Feature - Pocket Money & Collectibles

Small talk

Following a tough period during the pandemic, pocket money toys are winning again at retail as the cost-of-living crisis continues to bite, and adding to the attraction of affordability is the increased popularity of micro toys.

It seems kids, and kidults, can’t get enough of miniature lines and many suppliers are tapping into this trend for tiny collectibles, which is growing at a rapid pace.

Collectibles in general have been a huge market for the UK toy industry for several years now with one in five toys sold last year being a collectible, accounting for 13% of the value of all toy sales, according to Circana (formerly NPD) data.

Fuelled by a surge in popularity on social platforms such as TikTok, the trend for mini everyday items and mini food, shows no sign of abating and MGA Entertainment’s new miniature collectible brand, MGA’s Miniverse, is set to capitalise on this trend. Utilising social media and working with some of the leading UK TikTok influencers, the brand launches this month (April) and will specifically target a kidult audience for the first time – an increasingly important audience with sales accounting for 29% of all toy sales in 2022, according to Circana (NPD).

The initial release will see two food themed collections – MGA’s Miniverse Make it Mini Food Diner Edition and Make it Mini Food Café Edition – combining the huge craze of mini food with the fun of DIY crafting. Each highly detailed collectible comes in blind packaging, which opens to reveal individually wrapped mini 'ingredients', kitchen accessories and a tiny recipe card. Consumers follow the recipe card to create their food masterpiece which hardens in daylight or UV light for permanent display. Priced at £6.99 for the Café Edition and £8.99 for the Diner, the range is representative of MGA’s mission to provide smaller and more affordable toys amidst inflation.

Michelle Lilley, UK & Ireland Marketing director, said: “We know how huge the craze is for mini foods – and for DIY crafting. MGA’s Miniverse manages to combine both these trends and offer the consumer something truly unique. The Café and Diner Editions launching this month are just the start for this incredibly innovative brand, which will expand significantly in the next few months."

MGA's L.O.L. Surprise! brand is also tapping into the micro trend with the introduction of new product Sooo Mini! hitting the shelves this month. The range sees iconic tots such as Hoops MVP from the very first L.O.L. Surprise! series transformed into miniature size and will feature the first-ever ball-within-a-ball packaging, offering an unboxing experience with each new character while providing layers of surprises.

Michelle tells Toy World that L.O.L. Surprise! remains central to MGA’s collectable portfolio and this season will also see the launch of the new Sunshine Makeover collection, said to be the first ever all over UV colour change range of dolls in the market.

"Unboxing continues to be an important factor within the collectible toy market, with more and more shoppers wanting added value as well as an extended and elevated play experience. MGA has an ongoing mission to provide smaller and more affordable toys amidst inflation; with the on-going impact of the cost-of-living crisis it is essential that we offer varying price points and giftable options," she adds.

Also performing well in the mini collectibles space is Zuru's globally popular 5 Surprise Mini Brands line, which is enjoying continued success in the UK and Ireland, amassing over 5b views on TikTok. According to Circana (NPD), Mini Brands was 2022’s No.6 item in the total market, and the Mini Brands craze shows no signs of slowing down in 2023, with the launch of the highly anticipated Disney Mini Brands Series 2 and Toy Mini Brands Series 3 keeping fans eager for more. In addition to the new releases, Mini Brands is launching Mini Fashion Series 2, which features miniature versions of popular clothing and accessories. This series allows collectors to add a fashionable touch to their Mini Brands collections and provides even more opportunities for creativity and self-expression.

“We are thrilled to see the continued success of 5 Surprise Mini Brands in the UK,” Zuru general manager UK & Ireland, Will Collinson told Toy World. “The excitement and engagement from fans on TikTok, YouTube and Instagram has been overwhelming, and we can’t wait to continue to deliver new and exciting minis to collect. We are constantly amazed by the dedication and creativity of Mini Brands fans. Their passion for the brand continues to inspire us, and we are committed to bringing them even more exciting new products and experiences.”

The desire for more affordable toys is also boosting sales for Magicbox, which has seen strong results for its pocket money toys so far in 2023, up 57% driven by new launches, particularly SuperThings, according to Circana (NPD).

UK MD Nicola Bergot tells us: "If consumers are having to be more conscious and cannier about their spending, collectibles and pocket money toys are one way to go, but it’s important that they see great toys at fantastic value. Low priced doesn’t mean low quality. Consumers also need to be able to trade up with confidence, knowing that the toy bought at 90p or £4.99 has more available to build a collection."

This year, Magicbox will see introduce more new characters than ever before, meaning more to collect for longer, and the hunt is always on to find the 'rares' and 'super rares'. Following the hugely successful recent SuperThings Neon Power range launch, Magicbox will be ramping things up this summer with series 12 –SuperThings Mutant Battle, and there will also be a new launch for its KooyLoos Dolls range: Glitter Glam and Mermaids.

