Extreme Toys Take Market By Storm - sports toys

DSN Retailing Today, June 4, 2001 by Molly Prior

Toy manufacturers are going to the extreme these days to develop hot new toys for youngsters--extreme as in the sports concepts popularized by shows like ESPN's X Games and NBC's Gravity Games. But extreme is more than simply a new approach to sports. It represents a culture carved out by a new generation. The culture, complete with its own music, clothing and attitude, has spawned a host of licensing opportunities.

Extreme sports are also taking a bite out of the $65 billion sporting goods industry, stealing market share from traditional team sports. A few, such as in-line skating, have even surpassed the all-American pastime, baseball, in numbers of participants.

Mike May, director of communications for the Sporting Goods Manufacturers Association, estimates 10 million Americans played baseball last year, and SGMA reports indicate 27 million participated in in-line skating in 1999. "A new kid on the block challenging a traditional athletic pastime is worth acknowledging," said May.

Year-round exposure on the networks continues to fuel mainstream interest in the sports. And while this new generation of sports, such as snowboarding and motocross racing, appeals to the masses, it has found a captive audience in young boys. Channel surfing on Saturday mornings reveals action sports' place in pop culture; cartoons spotlighting adrenaline seekers such as Action Man on Fox Kids and Max Steel on Kids WB get prime placement on Saturday mornings.

And toy companies such as Hasbro and Mattel are catering to these characters' loyal fans by manufacturing 12-in-tall action dolls for Action Man and Max Steel. Hasbro launched Action Man "The Greatest Hero of Them All" in August after they proved hugely successful overseas, ringing up $300 million in annual retail sales in Europe.

Mattel's Max Steel toy line totaled approximately $100 million in worldwide sales to become the No. 1 action figure launched in 2000. Mattel has extended the line to include the MX99 Heli-Jet Vehicle, which transforms from a jet to a helicopter, and the Jet Skater Radio Control Figure, which propels Max Steel to new speeds on his inline skates. Both toys will roll out to stores this fall.

ESPN has licensed the name X Games, one of the biggest in extreme sports competition, to toy manufacturer JAKKS Pacific's Road Champs line of action figures, vehicles and accessories. The line showcases alternative sports such as Street Luge, Snowboarding and Freestyle Moto X, and relies on licensing agreements with more than 70 athletes.

Many of the athletes, whose 360-degree spins and radical air have elevated them to demigods, are now licensing their names and signature graphics to toy companies like JAKKS.

Escondido, Calif.-based toy company X Concepts has built its business around extreme sport licenses by manufacturing miniature action sports collectibles under the Tech Deck brand. Its mission? Team up with any extreme sport athlete and manufacturer that's recognized as cool in the field, said Suzanne Taylor of X Concepts.

To provide high-quality, innovative product, the company relies on feedback from the athletes themselves. For example, a heralded pro-skater suggested the Tech Deck skateboard would look more authentic if it were concave. In response, X Concepts halted production and changed the model, said Taylor.

The sixth generation, the newest additions to the line, showcases even more realistic detail, such as grip tape and spitfire wheels, and includes top board manufacturers such as World, Blind, Toy Machine, Zero, Element, Maple and Santa Cruz. With a portfolio of over 600 licensed graphics, X Concepts claims to dominate the miniature skateboard category. "It's pretty much a given if you want a miniature skateboard, you buy a Tech Deck," said Taylor.

Luckily for toy companies the numerous extreme sports allow for multiple players in the market. And while Tech Deck may be the obvious choice for a miniature skateboard, Spin Master Toys' line of Flick Trix Finger bikes, with their real working brakes and full suspension, are winning over tweens looking to invest $7 for a miniature bicycle.

Last year, Spin Master was selling 300,000 of these diecast replicas of real BMX bikes each week. A few months prior to the finger toy craze of Christmas 1999, Spin Master began setting up its licensing department. "If you want to have a legitimate product, you have to have legitimate brands," said Adam Beder, licensing and public relations director for Spin Master.

And like X Concepts, Spin Master wants any brand involved in the sport as a license. What distinguishes Spin Master's Flick Trix from competitors is that each element of their miniature bikes--including frame, suspension and tires--is licensed. It's list of licensees includes household names such as Huffy, Michelin and Downhill Racer.

Both X Concepts and Spin Master have expanded their lines to mirror the growth of extreme sports. After a successful holiday in 1999, Tech Deck expanded from miniature skateboards into accessories such as wheels and skate tools. The line has since expanded to include Dirtboards, Longboards, Snowboards, Wakeboards, Tech and Motocross bikes and Tech Karts. The company has now shifted its focus to its own brands, Tech Deck and the action sports guy Tech Dude, the original character featured on over 40 million packages of X Concepts product.