only in our existing licensed product lines such as Pokémon and Halo but also with brand-new lines joining the Mega range, such as Barbie and Paw Patrol: The Movie,” adds Kelly.

This summer will see the launch of the new Mega Barbie building sets, with the line including a range of themes, from the fan favourite Dreamcamper to a Beach Adventure play set. There will also be a partnership with Paw Patrol: The Movie, with the new movie line in stores this summer, ahead of the cinema on 13th August.

“Paw Patrol has been doing incredibly well (+17.4% YTD - UK, Total Market, May 2021) and with the movie launching in August, we’re really looking forward to seeing this line out in the market,” says Kelly. “And with the Barbie brand on such an incredible trajectory of growth, this is the perfect time to join the two brands together” she explained. “Our existing licences also continue to remain important to our line; Squirtle is set to join the great range of Mega Pokémon already in the market, while there will also be new Halo lines launching later this year.”

Although the construction market is dominated by the bigger players such as Lego and Mattel, their popularity helps draw kids into other construction brands, according to Clive Wooster, MD, Geomagworld, the leading brand in the magnetic construction field: “Lego shines a spotlight on the construction market which is helpful to bring it to a wide audience,” he explains.

Clive says that after allowing for store closures in early 2021, the momentum for construction toys seems to be continuing: “Listings are strong, Christmas orders look healthy, and we are planning for a year of growth.”

He adds that Geomag is a unique offering product-

wise, and margins for retailers are very strong. Minimum order levels are very modest too, which allow for little and often buying.

“We’ve been trying to ensure it’s easy to get Geomag in stock. We have a promotion in place which gives enhanced margins. Our minimum carriage paid order is a mere £150, we provide a full set of POS material, and we have a good level of stock in the UK courtesy of our Swiss manufacturing location,” he says.

Clive adds that, despite innovation being very important in bringing in new lines, so are the basics such as products that introduce engineering principles and, of course, fun. The company has added Magicube Shapes to its pre-school line, which is selling well, and for the second half of the year, Geomag’s new Mechanics Gravity and Motion ranges are securing good distribution.

In April, Geomagworld’s Geomag and Magicube ranges received Early Years STEM.org Authenticated and STEM.org Authenticated Trustmarks, recognising the educational value of the toys. “This is another reassurance that our products are well thought out and carefully designed. It gives our retailers confidence that they are running a quality line with education at the forefront,” says Clive.

Another key issue is sustainability and Geomagworld’s products are virtually all now made from 100% recycled plastics, while packaging is around 85% recyclable. The company’s factory operates on a fully sustainable basis. “I can only speak for ourselves but our credentials here are class leading,” Clive tells us.

Mattel too, has been inspired to develop more sustainability across the toy industry in general and recently announced the launch of Mattel PlayBack, a new toy recycling programme, where families can send old toys back to Mattel, who will recover and reuse materials for use in future Mattel products.

“The Mattel Playback programme helps put valuable materials back into play and out of landfills so that the fun comes full circle,” says Kelly Philps. “This launch supports the company’s commitment to transition its toys and packaging to 100% recycled, recyclable or bio-based plastics by 2030.”

“I think there is some really positive work being done by a number of companies, but it is a complex issue and one that needs long term support to drive real change,” adds Lego’s Marius Lang.

The Lego Group has a number of initiatives in place, and in 2020 announced that up to $400m will be invested over three years to accelerate its sustainability ambitions, which will focus on bringing learning through play to more children, reducing environmental impact and ensuring inclusive workplaces for all people involved within The Lego Group.

“We also announced last year that we will begin removing single-use plastic from our boxes as well as a commitment to reducing absolute carbon emissions by 37% by 2032, a target approved by the Science Based Target initiative as consistent with levels required to keep global warming to below 1.5°C,” says Marius.

Sustainability is also being taken very seriously by DKL Beysal, distributor for the Plus-Plus range construction system, which allows children to build colourful 2D mosaics and 3D creations and even create curved shapes. The Plus-Plus head office and factory in Denmark uses 100% green energy from wind power and has a no waste policy. All of its products and packaging are 100% recyclable, and all excess waste is re-ground and used as material for new Plus-Plus components.

The Plus-Plus brand is an important line in DKL Beysal’s portfolio, and it is expanding, as the company continues to innovate. “It’s hugely important to be innovative and at the same time offer children the opportunity to use their own imaginations to build and create,” says Terry Crew, MD at DKL Beysal.

He adds that the company recently launched the Plus-Plus Go range which totally transforms the way kids can play with Plus-Plus, as it includes wheels to make various vehicles. The product is manufactured in Denmark, meaning there are only short lead times and “none of the issues currently seen on containers coming out of the Far East,” according to Terry. PlusPlus is also machine washable up to 90 degrees, which is another great advantage in the current climate of the pandemic, and the range has price points to suit all budgets.

Since UK toy retailers re-opened in the spring, DKL-Beysal has been supporting them with additional discounts, free sample packs as giveaways and in-store promotional activity, and throughout 2021 the company will also be supporting Plus-Plus with high-profile marketing campaigns to include influencer campaigns, extensive social media and PR activity, features in leading consumer magazines and much more.

Retailers of all shapes and sizes remain confident about prospects for the construction category. John Testori, director at Bambola Toymaster, St Helier, Jersey says the sector saw a “massive spike” throughout the lockdowns, particularly among older consumers. “We recently had the Friends Apartments set come in and we sold four on the first weekend. I think this is because Lego now has a huge adult fan base. Last year there was a spurt again because everyone was stuck at home, and I think it has created an even bigger following, which does not seem to have dropped this year,” he says.

He says that during March last year when there was the threat of lockdown and the uncertainty of how long it would go on for, big Lego sets were flying out the door as people clamoured for projects to keep them busy while stuck indoors. “People were coming up to the counter with a £600 Millennium Falcon on their shoulder. It was mad.”

Tom Popple, director of The Toy Planet in Wantage also reports that demand for Lego has been sky high throughout the pandemic. “When the shop was closed over lockdown, we continued selling on online marketplaces and our own website. All Lego sets saw a massive spike as people turned to construction toys while they were at home.”

Over the following pages, Toy World highlights the latest offerings from the leading suppliers in the construction category.