Nicola explains: "The key to keeping things fresh and relevant is to understand what the consumer is doing and saying. We have a huge fan base who are very vocal, and they tell us what they like (and occasionally what they don’t) and what they want more of." She adds that it is great to see the Pocket Money Toy category thriving again after experiencing some tough trading conditions during the Covid pandemic when toy stores had to close:“ The category relies heavily on children and parents spending time together in toy stores and toy aisles and repeat purchasing as they build their collection.”

Nicola says Magicbox’s marketing strategy for this year will be “broader and better than ever” with new media content for all new products. The company also produces FSDUs to showcase every new launch and also samples 250,000 to get product into kids’ hands.

Magicbox will also maintain its push for sustainability using plastic-free packaging; foil bags and plastic packs have been replaced with recyclable packaging made from recycled paper, cardboard bags and boxes, which Nicola says ticks an extra box for both consumers and retailers.

Business is also booming for PMI International, which is seeing great expansion across its ranges. According to chief operating officer, Omer Dekel, the company’s very name – PMI being an acronym of Pocket Money Items – ensures its products are affordable. The company’s portfolio includes collectibles based on well-known IPs such as Sonic Prime, the animated Netflix series based on Sonic the Hedgehog. The full line will be available this summer and includes a wide range of true-to-origin and fresh collectibles, action figures and plush.

Omer says that when designing a collectible based on such a well-known character, keeping true to the source is a priority. To ensure each collectible line will be as accurate as possible, the company has implemented ground-breaking technologies.

Also new from PMI this summer is Piñata Smashlings, which it is launching in partnership with Toikido. The IP will comprise a Roblox game supported by a physical toy offering that includes redeemable codes granting exclusive benefits in-game. The IP will expand to more content channels and options from 2023 to 2024. The toy line will include collectible figures, action figures, play sets and plush and one of the highlights of this collection is the huge Smashlings collectible figures range, which includes over 100 Smashlings to be released in two separate series and divided by five different rarity levels. To support such a vast array of Smashlings, PMI has come up with an equally enticing packaging array that includes new blind purchase options.

Commenting on the cross-over between physical and digital worlds, Omer says it is what makes PMI’s toys fresh and popular. “Gen Z is now the most critical consumer group because of its different views of shopping and consumption. They are informed consumers that will research the product before buying it, and they place high importance on a brand’s ethics and honesty, sustainability and high quality. They’re looking for the brand’s personality and values and PMI’s diverse toy lines accommodate their every need by bringing their favourite brand to life accurately and consciously.”

Also spanning both physical and the digital realms is Pudgy Penguins, a familyfriendly NFT collection made of 8,888 tradable penguin avatars with proof of ownership on the Ethereum blockchain, which is supported by a full toy line including collectibles. PMI also caters for younger collectors with its Paw Patrol toy line and, continuing the cooperation with Paramount, will launch a new collectible range based on Paw Patrol: The Mighty Movie, due in cinemas this autumn. Available this summer, it will include collectible pencil toppers, stampers, 2D keychains and 3D puzzle erasers.

Richard North, president of Wow! Stuff, says that toy companies are having to work harder and smarter in the collectibles category. “More so than ever, consumers are looking to get the most bang for their buck, and that’s driving innovation in this area. We’re seeing more demand for collectibles that present continued value, but many are small items in a large container. Our research showed consumers are very aware of the ‘air’ that’s being shipped and the premium cost of this.”

Wow! Stuff recently appointed Mattel as the official North American distributor of its in-house IP, Nano Pods, a patent-pending brand which takes iconic licensed characters and houses them within a nanosized hexagonal pod. Each pod features a tactile slottogether system: as kids collect characters from brands such as Marvel, Disney, Wizarding World, TMNT and Jurassic, they simply connect each character’s pod to the one next to it to build patterns and unique displays.

Nano Pods come in at under £5, while Pods 4D are under £10. Richard explains: “Smaller collectibles can easily get lost or end up stored in a drawer or elsewhere. Larger collectibles take up a lot of space and limit the number that can be displayed in one area, whereas Nano Pods simply connect together to build any desired pattern or shape. The figures also glow in the dark which has been a fun little surprise for fans.”

Having launched this spring, Nano Pods will benefit from a fully integrated marketing campaign from April onwards. On the digital front, this comprises robust YouTube pre-roll support, collaboration with a huge number of influential YouTube and TikTok channels and more. Children will also be seeing Nano Pods in their favourite magazines, too, with kids press activity booked throughout the year while, in-store, Wow! Stuff will provide retailers with impactful POS displays to create that ‘wow’ moment on shelf and demonstrate the line’s selling points.

“We’re delighted to have appointed Mattel as the official North American distributor of Nano Pods – it’s one of only two distributed lines in Mattel’s history,” Richard states proudly. “The partnership presents a huge opportunity to take the brand to this key market and the team is looking forward to putting its full support and experience behind Nano Pods.” Launching later in the year, they’ll be released in waves in North America, across multiple licences including Marvel, Disney, DC, TMNT, Sonic and Jurassic World. “We look forward to the team replicating the momentum that’s building in the UK, Europe and Asia where every major toy retailer is listing the collection,” concludes Richard.