Hosted by Toy Industry Association, The American International Toy Fair started February 15 at the Jacob K. Javits Convention Center. More than 1,100 exhibitors from 30 countries were strutting their toy and entertainment products at Toy Fair ’09 in New York City, with over 20,000 attendees, 350,000 square feet of exhibit space, 100,000 products with over 7,000 never before seen in the world, 1000 global media representatives, the latest updates on Safety legislation and what they mean for your business and four days under one roof to do an entire year’s worth of business, Toy Fair is where the industry gathers.

 

Driven by global economy and market trend, this year two themes dominated. One was affordable toys and the other was tech.

 

Totally 14 product-focus feature sections were set up this year, including 5 new ones as Action Figures, Educational Toys & Games, Science and Discovery Kits, Infant & Preschool Toys and Accessories, Outdoor Toys, Play Equipment, Ride-Ons and Sporting Goods as well as Youth Electronics, Tech Toys, Interactive Gaming and Robotics.

 

A recession has squelched the buying power of even the most indulgent parents. For 2009, manufacturers like Mattel, Hasbro, Jakks Pacific and LeapFrog must tread carefully with their new lineups as consumers are torn between the desire to spend on their kids and the need to save money.

 

"Price, value and the economy are going to be the key focus," said Reyne Rice, a toy trends specialist for the Toy Industry Association (TIA).

 

"That is what retailers are looking for, and that's what they are hearing from their consumers," she said. "They want to make sure that the products on their shelves reflect not only what consumers are looking for, but what they can afford."

 

"People are focusing on price points and you are seeing a ton of toys for $20 and under," said Jim Silver, a veteran toy industry expert and editor in chief of Timetoplaymag.com, an online toy magazine. "I'm seeing very few toys over $100, and you really don't see anything over $200 like you did last year," Silver said.

 

Neil Friedman, president of the Mattel Brands division at Mattel, who has 30-plus years in the toy business, said combining innovation with value is a priority for this year. While 80 percent to 90 percent of the company's toys are priced at less than $30, Mattel will continue to offer toy options at all price points, he said. "We can give parents everything from 99 cents Hot Wheels cars all the way up to $300 Power Wheels," Friedman said.

 

One of the toys attracting a lot of interest at this year's show is an $80 Mattel toy called Mind Flex. Players strap on headbands with electrodes that read brain waves and move a small ball through an obstacle course by focusing on it. The electrodes control air flow, which moves the ball. Additionally, Barbie brand had begun a makeover for the celebration of its 50 anniversary.

 

Hasbro is expanding its Family Game Night marketing campaign. The company is releasing "fast-play," card-game versions of popular board games such as Monopoly and Scrabble that will retail for $5 to $7. Hasbro also is selling what it describes as the first-ever board game to use text messages — a version of Clue in which players receive hints via cellphone. In addition, Hasbro is banking on two summer movies based on G.I. Joe and Transformers to drive sales.

 

The annual event last year was dominated by safety concerns after a sweeping recall led to millions of toys being yanked off store shelves and calls for higher testing standards.

 

While worries about the safety of toys have largely been replaced by the dire economy, toy makers may not have had enough time to reshape plans to respond to the recession. New toys are usually designed one to two years in advance, said Gerrick Johnson, an analyst with BMO Capital Markets.

 

"They've had enough time to kill projects that may have been expensive," he said. "I don't know if there was enough time to develop a whole bunch of new, inexpensive toys."

 

Smaller companies will also try to take a bite of sales this year.

 

Crayola, which is owned by Hallmark Cards, will sell a $10 Airbrush Painter with washable sidewalk paint and a $15 canvas which glows when written on.

 

 

 

Blending traditional play with technology continues to appeal to today’s tech-savvy kids. In Youth Electronics, Tech Toys, Interactive Gaming & Robotics, buyers will spot many of the newest and most innovative introductions concentrated in one area of the show floor.

 

Located along aisles 3000, 3100,and 3300, the feature section showcasesa mix of tech toys from digital race car systems to online racing, kid-styled MP3 players to computerassisted piano keyboard learning systems, as well as science kits, interactive DVD games, robot kits and robotic creatures, and more.

 

Kiz Toys bridges the physical and virtual worlds with its Kiz Pal action figures and Kiz Moto toy vehicles, each of which comes with a USB key that takes kids directly to the website where they have safe access to their character’s virtual world or vehicle’s track. The full 3D environment features game play, educational aspects, videos, pre-scripted chat, and other activities.

 

Thames and Kosmo displayed its 11 science kits in the fair, including products like a little fuel-cell-powered car. The educational and technical toy maker had more to disclose to intrigue kids’ curiosity and imagination on scientific world.

