Toy Fair promises innovation - toy manufacturers' products

Discount Store News, Nov 8, 1999 by Cecile B. Corral

NEW YORK -- Flocks of dark-suit retailers were spotted recently poking in and out of the office space-like show rooms of toy manufacturers in the Toy Building, located in New York City's Flatiron district.

The Toy Fair isn't until February, but some toy makers took full advantage of the little-publicized "pre-Toy Fair," which despite its lack of fanfare seemed like a series of everyday business meetings with high attendance rates.

Children's electronic software manufacturer V-Tech courted through its snakelike showroom a tight cluster of Toys "R" Us top executives, including Michael Shannon, executive vp and president of U.S. Toy Stores; Jim Feldt, executive vp of merchandising; Warren Kornblum, sr. vp and chief marketing officer; and John Barbour, ceo of the toysrus.com Web subsidiary.

V-Tech is known for its pro-computers line of electronic learning aids (ELAs) for children ages 6 and older. But for May 2000, V-Tech is expanding its offerings, not just into new age ranges but also with upgraded software, like its e-mail compatible links and digital camera installations into the pre-PCs.

For a young group--newborns to 3 year olds--V-Tech has expanded its offerings threefold, with more crib toys and is seeing a rapid growth from 10% to 14% of the market share, according to Trist.

Outdoors 2000, $99.99, is a new pre-computer with an al fresco theme that comes in a burnt-orange color with a thick strap, glow-in-the-dark keys, a back-lit screen and a built-in digital FM radio with a headphone jack, and is an ideal companion for tech-savvy kids going camping. The software content carriers an outdoor activity and exploratory theme with games revolving around astronomy and ecology. This item is for children ages 7 and older.

Kid DigiPDA, $99.99, is for children ages 9 and older. Like a Palm Pilot, this new item is a hand-held pre-computer with a digital camera that shoots photos and immediately displays the results on the small screen. It also features PC and e-mail connectivity.

Girl Fun, $39.99, is for young girls ages 6 and older, as its appearance clearly states. It comes in opaque citrus colors with translucent accents and floral designs. A hidden drawer gives its users a secret place to hide stickers and other small goodies and a swivel screen allows for two-player activities. Games are centered on a world travel adventure in which users meet new people.

This piece was originally released this fall, but V-Tech expects to re-release it more powerfully and through more retail outlets next spring, vp of sales Dennis O'Malley told DSN.

"Everyone last year was a little iffy about this girl product," O'Malley said. "But Toys "R" Us went with it and it is doing great. Toys "R" Us was the only one who would sell it at first, but I think others are going to want their shot at it."

While TRU gets the girl category moving, V-Tech insisted that Wal-Mart is the only retailer really pushing its infant product line.

"Toys "R" Us picked up some of our items and merchandised them in their infant category," O'Malley said. "Wal-Mart, on the other hand, put them as part of their baby line and now our products are being merchandised as they should be. Our products are doing better at Wal-Mart than at Toys "R" Us because they are being presented for what they are.

O'Malley said that during his meeting with TRU executives earlier that day, the retailers seemed more receptive about relocating V-Tech's infant line into Babies "R" Us stores, where O'Malley expects the line to improve its sales performance.

"They seemed receptive and are looking to get more growth in that area," O'Malley said.

Six flights below, on the eighth floor, is where Ohio Art, the makers of the classic Etch-a-Sketch toy and the new Betty Spaghetty dolls, pitched both of these popular lines.

Etch-a-Sketch, one of the last few toys still made in the U.S., will celebrate next summer its 40th anniversary, said president and ceo Larry Killgallon.

"The bad thing about Etch-A-Sketch's birthday is that it's in July, the wrong part of the year for toys," Killgallon said.

But helping its promotion, even after four decades, will be the release of Disney's Toy Story 2 sequel and a partnership with McDonald's to include tiny Etch-A-Sketch toys into its Happy Meals for a limited time while the film plays in theaters.

"Both Toy Story movies have really recognized Etch-A-Sketch and for that we've been very glad," Killgallon said.

Some Etch-A-Sketch "cousins," as Killgallon calls them, will hit store shelves in spring 2000. They include the Etch-2-O water-based version and the luminescent jelly Etch-A-Sketch. Nothing new in the Etch-A-Sketch line will be released in fall 2000, he added.

Currently, the Pokemon Etch-A-Sketch is a hot item for Ohio Art. "Pokemon is our biggest license right now," he said. "But when Pokemon is gone, Etch-A-Sketch will still be there. It has been for a long time."

Betty Spaghetty, which launched at Toy Fair '98, this August occupied a 9.6% share of the mini toy category, according to Trist. Betty looks like a fashion doll, but has interchangeable body parts. Killgallon, who refers to Betty more as an "activity doll," likes to think of her as "Barbie's sister," not rival or competitor.