DAY 2 – That’s All Folks . . . .

ToyCon Committee vice-chair Nancy Zwiers stepped to the podium one last time to provide a summary and wrap-up of an amazing two days. She thanked all ToyCon’ers for their fabulous participation and invited feedback on how to make this an even BETTER event for the industry next year. (How’s that for advance planning, huh!)

Committee chair Arete Passas joined in extending her thanks and participation to all – including the ToyCon Committee members and TIA staff -- who worked to support the event as it was born and grew over the past several months. I

This blogger believes that everyone leaving ToyCon will be riding into the sunset (okay – it’s a metaphor – it’s only noon right now) with a smile on his or her face that this was a great couple of days spent with friends old and learning new tips, tricks and techniques that will provide positive boosts for toy businesses, the industry and our customers well into the future.

Adios amigos and amigas. Safe travels.

DAY 2 – Grilling Sacred Cows

Dr. Bob Kriegel, author of Sacred Cows Make the Best Burgers, If It Ain’t Broke . . . Break It and How to Succeed in Business Without Working So Damn Hard has a lot of energy. Trust me. A LOT! He’s on a frenetic pace as he crosses back and forth across the stage – up and down the steps into the audience – circling around the room. He’s a captivating speaker with captivating messages. Some of his thoughts:

If you work longer and faster you make more mistakes (up to 25% more). If you’re rushing, you’re not thinking and you’re not coming up with new ways to differentiate from your competitors.

“How many of you make you best ideas when you are at work?” he asked. “One guy in the past three years raised his hands (and he was sitting next to his boss).”

Rather, we must constantly think about innovation and change. Rarely do people get their best ideas at a meeting. They come when least expected (Exercising. Napping. On a walk.) If you let your work go then creativity will come. Put in your preparation and perspiration and then let go. Your mind keeps working. POW. Ideas will happen.

Don’t be afraid to give yourself permission to be creative. Structure quiet time. Get away. Step away from the action. Move away from responding so you can be creative. If you’re never out of touch than you’re never in touch . . . with creativity.

As he wrapped up his comments, Dr. Kriegel reminded us that we shouldn’t feel the need to compete – rather, we should change the game. The key to inspiration and creativity is stepping back. Always try something new. Get in the habit of breaking habits. Look at things in different ways.

Chase your dreams and have a lot of fun.

DAY 2 – Pay Attention /Play Attention

Are we getting too caught up in the definition of toys? Play may be changing – but the patterns of play aren’t, said the morning's first panelists. What were once tools are now toys. Increasing their play value increases your brand value.

The Sandbox Summit, moderated by co-founders Wendy Smolen and Claire Green, featured panelists Scott Michaels of Atimi Software, Carly Schuler, fellow of The Joan Ganz Cooney Center, Sesame Workshop, and Laura Seargeant Richard, of frog design, inc.

The session focused on every aspect of CREATIVITY . . . and identified numerous “no cost” ways to stimulate thinking about product design.

In their summary of the hour-long session, the Sandbox Summit co-founders gave five tips for creative success:

­1) Define the crown jewel
­2) Use research as foresight not hindsight
­3) Embrace participatory design – enlist consumers as co-creators of the process
­4) Reflect on what’s important today - environment, economy, etc. (you choose for you)
­5) Be circumspect with tech – don’t do it just because you can

DAY 2 – Riding Out the Storm

“Innovation – now more than ever – is critical to riding out the economic storm,” says toy and video games industry analyst Anita Frazier of The NPD Group.

At $22B, toy sales continue to rival spending levels for gaming and home video. Data for the period ending March 31, 2009 stood at $21.5 B in sales and $2.78 B units. 92% of U.S. households purchased toys and the average retail price (ARP) per toy is up, but the number of units sold per household is down. The higher ARP for the year helped offset the decline in the number of units sold. Anita did note, however, that heavy price cutting in Q4 actually took the ARP back down from a peak in the third quarter. Kids’ (ages 2-14) usage of consumer electronic devices has notably increased. The portable/cell phone gaming increases as electronic handheld and tabletop games decline; portable digital media players (PDMPs) saw the largest increase at 31 points increase.

Other than the economy, what’s contributing to the unit sales decline compared to previous years? Are there fewer kids? No. There has been an increase in birthrates in every category through 6-8 comparing 2007 to 2008; and a very slight decrease in the 9-12 category. From the KLT III study, 67% of the kids from age 9-12 are still playing with toys. Anita also reported that 24% of the money spent for kids during the 2008 holiday shopping season was spent on toys, but she saw sales decline for kids ages 3-5. This challenges the data provided by Laura Philips from Walmart during yesterday’s video interview.

