State of the
Industry KIMBERLEY MOSLEY
TONY NORMAN
How did specialty toy retailers fare in 2015? Early indications—including an increase in overall toy sales for the industry as a whole— suggest that it was a strong year for specialty toy retailers, building on the 5 percent growth in holiday sales that independent retailers posted in 2014. Watch for reports of 2015 results—coming soon—based on data collected by Advocates for Independent Business. Consumers continue their use of both online and in-store shopping options. Good news for ASTRA retailers: Consumers still like shopping in a physical store. According to the 2015 Deloitte Holiday Survey, 93 percent of U.S. retail sales occur in stores. Although some consumers use the store as a showroom to test drive the product before purchasing online, more than two-thirds do the opposite—researching and then visiting the store to buy. Even online giants are exploring physical locations. Who would have thought we would see Amazon opening a brick-and-mortar store?
We’re beginning to see more innovation and risk-taking in new product introductions than in recent years. Will you introduce any new products or lines that take play to a new level? Innovation in toys is at the helm of everything we do. We pride ourselves on offering children an interactive and engaging experience with all of our toys and over the years we have successfully brought fun and exciting educational elements to all of our products. More recently, we believe we are taking this to the next level with our VEX Robotics by Hexbug line. Based on the widely popular VEX Robotics educational platform, we are bringing STEM education into the home for kids of all ages. This line uses robotics as a tool to engage as kids “learn by doing.” Alongside this, we will further develop water play with our new energetic AquaBot Wahoo as well as introduce our Battle Ground robots, which use I/R remote control and blast-off pieces.
What are your expectations for 2016? The shop local trend will pick up more momentum, especially with millennial parents. Shoppers will want more BOPUS (buy online, pick up in store) options, or at least be able to put an item on hold for pick up. Parents and educators will increasingly recognize the importance of play in healthy child development, and the toy industry will provide resources and leadership in making that happen—through in-store information, web content, and publications like ASTRA’s Make Way for Play booklet and the TIA’s Genius of Play initiative.
What were your top-selling toys/toy categories of 2015? Were there any surprises? 2015 was a fantastic year for Hexbug. Our nano V2 range remained strong as we introduced the updated Neon and Glowin-the-Dark products. Our best-selling items were the Battle Spider and Battle Spider Battle Ground. We believe this is due to the interactive elements of these products. Launched later in the year, the Battle Ground gave kids a creative play pattern, which allowed them to embark in combat with their Battle Spiders using the ground pieces to reflect the products’ laser light and secretly apprehend their opponent. The surprise line for us was our range of cat toys. We quickly realized a lot of people would do anything to keep their pets entertained as the nano Cat Toy and Mouse Cat Toy became our No. 1-selling products in terms of volume at Target.
President, American Specialty Toy Retailing Association (ASTRA)
What challenges are facing the specialty toy industry and how is ASTRA addressing them? Shoppers continue to get more savvy and empowered. They walk into our stores armed with information about products. Our store owners and staff are armed with reliable knowledge about play and how to find the best fit between a child’s needs and the toy. We like to think of our store staff as “playfessionals.” In 2016, ASTRA will launch the Certified Play Expert (CPE) program to increase our retailers’ knowledge of child development and skills to help guide the purchase to the best toy with the highest play value. Consumers expect an online option for any purchase. They expect customer service excellence and a personalized customer experience. ASTRA will provide more technology-focused educational offerings to help members leverage their POS data to gain insights into buying behavior and to better understand their inventory. ASTRA will also provide members with more education on how to fulfill consumer needs with online options for purchasing and/or information.
72 THE TOY BOOK | FEBRUARY 2016 | TOYBOOK.COM
Co-Founder, President, and CEO, Innovation First
How do you think consumer expectations have changed over the past few years? Kids today are so much more tech savvy and there is more pressure than ever to present them with new ways to engage and play. Our forward-thinking approach to product development allows us to see the world from a kid’s perspective and the products we produce, especially the new VEX Robotics line, has given us the opportunity to go beyond kids’ expectations by not only giving them something they can use their hands to build, but also something that they can motorize and introduce that hot robotic element that kids are craving.