Thoughts About Christmas Past (Three weeks ago)

Phew!

Christmas is finally behind us even though a few diehard celebrants refuse to remove their twinkling lights and browning evergreen ornaments. But the post mortems on holiday shopping are coming in painting a rather bleak picture of the industry's biggest selling season.

Out of the Hong Kong Toy Show came a statement that "retailers posted a 2% fall in business despite heavy discounts and promotions." ToysRUs posted a 3.4% decline over the nine week holiday season, November 2 - January 3.

Sales -3.4% U.S., -5.1% internationally

And foretelling the sad state of the retail arena right in the middle of the shopping season was KB Toys filing for bankruptcy. (Couldn't they even have waited to see if toy shoppers would beat a path to their mall doors?)

Files bankruptcy in the middle of the selling season!

The ominous signs were everywhere that retailers would use all the tricks to try to be Santa's helpers. ToysR Us boasted of "Our Lowest Prices Ever!" It was common to see an abundance of 50% off or saying it another way, "Buy one at regular price, get a second FREE!" Maybe the best deal was, "all toys at 70% off." But even with the prospect of all those good buys, I was certaiinly not motivated to shop at the retailer who promised an absurd store opening of 4 A.M.! I think I'm a bit of an adventuresome sort, but I couldn't envision myself arising in subfeezing New England darkness to push a shopping cart around Target, TRU, or Kohls. What were they thinking?

Thankfully, in the midst of all the year-end economic gloom. I came across Alan Hassenfeld's optimistic message in the 12/20/08 issue of The Economist magazine, entitled "Santa's Happy Helper." (Check out the full article here.) Alan offered these reassuring words, "The papers say everyone will get coal this year, but most parents - and grandparents - in difficult times will spend less on themselves to ensure that their children are happy, especially in the holiday season. That is an important leg-up toys have on almost all other retail items, except food." Motivated by Alan's comments, I bought my family two bags of groceries, tried to keep one grandson happy with Guitar Hero World Tour, and the Jr. Olympian skiing grandson happy with new downhill skis! (Admittedly, I delayed buying a new Chevy!)

So what can we toy people do to ensure better times in a business where the numbers of 60-70 percent of the T&G annual volume have historically been done in the 4Q? My suggestion for the bailout of our industry is not mounds of cash like all the other businesses bugging Washington's coffers. I propose we petition to alter the official National Calendar for twelve monthly gift-giving dates. Since all the really big sales come AFTER Dec. 25, January should have a specific date to "give the toy or game you didn't give at Christmas." February is almost there already but broaden the 14th beyond "sweethearts" to giving a game or toy "to someone you love" (no XXX items, please!). Now all we need are nine more national proclaimed dates to shop toys and games each month to get those big $$$$ volumes. No, this idea is not intended to in any way dismiss or dilute December 25. We still need Christmas. A monthly gift giving calendar is just the toy industry's way to catch the spirit of economic stimulus packages and hopefully avoid another meltdown like the one our industry experienced in 2008!

P.S. BTW, we know what retailer bucked the sales slide, right?....

Store sales up +1.7%.
"This was a year made for WalMart" to quote Consumer Growth Partners.

CU@Toy Fair!

Introducing Santa Doesn't Make Toys

Dreamers filling their heads with new thoughts at New York Toy Fair 2008.

Welcome to the dreamers, aka toy and game inventors, blog. Likely, readers are adults that know Santa and his elves don’t make those toys in the frigid North Pole. That myth was driven out of us with advancing age. We learned that the red suited cherub served as nothing more than a seasonal marketing icon who fronts for companies that import all those kiddie wishes from the largest country on the planet. I don't want to be too hard on Santa especially since he may help the holiday demand for one of our items and gets us personal fame and a lot of cha-ching in our Bank of America accounts. Perhaps some of us are still idealistic enough to think that beyond those personal rewards for our toy biz efforts, there may be the hope those creative efforts can change the world through play! ( Is that just an election year hangover?)

No guarantees, but my hope for this blog is that exchanges in this digital stream will make dreams reality whatever your personal motivations. Likely you already possess creative talents, boundless hope, and unique perceptions for you to recognize what exists now as you dream about what will be in the future. You are someone that can "see, dream, define, and do". So as you read something on this blog from time to time, please share your wisdom on the topic. (Helping thy fellow toy/game colleague may get you an EZ Pass to the eternal Playroom).

Much of the commentary on this blog will be triggered from what Richard Levy and I co-authored in The Toy and Game Inventor’s Handbook (movie rights still available). One compliment given the book is that it is “the Bible” of the industry on its subject. We have received many less spiritual compliments from satisfied readers who recounted labor saving tips as they have navigated the seas of idea licensing and product marketing. Several have actually attributed our words as directly allowing them to prosper in the business as a result of what they found in the Handbook. (If you haven’t seen the Bible, check it out at www.greatideagear.com/toybook.)

So as this blog is launched, look to Santa Doesn’t Make Toys as visits to “new testament’ readings which extend the reach of the Handbook into an interactive and inclusive medium to complement our ink on paper version. I would like to think we can involve many of the persons quoted freely in the Handbook as they embellish their experiences since they have been out and about the industry since the book’s release. The advice of the professional inventor community profiled in the Handbook was and can be very inspirational especially as “practicing” inventors offer insights on past and current successes. And for those newbies just dreaming of future megahits still incubating in the depths of their creative marrow, this blog will hopefully provide an audition stage to “Dance with the Stars”. Look at this blog as shareware for toy and game inventors as they continue to be the life blood for Santa workshops.