Toy World 10 year anniversary - Touching Base

The decade surveyed

This month, in honour of Toy World’s 10th anniversary, we spoke to a small selection of valued clients and contributors to ask what changes they’ve seen over the past decade – the good, the bad and the ugly – and what impact these have had on the toy industry, their companies and the way they work.

Anita Baulch - Director, Toy World

Toy World has developed massively from where we started a decade ago, as we have come up with new ways to shape the publication and deliver quality articles and content to our readers. From a basic blueprint, we are proud to have introduced significant changes to the trade press; often imitated, never duplicated. What looked like being the worst thing to hit the toy trade – the Covid-19 pandemic – actually made us focus even more and work harder and smarter. It was gratifying to see how everyone pulled together to help each other out, from our own team to the various companies we deal with throughout the industry. It will be a while before life returns completely to normal, but we now know that determination and hard work can overcome most things.

Having said that, the businesses which folded, and any job losses, are some of the worst things to have happened in the industry, coupled with seeing friends and colleagues suffer illness and loss, which is terrible. T

he best changes? Seeing so many more women in pivotal positions throughout the toy trade and nobody commenting on their gender anymore. Even the Fence Club is catching up. In media terms, online has increased in importance to underpin almost everything we do, meaning we can get news out quickly and efficiently, stay in touch with our community of readers and extend our reach, all without taking away from the glory of a print magazine.

The retail landscape has changed dramatically over ten years, but as one retailer shuts up shop, another opens or expands. It’s the same with suppliers. Buying cycles have shortened, with a knock-on effect on product previews, trade shows and production, and it is more important than ever to keep buyers informed about all of the above. A combination of changing consumer habits and enforced situations like Brexit or the pandemic have driven the industry to become much more nimble. Because we’ve seen this is achievable, it can be exasperating when we come across companies who haven’t embraced such positive developments…yet.

Personally, the toy industry has brought a great deal of fun and excitement into my life, from agreeing to spend our savings on an exciting dream John had, to coming out of stay-at-home-mum retirement to join the brilliant Toy World team and rejoin an industry I love.

Mark Buschaus and Stephen Barnes - Toy Barnhaus

Over the last decade, we’ve witnessed the rapid growth of online, and this has only accelerated over the previous 18 months. However, customers still very much want to come and enjoy visiting a toy shop, so there is still a market for us. We’ve also seen big changes in the way products are marketed and how many kids now view things on YouTube, as well as how quickly a craze can arise due to the ubiquity of the internet.

Our business has had to adapt constantly, and our online presence is probably the biggest change over the past few years. Online is now a key part of our business and has changed how we buy products; there are big differences between in-store and online, and what sells where.

After the last 18 months, the best thing to have happened to our company in the past 10 years is the fact we’re still here! We love what we do - supporting over 80 staff, selling toys and making our customers happy.

We have loved being part of Toy World. I think we have been writing the monthly Indie Viewpoint column for nine years now. It was great to be asked to become a Toy World regular, and to help contribute to the toy industry in some way. There is always something to talk about. The magazine landing on our desk is always one of the highlights of the month and, with the lack of toy shows, has proven to be especially valuable over the last 18 months.

Gary Grant - Founder and chief executive, The Entertainer

The biggest change in the toy market over the past decade has been the demise of both Woolworths and Toys R Us. The loss of these two giants completely changed the UK toy retail landscape. It has been good for The Entertainer, as it allowed us to grow into the space that they left; but it wasn’t so good for the toy market as a whole.

The biggest challenge in the past 10 years has undoubtedly been Covid. Apart from the financial crash in the late noughties, it has caused more disruption than anything else we have had to face since The Entertainer launched 40 years ago.

There have also been big changes to the way we reach consumers. This is now more targeted, with everyday people able to influence massively the way people shop. YouTube and influencers – even young children have the ability to massively change buying habits.

For me personally, the biggest change to the way I work has been learning to delegate. When we set The Entertainer up, we had one store, so every decision went through me. Now, it is very different - the business is run by teams, and what’s more, it can run without me. As a business owner, that can actually be quite difficult to come to terms with. But if you don’t do that, you can’t grow.

