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Selling A Toy Business: How Mergers & Acquisitions Work In The Toy Biz

This article is the published script for Episode 102 of our PLAYING AT BUSINESS podcast. To listen to the podcast episode, just click here:

https://playingatbusiness.libsyn.com/ep-102-selling-a-toy-business-how-mergers-acquisitions-work-in-the-toy-biz

· Hello and welcome to Episode 102 of the Playing at Business podcast.

· I’m your host Steve Reece

· For today’s podcast We’re going to take a look at how Toy businesses are bought & sold. This might be interesting for you if you have a business to sell, but also might be interesting for you just to understand how these transactions happen and what’s involved. We’ll also look at how to pump up the price if you are selling & how to do your due diligence if you are buying.

· Before we get further into today’s episode though, just a few sponsors messages from, well me actually!

· You can sign up for our Free email newsletter on our Blog sites – www.ToyIndustryJournal.com & www.Boardgamebiz.com (not updated that often, but I keep mentioning for 1st time listeners who haven’t visited that blog yet!), sent out on Fridays when I have time, with links to our latest published content including notification of new podcast episodes

· Also, I recently began a series of Linked In Newsletters offering long form report style analysis & commentary on the Global toy & game business – just search on Linked In for Steve Reece toys or Toy Industry Journal Newsletter & you should find the newsletter. Please feel free also to send me a Linked In connection request, and then you should see everything I post on Linked In in your feed (algorithm allowing!). At the time of writing we have 25 editions of that newsletter you can check out, and with nearly 5,000 subscribers from across the Toy & Games business this is a Free resource you would be crazy not to tap into!

· Now a quick plug for our Consultancy business services:

1. Did you know that I have helped many companies review their Sourcing strategy & find new factories in new geographies, especially outside China in India & other places? For more info check out www.ToyTeamAsia.com

2. Do you want to increase your Toy export sales? We help companies grow their Export sales, over my career I have $hundreds of millions of Toy sales under my belt. I have to tell you though that sometimes I start helping a company & get almost instant success, but sometimes I get tumbleweed by way of feedback – some products are harder to sell than others. The difference with what I do is that if you work with a commission based sales rep they just move ontop other products which will sell more easily, my approach as a Consultant on a retainer is to help the company understand why their products are not selling & how they can improve the sales proposition. To find out more about these services, just go to www.KidsBrandInsight.com/services

· Anyway, that’s quite enough up front rambling, let’s get into the topic of today’s podcast:

PODCAST MAIN TOPIC – TOY BUSINESS ACQUISITIONS

· Acquisitions have been a major part of the Toy business for a long time. Mighty giants such as Hasbro and Mattel have a history of buying up tried and tested brands – from Hasbro’s acquisition of Games giants Parker Brothers and Milton Bradley (the latter bought for a now paltry looking $350m) through to Mattel’s circa $460m purchase of Mega Bloks, Toy companies have been growing for a long time by snapping up other Toy companies and brands.

· At the time of recording, Spin Master’s acquisition of Melissa and Doug has recently been announced with a reported headline price of $950m. This comes on the back of many transactions completed by Spin Master in the last decade or more, perhaps most notably the boys & girls from Toronto acquired the iconic Rubik’s Cube brand a few years back for a reported $50m.

· But it isn’t just massive corporations who purchase companies and brands – it happens at all levels and segments of the Toy & Games business.

· There are various reasons for selling a company:

o Firstly, many Toy companies are family businesses, and when the founder or current member of the founding family reaches retirement age, quite often they seek a sale of the asset they have built up or inherited.

o Secondly, companies often want to take advantage of recent growth to capitalise on a higher market value.

o Thirdly, many Toy companies end up hitting the rocks – these ‘distressed assets’ often get sold or at least some of the assets get sold to clear up the mess, debts and cashflow issues.

