TOY FAIR NEW YORK 2019
ISAAC LARIAN
Founder and CEO, MGA Entertainment What is one of the biggest challenges toy manufacturers face, and how is MGA Entertainment addressing it? One of the biggest challenges toy manufacturers face in the industry is the mass production of counterfeit toys and other toy companies that knock off the hottest toys on the market. It’s also an easy way out for some toy companies and so-called “inventors” to make a copy of an original idea instead of innovating. Longer term, this will hurt these copycat vendors as well as the retailers who support and buy knockoffs. Our legal team implemented a global anti-counterfeit program that vigorously pursues all types of counterfeit and knockoff cases and enforces our rights to the fullest. We will always protect our rights and our loyal fans who deserve to receive the best quality toys from a reliable and trustworthy manufacturer, such as MGAE. As a leading company in the toy industry for creating innovative product, packaging, and marketing tactics in bold ways, we are growing faster than anyone else. We care about our brand’s fans who support and allow us to continue making creative and groundbreaking toys that become a memorable part of their childhood. Unfortunately, L.O.L. Surprise! encounters a high volume of counterfeiters attempting to capitalize off of the unparalleled phenomenon, and we are vigilant in responding on social media and taking aggressive legal action as we urge fans to only purchase products from trusted retailers and websites. We also have a unique approach to educating kids about how to spot a fake that is in the tone and manner of our brand on our Unboxed series on YouTube, called “How to Spot a Fake L.O.L. Surprise,” which has received more than 10 million views to date. Maintaining the quality and integrity of our brands is a top priority and essential for the brand and fans. What are your predictions for the state of toy retail this year? I predict the loss of Toys “R” Us will have a major long-term effect on the toy industry. Many toy makers will likely not make new and innovative ideas, as major retailers, such as Walmart and Target, simply don’t have room to take new ideas. In addition, these retailers are risk averse to bringing anything onto shelves because their space is so limited. So, I believe the toy business as a whole will be down again this year because of the lack of original innovations that are brought to market. It’s unfortunate, but it’s a reality toy manufactures have to consider.
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THE TOY BOOK | FEBRUARY 2019 | toybook.com
STEVE PASIERB
President & CEO, The Toy Association What are the biggest challenges facing the toy industry as we head into 2019, and how is The Toy Association addressing them? Preventing tariffs on toy products from China and a threatened fourth tranche is The Toy Association’s top legislative priority, among many, this year. Our staff continues to aggressively communicate the detrimental effects tariffs would have on the toy industry in meetings on Capitol Hill and to the administration. Earlier this month, member companies were invited to join a Washington, D.C., fly-in as part of our participation in the Americans for Free Trade Coalition. Members added their voices on how tariffs can hurt the toy industry and will ultimately result in higher prices to consumers, impacting those who love to play—kids. The Toy Association also secured additional communications, public relations, and lobbying resources, which are being implemented. Another important topic in 2019 is attacking IP infringement, forgery, and counterfeit products that pose not simply a financial risk to toy companies but, as we saw over the holidays with the tragedy in Wisconsin involving an illicit toy, these products threaten the health and safety of children. In January, we released a white paper on intellectual property infringement and e-commerce in the toy space, and we will continue to work with the toy industry, e-commerce marketplaces, and lawmakers to rein in these abuses. Further, as the industry adjusts to the evolving retail sector and recaptures sales following the closing of Toys “R” Us, the question remains of who will fill the gap. The retailer frequently gave smalland medium-sized manufacturers that shot at growing significantly. In an age of limited retail shelf space, the Association will look to bring forward fresh thinking and diverse thought leaders to address this issue. What are The Toy Association’s key initiatives for the year ahead? Protecting and promoting both member companies and the broader toy community are the reasons we exist. We have many exciting happenings planned for this year, such as the Annual Business Conference this year in partnership with Target, continuing to strengthen Toy Fair New York and Toy Fair Dallas, and organizing a primary El Segundo, California, showroom location for members without business operations on the West Coast for April and September. Elsewhere, a new multitiered membership offering enables specialty toy stores and individual toy buyers to participate as members in Toy Association activities; we will commission new research on evolving retail, industry studies, and consumer insights for members; and will continue to promote to families the value of childhood play.