From a business perspective, the way we operate day-to-day has changed massively. We now need to consider more aspects when making business decisions. The business is bigger that The Entertainer; it’s Early Learning Centre, Poly, Addo and more, which makes our operations much more complex. The way we now work with suppliers and licensors is more important than ever and has encouraged us to form smarter collaborations.

The biggest thing to happen to The Entertainer over the past 10 years was the opportunity to grow after Woolworths disappeared. We have seen fantastic growth in the business and in the team over that period, and I’m also delighted with the growth of the Addo Play brand over the past five years, which has given us a real point of difference in the market. The growth of our franchise partner base has been another particularly successful aspect of the business. To still be here decade after decade is a huge milestone, and a massive achievement for us as a family business.

In my 40 years in the toy business, I have seen many toy magazines come and go. What I like about Toy World is that you have your finger on the pulse, and you are not afraid to tell it like it is. Not just the magazine – the Friday Blog as well. There is an honesty about what you do which stands you out. Toy World has been a valuable partner to The Entertainer: we have collaborated on numerous stories highlighting some very key moments for our business. As a business, we would like to express our congratulations to John and the team at Toy World magazine as you celebrate your 10th Anniversary.

Michael Hick - Vice president and country manager, Mattel UK

Well, the worst change to the toy market has to be the last year of Covid and lockdowns, but the best is just how resilient the toy industry has become. Against the odds, the industry has demonstrated just how dynamic it can be and how it responds positively to change.

Mattel has become much more agile over the past 10 years and has worked ever more closely with its retail partners through the continual changes and challenges they’ve faced. It’s also become more in touch with consumer trends and buying patterns. Speed is now key to both keeping ahead in the marketplace and evolving as a business – something market dynamics require.

Mattel’s journey has been well documented, but, for me, the best part is right now, and what the future holds. We are now firmly in growth mode, and we’ll continue to invest across the board, driving category growth and leadership with our brands. That’s really exciting. Mattel has the strongest IP portfolio in the industry, with new launches coming up and so much more in the pipeline. I am really excited to be leading the UK team and proud of all the potential it has.

Toy World has been a real dynamic force in the industry, and it seems amazing that it’s only been 10 years since it first began. John and his team commentate on the industry with insight and knowledge, and with a perspective that always makes for an interesting read.

Alan Simpson - Chairman SMF Toytown/chairman the TRA

The number of retailers operating in the toy market has shrunk considerably in the past 10 years - alarmingly so. However, I feel the standard of those currently operating has improved considerably in that time. Obviously, the rise of the internet has had a significant effect on bricks and mortar retail, and not always in a positive way.

Thankfully, I now regard myself as semi-retired, therefore my day-to-day agenda is easier and more relaxed. Old habits die hard though; I do keep a very close eye on figures still and can’t see that changing.

As a business, I am delighted that SMF Toytown has doubled its turnover in the last 10 years. We also have further growth plans in the pipeline for whenever we can get back to a level of normal life on a consistent basis.

Phil Ratcliffe - Sales & marketing director, MV Sports

Over the last 10 years, probably the best thing that’s happened to MV is the increase in the number of accounts we can now sell to via the online space. We’ve also witnessed the substantial growth in value-based bricks & mortar retailers to compensate for loss of the Woolworths and Toys R Us business.

The worst is the preoccupation with price over play value or innovation amongst some customers, as well as the move to little and often via direct drop as opposed to stock commitments or larger bulk buys.

Nowadays, I’m more tied to a computer - which is not always a good thing. This is something which has permeated the industry as a whole. A great toy is often more than a number on a spreadsheet.

I can’t choose any one good thing to have happened to MV in the past decade, other than winning various awards from key customers and licensors (which are always appreciated, thank you). We have definitely become more proficient in terms of how we operate on a day-to-day basis. Having a stable, experienced and valued team has been very important, but the best is yet to come.

Alison Downie - Global Licensing and Brand director, HTI Group

In the toy market, the shrinkage of the customer base has massively impacted businesses over recent years. Some large companies have decreased their toy and game offering, or have even shut down altogether, impacting sales. However, to balance the shrinkage of brick-and-mortar stores, the rise of online shopping has helped us to pick up these sales elsewhere. There’s no doubt that the average consumer’s shopping habits have changed, and it’s hard to find somebody nowadays who hasn’t purchased a product online in at least the last year. Only time will tell if the shift to online shopping is to be a permanent feature of the market.

