CHATTING WITH THE INDUSTRY experiences, and the best way to demonstrate how they do that is to do just that: demonstrate it! Independent retailers provide a unique atmosphere for customers to learn about products; it’s an environment that you just can’t experience with online retailers or even larger chains. We also continue to see more and more specialty retailers focusing more and more energy on coming up with ways to increase store traffic and to give customers a reason to come back. Often, the solution for this is experiential marketing and special events and programs. Our products, whether they’re coding and robotics kits, magic sets, or board games, are most appealing to and best understood by a consumer when they can see, touch, and use them firsthand. We love the opportunities that specialty retailers provide by running in-store game days, play days, and hands-on learning events. Holmstrom: The hands-on setup of specialty stores allows both the store staff and their customers to touch, play, and feel our products firsthand. Our relationship with the retailers also allows them to share feedback — good and bad — before anyone else. Cass: It’s crucial. We had a local specialty retailer call us with an idea a few years ago that we followed up on, and Latchkits was the product of that call. We researched this popular retro craft, finessed the product for today’s
market, and it has since become one of our best-performing lines. Specialty stores know their customers extremely well and are very in tune with what products they are looking for. They keep their eye on popular trends and have a unique insight about what performs well. In this case, there was an opening to reinvigorate this classic craft idea that this retailer picked up on, and she basically said, “Hey, you guys should make Latchkits!” We value the relationships we have with our specialty retailers, especially with new ideas — their experience in this industry makes them a great resource for us to bounce new ideas off of. Being connected to specialty toy stores helps you to manage your line and see what works. Then, if you are fortunate, you can take pieces and parts to expand in some national chains as well. What are the biggest challenges facing the specialty toy industry, and how do you manage those challenges? Cass: One of the challenges specialty toy retailers have is [establishing] a point of difference: How is their store different than a toy department in a chain? We have unique products that are sold to specialty, and in most cases, an item at a chain is in different packaging or price point. The second challenge is a margin on sales. We have an excellent system of easy reorders for specialty toy retailers and offer discounts for being in buying co-ops, along with an easy Free Freight program, which allows the specialty retailer to comfortably sell our goods, and make strong, more than 50% margins. Holmstrom: The biggest challenge to anyone in a specialty retail space seems to be the internet and the expectations that have come with online shopping. We are constantly working to find a balance between these sales avenues and work to make sure we’re doing what we can to support the specialty industry.
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THE TOY BOOK | MAY/JUNE 2019 | toybook.com
Beaker Creatures Whirling Wave Reactor, from Learning Resources
Woldenberg: The biggest challenge to specialty is the rise of e-commerce. Specialty needs to use its natural advantages to compete. There are still many consumers who want to touch and feel the product and who will respond to a great in-store experience. We support specialty retailers who address those needs and believe they will prosper even in a challenging environment. The world needs its neighborhood toy stores! Quartin: Online retailers and marketplaces remain one of the biggest competitive threats to the specialty toy industry. As consumers continue to grow accustomed to shopping from their couches, I’m hearing that brick-and-mortar stores are devoting more and more time and energy to planning in-store events and coming up with new and different ideas to make their store a desired destination. For us, this kind of experiential marketing is perfect since the majority of our toys benefit from physical interaction to inform the customer that they are making a sound purchase. Helping specialty stores reach these goals of increased foot traffic benefits us, the manufacturer, as well, which is why we’re always happy to offer up materials and support in the form of demo units, play day kits, promotion on our social channels, or whatever else we can come up with. » Flip through the pages of this issue for a more in-depth look at potential tariffs on Chinese imports, how to reach grandparent shoppers in your specialty store, and more trending topics.