38 INDUSTRY FORUM
Hornby’s plan focuses on its core values as these have stood the test of time and will continue in some form, regardless of the challenges.”
Wyatt: “Clearly if the Euro collapses, we will have a new landscape to navigate. This will be a major challenge to all exporters.”
McCool: “With inflation looming again, the prices of every component of our design and development processes are going up, especially the manufacturing costs in China and transportation to and around the UK.”
Thorpe: “Challenges will no doubt include the Far East and the dollar rate. We’ve seen suppliers mention some huge price increases and we’ve had to negotiate hard to try to maintain the status quo.”
What do you predict for retail? Walker: “The retail environment will continue to evolve to reflect the consumer’s needs and trends. There is a role for all channels in the retail landscape; I’m sure the strength of online retailers will continue to grow in importance, and retailers will continue to be creative on how they service consumers through a multi- channel approach.”
Ratcliffe: “In the main, retailers will back what is tried and tested. However, the toy industry is a fashion business; stand still for too long and suffer the consequences. Therefore a few calculated and considered risks are probably what the industry really needs right now. The grocers are becoming ever more important as a source of volume sales, as are online and discount retailers.”
Bandtock: “Grocers and online will continue to grow, but overall retailers will remain risk averse on new unproven concepts and rely heavily on classic, traditional brands. It would be nice to think the retail market could wean itself off 3-for-2, etc, but I doubt it will happen.”
Southworth: “The retail environment will remain challenging. Having bought toys for one of the major grocers, my view is that they will achieve a level of market
FEBRUARY 2012
GARY WYATT, Managing Director, Green Board Games
penetration that is only constrained by them. Grocery toy buyers are fighting for space in-store versus beers, wines and spirits, clothing or books, to name just a few. Some of the food categories take a year’s worth of toy sales in a week, so grocery channels will have a place in selling toys. How big this is, however, only they can decide.”
Wyatt: “A greater percentage of toys and games will be purchased online. This sector is showing enormous growth.”
CLAIRE MCCOOL, Co-Founder and Marketing Director, Drumond Park
overdue consolidation of the supplier base may well be a logical response to a long period of austerity.”
Nicholls: “The demand for new technology is very evident, as seen from the success of online characters and computer-based toys. This trend is likely to continue.”
Spalding: “Traditional brands and IPs will continue to do well. Brands investing more in their own identity and using this to their advantage will be a growth area.”
In the current climate, the toy market is not faring too badly. But consumers will
make more cognisant choices, so brands will have to work harder.
Chris Spalding, LeapFrog
What trends do you see continuing or emerging? Ratcliffe: “Entry level and promotional pricing across many toy categories will continue – which is great for the consumer but serves to drive the margin down for both suppliers and retailers.”
Bandtock: “In the slipstream of Moshi, MMOG properties may emerge as the new great hope for licensing. FOB/exclusive options will be chased even harder by retailers as a way to improve margins and compensate for all the deal-driven business. We might see a wave of mergers on the manufacturing side in the coming months/years as the long
What are your main aims for 2012? Ratcliffe: “2012 will be one of our biggest ever in terms of new product launches. If we can achieve growth I’ll be happy.”
Bandtock: “Vivid will aim to grow sales faster internationally than in the UK, but we still see growth potential here due to the strength of Moshi Monsters, Animagic and Crayola. We clearly hope to be able to rebuild batter margins, but that’s a tough call when China costs are rising faster than retail prices.”
Walker: “We will continue to grow our portfolio, bringing innovation in our brands and with our licensing
JON THORPE, Managing Director, John Crane
partners. We will continue to invest in great marketing plans and support our retailers with campaigns that create demand.”
Thorpe: “We aim to maintain the market share we have, look after our trusted retailers and hopefully grow into new sectors.”
McCool: “Our aim, as always, is to be a dominant force in the games sector.”
Nicholls: “In general terms, innovation, promotion and ‘must- have’ products are all important factors in 2012. For Golden Bear, the coming year is very important with the launch of the new Go MINI range and many other exciting characters – not to mention the London 2012 Olympic Games which will play a major part.”
Wyatt: “We will grow our international business by at least 20 per cent.”
Spalding: “Online is a clear area for growth for all businesses in 2012, and is an area that I believe many in the industry are playing catch-up in. That means there’s plenty of opportunity for growth in the short-term.”
Southworth: “Our growth will come from three areas: lower price items such as Corgi Toys, a commitment to new product across all brands and, of course, the London 2012 Games. The toy business in general will get uplift from London 2012, as Golden Bear, MV Sports and Hy-Pro are also involved alongside us.”
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