We have found that there have been significantly less ‘phenomenal’ licence explosions. The release of the first Frozen movie was the last time we saw a huge uptake in interest for a brand, and products selling out within seconds. Children have so many more TV channels to choose from, as well as on-demand platforms such as Netflix, Amazon Prime and Disney+. There are lots of amazing brands out there, which children are able to access 24 hours a day, and so many new brands diluting the market.

The biggest change to the way we operate has been a shift in the timing of decision making. Retailers have brought their timing for selections forward which, in turn, has changed our operational calendar. Product Development planning has been brought forward in order to be able to fulfil these earlier orders.

A more recent change is the shift to virtual communication. Although we have used video call platforms in previous years, the pandemic has made this type of communication much more common and it is likely that more meetings will remain virtual in the coming years.

At HTI Toys, we have seen the growth of our own brands over the last decade, which has allowed us to take control of our own destiny. We have made strategic decisions on which brands to focus on and grow, decisions which have really paid off. Teamsterz has fast become a key player in the diecast and vehicles market, and we have had amazing feedback from the trade on the re-brand of Evo, which is hitting shelves this Autumn. We can’t wait to hear consumer feedback.

Another testament to the success of HTI Toys is the high quality of the people in the business. We are extremely lucky to have such a dedicated team; their hard work is the reason the company is thriving.

Lesley Singleton - Head of play, Playtime PR

Happy birthday, Toy World! My own toy career began in the same year. Among the biggest changes I’ve noticed is the fact that brands are acting much faster and responding more quickly to trends, especially those driven by social media. Toys and games are actively being developed at a rapid pace in response to things happening in the physical and digital worlds. In addition, toy manufacturers are now actually walking the walk on all things sustainable. A decade or so ago, brands were very good at talking about how they needed to change, but it’s great to now see so many taking positive, tangible steps towards a more sustainable future. This is reflected by toy companies placing greater emphasis on their purpose and values, understanding that today’s consumer wants to see their own values reflected in the brands they engage with.

I also love that we’re seeing more diversity and representation in toy design. It feels like where once this was treated as something of a novelty, brands now realise that there’s a commercial value to letting children see themselves in those worlds of play. Finally - and perhaps this is the thing that’s accelerated most in the past 18 months - many toy companies are embracing their own eCommerce offering.

Back in 2011, I was a freelance PR working solo and about to take on my first toy brand, Bananagrams. The biggest change came when I launched Playtime PR in 2014, hoping to bring together a stellar collective of senior PR specialists to offer toy brands an alternative agency. Fast forward to 2021, that team is about to welcome its 25th expert consultant and we’re working with some massive toy brands, some of which have been with us for a number of years. Being trusted to devise and deliver everything from press office solutions to big bang creative campaigns for the likes of Moose, Bandai, Zuru, Asmodee, Golden Bear and John Adams is fantastic, and we continue to grow too – this year we’ve welcomed Casdon, Schleich, Orchard Toys, Toynamics, PlayMonster Games and more. We continue to work with indie brands and start-ups, and, if it’s possible to suggest that the pandemic has a silver lining at all, it’s that we no longer have to justify our 100% flexible remote working business model to clients.

So many good things have happened - and continue to happen – to Playtime, from being approached by Argos a few years back to handle a one-off campaign and then ending up with 10+ toy briefs from it over two years, to seeing my team receive glowing feedback from clients, and campaign recognition through industry award wins. It makes me fiercely proud of all the hard work we’ve put in over the years. If I had to pick just one moment though, I’d say it’s our most recent development, which really heralds the beginning of a new era for the business as we continue our growth and expansion into wider sectors of playfulness – formalising Ceriann Smith’s role within the company as director of Strategy & Creative. Ceriann has long been a force within the agency, and the perfect partner to have by my side as we embark on the next decade.

Graham Canning - Sales director, VTech

Technology is continually changing, and the last decade is no exception. Innovation in this category has given consumers new play experiences. There’s also been a huge improvement in the safety and standard of toys over the last 10 years, ensuring all children can play and enjoy toys safely.

