A-Z Of The Toy Industry – B is for Brands!
The number one factor in the long term success of many toy industry heavyweights is BRANDS!
And more’s the point, not just any brands, but brands which are self owned/controlled i.e. not 3rd party license brands. Although 3rd party licenses are a huge part of the toy industry, self owned brands deliver stability, profitability, equity, extendabilty and security for toy companies.
But don’t just take my word for it…just take a look at the biggest players in the toy company. My ex-employer Hasbro has a weighty brand portfolio, including Transformers, My Little Pony, Play-doh, Monopoly, Trivial Pursuit etc. Mattel has Barbie, Hot Wheels, Fisher Price, Thomas & Friends etc.
And you don’t get bigger in toy brand terms than Lego – the ultimate toy brand. In fact, lego is probably the best example of a brand management driven company I can think of. If you look at Lego’s website, they have no fewer than 34 Lego sub-brands or co-brands, driving huge global toy sales in excess of $6billion – all from the foundation of a small plastic brick! The sheer brand extendability of Lego should be a case study for anyone serious about the toy business.
Smaller companies won’t have such brand behemoths in their portfolio, but critically they won’t ever get them if they just keep chasing the next hot license ad infinitum. Building brands can be slow, hard work – a fledgeling brand is a much harder sell than a proven hit license, but the long term bounty that established brands can deliver is priceless…
by Steve Reece, CEO of Kids Brand Insight www.KidsBrandInsight.com, a leading Consultancy to toy companies around the world, which helps companies with product reviews & awards, find the right toy & game factories, consumer research test their products with kids and parents and secure export distribution/market entry around the world.