Her parting thoughts: after 30 years of tracking toys, it's easy to see through trends that toys have persevered in other difficult times. Following recessions there have been documented periods of growth. Toymakers have a legitimate reason for optimism. Kids of all ages are still playing with toys and still spending on toys.

DAY 2 – Three Take-Aways

ToyCon Committee Chair Arete Passas welcomed early risers back for the start of Day Two by sharing her top three key takeaways from Day One:

­1. Why Not?
­2. It’s not about product. It’s not about service. It’s not about solution.
It’s about creating a compelling experience.
­3. Go Young

These are the themes that will serve as the building blocks for today’s speakers.

DAY 1 – Winding Down

Spirits were high as the Day One presentations of ToyCon '09 came to a close. Everyone seems to be thrilled with the content and much of the hallway talk shared a commonly repeated sentiment that this year's presentations were TOP notch!

After a brief "personal time" break, toy industry friends came together around the pool for cocktails and hors d'oeuvres and a wonderful evening of relaxation and conversation. The vibe of the event was more that of a family reunion than a business event.

Some participants grouped together to head off for dinners at local restaurants, while others chose to linger around the pool for a low-key evening after a full day of information.

A full moon, clear skies, good friends . . . who could ask for more?

Good night from Phoenix!

DAY 1 – Shift Happens

“Change is hot” says Dr. Anat Lechner, clinical associate professor of management and organizations at New York University’s Stern School of Business.

“Complexity and change keeps three of four CEOs up at night,” she added. That’s why we’re focusing this discussion on paradigm shifts. A paradigm is the way we organize a concept such that it becomes almost unconscious. We don’t challenge it anymore – so it CAN become a trap. When issues start piling up that can’t be explained by or solved by the old paradigm a paradigm shift is forced. The life cycle of the industry will shift how radical a shift is needed. In a declining industry – radical is needed. Everything is up in the air.

The rest of Dr. Lechner’s presentation (and a workshop that followed) focused on four questions that she invited us to ask ourselves so that we can better understand and prepare for a new paradigm:

­- Synergy – bundling resources in new ways (synergy is difficult to imitate)
­- Consumer involvement / customization – How do we involve consumers in creating the new paradigm?
- ­Connect / community – How can we bring consumers together in sharing community
- ­High tech / high touch – How can we leverage high tech and still deliver a strong emotional component?

Warning that the biggest challenges to paradigm shifts are denial, resistance and incompetence, she encouraged ToyCon attendees to choose “courage over inertia.” Courage, she said, is for those who choose to change from old paradigm to new paradigm early in its development.

So this blogger is left to summarize: When “shift happens” then “change is good.”

DAY 1 – Virtual Communications Hit the Sweet Spot

Filing back into the conference room after lunch there was chorus of oohs and aahs as ToyCon’ers found assorted cupcakes on their tables. Provided by panelist Barbara Jones, the extra desserts in the desert provided a sugar rush that kick-started the afternoon’s discussion of how to hit the consumer’s sweet spot via social networking.

ToyCon Committee Vice Chair Nancy Zwiers (Funosophy, Inc.) doubled-up her responsibilities by serving as session moderator, welcoming panelists Barbara Jones of One2One Network, Susan Nia (Fix8), and Chuck Scothon (Mattel Digital Network).

The discussion began with baseline definitions of Web 1.0; Web 2.0; and Web 3.0. We were reminded that web-based communications have morphed from one-way outbound communications to the shared development of content that comes via virtual communities. Social media is a two way conversation that requires all of us to think about “being there” when consumers are looking for that connection. Content needs to be shareable. Emotion is what makes something viral. And we have to put the work into making something viral.

The panelists provided data that explained how digital platforms have reached critical mass in the U.S. Girls are transitioning from traditional to virtual play at seven and boys transition at six . . . this is additive play, not replacement play.

A few of the additional data points that this blogger found interesting . . .

The Internet is playing a bigger and bigger role in purchase decision making: 78% of consumers say that ads don’t have the information they need to make a decision . . . that’s why they go online to shop.

In a study of 6 major retailers, multi-channel shoppers spent 37% to 61% more in-store than online. 75% of respondents choose retailers and products based on what they learn online. 49% of U.S. connected consumers have made a purchase based on a recommendation gotten through a social media site.

Who are Mom Bloggers? Most are in the age range of 25-40, have an average of two children, hold a BS degree, and have a household income of $75K. There is a GREAT diversity of blogs, moms yield economic power, they are articulate and passionate, and exert tremendous influence.

