2005 — Back in the Saddle Again

Licensing. A full 55 percent of the companies contacted expressed that is where they’re going in 2006 and beyond.

Click here to check out new toys for 2006.

2005 was a very good year … and we’re not talking wine. After a downturn in the toy industry since 2001, the marketplace finally showed positive signs. Although 4th quarter earnings for most of the major players in the toy industry will not be released until early February (we'll keep you updated), the more than 70 manufacturers contacted by TDmonthly Magazine responded "thumbs up."

Courtney Tudor, CEO of Mr. Bigshot Inc., received a helping hand from a mention in the Washington Post: “We had a huge sales boost of about 1000% due to an article that was posted in the Washington Post recommending Mr. Bigshot.” That, and the fact that it was reprinted over and over in numerous other combinations, helped.

For Celebriducks (ToyShow), PR also helped bring home their biggest Christmas ever: “Dave Barry, the humorist who has a column in most U.S. newspapers, put us at the top of his holiday gift list,” explained Craig Wolfe, owner of Celebriducks. They also did a lot of radio shows, and were in the top 10 lists of newspapers such as the Wichita Eagle.

New alliances seemed to go hand-in-hand with great sales, as well. Barbara Jerome, “the mom who invented NAMiTS,” explained that they had made a licensing agreement with Great American Puzzle Factory that started January 1, 2006.

Michel Alvarez, founder of WonderChess LLC, had a great year, expanding his retailer base, and concluding his first full year in business with actual net profit on the income statement, and a strong, liability-free balance sheet. “That’s ultimately what’s most important, especially since the vast majority of us first-timers to the industry are self-funded lunatics.” He is now looking at a licensing deal by 2007.

Juleen Murray Shaw, founder of Nursery Tap (ToyShow), had a wonderful holiday that has continued to build into the new year. Bud Fraze, of Bill and Bud Inc. (ToyDirectory), had “a great Christmas,” and they too looked to licensing, signing a contract for two of their products in fall of 2005, and in talks to license a third product. Curt Covert, owner of Smirk & Dagger Games (ToyDirectory), had solid Christmas sales.

And the same went for Ideals Publications/Williamson Books (ToyShow), as Lee Ann Dichtel, retail sales manager, explained. “Sales in the fall were on target. Overall, we had a good selling season.”

Licensing. A full 55 percent of the companies contacted expressed that that is where they’re going in 2006 and beyond.

Conventional games finding new life in the digital arena. Covert has noticed this trend coming on since games like Scene It proved the worth of this category. “Cell phone, cable, DVD, on-line, console gaming systems, will all have ‘conventional’ game offerings that re-find an audience with a passion for technology,” he said.

An increase in interest in special-needs toys. Bud Fraze thinks that “the whole industry is waking up to the fact that not only is it good PR to have special needs toys, [but also] that market is growing very fast.”

Moving into foreign markets. Even European companies like Rob Walrecht Productions, found this to be true.

All in all, 2005 was a positive year, laying the groundwork for new expansion, new alliances and new markets. 2006 looks to be a stellar year in the toy industry.

What follows is more information on a few popular products made by the manufacturers mentioned in this article.