One of the biggest changes during this time was the demise of the largest toy specialist retailer, Toys R Us, which was a huge loss to the industry. However, the void has been filled by the Smyths Toys expansion. Shopping habits have changed a lot in this time too, with online shopping becoming more popular than ever.

Finally, we’ve obviously seen the biggest upheaval to our daily lives since the Covid 19 pandemic started, at the fastest rate of change we have known. The best and worst combined have shown how adaptable the industry has been at facing up to the challenge.

I have definitely adapted to the changes in the marketplace too, but apart from that the focus remains the same - delivering the best products to our retailers. I am also the current chairman of the BTHA, where work continues facing and tackling challenges to the industry.

Technology was more accessible for children’s toys by the start of the decade, and VTech was able to take advantage of the tablet market. I’m delighted that we were able to rescue the Leapfrog brand in 2016. Since then, we’ve introduced some outstanding new products to market in the last five years for both VTech and LeapFrog, enabling us to continue on our growth path.

I would like to take this opportunity to wish a happy 10 year anniversary to Toy World - what an admirable achievement.

Mary Wood - General Manager UK & Ireland, Tomy

Between Covid, and store closures, and now the shipping and container issues, I do think - despite challenges in the past - those we are facing right now are actually amongst the worst. In all my many years in the industry, I can’t remember facing anything quite like this in terms of raw material cost increases, ridiculously high container costs plus lack of supply hitting all at the same time.

In terms of the best changes, then I would have to point to the ever-improving ethics in our business both from a product quality and safety perspective. It’s good to feel proud to work in an industry where child safety remains our No.1 priority.

Incoming communication from multiple media 24/7 has certainly picked up the pace of business in the last 10 years, but on the plus side it has made decision making quicker, meaning the business can be more dynamic. I enjoy the fast pace we have now – being nimble and light of foot has distinct business advantages, and it makes our company a challenging yet exciting place to work.

A decade ago, back in 2001, Takara-Tomy acquired RC2 Corporation and the RC2 sub-brand Learning Curve, which included The First Years & Lamaze. This really set our international business on a new road. Lamaze remains a core brand for the EU business and has enabled Tomy to add brands and build expertise in the Infant & Pre-school category. Specifically from a UK perspective, one of the most important and more recent distribution partnerships has been with Drumond Park, which joined the Tomy family in early 2019. With Tomy’s strength in kids’ games and Drumond Park’s dominance of the Adult game market, we have been able to build an important portfolio in the Games category and a respected position in the market.

Dave Middleton - Owner, Midco Toys

Over the last 10 years, I think we’ve seen the over-commercialisation of product; the focus in some areas has moved from the toys themselves onto number chasing and hitting targets. The internet has made things harder for me as a retailer, as has the price-matching that goes on at some nationals. The loss of Toys R Us created a void, into which moved a number of discounters and some ruthless players. Toys R Us left a huge hole. As an indie retailer, things are getting more challenging all the time, so you need to find ever more niche, unique product – the mass is being taken up by everyone else and is therefore available everywhere.

The best thing to happen? The decline of the high-street has made it affordable for me to secure a unit right in the middle of Burton-upon- Trent's The Octagon Shopping Centre. I know that’s a bit of a backwards-forwards statement, but it’s true. Also, the rise of social media means there’s much greater awareness of start-up brands and niche products, these small pockets within the toy market that aren’t stocked in the nationals. TikTok has been great for keeping up on trends and crazes, like slime and fidgets. We recently started stocking Slime Party UK, which is just a small one-man-band enterprise, and it’s been huge for us. I saw the brand pop up on Facebook, reached out and received all the necessary safety certification and documentation, and that was that. You wouldn’t have been able to do that before, as everything would have been TV advertised and therefore, more than likely, mass market.

Toy World is the best toy magazine out there. John is so switched on - he knows what’s going on – and it keeps each issue totally relevant.

