Captivating Connections.

toy sales on the ups.

According to NPD Group, toys are having a moment, as "stronger sales in the all-important fourth quarter -- and the standout performance of plush toys, in particular -- pushed U.S. sales to $21.87 billion last year, a 2% gain over 2009's $21.46 billion. And in the fourth quarter, sales increased 3% to $10.2 billion, representing close to half of the year-end total. In December, sales jumped 4% to $5.64 billion, a 4 percent increase over December 2009.

It was a cuddly year, with plush toys scoring the biggest category gain, up 18%. Sales of building sets climbed 13, outdoor and sports toys rose 9% and dolls and infant/preschool toys grew by 6% for the year."

what's topping your holiday list this year?

According to AdAge, this year's hot products may be the result of a lack of innovation, not just consumer funds...

"It might not just be the economy that's holding back sales this holiday season -- it's also the lack of breakout products. Industry analysts and even retailers are hard-pressed to identify any must-have items beyond an $8 toy hamster.

'There's no killer item this year. There is no XBox or item that's out of stock that everyone has to have, and typically we benefit when that happens,' John Donahoe, eBay's CEO, said at an investors' conference this week. 'There just simply ... isn't one this year. [There's] no breakout consumer electronic other than the Zhu Zhu.'

While manufacturers can shoulder some of the blame for cutting back on innovation, retailers are choosing to play it safe with items that have a proven sales track record. That means a decided lack of new fashions, electronics and toys to stir up consumer interest.

'A lot of [retailers] are more interested in living another day than knocking it out of the park,' said Patricia Edwards, a retail analyst and founder of Storehouse Partners. "'This year is about survival. Some risk-taking is OK. ... But there just isn't room for error this year.'"

and the holiday toy of the season is..

...an electronic hamster??

toys r us on layaway.

Toys R Us is jumping on the layaway bandwagon:

"Toys R Us says it will offer a layaway option on big-ticket toys this holiday season -- another indication that marketers are worried about the Grinchy Christmas headed their way.

That news comes at a time when toy marketers are reporting lower sales, as well as a continued shift in toy-shopping behavior. Last year at this time, for example, 23% of all shoppers said they planned to do at least some holiday shopping at a toy store, reports NPD Group. This year, only 20% plan to do so. That also extends to video games, and the Port Washington, N.Y.-based market research company says just 15% will shop in video game/entertainment specialty stores this season, down from 16% last year."

wal-mart making some wishes come true this season.

How great is this?

 

“After the success of its ‘10 for $10’ toy program last year, Wal-Mart Stores Inc. is expanding its lineup of $10 toys for the holiday season to more than 100 items.

The move, which is expected to be announced today, is the latest in an increasingly heated holiday toy battle as retailers race to attract frugal shoppers.

Wal-Mart said it had worked with its suppliers over the last year to offer an assortment of top brands, classic toys and newly released items for $10, including Barbie dolls and Transformers action figures.

‘This year it's bigger, it's better,’ Laura Phillips, vice president of toys for the company's U.S. division, said in an interview. ‘It's about the wish list for the kids, and we know these price points help parents deliver.’"

Wondering what drives toy purchases these days? Well it isn't impulse shopping!

"When it comes to picking out toys for their children, it turns out that parents are a pretty decisive bunch: A full 70% of them know exactly what they want and where they plan to buy it before they head out the door.

The study, from NPD Group, a Port Washington, N.Y.-based market research firm, says about 75% of parents decide first where to shop -- critical information for toy marketers as the winter holiday season approaches. (About 50% of all toys are sold in the holiday period, NPD says.)

'A lot of purchases happen for a gift-giving occasion like Christmas and birthdays, and parents do put thought into planning what they're going to buy because they really want to make their children happy,' says Anita Frazier, NPD's industry analyst for toys and games. 'The economy is no doubt playing into it as well because when money gets tight, you definitely want to get it right and not buy the wrong thing.'"

When it comes to impulse buys in toyland, the big factor is kids themselves: Parents are more likely to buy a toy if a child asks for it, particularly if it's at a lower price point.

sears focuses on toys.

"Sears says it will open toy shops in 20 select mall locations in Chicago, Los Angeles, San Francisco and New York, offering 'power brands' in an environment that will allow parents and children to 'come together to try out new toys, play and have an enjoyable shopping experience.'

Toys will also be available online, and shoppers will have the option of ordering online for in-store pickup. The toy stores debut Saturday."

top toys.

Wanna know what the top toys are this holiday season?

"It looks like Mattel's Barbie brand is safe in its No. 1 spot this year, but Disney's Hannah Montana leapt up four places on the year's hot-toy list, muscling past the Bratz crowd. And Disney's 'High School Musical' items are also coming on strong, breaking the Top 10 list for girls for the first time, reports the National Retail Federation's 2008 Top Toy survey. But the big news, in a ranking that is usually all about dolls for girl and cars for boys, is that video games are appearing on the girls' list for the first time.

After Barbie and Hannah, in the survey of more than 8,700 adults about their intentions to purchase toys for girls this year, are the all-doll category, followed by Bratz, Nintendo Wii, video games, Elmo, Disney High School Musical, Disney Princess and American Girl, which is also a Mattel brand.

For boys, electronics still take the top spots, with video games coming in a No. 1 and Nintendo Wii at No. 2. Next are Legos, all types of cars, Transformers, Elmo, Star Wars, Hot Wheels, remote-controlled vehicles and Xbox 360."

toymorrow!

Disney clearly gets that the line between tech and toy is loooooooooong gone:

"On the walls of a hush-hush conference room deep inside the Disney Consumer Products headquarters are sketches of toys-to-be for a year from now, the start of the 2009 holiday season. A team of eight Disney big thinkers gathers to brainstorm about toys that mix technology and play.

This is Disney's new toys-of-the-future swat team: Toymorrow.

Toymorrow has been top secret, and it's a first for a reporter to sit in on a toy-planning meeting. This isn't just any brainstorming. It could be the future of toys for Disney — and everyone else.

'We used to sit down and ask ourselves, 'Is this a toy or a consumer electronic?' ' says Chris Heatherly, the Disney vice president who heads the Toymorrow team. 'But that was a super-silly thing to ask. You can't draw those neat and tidy lines any more.'"

Granted this isn't exactly the economy to be coming out with anything, but it's good to know there are people rocking the art of innovation for 'toymorrow'.

toys of all sizes, shapes, colors, and tech levels.

Parents, not to worry: kids love their non-tech toys, too, according to new research presented at Sandbox Summit^®, New Playing Fields: Building a 21^st Century.

Sandbox Peter Shafer, Vice President for the Youth Center of Excellence, also explains, While traditional toys are still popular, the nature of “play” is changing for today’s youth, both in terms of the activities they participate in and the outcomes they expect from play. In today’s world, kids are actually more likely to be playing alone with their favorite toys versus playing with others. While the most important goal that kids have when playing is still to have fun, toy makers and marketers need to keep their designs and messages in tune with evolving forms of play – across age ranges and gender preferences-- in order to engage with kids and their parents in current, relevant and profitable ways.”

Harris Interactive’s Youth Center of Excellence collaborated on the development of this study