· From a buyer perspective, common reasons for acquiring another company are:

o Buying a distribution focused company in a different country as a way to a). grow overall group revenues and b). acquire an already established subsidiary to enhance group distribution in the new market.

o Buying intellectual property (aka Brands) or buying companies to get hold of their valuable intellectual property. Brands are a big thing in the Toy & Games business, and as we saw above with the Mega Bloks & Rubik’s transactions can command high sales values.

o Buying to remove an awkward competitor from the market to allow for higher pricing and / or increased retail shelf/online marketplace space. (This approach may subject to competition regulations in some markets, but nevertheless it happens surprisingly often!). I’m not at liberty to identify any transactions which might fall under this category for legal reasons, but there are some really clear examples over the past 10-15 years you could find quite easily if you were interested!

o Buying as a new market entry from a company looking to expand/diversify into a new market.

o Buying as an investment vehicle – this is quite common whereby an Investment company buys a Toy co and looks to either run it as a long term concern, or perhaps private equity style seeks to buy, pump up the value to 3 to 5 times the purchase value & then sell out again after c. 5 years. For this type of transaction, the buyers will need to calculate in advance where they can either add or buy in value to pump up the asset enough to merit selling on again.

THE TRANSACTION PROCESS

· So that’s the two perspectives covered, now we’ll look at how the process goes:

· Normally the parties looking to sell draw up a tender document which outlines an overview of the company, the people, the structure, the market, the key financials, the competition/competitive advantage and any other salient features. Having worked on many of these documents I could tell you all about over harassed business owners trying to do their normal job while cranking out what can become quite a hefty document in their ‘spare’ time. Quite often on the transactions I have worked on I was asked to take on a lot of the work involved, which is fine, but obviously cost the client for my time & knowledge. Overall I would say it’s a sensible thing to do to partner up with someone who can do the grind while taking input/guidance from the business owner, but other way a tender doc is needed to solicit interest.

· Normally the seller will have an idea of what they are looking for financially from a deal.

· Normally the buyer will also have an idea, and that idea will involve a lower price!

· After some haggling the parties will tend to agree an overall price, subject to some variables i.e. inventory ebbs and flows throughout the process, so there is always a final tally up of exact value of inventory & cash in the business.

· The most arduous part of the process both ways is the due diligence process by which the buyer seeks to validate the statements and claims made by the seller. I won’t go into all the details of what is asked for, because I’ll fall asleep from boredom if I have to replicate a full due diligence list, but standard things would be to look at audited accounts, speak to some key stakeholders and staff potentially, review inventory and validate the value, audit the dealings with customers to ensure that those relationships are true and strong and I could go on, but let me just say that with most transactions, by the time you get through this stage, both sides tend to be kind of sick of the whole concept of the transaction!

· One of the key elements of the process of selling a business is what happens to the owner once the transaction is completed. Normally the owner is a fairly critical member, if not the key member, of the management team. In such an instance the seller can expect to be tied in for anywhere from 12 to 48 months after the transaction to some extent to ensure the asset remains as valuable after purchase as it was before.

· Quite often these arrangements get terminated due to ‘irreconcilable differences’ and end before the agreed time, but for the seller to fully benefit from the sale there are often performance criteria the business has to hit for a while after the sale to fully benefit the seller.

HOW TO FIND BUYERS OR SELLERS OF TOY COMPANIES

· Now in terms of how you connect with interested buyers or sellers – that can be another fairly grinding process.

· Basically it’s like any sales process, you have to do the leg work to sell to find and pitch to potential purchasers/investors. To buy you need to find those companies looking to sell.

· You can work with Agents like myself rom either standpoint, in which case you pay the agent via a small percentage of the overall transaction value, and in return the agent helps you with all elements of the deal from due diligence to pitching.

· If you are interested in buying or selling a toy or game company, and you would like to discuss your needs, please feel free to reach out directly to me via my usual contact methods – via Linked In or the details on my various websites and we can discuss further from there.

OUTRO

· So, that’s all we have time for this time, thanks for listening to Episode 102 of The Playing At Business podcast

· If you like this podcast or enjoyed this episode, please give us a good review or rating on the podcast platform you are listening to, and a reminder again to check out our Blog websites: www.toyindustryjournal.com and www.boardgamebiz.com

· Please share the podcast with your friends and colleagues in the industry, and stay tuned for new episodes coming soon!

· If you’re interested to find out more about my work as non-exec Director and board adviser, or how I help Toy & Games companies find Export distribution overseas, just check out www.KidsBrandInsight.com/services

· If you want Consultancy help to boost your Sourcing efficiency – both in terms of finding reliable capacity & saving money, again, just check out: www.ToyTeamAsia.com

· That’s all for now, I’ve been your host Steve Reece, this has been the Playing At Business podcast and we’ll see you next time. Thanks and bye.

