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OMG!!! Traditional Toys Are Disappearing!!

Gee, Thanks, Chicken Little.

I’m just back from the Toys & Games Fair in Hong Kong, the “official” start of the toy year and an exciting time in our business where new products are on display and we get a first look at things that may (emphasis on “may”) take off later in the year.

It’s also a time when “experts” battle to be the first to identify the “next trend.” Trends from the past include the end of fashion dolls and the dominance of “green” toys. And we know how those turned out.

So, it was especially hilarious to me to hear the prediction in Hong Kong this year that within five years, traditional toys will be gone and everything play with will be on tablets. I kid you not. This was said with a straight face and was followed up with admonitions about the bleak fate of the major toy companies in the years ahead. I, however, did my best Jerry Lewis spit take when I heard this.

It’s all part of a contemporary phenomenon I call “Chicken Littling” after the legendary bird who after being hit on the head by a falling nut was convinced that the sky was falling and the end was near and the king must be alerted. That’s no different from observing the rise in tablet use among children and concluding that toys will go the way of the dodo. However, in the battle for sound bites that has replaced so much of reasoned public discourse in our world, the more dire a prediction is, the more likely it is to get attention.

In this case, however, the facts tell a different story. Yes, tablets are appealing to younger and younger children. More and more of these kids have access to tablets, but they are not replacing traditional toys. An infant can’t teethe on a tablet. And you can’t cuddle up to one. There have been a slew of tablet-related toys in the past couple of years, but many of them just aren’t any fun and haven’t done well. (Here’s a big secret why not: they’re not fun.) Are kids playing with more apps? Yes…at least the good ones. But there are a lot of terrible ones out there, too, and kids are swift to reject those. What’s more, parents’ and caregivers’ response to this growth is to seek out other types of play experiences. They are seeking to limit screen time for their kids—and that includes any screen.

The facts also tell us that construction toys are booming. Arts and Crafts companies are seeing double-digit growth in some product lines. NERF blasters, sports toys, even some games have been successful in the past year. Small companies like Zing and Hog Wild are finding a steadily growing market for their classic toys. All of these have one thing in common: they deliver play experiences that cannot be replicated on a tablet or in an app. Social, physical and manipulative play are all critical to children’s development and the brain centers stimulated by play in these categories can’t be replicated by an app. More importantly, some of the most exciting new toys I saw in Hong Kong were, you guessed it, traditional toys. It’s going to be fun to bring them to you as they come to market.

In the case of tablets, they aren’t taking over the toy industry, and people who promote that idea demonstrate a real lack of understanding of how the business has grown and evolved over the years. Tablets just making the toy box bigger and will find a place in a kid’s overall play experiences.

How can I be so sure? Look at the history of toys. There have been tons of new technologies introduced over the years and not a single one of them has rendered traditional toys and classic play obsolete, though many have had an impact for a time. Even as technologies have become obsolete and new ones have emerged, traditional toys have stayed around.

Of course, I’m also sure that “experts” trying to make good copy will continue to predict that one small event will trigger a cataclysm. We’ll never get rid of the nuts—falling or otherwise. As for me, I’ll stick with reality. It’s ultimately a lot more fun.

Comments

  • Jane m

    We have daily UNPLUGGED creative playtime. Classic toys assist in learning, mind development basic life skills ect. But most importantly communication & imagination. There are plenty of weekends we do not plug in at all.

  • http://twitter.com/AvrilnLevisMom Sonya G

    my kids like our tablet but spend most of their time playing with “real” toys, they love puzzles and playing with dolls/stuffed animals and running around outside. Traditional toys aren’t going away.

  • http://www.facebook.com/profile.php?id=591923836 Chris Heatherly

    You are of course right that traditional toys are not going away completely, but I also think it would be wrong to say that the toy space is not going to be forever changed by the technological wave that tablets represent. You hit the nail on the head that the trend of the last 5 years has been to favor toys with inherent physicality – construction, activities, and Nerf. The losers have been toys that don’t really do anything. Action figures has been particularly hard hit. I can live out my action fantasies in video games in a much better way than I can within the limits of what a toy maker can physically produce in this day and age at less than $10. Skylanders shows both hope and a major threat to the toy business. At $500M and 100m figures sold, it has found a great new business model for both industries. The dirty secret about mobile gaming is that they just don’t make a lot of money…yet. There are very few games that make in the tens of millions and half the revenue in the App Store is made by less than 50 or so games. It turns out that its hard to sell digital content when it doesn’t come in a box because we are not so evolved yet that we assign a lot of value to it yet. Skylanders has found the best of both worlds. Their individual figs sell for $10 or more and make more profit than most games get in lifetime value. Consider that megahit Angry Birds until very recently was a 99 cent only app. You gotta sell a lot of games for a dollar to make that a business. Most have not fared as well. The notion of the toy-like collectability I believe will be hot over the next few years in gaming. League of Legends which is the biggest game in the world right now is based off of the concept of buying digital action figures basically. While the overreaction of the Chicken Littles is ridiculous, they are reacting to something. No matter what anyone is saying, this was a very bad year for toy makers and the financial results are showing that. Retailers are cutting space once again. And that space is unlikely to come back. For that you can blame Amazon and ecommerce as much as tablet. And for every Chicken Little, there is someone with their head in the sand. The toy cos are moving way too slowly into the gaming space. They are making some efforts, but they are most clumsy and half hearted. Its not a mistake that Skylanders came from a video game company and not a toy company. Last year, the Apptivities category bombed and the reaction of most toy companies is “see, it was just a fad.” Don’t count on it. The toy aisle has always been a reflection of the culture, and as our culture and the way we play changes, so will toys. Those who get that and bet right – not necessarily on technology, but those who smartly hedge against technology – will win. Those who think this is another fad that will blow over will be sorely mistaken.

    • Rocky

      its partially true.there is even nowadays toys like doll

  • Scott Traylor

    I see similar “Chicken Little” reactions across multiple industries, publishing and education in particular, and I find myself saying to a lot of long-term players: “Video did not kill the radio star.” Tablets certainly are changing the form some play and entertainment can come in, but it will not replace toys. Just as the tablet will not replace books and the tablet will not replace teachers. If anything the tablet is temporarily stirring up the marketplace and traditional business models. To me, that’s a good thing.

  • http://www.facebook.com/profile.php?id=591923836 Chris Heatherly

    Right Scott. I do think it will replace some toys. Others will become unviable without a digital component. Others will prosper because they are good counter programming to digital content. Good point on teachers too BTW. Too many people overestimate internet learning and underestimate and importance of a good teacher!

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