State of the Industry Sharon DiMinico, Founder and CEO, Learning Express
Ben Gadbois, Global President and COO, Spin Master Ltd.
How are Learning Express retailers engaging consumers in-store to drive sales? Every month, our stores publish a full calendar of events to draw people into the store. We engage, we entertain, and have we product demonstrations. We also offer classes, costumed character appearances, and featured guests (silhouette artists, musicians, authors, etc.). We learned early on that customer-centric services and the “wow” factor would be the only way to compete with buying toys online from the comfort of your home. In addition, we recognize that having a strong team is essential to long-term success, so our owners are spending more time training and developing their staff. They are encouraged to take more responsibility in all areas of the business. Having the right product, at the right time, in the right amount, at the right price is another key to driving sales. Lastly, giving your customers “unexpected,” over-the-top service, as well as dramatic merchandising and free giftwrap, are also important elements of continued growth.
Which toy categories do you expect to expand in 2015? Which do you expect to contract? While it isn’t a category itself, robotic technology is advancing the toy industry in revolutionary new ways. Toy robots are nothing new to the market, but over the past few years we are seeing more innovative integration of robotics, allowing kids to do incredible things. From our trainable, voicerecognizing dog, Zoomer, to the autonomous, fiercely independent Zoomer Dino, toys are coming to life and great new play patterns are emerging. This year, we are fusing the latest technology and robotics with the iconic Meccano brand (known as Erector in the U.S.) with our latest robot, Meccanoid G15 KS. Meccanoid embodies the core values of science, technology, engineering, and math (STEM), and empowers children by acting as a fun and engaging way to learn about coding, robotics, and engineering. As society advances, so do our toys and there is a new thirst in the market as consumer behavior shifts toward products that can be both fun and educational. With that in mind, I expect the doll category may contract slightly. Though there are perennial hits within the category, the growth that we’re seeing in others and the shift toward less gender-specific toys means that newer brands may be less successful in the category in the years to come.
How can specialty retailers compete with mass retail in 2015? Shopping a specialty retailer is a much better experience than walking the aisles of a big-box store. Specialty retailers have people who offer a warm greeting, give advice, and answer questions. They have a vested interested in the success of their business so they make sure their customers are happy and 100-percent satisfied with their selection. Although a few of our stores do a big business with Hasbro and Mattel, for the most part we try to support smaller manufacturers whose focus is primarily “specialty.” There is also the advantage of placing reorders up until the week before Christmas. We also participate in all of the shop local promotions that happen throughout the holiday season.
56 • THE TOY BOOK
How have you seen consumer expectations change over the past decade? The impact of technology on consumer behavior cannot be understated. Many toy companies have taken note of this shift in consumer behavior and have created items that fall into the new classification of “phygital”—toys that have both a physical and digital play pattern. This is an exciting new challenge for toy makers, which results in even greater value for consumers. Over time, that added value becomes an expectation. Today’s toys have to be much more than simple playthings; they need to embrace technology, offer multiple ways to interact, and should live on beyond the physical playroom.
FEBRUARY 2015