Again, just a reminder, if you want to listen to the podcast episode covering this topic, just click here:

https://playingatbusiness.libsyn.com/ep-102-selling-a-toy-business-how-mergers-acquisitions-work-in-the-toy-biz

BOARD GAME MANUFACTURING: TRENDS, TRIVIA & TOP TIPS

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My company has helped various companies find board games manufacturing in various geographies recently, here's some general observations to share based on this & previous projects:

WHY IS THERE MORE BOARD GAMES CAPACITY IN ‘NEAR SHORE’ OR DOMESTIC LOCATIONS VERSUS TOY MANUFACTURING CAPACITY?

Games manufacturing is much more easily automated versus Toy production and therefore the labour cost element for Games production is much lower. This is why there is significantly more local Games production capacity versus Toys where. A board label can be applied by a machine that moves so fast you can hardly see it yet can be swapped for a different game/design quickly and with little cost. The same does not apply to injection moulded Toys where there is typically a large labour element. I remember seeing the iconic standard version of Monopoly being produced some years back and marvelling at the rapid speed of board labelling.

We have to look at why Toy production drifted off to China and Asia in the first place – that being cheap and abundant labour. Because Games don’t need so much labour there was less reason for Games companies with their own production facilities to close down their in-country manufacturing facilities, as the cost savings were more marginal and they could continue to compete effectively with their own in country manufacturing.

There are some specific machines needed to produce Games – it’s not just the boards, but most often a specialist machine is used for card cutting and sorting. Those nice round edges which many game cards have need to be applied, and cards need to be cut out & sorted. This type of machinery is not that expensive in the grand scheme of things, especially when compared with printing machines which can be almost the size of a railway locomotive with high investment costs to match. Most often, board games manufacturing companies come from a more standard generalist printing background which builds their expertise with the key materials (cardboard) and processes, and for whom the additional machinery/equipment needed to convert to Games manufacturing is relatively low compared with their existing investment in high quality printing machines from brands such as Heidelberger.

Most countries have a domestic printing industry due to the presence of FMCG and especially food production and processing facilities in nearly every country. It wouldn’t make sense to pay to ship FMCG packaging or to risk delays when the volumes required to support domestic food consumption are significant even in quite small countries.

So overall we can see that there are some clear reasons why there is more Games manufacturing capacity in market versus Toy manufacturing.

BOARD GAMES MANUFACTURING CAPACITY BOOMED DUE TO THE PANDEMIC

As people were forced to spend more time at home through the pandemic induced lockdowns, so sales of Games & Puzzles soared. I ran numerous Sourcing analysis projects for companies through this uncertain time, helping companies to understand what their alternative options were as they sought to be more flexible and less reliant on any one country.

These projects revealed that many board games manufacturing companies in ‘nearshore’ locations were expanding capacity at this time to meet unprecedented demand. Lockdowns in China persisted beyond the point where other countries opened up, which in turn perpetuated demand for ‘nearshore’ Games & Puzzles manufacturing. I spoke to 3 different ‘Western’ based board games factory groups who expanded production capacity during or coming out of the pandemic.

MAN PLANS, GOD LAUGHS: CORRECTIONS IN DEMAND FOR GAMES & PUZZLES MANUFACTURING POST-PANDEMIC

Unfortunately the boom in Games & Puzzles during the pandemic does not appear to have been sustained. Just as with the broader Toy category, Q4 2022 was tough for board games sales in some markets as consumers fought with significantly decreased disposable income as a result of the inflation fuelled cost of living crisis. Any unexpected downturn in Q4 sales in the broader Toy industry causes inventory issues, but in the Games market, which is typically even more seasonal versus Toys, it is even more troubling. In fact, Games which are primarily played by families & even more so those played by adults – call them ‘Party Games’ or whatever label you want to apply – are highly seasonal, in some markets, these type of games sell c. 80% of volume in the month of December alone, whereas in most Western markets there is a ramp up and spread of demand across Q4. So if the broader Toy industry got caught out on Inventory, they would at least have known it soon enough before the end of the peak season to take drastic steps to clear inventory & end the year cleaner on stock. Many Games companies don’t get long enough between peak sales starting and ending to take these steps.

By way of evidence in the public domain of a change in demand for Games coming out of the pandemic inspired boom, leading global manufacturing group Cartamundi announced the closure of their iconic Waterford, Ireland plant. Previously owned by MB Games and then Hasbro, I myself visited that plant several times back in my Hasbro days, and greatly enjoyed working with the good people who were employed there.

