Saturday, February 16, 2008

Beanies Battle Webkinz!

Ty, the company behind the Beanie Baby fad of the 1990s, is going head-to-head with Webkinz. Beanie Babies 2.0 are now hitting stores in an attempt to compete with the hugely popular Webkinz, which bombarded this area about a year ago. The concepts are similar in that they both feature a plush animal with a tag attached that holds a secret code allowing the child free access to an Internet site where the toys' virtual versions can socialize, play games, decorate their dwellings and change outfits. There are about 15 of the new Beanies that sell for between $6 and $7. They're found everywhere from pet and toy stores to grocery stores. Oakbrook Terrace-based Ty said it was time to take its plush animals to the next level. "Kids today are so intelligent and computer savvy, so pairing an interactive computer world with something cuddly seems like a natural fit," said Ty Chief Operating Officer Scott Wehrs. It's still too early to tell if the new Internet-based toy can compete. "They're just now being recognized. It will take a while to grow," said Pam Shields, owner of three Ginny's Hallmark stores in Naperville. She first started carrying the animals three weeks ago. Steve Zdunek, owner of Learning Express in Naperville, said the new Beanie Babies are "doing well." But Ganz's Webkinz are "outstanding." "You've got such a wave going with the Webkinz right now. They're the dominate force," Zdunek said of the nearly 50 Webkinz and 28 smaller LittleKinz. Other retailers agree. "The standard has been set by Ganz," said Rich Derr, owner of Learning Express in Lake Zurich and Barrington. He added that Ty isn't causing a slowdown for his top seller. Derr sells at least 50 Webkinz products a day. In addition to the stuffed animals, which sell for between $9.50 and $12.50, there's an array of accompanying Webkinz merchandise such as clothing, mouse pads, charms, pencil cases and purses. Derr believes there is a market for the Beanies. "They'll be a player." Ganz's communications manager Susan McVeigh declined to comment on the newest competition. She said they are constantly changing the Web site to provide new features, including games and new decor children select online to decorate their virtual rooms, homes and yards. Ganz realizes there are others looking to capture the tech-savvy youngsters. Some retailers, including Catherine May, owner of Abby's Hallmark in Batavia, feel the Beanies are too similar to Webkinz. "The Beanies aren't going over as well as I expected," May said. In contrast, she said she sells about 75 Webkinz a day. The craze hit without advertising. Word of the popular plush toys spread from child-to-child at school. It's more than kids. Shields finds that moms come into her store looking for their own Webkinz. Shields admits she first logged onto the Webkinz site to better describe it to her customers. She now signs onto Webkinz World when things quiet down in the evening to play a game of Cash Cow and feed her virtual pet. "It's part of my evening repertoire," she said. It comes down to the quality of the Web site, said Derr from Learning Express. "Kids like assortment." He added that the Internet connection is a new category of play that's here to stay. "This isn't a fad or a trend. It's a new way kids play," Webkinz' McVeigh said.

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