When entering the online community arena, Usernamecheck.com and Knowem.com are great ways to find out whether your organization name is already being used.

And during a great discussion of social media sites, one of the panelists used this analogy:

- ­Twitter is like a cocktail party (conversations are short and you move around often and quickly)
­- Facebook is like a house party (you have closer friends and spend more time engaging with them).

DAY 1 – Changing Face of Retail

Wow – it’s tough to follow the spectacle of Kevin Carroll’s presentation, but the Changing Face of Retail panel did a fabulous job of bringing the focus of the room back to the specific issues and concerns of the toy industry.

Moderator Bob Wann (Patch Products) introduced the panelists: Sharon DiMinico, Learning Express; Jessi Dunne, Disney Consumer Products, Sean McGowan, Needham and Company, LLC, and (via video) Laura Phillips, Walmart.

Anita Frazier of The NPD Group kicked off the discussion with a “sneak peak” of her discussion tomorrow morning by reviewing top-level statistics for several of the toy retail channels.

Sharon DiMinico remarked that specialty stores are destination retailers that offer a unique shopping experience for consumers. These features may bring with them a broader array of pricing and merchandising options for the consumer.

Mass marketer Walmart offered a different perspective - even though Laura Phillips, vice president divisional merchandise manager of toys, was unable to attend in person. Via a taped video interview with Bob Wann, she stressed three points: Value (both price point and play value); Quality and Go Young. She emphasized the later point by stressing that the core toy customer at Walmart is a 3-year old and that 90% of the retailer’s inventory will be focused on the 3-5 year old. She also wagged her finger at the toy industry for not being more data-focused. “Get away from the [historical] formula and get back into the data.”

DAY 1 – Red Rubber Ball

Kevin Carroll – speaker extraordinaire – explained how a red rubber ball made a difference his life . . . in fact, “play saved my life,” he said. Abandoned by two neglectful parents, he and his brothers were taken in by his grandparents. A stranger in a new culture, he found an abandoned red rubber ball and began to play by himself. After watching him play alone for awhile, he was invited by the local children to “come play with us.” He found a community – and that made all the difference. Today, he travels around the world to profess the power of sports and play.

What are you chasing?” he asked the toymakers in the audience. “What inspires you to come to work every day?”

In his travels, Carroll said that he has witnessed play in every corner of the world. As toymakers, we are “purveyors of play,” he said. “What a huge responsibility you all have.”

He encouraged attendees to continue to be creative. To be imaginative. And to be more clever.

Like Kevin’s grandfather told him: “you gotta want to be better . . . you gotta want to be unique . . . and you gotta want to be special.”

After sharing some of his (varying sizes) red rubber balls, Kevin shared highlights of his “red rubber ball” book series:

1. Commit to it. Passion. Purpose. You set the objective.
2. Seek out encouragers. They’ll always ask: “Well, why not?”
3. Work out your creative muscles. Resign from adulthood. Become an 8 year old again. Be the purveyors of play.
4. Prepare to shine. Every day is an opportunity to live out our life’s work.
5. Speak Up. Play and sports are transformational. Raise your voices to speak up on behalf of it.
6. Expect the unexpected. Capture your red rubber ball.
7. Maximize the day. 86,400 seconds to make something happen and capture magic. Bring it forth.

His last thought for ToyCon attendees: "Uncork your bottle of magic."

Following a standing ovation, Kevin signed copies of his latest book, The Red Rubber Ball at Work. Thanks to the Dallas Market Center for providing complimentary copies of the book!

DAY 1 - Updates from the Annual Biz Meeting

Retreating to the air-conditoned comfort of a conference room, TIA chairman Al Verrecchia called to order the TIA 2009 Annual Business Meeting and provided a brief overview of the past year’s opportunities and challenges as well as the accomplishments and successes. Topping the list was his synopsis of the industry’s efforts to respond to and address the ramifications of the Consumer Product safety improvement Act (CPSIA) and the onslaught of state-level legislative activities.

“Our industry was built on a foundation of creativity and innovation,” said Verrecchia. “These are trademarks that have carried us through challenging times in the past . . . we have always risen to meet these challenges. And new will continue to do so by managing our businesses intelligently. We will create toys, market our products, and work with our retailer partners to restore the flow of customers into stores by the 2009 holiday season.”

Birthday boy Carter Keithley, TIA president, complemented the chairman’s remarks by providing a brief report that highlighted the Association’s government advocacy initiatives and the launch efforts of the Toy Safety Certification Program (TSCP). He set the stage for more detailed remarks that were presented later in the meeting by TIA staff supporting the respective programs.