I remember fondly having to fly over to Ireland with colleagues to approve a licensed version of Monopoly on the production line due to delays in approval by a leading entertainment company. Nerves and tempers frayed as the then critical in-stock date for the Argos catalogue (then the biggest single factor in Toy sales in the UK which saw 20 million catalogues printed, one for every UK household in effect) rumbled ever closer, and the team in the Waterford factory pulled out all the stops to save the day.

It's sad to think that a factory which was such a major part of supplying the European Games market for decades could become unviable so soon after a major boom suggests how sharp the market correction may have been. In fact Cartamundi’s official press release referred to “structural overcapacity and reduced demand for board games globally post Covid”.

WHAT HAPPENS NEXT: THE PROSPECTS FOR BOARD GAMES MANUFACTURING

I believe strongly that consumer demand will revive in general for consumer products, and specifically for Games & Puzzles. Through the years, despite predictions of the impending doom of the category driven by humanity’s technology addictions, Games & Puzzles have remained as social facilitators and a fun way to have fun with friends and family. I would argue that the more we get addicted to technology, and the deeper our immersion gets the stronger becomes the counter impulse to have some good old-fashioned fun. I look forward to the usual annual media reports on ‘Board games making a comeback’ for a long time to come!

Taking a more short-term view, inflation rates have been reducing in most Western market, and wage growth has kicked in to start to reduce the effect of inflation on disposable incomes. Retailers have been very risk averse in terms of committing to new inventory for peak season 2023, which won’t have helped manufacturing demand. BUT typically where the market ends up with a significant overstock as per Q4 2022, the stock is normally cleared into discount channels, which can affect sales somewhat for one selling cycle, but then normally demand and inventory corrects. It’s quite likely that the pendulum will switch back the other way as retailers often become so risk adverse as to lose significant sales revenues, and then tend to invest more in inventory in subsequent selling cycles.

The near shore production facilities are likely to remain a substantial element of Games & Puzzles manufacturing capacity going forward. I have also seen significant growth in manufacturing in other Asian geographies as part of the gradual drip-drib ebbing away of production from China for various reasons.

Regular readers of my articles will know of my own affinity for and experience with India. As a country with a massive FMCG market, India has as would be expected, a strong FMCG packaging sector, and out of this have arisen several strong Games & Puzzles manufacturing facilities. These facilities have seen increased local demand due to changes to Indian import restrictions on Toys & Games which have seen tariffs of 70% added on to imported products. We’re also seeing growing demand from international customers for Indian manufacturing for Games & Puzzles to serve other Asian markets (which have grown quite considerably over the last 10-20 years) & also for Western markets. Games & Puzzles manufacturing costs in India have so far proven to be a little bit cheaper in India on the projects we have worked on – averaging around 5-7% of ex-factory costs overall. There are also now Games manufacturing plants in other countries outside of China and India…in short, the options abound!

BOARD GAMES MANUFACTURING TRENDS: IN CONCLUSION

It’s been a strange few years for the Games & Puzzles manufacturing sector. The pandemic was miserable for humankind as a whole but was like a big party for those in the business of Games & Puzzles, then we had the morning after, and just like after a great party the next dawn brings a comedown. But nevertheless, the category remains vibrant from a product perspective, there have never been so many different games on the market appealing to various mass market and niche audiences, and the appeal of Games has proven to be timeless regardless of how tough things get. After all, Monopoly, the most successful new board game of the last century or so came to us out of the Great Depression. Games sales continued through the financial crisis of the late noughties and so we can expect this much beloved category to spring back.

There is a plethora of options for manufacturing in this space today, and while there have been some changes in terms of capacity and plant locations, overall those wishing to manufacture board games should not struggle to find supply with more natural geographical diversification than some other product categories.

N.B. All trademarks featured herein are the property of their respective owners.

