The 105th annual American International Toy Fair supported by Toy Industry Association have been held from February 17 to 20. It is the largest toy show in western hemisphere. Toymakers want to put the travails of a recall-marred 2007 behind them, and buyers hope to pick the next hot toy at the fair, which drew an estimated 15,000 buyers from 7,000 retailers to various showrooms around New York.
More high tech, more life-like
Under the theme of “encouraging growth”, all kinds of exciting novelties are shown in American Toy Fair New York. The latest crop of toys on display this session boasts more sophisticated technology.
The "technology is so much more advanced. The toys are becoming more life-like," said Jim Silver, publisher of Toy Wishes Magazine.
Hasbro -- the world’s second-largest toymaker behind No. 1 Mattel -- showcased Biscuit, a furry golden retriever toy that looks and feels like a real dog. It even responds to commands. Fisher Price countered with Elmo Live, a plush doll that sits and crosses its legs while telling stories or jokes -- much like a human. Additionally, buyers will see various R/C robots, high-end Karaoke and singing dolls.
Toymakers are also aiming to profit off the soaring popularity of online-based toys like Ganz’s Webkinz, Mattel’s Barbie Girls, Hasbro’s Littlest Pet Shop VIPs, and Jakks Pacific Inc’s Neopets. Children own the toy or stuffed animal, and can go online to play with electronic versions.
Electronic competition
“The toymakers’ motto for 2008: If you can’t beat ’em, join ’em”, said CNNMoney.com.
Toy companies, eager to grow sales in a stagnant $22 billion market, are on an all-out offensive against the iPod, Wii, PlayStation and other hot gadgets with new sophisticated tech toys of their own. For instance, Fisher Price’s Kid-Tough portable DVD player and Computer Cool School keyboard, as well as Hasbro’s Wall Crawler Spider-Man.
"Electronics and the Internet. That’s what kids are obsessed about today," said Jim Silver, editor and co-publisher of Toy Wishes magazine. "They have an iPod, they are on Facebook and some are e-mailing by age five."
Although Mattel and Hasbro, the No. 1 and No. 2 toymakers, jumped on the electronics wagon a few years ago, the trend is even more pronounced this year as these companies strive to win back market share they’ve lost to electronics sellers.
Neil Friedman, president of Mattel Brands, told CNNMoney.com that about 80% of the company’s total product portfolio now consists of an electronic component. That’s up significantly from just 10% of the mix in 1996.
Innovation carries higher price tag
Toy industry analyst Chris Byrne said companies are doing the right thing by pushing technological innovation in classic play toys. However, he is concerned about the higher prices.
"The one critical thing parents are going to look for this year is play value for money," said Byrne. "How long will my kid play with this pricey toy?"
Although he likes the Kid Tough DVD player, "for $150 the screen is small compared to DVD players in cars," he said. He said parents already can buy a bigger screen DVD player for their kids at discount stores such as Wal-Mart. Friedman countered that compared to the hundreds of dollars parents are spending on videogame systems and games, Mattel’s new tech toys are still "relatively inexpensive."
"We have 3,000 toys in our portfolio," he said. "Our lead items are higher priced but we have many toys that are 99 cents."
Still, Friedman and other industry executives acknowledged that retail prices for toys will see some increases as companies try to offset escalating oil, labor, resin and transportation costs.
Additionally, Soren Torp Laursen, president of Lego Americas, said the toy industry’s new safety guidelines could also push up production costs for manufacturer and retail prices for consumers - especially if they include mandatory safety checks.
TOTY Awards announced
Hundreds of toy industry leaders and retailers attended the 8th Annual TOTY Awards Saturday, February 16, officially kicking off Toy Fair Week.
The TOTY Awards salute the creativity, success and playful spirit of the toy industry by honoring the best toys developed by the international toy industry for North American consumers. And the winners are...
Toy of the Year – Air Hogs Havoc Heli Laser Battle, Spin Master, Ltd
Most Innovative Toy of the Year – Smart Cycle™ Physical Learning, Fisher-Price
Infant/Preschool Toy of the Year – Moon Sand Adventure Island, Spin Master Ltd.
Electronic Entertainment Toy of the Year – Power Tour Electric Guitar, Tiger Electronics
Educational Toy of the Year – Smart Cycle™ Physical Learning, Fisher-Price
Activity Toy of the Year – LEGO City, LEGO Systems, Inc.
Game of the Year – Rubik’s Revolution, Techno Source
Specialty Toy of the Year – Snap Circuits, Elenco
Outdoor Toy of the Year – RipStik® Caster Board, RipStik USA
Girl Toy of the Year – Littlest Pet Shop: Display & Play Round & Round Pet Town Playset, Hasbro, Inc. and Troop Groovy Girls, Manhattan Toy
Boy Toy of the Year – Transformers Movie Deluxe Figures, Hasbro, Inc.
Property of the Year – Hannah Montana, Disney Consumer Products █
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