Nominating Committee chair Danny Grossman (Wild Planet Entertainment, Inc.) led a member vote to elect five new Board members for two-year terms that will expire in April 2011. Members present unanimously approved the election of:

- ­Joel Berger, Cardinal Industries, Inc.
­- Leigh Ann Brodsky, Nickelodeon Consumer Products
­- John Gessert, American Plastic Toys, Inc.
­- Peter Henseler, Learning Curve Brands, Inc.
­- Jeffrey Katz, LeapFrog Enterprises, Inc.

Four of the five members of the Board Executive Committee were elected for second terms:

­- Chairman of the Board, Al Verrecchia, Hasbro, Inc.
­- Vice-chairman and chairman-elect of the Board, Bryan Stockton, Mattel, Inc.
­- Members Jamie Gallagher, Faber-Castell USA/Creativity for Kids and James Pressman, Pressman Toy Corporation

- And appointed for a first term is the new secretary-treasurer of the Board, Jim Engle of Little Kids, Inc.

Retiring Board members were recognized by the audience with rounds of applause, and by the chair with expressions of appreciation and presentation of a “thank you” plaque:

­- Nurit Amdur, ALEX
­- Bill Beebe, Hoogaloo Toys
­- Marc Bertrand, MEGA Brands, Inc.
­- Jessi Dunne, Disney Consumer Products
­- Soren Torp Laursen, The LEGO Company

TIA distributed a press release (http://www.toyassociation.org) and within minutes Playthings magazine had distributed a Playthings Extra bulletin. All this before the annual business meeting had ended.

News does travel fast!

DAY 1 – ToyCon is Sizzling!

ToyCon '09 attendees began Day One with an outdoor breakfast . . . which may be the only time we spend outside today because temperatures are expected to hit 103°.

DAY 1 – Hey, did you know . . . ?

A non-ToyCon bit of trivia to start your day:
Whether you’re in Phoenix or somewhere else around the globe, don’t worry if you’re feeling a bit odd today. This blogger was just reminded that today (05/07/09) is Worldwide Odd Day. Only six times a century does a date consist of three consecutive odd numbers.

And now you know 

Ramping Up for the Big Day

Familiar faces and new friends began to arrive in Phoenix today as the pre-ToyCon festivities kicked off in full swing this morning. Several teams hit one of the three award-winning golf courses here at the Wigwam Resort and Spa, meetings of the Toy Industry Foundation and the Toy Industry Association Boards of Directors were hard at work. Everyone came together this evening for an opening night reception on the terrace under a pleasant desert sky.

ToyCon Committee Chair Arete Passas welcomed guests to the reception and thanked her colleagues on the committee for their hard work and vision: Nancy Zwiers, ToyCon vice-chair, Funosophy; Nurit Amdur, ALEX; Joel Berger, Cardinal Industries; Dan Henderson, Summit Toys; and Bob Wann, Patch Products.

Several attendees were awarded $50 gift cards for their prowess on the gold course: Sam Harwell of Big Time Toys was recognized for hitting the longest drive (inches shy of 300 yards); Dave Parzen of NSF International racked up two prices – the first for closest to pin and another for being a member of the winning team. His teammates included first-time attendee Stephen Cullen, Eastman Chemical Company, and Benjamin Thrush of HUB International.

And that was it for formal remarks!

As Arete said . . . This was a beautiful evening set aside for nothing but “re’s”: re-connecting, re-freshing,

It’s Very Southwestern Here

Feliz Cinco de Mayo!

ToyCon 2009 is going to sizzle when Phoenix reaches record high temperatures this week. As the first trailblazers settle in and prepare for an early start on Wednesday, spirits are high and the reunions commence. Old friends are connecting with enthusiastic freshmen and mingling in the hallways of the Wigwam Golf Resort and Spa.

Launched in the 1920’s, the resort started off as an enclave for the Goodyear Rubber Company. The climate of Phoenix is quite similar to the climate of Egypt where Goodyear was purchasing its cotton for the threads used as a component of its tires of the day. To save on the import costs, the company scouted this Southwestern locale as a new domestic source of raw materials. What began as a home for the cotton farmers quickly soon expanded to accommodate visiting Goodyear executives and eventually morphed into a resort, complete with spa, tennis courts and three renowned golf courses.

Down the hall from ToyCon registration, representatives of the dental and milk industries have gathered for their own conferences. Toys and teeth . . . everyone that helps to shape the development of young children has convened in Phoenix this week!