SPIELWARENMESSE – SPIRIT OF PLAY BLOG

THE GROWING ‘KIDULT’ OPPORTUNITY

Here’s to Adults growing older later! The Kidult market is a major thing right now, offering significant growth opportunities for Toy & Games companies despite the fact that birth rates are dropping in most major markets. Read more in this latest article I wrote published by the Spirit Of Play Blog, which is published by Spielwarenmesse, the world’s biggest Toy trade show. Click the link below to read the full article:

https://www.spielwarenmesse.de/en/mag/lifes-a-playground/the-growing-kidult-opportunity/

UNCHANGING PLAY FUNDAMENTALS

So often in the world of Toys we look for the big changes, we go trend spotting to find new things to jump on. The reality though is that far more doesn’t change than does. That’s what this latest article I wrote, published by Spielwarenmesse.de looks at. Just click the link below to read:

https://www.spielwarenmesse.de/en/mag/toy-lab/unchanging-play-fundamentals/

PLAYING AT BUSINESS PODCAST

EP 101 - How To Run A Successful Tech Toy Start Up With HoloToyz

In this latest episode host Steve Reece talks to Kate Scott & Declan Fahy, the Founders of HoloToyz. Their company aims to inspire creativity and imagination via augmented reality technology.

Kate stated "At our core, we believe that children should be able to experiment, play and learn through emerging technologies in a kid-safe environment away from the open web, whilst not losing touch with the physical world."

We discuss this proposition, and the path from starting the business, through raising funding to achieving distribution for HoloToyz products.

This episode is a must listen for anyone interested in or actively pursuing a start up in the Toy business, as well as international distributors looking for new products and new stories to latch onto.

https://playingatbusiness.libsyn.com/ep-101-how-to-run-a-successful-tech-toy-start-up-with-holotoyz

EP 100 – How To Recruit Good People And Find New Job Roles In The Toy Business

Join host Steve Reece in a deep dive into the toy industry's recruitment nuances. Having helped many people to find new roles in the Toy business and having advised many Toy companies on who & how to recruit, Steve unveils key strategies for companies to recruit effectively and tips for candidates to land their ideal roles. Whether you're hiring or job-hunting, discover invaluable insights to assist your recruitment/job search process.

https://playingatbusiness.libsyn.com/ep-100-how-to-recruit-good-people-find-new-job-roles-in-the-toy-business

EP 99 – Gift & Hobby Distribution Channels (The Original Kidult Toy Business?!)

Guess what – people have been buying Toys for adults for a very long time. Even though the ‘Kidult’ thing is the big noise nowadays, hobbyists and people buying Toyetic gifts for adults have been around for a long while.

Listen in to Episode 99 as we look at these adjacent areas in more detail:

https://playingatbusiness.libsyn.com/ep-99-gift-hobby-distribution-channels

AND FINALLY…

Can we help your business? Do you want to grow your export sales, prep to offer your business for acquisition, find senior staff or maximise your sourcing department? If you want to find out more about our Toy & Game business consultancy services, please just click the link below. Our company has helped hundreds of Toy & Game companies to get ahead and grow sales/make more profit. I have worked on all product categories across a 25-year career in Toys & Games, and genuinely love sharing knowledge, contacts and facilitating greater success for our clients.

Here’s a profile of some recent projects:

· Helped several Asian Toy companies to grow distribution in ‘Western’ markets & to recruit key staff to build distribution with new retail accounts opened up.

· Advised multiple Amazon vendors on accessing traditional/offline distribution channels with various distribution deals signed across North America, Europe & Asia.

· Toured a leading U.S. company around India’s leading Toy factories leading to factory selection, production start & significant cost savings.

· Advised a leading Toy industry association on trends and data related to Toy Sourcing.

· Secured Plush manufacturing outside of China for a company seeking to geographically diversify.

· Reviewed and scouted available Toy manufacturing facilities in Europe for a major Toy Co.

· Advised a leading high end Toy brand on marketing and licensing strategy.

· Advised the board of a leading factory group on sales trends and best practise in the Toy business.

For more information on our services, click here:

https://www.toyindustryjournal.com/toy-business-consultancy

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WHAT’S GOING ON WITH TOYFAIR IN NEW YORK? (REVIEW OF TOYFAIR 2023 & DISCUSSION OF FUTURE SHOWS)

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The topic of Toy fairs in various countries has been very much up for grabs since the COVID-19 pandemic disrupted the usual schedule. The North American International Toy fair has been much under scrutiny. So this edition of the newsletter will review the show we just had & look at the future of the show following the announcement that the show will repeat once more in New York before moving to New Orleans, for at least a few years.

NORTH AMERICAN INTERNATIONAL TOYFAIR 2023 REVIEW

The 2023 show has just finished this week. I’ll leave the stats about how many competitors were on show and how many visitors came to the show to the official channels. But we can comment on some of the talk around the show – in general, the feeling I got from speaking to other people was that the overall traffic seemed a little on the quiet side, perhaps somewhat down versus the last time the show took place in 2020. I’m a little dubious about this train of thought however, as most of us can’t remember what we had for dinner a few days ago, let alone retain a memory of visitor numbers at a trade show 3 and a half years ago!

