Toy companies are scrambling to get hot on social media

2022-09-23 21:13:24 By : Mr. Jackie Cho

Not only has TikTok become the preferred search engine of young people, it has also become the main place kids go to discover the toys they want (and beg their parents for).

Why it matters: The places where "hot" toys catch on guide the whole advertising industry — and this season's hot holiday toys are heavily tied to apps, video games, and social media influencers.

Driving the news: At a "hot" holiday toy preview event at New York City's Chelsea Piers this week, toy brands were talking up their products' social media cred and the licensing deals they had with influencers and video game franchises.

Case study: A shape-puzzle toy called Kanoodle has had an unexpected burst of popularity thanks to a math tutor who calls herself Miss Arlene and posts superfan videos on TikTok and Instagram (using a hashtag she coined: #kanoodlechallenge).

What they're saying: "My budget for TV this year is zero,” Canal Toys president and CEO Bill Uzell told Forbes in 2021. "Last year I only used influencers, and this year only influencers, and I don’t see myself going back."

Yes, but: Blockbuster movies still have the power to drive toy sales. The industry's 2% growth in the first half of 2022 was abetted by the release of "Sonic the Hedgehog 2" in April and "Jurassic World: Dominion" in June, said NPD, the market research firm.

Where it stands: At the holiday preview sponsored by Toy Insider, "hot" toys included a lot of products with STEM tie-ins as well as an emerging category: Toys that cater to kids' sensory or emotional wellbeing.

There were, however, lots of modern twists on old favorites, like a new Spirograph set with 3D glasses and Rubik's Phantom, a heat-activated cube in which the warmth of your fingers temporarily reveals the tile color, for extra solving furor.

Between the lines: Kids aren't just watching TikTok — they're also producing content.

The business angle: The toy-buying slump that followed Toys R Us' 2017 bankruptcy has been followed by a rebound, including record-breaking sales in 2020 and 2021, per NPD.

What's next: The return of Toys R Us in Macy's stores next month is expected to goose toy sales, as is this this fall's Amazon Prime Day.