Nick Thomas - General manager, Vivid Goliath

We would never had predicted the seismic shifts in the retailer landscape following the demise of Woolworths and Toys R Us; I recall wondering at the time how we would replace that business. Fast forward to now, and we’ve got an incredibly dynamic retail landscape because of the rise of Smyths, The Entertainer, B+M, TK Maxx and more. Notably, due to lockdowns, we’ve seen huge growth online as well. Our product development has also changed enormously to meet the needs of our ever-changing retailer and consumer demographics.

In recent times, working from home has been a huge shift. We’ve had fewer face to face meetings with retailers and partners, less travel and no trade shows. Remarkably, business has continued despite these challenges, but it throws into sharp relief how much easier product presentations are when you’re in the comfort of a showroom. I’d also say that we have shifted over the years to be a far more data driven business; the importance of accessible EPOS data has allowed us to make swifter decisions on stock and advertising plans, making our business more responsive than ever.

Being acquired by Goliath must be the biggest gear change Vivid has seen in the last decade. Our ambition was always to become more global, and this was achieved overnight thanks to Goliath’s offices in all major markets including the US, Canada, Australia and New Zealand, as well as a formidable European footprint. The acquisition also transformed us into a top Games company, and we’ve been able to spread our wings into far broader categories within games as a result. It’s been a fantastic transition and we’re enjoying the benefits of global product development, launches and marketing campaigns as a group. The other major accomplishment in the last decade has been trebling the Crayola business. The product always delivers on the core brand values trusted by parents, and distribution continues to grow thanks to the brand’s performance and great retail relationships.

Sue Barratt - Country Manager, IMC UK

We’ve seen so many changes to toy retail over the last decade, bringing a mix of positive and negative impacts, but the closure of Toys R Us is arguably the worst change. It was an iconic store for the toy industry, able to stock an enormous breadth of range, and its demise was a loss for brands and consumers alike. On the flip side, we’ve seen substantial growth in online, rapid changes in technology and an enormous shift in consumer shopping habits. Another change is kids that just don’t seem to stay kids for very long. Taken together, all these factors have positively changed the way we market to consumers, continually pushing us to keep our brands fresh, which helps keep the toy industry exciting.

The very changes that keep the toy industry exciting are responsible for keeping those of us working in the sector excited too. Layer onto that all the system and functional changes that have come into play, and how we’ve had to adapt, and it’s about being agile. Of course, there are unforeseen local and global issues and changes that impact the industry and how we operate as a company too, such as Brexit, shipping and Covid.

The best thing IMC has done in the past decade is moving away from a heavily licensed distribution portfolio. Now we manage a range of hugely successful in-house developed brands, all supported by great animated content for children. This includes the introduction of Kitoons, our YouTube channel, broadcasting content with Nickelodeon and our new innovative Kitoons OTT Platform which combines content with eCommerce, reflecting consumers’ changing media consumption habits.

Jerry Healy - Group marketing director, Character Options

The market we’re selling into has probably undergone the biggest change of all in the past 10 years. The retail base has shifted dramatically, particularly with the increased strength of online, something which has only accelerated in the past 18 months. A breakdown of our top 10 customers a decade ago would look very different today. Of course, we’ve also seen the demise of some big names, such as Toys R Us, the rise of some new players, like Amazon, and the expansion of retailers including Smyths, which has become very much a power retailer.

We’ve really had to change how we market our products and communicate with consumers over the past 10 years. A decade ago, it was simple; you put your line on TV, and your job as a marketeer was basically done. The popularity of TV has waned, though, and kids have moved onto other forms of media. We’ve had the unboxing phenomenon, then influencers, and those have both been bolstered by the rapidly increasing consumption of YouTube. TV impacts have declined steadily over the last six or seven years, while YouTube has grown exponentially. We’ve had to overhaul our marketing strategy as a result, from very much a core TV advertising model to one in which digital is a much bigger and more important part of the mix.

Character celebrated its 25th anniversary a couple of years ago, which was a very proud moment for me and for everyone else involved in the business. Character Options has real heritage and longevity in this marketplace and some of the people here have been here a long time. Over the past two or three years we’ve seen huge success internationally too, especially with our Heroes of Goo Jit Zu range. Seeing a brand developed in-house become so massive globally – in fact, a No.1 selling action figure in numerous markets around the world - is very special. Character has established its position as a major player in the UK toy market, and now we’re starting to make a real impact internationally too.