The other point we have to accept is that this is not some sort of consumer show, where the crowd numbers have a strong meaning. The reality is that trade show success should be measured by interactions with buyers and the eventual end results of those interactions i.e. purchase orders at the end of the process. I don’t have an overview of which Buyers were at the show, although I was told several times that both Walmart and Target were at the show by people who met with them. Frankly if Walmart & Target are in attendance you already have a large percentage of the North American market, and therefore the world covered.

Next, I want to address the gargantuan elephant in the room – clearly some exhibitors and attendees were fresh from previews in Los Angeles. Numerous companies had already just spent 4 or 5 weeks in showrooms in the City of Angels.

For example I met one Toy company executive who said they weren’t exhibiting in New York because there was no point – they had just spent 3 days with the team from one Mass retailer, and as such exhibiting straight after in New York would have been unnecessary & a waste of money from their perspective. And this is where I am going to make one of my main potentially contentious counter arguments here – Toy fair has not really been about the major Toy companies for many years (shock horror felt across the world of corporate Toy companies!). The mid-February timing of Toy fair has been far too late for Mass market retailers for a long time, and big companies primarily focus on Mass market retailers as they deliver the most volume, that after all was what the Dallas preview was for.

Here's a reality we need to understand about the Toy business – the vast majority of revenues come from outside the Top 10 Toy companies. This is unusual versus other industries - the smartphone market for example is dominated by just a couple of global behemoth companies.

Some of the Top 10 Toy companies are not publicly traded, which means they don’t have to share their revenues with anyone, which makes sizing the Top 10 a little tricky. But, by my estimate, the Top 10 companies account for somewhere between 35 to 38% of the overall Toy business global revenues. So the vast majority of sales don’t actually come from those major companies who can demand the attention and time of major buyers the most.

This leads me to my passionate belief about the North American International Toy fair (the one we’ve had in New York for so long): it’s about small and medium sized companies coming together en masse in order to justify the time and attendance of retail buyers so that the buyers can most efficiently review the myriad of suppliers who make up the majority of the market and the majority of their spending.

Which leads me to my second contentious statement of opinion herein: Toy fair 2023 (in New York) was more effective because bigger companies had already previewed and because some of them chose not to exhibit again in NYC. In short, the absence of some big-name suppliers gave more Buyer time to smaller and more up and coming companies. This is surely a great thing for the overall health of the industry.

I can remember meeting founders of companies like Zuru & Spin Master when they were just a few years into their journey and still up and coming. They both clearly had more than a little hustle about them, and both had an energy and visible determination. Maybe these now mighty companies were always destined for huge success, but maybe, just maybe, shows like the New York show gave them a leg up and delivered them some Buyer time at the point in their history when they most needed it. Could some of the exhibitors who just rocked up in The Big Apple be the next major Toy company early on in their journeys? And will some of them springboard onwards and upwards from the Buyer interactions they had at the show in New York...?

That is (in my opinion) the whole point of this show. And as such, from that perspective, I would measure the 2023 show as a massive success. I spoke to half a dozen or so clients at the show who are all smaller companies (so far), but are clearly on the way up. They had spoken to Buyers they didn’t anticipate being able to reach, and had very successful shows in terms of both quality & quantity of Buyer contacts and expected to reap the rewards going forward. That's the whole point of this show surely?

I expect the L.A. previews to grow over time, but that kind of show only offers opportunity to those companies with existing relationships & vendor accounts. Many of the companies in attendance at Javits this last week would get no value from setting up in L.A. I spoke to the owners of one long established but not huge company who told me they would just get no Buyer visits if they set up in L.A. as they realistically assessed that they were not enough of a draw to merit a Buyer setting aside just for them. The same company met plenty of their customers in New York.

And so the bottom line here is this – as per the previous set up with the Dallas show early in the sales cycle & the New York show at the end of the cycle (or arguably just after the end) – is that there is a place for both these events. Nobody makes you exhibit at both, but you can if you want to, and if you don’t want to, perhaps you shouldn’t presume that every other company has the same needs and timelines as yours.

