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 