Author: Chris Byrne, The Toy Guy, President, Byrne Communications, Editor of Global Toy News
The toy industry has been talking about “international business” for years. The business is characterized by products launched in one market and gradually rolled out in different markets, assets and channels around the world. Since these are toys and games, it may take several seasons to reach market saturation.
Those days are clearly gone, and a new, globally interdependent business has taken over, bringing new challenges and opportunities, measured in months or weeks. One of the tasks facing every toy company this year is how to respond to this new landscape in order to maximize the opportunity rather than miss it.
Issues include supply chain management, manufacturing, transportation and overall logistics. Although the specifics vary, these constants remain. However, what we are seeing now is a more significant shift. Driven by social media, diversified retail channels, artificial intelligence and year-round sales cycles, a new pattern in the global toy industry is emerging, and changes are coming at an unprecedented speed.
“This is not for the faint of heart,” said Herb Mitschele, executive vice president of global sales and planning at Jazwares. “A few things to consider are the country’s political, economic and legal framework; barriers to entry; market size; and the overall investment required for the market to be successful.
Social media unites the world
This is a dramatic statement, but no less accurate. Jay Foreman, CEO of Basic Fun!, noted that it took several months for POG to spread from Hawaii to the mainland before becoming popular in the 1990s. So does the fretboard. TikTok, Instagram and YouTube dominate these days, which means something can become a sensation almost overnight. “If something hits, and it’s in a warehouse anywhere, someone can buy it,” Foreman said.
“In this environment, you have to go international,” said Josh Loerzel, co-founder of Sky Castle Toys. “Before, you could control when you released because the key driver was television. Now, with social media, you can Marketing activities are “penetrating” from the United States to other countries. He noted that with Sky Castle’s Sticki Rolls, the product received 30 million views in two weeks, but 51% of those views came from outside the United States. “If you’re not ready, you’re going to lose the sale,” he added.
However, that same speed also amplifies risk. Just as fast as it happens, they can come back to Earth. As Foreman points out, something new seems to appear in the market every six months.
This is a data-driven industry, and as Loerzel said, influencers play a role. Television advertising dollars have shifted towards influencers who are necessary to generate attention. The ability to track attention span, retention, velocity, and content performance is almost instantaneous. And it happens without borders.
Artificial intelligence changes products
Skyrocket Toys chief executive Nelo Lucich said international sales make up a “significant portion” of the company’s business, acknowledging that there are still some countries that lack distribution for toys such as the Faction series of Gel Bead Blasters. “Most of our products are for the global market, and we think about everything from a global perspective,” he said.
Artificial intelligence facilitates the international expansion of small and medium-sized companies like Skyrocket. Its new talking toy, PLAi: Poe the AI Story Bear, can be adapted and localized for other markets by using AI. Artificial intelligence is about more than just direct translation, Lucich said. “You can generate it based on context,” he said. “The stories will be correct and literate.”
Artificial intelligence also supports marketing. Loerzel pointed out that artificial intelligence can seamlessly translate the audio in content videos into any language. In addition to the programs they currently use, he added that Google is testing a platform that will use artificial intelligence to translate into native languages based solely on IP addresses.
Sold all over the world
While Forman noted that chasing sales is an ongoing, year-round effort, trade show concerns are at the top of nearly everyone’s mind. The balance between time, efficiency, location and investment is a constant question.
Loerzel said this month’s Los Angeles fall toy preview is crucial for Sky Castle. His company and others of similar size rely on international distributors, and early knowledge of new products can be invaluable for planning and forecasting.
Forman believes that going forward, Hong Kong will regain its important position, noting that this year’s Hong Kong Toys and Games Fair performed strongly. HKTDC Vice President Chong Ka-ki said the success “demonstrates the power of trade shows as catalysts for international business growth and expansion. Trade shows like ours are dynamic platforms that inspire alliances, inspire innovation and cultivate relationships for Contribute to a prosperous global market.
Many in the industry agree that the Nuremberg Toy Fair remains vital. Christian Ulrich, spokesman for the Spielwarenmesse eG executive board, added that for emerging companies and innovative start-ups, the exhibition “provides valuable opportunities to expand into new markets”.
The recently renamed Toys & Models China (formerly Toys & Education China, also known as the Shenzhen Show) takes place in April and is likely to continue to grow in importance as a platform for showcasing design excellence and establishing wider international distribution partnerships.
“Toy Book” will continue to cover international issues in the context of dynamic markets. While that’s just scratching the surface, Moose Toys Chief Operating Officer Ben Dart succinctly sums up the state of his company and the industry right now: “The toy industry continues to evolve, and it has never been more important to produce innovative and powerful value products for consumers. . He recommended maximizing expansion opportunities, optimizing channel diversification and improving efficiency.
The ending is the same, but the gameplay has changed.
A version of this feature was originally published in The Toy Book’s Fall 2024 Los Angeles Toy Preview issue. Click here to read the full article! Want to receive a printed copy of The Toy Book? Click here for subscription options!