On a personal note, I was greatly excited to be back in New York after all that time away. The show was great for me, although as an industry analyst and Consultant to Toy companies I appreciate that the show is not designed for my needs, but regardless of that there is no better way for industry hangers on like myself to meet, greet and influence the great and the good of the Toy business in the world’s biggest Toy market.

Having ‘enjoyed’ a very turbulent descent from up high through the massive rain storm which smashed New York on the day before the show started, and having had just 3 hours sleep due to jetlag, I was the first speaker at the Toy fair University organised by the Toy Association – my presentation on Sourcing Trends seemed to go down well, although I was so discombobulated from jetlag that I may not have noticed if the audience threw rotten fruit at me.

One other observation on the city of New York itself, it was kind of bemusing to see so many Cannabis shops around the town and the constant smell of the product was unavoidable, I have not experienced this anywhere else in the world. At the same time, the stores in Manhattan seemed to be experiencing a shoplifting epidemic, in one Duane Reade I literally needed a personal shopper to get access to anything they sold, the shop assistant told me that this was due to a plague of flagrant thefts from the store.

THE NEXT SHOW IN NYC

On then to the topic of the next North American International Toy fair, which will be held in New York from March 1st to March 4th. This is clearly too late for the Mass market retail buying cycles but is closer to the original mid-February slot. My argument here would be that this is very late, but still worth attending for the hundreds of smaller and up and coming companies for whom Specialty business represents a significant opportunity. For the more established companies, I suspect it will be more of a PR and marketing driven event with some Buyer interactions.

THE MOVE TO NEW ORLEANS

On to the most surprising part of the recent announcements about the (New York!?) Toy fair was that from 2026, the show will be held, at least for a few years, in New Orleans. That was a fairly left field change. Nobody anticipated that! I have never been to 'The Big Easy', so I can’t tell you what it is like as an Events venue. But I can tell you it sounds like an interesting place to visit, and that I trust the Toy fair decision-making team to select a great venue for the show. It doesn’t seem fair to have shows just in LA & New York, there is after all a lot of America in between those two mighty metropoles. Reportedly the change of venue is due to other bookings at the Jacob Javits venue, it isn’t easy to find large Events venues and so I suspect trade offs were made to bring the show forward to try to deal with the constant sniping criticism that the show is too late in the cycle.

Which brings me to my one bone of contention in the whole conversation around the North American International Toy fair – that is the fact that the new planned timing for New Orleans in mid-January is awful for International, or at least European visitors. Some European countries have a national show in January i.e. my own home country the UK has one in the 3rd week of January. The mighty Spielwarenmesse show in Nuremberg, Germany is the world’s biggest and is held normally at the end of January/start of Feb. Nuremberg is the primary must attend show for so many of us in Europe. For the major open access show in the U.S. to be moved into the middle of this veritable furore of Toy shows is not ideal.

But to be fair, I would say that while the new show timing in New Orleans may question some of the 'International' element of the North American International Toy Fair, it very definitely offers to make the best of the North American opportunity, which after all is the main focus of this show. Those International visitors not able to attend can still meet people in L.A.

IN CONCLUSION: THE FUTURE OF THE NORTH AMERICAN INTERNATIONAL TOYFAIR

As part of my conclusion, I just wanted to recognise the hard work done by the Toy Association team in organising Toy fair. My wife is an Events Manager, and so I live on a daily basis with the stress, volume of highly detailed work and frankly unrealistic client expectations that Event organisation brings. A show of the scale of the one we just had takes a huge amount of work, and that should be recognised and applauded.

The other point about the Toy Association is this – like other national associations it is a Membership driven organisation. Toy company people sit on the board and committees of this organisation. As such, it is largely speaking the Toy industry itself who makes the decisions on what shows to hold, where and when. If you don’t like the decisions they make, can I ask if you are actually a Member of the organisation? If not, feel free to sign up & you’ll get the same vote as anyone else to influence how things are done!

Furthermore, if you don’t want to go to any Events organised in the Toy business that is your prerogative, but perhaps we should also consider the reasons for such shows and consider the other companies, especially those less established than yours who need the show you don’t want to go to!

Finally, a general point about the nature of discussion and disagreement (of which there has been much on this topic):

“I disapprove of what you say, but I will defend to the death your right to say it.” Evelyn Beatrice Hall

Please feel free to disagree with me in the comments, and to attend the shows you want. I’ll be happy to meet you at any of the shows I attend and understand you have to always make the right decisions for your business :)

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