 

Significant influences affecting the 2009 retail landscape in the U.S. point to Economics, Exercise, Entertainment, and Engagement, said Reyne Rice, Toy Trends Specialist, TIA.

 

Firstly, Economy & Price Value — Multitiered pricing strategies provide options to fit all wallets. The pricevalue relationship appeals to all categories: classic and new play patterns with multi-dimensional play experiences, toys that grow with a child over time, and games and educational products that offer skill-leveling as they represent the value gift-givers expect in tougher economic times. In addition, there are lots of options priced under $25.

 

Exercise: Get Up and Move-It — Today’s parents want their kids up and moving. The goal is to build healthier habits, to combat obesity, and to promote long-term active lifestyles. Both New 2009 product solutions and old-fashioned toys with new technology and classic brands will cater for the need of consumers.

 

Entertainment: Larger Than Life, 3D Movies — More than twodozen family films will launch in 2009, and over half of them are associated with a strong licensed property or entertainment celebrity figure. About 40 percent of the new 2009 family and kid-directed movies will feature the newest 3D technology.

 

Engagement: Digital Kids & Tech Parents — From today’s digitally native kids, to grown-up video gamer dads, and to high-tech moms, families are embracing digital media and technology in their tools and their toys. Parents want digital media tools that will engage their families, encourage family communication and interactions, and have longterm play value and skill-building applications. Toy manufacturers are bringing families together with digital cameras, online internet sharing software, social gaming and web-connected toys, as well as communication and music devices.

 

 

This past Christmas, toy companies found they weren't as recession proof as they thought. U.S. toy sales fell 5 percent in the fourth quarter of 2008, and slipped 3 percent for the year, according to data from research firm The NPD Group. And while toy executives said they are optimistic the economy will improve, they are bracing themselves for another tough year.

 

The nation's two largest toy manufacturers, Hasbro Inc. and Mattel Inc., announced this month they were cutting costs after reporting fourth-quarter net income plunged 30 percent at Hasbro and 46 percent at Mattel. And after a Christmas when toy makers were forced to offer markdowns to move their most expensive toys, such as Hasbro's $249 Kota the Dinosaur, the buzz words at this year's Toy Fair are "affordable play."

 

Despite the tough economy, attendance at the show, which opened Sunday, appeared to be strong. Julie Livingston, spokeswoman for the Toy Industry Association, which hosts Toy Fair, said pre-registration was at a 12-year-high at 16,000 attendees. The event drew 1,100 exhibitors, who are taking up 361,000 square feet at Javits, displaying toys for the industry buyers who roam the show.

 

Livingston said the Toy Industry Association and most in the toy business view a 3 percent decline as something of a victory, given the double-digit declines suffered by sectors such as automobiles and housing. "We held our own," Livingston said. "For our industry to have only suffered a 3 percent decline, we feel kind of fortunate." Livingston said the association's president just returned from toy shows in Hong Kong and Nuremberg, Germany, and reported that the industry mood "was really pretty optimistic. There wasn't the talk of gloom and doom you might have expected," she said.

 

"I'd still rather be in toys than a lot of other industries right now," said Neil Friedman, president of the Mattel Brands division at Mattel, despite the fact 2008 "was probably the toughest Christmas that I've seen in all the years I've been in the industry." Friedman, who has 30-plus years in the toy business, said combining innovation with value is a priority for this year.

 

The 9th Annual TOTY Award was also announced during the event. And the winners are…

 

Activity Toy of the Year – Crayola Color Wonder™ Magic Light Brush™, Crayola LLC

Boy Toy of the Year – Bakugan Battle Brawlers Battle Pack Series 1 Spheres, Spin Master

Educational Toy of the Year – LeapFrog TAG™ Reading System, LeapFrog

Girl Toy of the Year – Playmobil Horse Farm, Playmobil USA, Inc.

Electronic Entertainment Toy of the Year – FurReal Friends Biscuit My Lovin' Pup, Hasbro

Game of the Year – Bananagrams® – Bananagrams LLCs

Infant/Preschool Toy of the Year – Elmo Live, Fisher-Price, Inc.

Most Innovative Toy of the Year – Air Hogs Zero Gravity Micro, Spin Master

Property of the Year – Bakugan Battle Brawlers, Cartoon Network

Outdoor Toy of the Year – Crayola® 3D Sidewalk Chalk, Crayola LLC

Specialty Toy of the Year – Create Your Own Pop-Up Books, Creativity for Kids®/Faber-Castell USA

Toy of the Year – Bakugan Battle Brawlers Battle Pack Series 1 Spheres, Spin Master