2. Sales Source Showdown
Total 2014 revenues for the US toy industry may be different, depending on the research source, but two of them, The NPD Group and Klosters Retailer Panel, both reported 2014 sales increased 4.0%, compared to 2013.
Klosters’ total was $22.98 billion, compared to The NPD Group’s $18.11 billion. This is because Klosters and other sources include hybrid toy manufacturers’ products in their totals, which are approximately 15% video games and 85% action figures.
Although total revenues have been relatively the same since 2003 – from $21 to $23 billion – unit sales have increased approximately 2% per year because more toys were being manufactured in China, which reduced costs.

3. LEGO Has a Leg Up
During the first half of 2014, LEGO surpassed Mattel as the world’s largest toy company, as LEGO sales increased 14% to $2.01 billion, compared to $2 billion for Mattel.
Mattel’s decline in revenues was attributable to significant decreases in its major toy brands during Q2 2014: Barbie, -15%; Hot Wheels, -2%; and Fisher-Price, -17%, compared to Q
Another data comparison, EBITDA, or earnings before interest, tax, depreciation and amortization, revealed that LEGO generated more EBITDA than Mattel and Hasbro combined during 2014.

4. Market Share Shakeup
After losing market share to Walmart during 2013, Toys “R” Us regained the #1 spot among toy retailers for 2014; however, its fiscal Q revenues of $2.32 billion decrease 6%, compared to the same 2014 period (February–April).
Walmart and retailers in the “other” category (small, local toy retailers and pharmacies and supermarkets) lost the most market share during Walmart’s loss is attributed to its half-empty shelves, slow checkout and dirty stores.
The “other” category lost market share primarily because of the increasing amount of online toy purchases, the better shopping experience at dollar stores (compared to Walmart) and Barnes & Noble’s surprising doubling of its small market share.

5. Licensing Agreement Advantages
Toy licenses, especially those tied to major movie releases, are a major driver of the toy industry, as licenses account for more than 30% of all US toy sales.
During the 2014 holiday shopping season, Disney’s Frozen merchandise ended Barbie’s 11-year run as the #1 doll, with 20% of parents buying Frozen items, compared to 16.8% buying Barbie.
LEGO, Mattel and Hasbro have licensing agreements for Star Wars: The Force Awakens, scheduled for a December 2015 release, although Sphero, a Colorado toy company, has the rights to make the toy for the new droid in the movie, BB-8.

6. Still Different Toys for Girls and Boys
An Ohio mother’s tweeted photo of a Target toy section sign that read “Building Sets” and “Girls’ Building Sets” during early June 2015 generated more debate about non-gender-specific toys, as the photo was retweeted almost 2,400 times.
A 2014 study of the Disney Store Website found that the 410 toys for boys had bold colors while the 208 toys for girls were mostly pastel pinks and purples. Although 91 toys appeared on both lists, there wasn’t a separate list entitled “for boys and girls.”
A December 2014 article in The Atlantic explained that, although toys of 50 years ago were very gender-specific, they lost much of that identification from the 1970s into the 1990s; however, today, toys are once again narrowly defined by gender.

7. Toy Trends
Other than dinosaurs, the other major trend at the New York City Toy Fair was toy customization. JAKKS Pacific is promoting a “3D Character Creator,” allowing children to create Justice League and Avengers figures from their own imagination.
App- and digital device-integrated toys are also expected to be popular, including Robot Turtles, a connected board game, and the option to control classic Lionel Trains from an iPad and similar devices.
Immersive play environments are forecast to become a major trend among high-tech toys, such as the Lumo projector, that transforms a kid’s bedroom or playroom into one of a number of interactive play scenarios.

8. Advertising Strategies
Small, local toy stores and non-traditional toy retailers can use TV advertising during the summer to promote pre-ordering of Star Wars: The Force Awakens merchandise and provide a coupon for a total purchase of $50 or more.
Another possible summer TV promotion for stores that sell both toys and back-to-school items is to offer a coupon for the holiday shopping season, based on families’ total back-to-school purchases.
Toy stores could also promote a toy exchange program: Each child that brings an old, but workable, good-condition toy to the store receives a discount on a new toy and the used toys are donated to a local children’s home or other charity.

9. Social Media Strategies
Toy stores should consider forging a partnership with local theaters to co-promote the new Star Wars movie and merchandise through social media with video product demonstrations and news and the trailer for the movie as they are released.
Toy stores can plan now to use the new streaming video services, Periscope or Meerkat, during in-store unveilings of Star Wars merchandise and other top toys for the holiday season, including live interviews with children.
Local toy storeowners can position themselves as the local experts on the toy industry and issues important to parents, such as safety, with a regular blog and/or podcasts with toy safety advocates, all promoted on stores’ media sites.