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The state of the toy industry

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Here in the UK, Hasbro UK seems to hate selling TF's here in any shop, TRU tends to have more but it's never in US style amounts. The two main toy shops near me, Woolworths and Toymaster, haven't had any new TF's in since last August and it doesn't look like they ever will. Kids these days don't seem to want to use their brains and imagination, they prefer everything done for them, thinking included. I can remember when I was a kid that I found I preferred toys over TV and vid games, which were beginning at that time, loved even getting a single small toy car because that meant months of fun for me. Even now at the age of 24, I prefer to play about with some toys or read and leave TV and vid games to when I'm low on books or can't focus enough on reading. Love using my imagination, don't like things done for me.

 

-Chuckles

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All that I've read here is great! It seems that the whole issue has been covered as toreasons why there is a toy slump.

 

The obvious issue is Wal-Mart. There are three Wal-matrs in my area and I have to tell you that this whole fantasy of Wal-mart having everything is just that; a fantasy.

 

Walmart creates the illusion that it is the one stop store for everything by trying to carry a little of everything. Example: A little hardware, a little computer stuff, a little food stuff, a little toy stuff, a little video stuff. I think you get the picture. They try to carry a little more than a Target or Kmart but just enough to seem they have more.

 

Walmart is actually just a slightly cheaper Target or Kmart. Thats all.

How they are able to expand so quickly is they open up in the low income parts of town, create the illusion that they are going to better this area of town by their presence and hire those who couldn't get jobs before. The TV ads make it look great but that lady whos been there for 15 years is just an actress. Anyways the secret here in the low income area trick is the in the hireing of the workers. They open these stores specificly so that they can hire lower waged people. Theses people are so glad to get a job that they don't realize that they are being exploited when the weird stuff starts to happen. Things like working over time with no over time pay, being forced to work with no lunchs or breaks. And there is no raise in sight. This sounds like slavory in America.

 

So when a Walmart opens a store in a low income area that is what they are doing. They hire poor people to work under the fear of losing their jobs if they complain about being treated unfairly. This is how Walmart was able to expand so fast and their profits looked so good. This what the average, undiversifed, uninformed, working familly invester wants to see: Expansion and profits.

 

Now for the good news: Walmart is finally getting sued by it's worker in a few states for labor rights infringment ( no overtime pay, now lunches or breaks) and if this continues more this may be the thing to Break Walmart.

Walmart as it is now can not survive lawsuits nor treating and paying workers properly with out losing their standing as being the roll back king. They just can't.

 

Now I my post is getting long but I must ad one more thing that is deffinatly hitting our toy industry and that is the Toy Safty Advocates.

 

I've made my most recent posts about this on the Hasbro Bashing thread after learning about how damaging these groups are to a toy manufacturer. I was bothered by this so much that I made a thread dedicated to this matter of the the title Have Toy Safty Advocates gone too far?

 

Let me tell you that what has changed in America because of these groups is that there have been less amount of creative new toys and even in Hasbro's camp mostly because they have to budget, plan around, design around, and have insurence to protect them selves from these groups sue happy consciousness. If a toy manufacturer like Hasbro has to watch out for these guys, think about the toy stores.

 

I don't know the actual effect it has on the stores themselves (I need more research) but Im sure that the toy stores have to protect themselves as well from the treats of these Safty Groups. Protection is not cheap for a toy store. It's just an added overhead and an added headache.

 

Lastly there used to be alot of cartoons on regular TV in America. There where morning cartoons and after school cartoons Mon thru Fri and and good Saturday and Sunday morning cartoons. WHat happend????!!!!

 

With out the cartoons there are no more spots for advertisment. No advertising no sale. First three rules of sales / marketing is advertise, advertise, and advertise. Also on the cartoon thing, old G1 and BW cartoons were on every day Mon - Fri. One Enrgone cartoon is not enough.

 

Hasbro has lost touch with one effective sales tool for there toys as well as other makers: the cartoons were 30 min ads for their toys.

 

Alright done here!

I agree with Snowman. I think the point of the article is that toy retailers can't match Wal-Marts prices. Wal-Mart has so much product that it can afford to take a hit on the price of toys since the consumers will be buying other non-toy related items while they are there. TRU can't really match Wal-Mart prices on toys because they sell nothing but toys.

 

I wouldn't feel bad about buying from Wal-Mart, though. If the toy industry was really getting screwed over, the manufacturers would simply stop selling to Wal-Mart. Besides, I got a great deal on Energon Unicron at the big W... only $43! :eek

 

-Nathan

$6 off is "a great deal"??

I am worried about the fate of Toys R Us, but also the state of affairs with the next generation.

I hope they go under. The world's biggest toy store need to be more aggressive with Wal-Mart. They're just as guilty as overcharging for their G1 reissues as Hasbro.

 

You're right. It's obvious the toy industry has given way to the videogame industry which is already making more money in the US than the movie industry.

$6 off is "a great deal"??

I thought so, considering it's a brand-new toy and many report sightings of $60 at TRU. It was just a nice surprise when they rang it up at the register.

 

To get back on topic, one of the main reasons I shop at Wal-Mart is not necessarily the prices, which generally offer savings that I view to be negligible (except with Unicron, obviously). My main attraction is the turn-over of the toy aisle. Wal-Mart always features the newest toys because they carry a relatively smaller stock and move that stock much faster than TRU. But maybe with the new "exclusive deals" the toy industry is offering TRU, that will change.

 

-Nathan

$6 off is "a great deal"??

I thought so, considering it's a brand-new toy and many report sightings of $60 at TRU. It was just a nice surprise when they rang it up at the register.

 

To get back on topic, one of the main reasons I shop at Wal-Mart is not necessarily the prices, which generally offer savings that I view to be negligible (except with Unicron, obviously). My main attraction is the turn-over of the toy aisle. Wal-Mart always features the newest toys because they carry a relatively smaller stock and move that stock much faster than TRU. But maybe with the new "exclusive deals" the toy industry is offering TRU, that will change.

 

-Nathan

yeah thats something else good about walmart. Theyre lower prices and smaller shipments means they clear out space for new stock quite quickly. TRU STILL has billions of mini con packs.

that's why they also have to offer a larger variety. walmarts general prices are lower, but they aren't al below cost, just a few. if other retailers had more toys at a more reasonable price, they could offer a sale for a few of them and lose the overpriced image people have of them. it is difficult to compete with superstores, but they have to offer more.

But when your sole source of money comes from selling toys, how do you make the average consumer choose you over a superstore that sells everything.

One postive step is customer service. If I go into a place that's a bit higher, but I love the people who work there, will I give them my money? I sure will.

 

I know not everyone is like this, but every little bit helps. And winning over a customer here and there, a little word of mouth...it's a good step.

 

 

(and Eclipse, good to see ya bro :thumb )

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