The American International Toy Fair was held recently in New York, according to a story at Associated Press.
This is the annual event where toy makers show off new offerings that will make their way into next year’s stockings. Previews from toymakers and interviews with analysts make clear that the focus is on innovation and price. Few toys will retail for more than $100, and most will be priced below $30.
“There’s still going to be some hesitancy to raise prices too much,” said Needham & Co. analyst Sean McGowan. “Last year the feeling was under $30 is where you needed to be. This year there may be more willingness to be $30 to $50. But I don’t think we’ll see a wave of $300 stuffed horses again.”
The toy industry performed a bit better during the holidays than it did in 2008, but the season was far from a bonanza. The NPD Group, which does market research, said toy revenue was flat because of discounts during the fourth quarter, but the industry sold 4 percent more toys. For the year, sales edged down 1 percent to $21.47 billion.
Tough times can spawn creativity.
“I’ve seen some really innovative products,” said Jim Silver, an analyst at Timetoplaymag.com. He pointed to radio-control vehicles as combining innovation and low prices. One reason they’re cheap: The cars themselves have shrunk, Silver said.
“What the industry has learned is that kids don’t necessarily want ‘bigger.’ It’s about the features, not the size of the vehicles,” he said.