Wednesday, October 29, 2008

Brand Name Toys vs. Generic Toys: Who Wins This Christmas?

Millions of children are already filling out their Christmas wish lists, but many families feeling the financial squeeze will be forced to shorten those lists or search for cheaper alternatives.

You wouldn't know it by looking at the homepage of Toys R Us, which still features all of the major brands (for obvious reasons). Highlighted items include High School Musical merchandise, Mattel's Barbie line, video game consoles like Nintendo Wii,XBox 360  Sony PS3, and hand-helds like Nintendo's Ds, Of course, there are plenty of the latest toys from the usual suspects:Fischer Price, Lego,Huffy and Nerf.

There's also a section titled "Mom's favorites",  devoted to the average soccer mom. It features three categories- Kitchens and play food, outdoor play and video games.

(Maybe it's just me, but the video games category seems like a stretch.I'm not convinced that  Call of Duty: World at War and Monster Truck Jam: Urban assault, are "mom's" favorite gifts to purchase.)

 Leaders in the toy industry, including Bob Eckert, the CEO of Mattel, are crafting "survival strategies" for the final quarter. An excerpt from an article in bnet.com revealed Mattel's recent struggles:

During the three months ended September 30, 2008, bad debt expense increased approximately $10 million as compared to the corresponding period in the prior year as a result of certain customers facing financial difficulties.

Mattel's bad numbers could be tied to the fact that generic toys may become much more appealing to mothers struggling to balance budgets. They favor reasonably priced video games such as "Plug N Play Ping Pong", which uses motion-sensing paddles and sells for $34, compared to the Nintendo Wii.

There are also alternatives in other categories such as  RC  cars. The Thunder Tumbler Stunt Car, which sells for  $18.99 on overstock.com, is much more practical compared to the $59 RC Hummer H3 by Newbright Inustries.

 

 If more parents stay away from the frantic crowds and busy lines at major retailers such as Toys R Us, we may also see a surge toward bargain stores such as Big Lots and Family Dollar  and sites such as overstock.com.

 

Posted By Matt O'Hern at 10:08 AM
Permanent Link: Brand Name Toys vs. Generic Toys: Who Wins This Christmas? | Comments (2)

(2) Comments on Brand Name Toys vs. Generic Toys: Who Wins This Christmas?

I would agree that generics are going to be up this year. Our line is generic but very sought after and at the fact Little Drivers can be found on ebay helps. Toddlers and there parents are the ones benefitting this year with the Race Car Strollers from "Little Drivers"

Comments by Brian : Friday, October 31, 2008 at 09:34 PM

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