Mass turns attention to educational toys - Brief Article

DSN Retailing Today, March 5, 2001 by Molly Prior

NATIONWIDE DSN REPORT -- A child's education tops the growing concerns of today's time-starved parents, many of whom are going to great lengths to provide their little ones with fun-filled products that encourage learning and discovery. Toy manufacturers keenly aware of this dilemma have responded by transforming their educational toy lines--a category once reserved primarily for specialty chains--and tailoring them to fit within the merchandise mix of mass retailers such as Toys "R" Us and Wal-Mart.

The success of educational toys last holiday proved to mass retailers these toys could compete against the likes of Poo-chi and Razor scooter. California-based LeapFrog, an educational toy company, made history last holiday when its LeapPad Learning System, an electronic reading aid, was ranked the No. 1 selling toy for the month of December 2000. The high-touted product helped catapult overall LeapFrog sales 120% in 2000.

Hoping to share in Leap-Frog's success, larger manufacturers such as Hasbro and Jakks Pacific have teamed up with small educational media companies to create extensive educational toy lines.

Hasbro unveiled its innovative Baby Einstein toy line at Toy Fair. Its preschool division Playskool and The Baby Einstein Company created this toy line to encourage parents and children to explore music, poetry, language and art. All toys come packaged with an exclusive multimedia CD featuring classical music, a video, and a printable play guide that gives parents helpful play hints. Highlights of the new line include Baby Shakespeare Find-And-Rhyme, $19.99 SRP and Baby Bach Touch 'N Play Pipes. The Baby Einstein toys will roll out to mass this fall.

Jakks Pacific has acquired the Baby Genius license and will introduce the toy line under its existing Child Guidance banner. The interactive toy line, which debuted at this year's Toy Fair, introduces children to the fundamentals of music through touch, light and sound.

Baby Genius ceo Klaus Moeller said Jakks Pacific expects the line to garner $50 million in retail sales by year's end. Toys "R" Us will carry an exclusive three-pack of two videos nationwide. Baby Genius shipped 46,000 videos to Toys "R" Us as a first shipment.

"Two years ago, there was very little interest from retailers," said Klaus. In the last eight months alone, Baby Genius media products have dramatically extended their retail presence, making their way into 25,000 retail outlets from 5,000. Like the Baby Einstein line, a CD will accompany each Baby Genius toy. Highlights of the line include One Man Band, $9.99 SRP and Shape Sortin' Symphony, $14.99 SRP.

K * B Toys has its finger on the pulse of the educational toy trend. The toy retailer has developed its own line, The K * B Learning Toys. The line, with price points falling in the $25 to $30 range, covers topics such as the solar system, sea life and dinosaurs. When asked if the retailer will dedicate more shelf space to educational toys, a K * B Toys spokeswoman said the retailer's toy buyers are still trying to digest all they saw at Toy Fair but added that they see educational toys as a viable trend.

As educational toys carve out a niche for themselves at mass, certain issues arise, such as how to best merchandise educational products. Mass retailers are just starting to dedicate display space and boutiques to these toys. In February, Toys "R" Us began introducing 23-ft. sections of LeapFrog product in 150 of its stores, said Tim Bender, senior vp of sales and marketing at LeapFrog. A kiosk or "shopping guide" will accompany each section. The kiosks will help parents confidently select a LeapFrog product that fits their child's learning level.

Prior to the LeapFrog display, Toys "R" partnered with Scholastic to create boutiques at 1,215 Toys "R" Us and Imaginarium stores. The boutiques will roll out to stores later this year.

Stevanne Auerbach, Ph.D., known industry-wide as Dr. Toy, suggests that for retailers to effectively merchandise educational toys, they need to dedicate space in their stores for parents and children to try the products. Mass retailers need to stop thinking about vertical space and create play areas, "There has to be information on what these products do beyond the box," said Dr. Toy. It could be as simple as providing a television with visual demonstrations of the product. "Stores that provide an experience will sell more," she added.

The availability of educational toys from big name toy companies such as Hasbro makes it easy for retailers like Toys "R" Us to carry the product. Retailers can depend on the large manufacturers to throw promotional dollar behind their products, said Ronnie Goldfinger, ceo at toy supplier Distributoys Inc. And as the trend continues, retailers will likely extend their educational toy offerings to stay on par with their competition.

A national education epidemic may be driving the educational trend, but nostalgia is also helping it along. Many of today's parents want high quality toys like the ones they played with in the '60s. Goldfinger sites a trend in the industry toward wholesomeness. Toys "R" Us' acquisition of Imaginarium Toy Centers, an educational specialty toy retailer, two years ago indicates its confidence in category growth. Toys "R" Us is not alone in their hunch. The Toy Manufacturers of America reported that educational toys like the LeapPad helped the infant and preschooler category grow 11.2% in 2000.