Sunday, February 17, 2008

Cyber world toys dominate toy industry


Toy companies, including three in Orange County, gear up for the 105th annual American International Toy Fair in New York. Dolls sales slide, as interest in cyber world games soar. By NANCY LUNA The Orange County Register
"Costa Mesa-based Playmates Toys is jumping on one of the biggest toy trends in the industry: virtual playgrounds. The interactive push marks a major shift in strategy for Playmates Toys, which has spent a bulk of its 40 years creating and marketing classics such as dolls and action figures. While traditional toys remain a core part of its business, Playmates plans to heavily promote two digital products at the American International Toy Fair, which starts Sunday in New York. The event is sponsored by the Toy Industry Association. "Our push is in the youth electronics area," said Tor Sirset, a marketing vice president at the company. Toy revenue data released this week shows that Playmates is moving in the right direction. In 2007, toys generated $22.1 billion in revenue, down 2 percent from last year. They toy category that saw the largest decline was dolls, where sales dropped 8 percent, according to NPD Group, a New York market research firm that compiles the data. However, Web-connected toys emerged as a "relatively new phenomenon" in 2007, said NPD toy analyst Anita Frazier. These toys allow children to marry a physical toy with an ongoing digital play world on the Internet. Toy fair officials expect these reality-based toys to dominate this year's trade show, where hundreds of toy buyers scout products to put on shelves for upcoming holiday shopping season. Besides Playmates, other Orange County companies attending the show include Tomy Corp. of Santa Ana and Bandai America of Cypress. At the four-day trade event, Playmates will pitch MyLife – a handheld gaming device that allows young girls to live in a virtual world. Developed in partnership with GP Toys of Italy, MyLife allows girls to create a custom "avatar-like" image and personality, Tirset said. Users of the pink device can live in a virtual world where they can change into chic clothes, go shopping or grab an energy drink whenever they want. "It can transport you to the beach, or a dance party," said Tirset, who previously worked at LeapFrog, a pioneer in creating educational electronics for children. Real-world toys became popular last year when parents – and their kids – discovered Webkinz. The in-demand plush pet comes with a special online code. Once children enter a pet's secret code online, the animal comes alive in a virtual world. "Thanks in large part to the popular Webkinz brand, this type of play is expanding into new categories," Frazier said. Besides interactive toys, Adrienne Citrin – a spokeswoman for the Toy Industry Association -- said many toymakers are jumping on the environmental bandwagon. "Now the green trend is emerging in the toy industry," she said. "And, it will take on many different forms."
Tomy Corp, for example, is debuting its eco-friendly Eco Angels. The line of six baby and toddler toys are made with corn, sugar cane and other natural substances instead of traditional plastics. The company is also using packaging made with sustainable products. "By manufacturing sustainable products made from safe and renewable resources, we reaffirm Tomy's mission to be the most trusted name in toys," said company president Kaz Sugiyama. Trust is especially critical this year. The industry's reputation took a beating last year when more than 20 million toys made overseas were recalled. As toy retailers pulled products from shelves, worried – and often confused -- parents hunted through toy boxes to ensure their child wasn't playing with potentially dangerous items. The recalls forced many toy manufacturers to concoct new policies requiring more oversight of toys made overseas. The Toy Industry Association also plans to review a new toy safety initiative Saturday. The plan calls for beefed up testing and audit requirements for toys entering the United States. "We are developing a robust system that will help to assure that products entering the U.S. market meet this nation's rigorous toy safety requirements," said Lane Hallenbeck, chair of the steering committee that drafted the new toy initiative.

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