Allegedly
There were a few whispers last month that some companies had been experiencing a few credit insurance issues with Very as we head towards 2020. So news that fresh funding - in the form of a £75m equity injection- has been secured from its parent company will hopefully help to allay concerns. Rumours persist that the Barclay brothers are looking to sell parts of their business empire, which may or may not include the Very operation. However, for now, credit insurers will hopefully reconsider their decision to remove cover, as Very remains an extremely valuable account for many toy companies… The CMA has thrown a curveball into the proposed takeover of eOne by Hasbro, after announcing that it would be launching an investigation into the deal and whether it might result in what it described as a ‘substantial lessening of competition’. After the CMA blocked last year’s takeover of Asda by Sainsbury’s, it would be foolish to dismiss the probe out of hand. However, I do feel that this deal is a rather different scenario; it was no great secret that eOne had been looking to sell up for some considerable while, and I am not sure why the CMA potentially feels that Hasbro would not be a suitable owner, as opposed to any other prospective purchaser. A deadline of 21st January has been set to decide whether or not the CMA will refer the merger for an in-depth Phase 2 investigation coincidentally the day that the London Toy Fair opens. The trade will be watching developments with interest… I recently attended an Amazon Black Friday event – yes, they really did let me in! I left perplexed rather than blown away; perhaps surprisingly, toys represented a relatively small – some might even say inconsequential - part of the event. Neither was there any hint or suggestion of specific promotional offers on the toys on display over Black Friday weekend; I had naively assumed that the event might highlight any such deals. In keeping with tradition, as far as I am aware, no Amazon buyers were present; if they were, they certainly didn’t make themselves known. In fairness, there is evidence that Amazon is starting to address some of the areas that have been cause for concern - check out a new initiative currently underway on the Amazon France site, where official brand logos are being added to hero images. And I appreciate that the sales numbers Amazon is capable of delivering are crucial for a growing number of toy companies. I just wish they were a little more communicative and responsive, a bit more human… Chinese New Year falls two weeks earlier in 2020. What that means in practice is that Chinese factories are likely to start winding down between 10th-15th January, before being closed for a month as usual. It certainly doesn’t leave much room for manoeuvre in the supply chain; those suppliers and retailers not fully organised may find themselves coping with a few logistical challenges over the Easter period…
Toy World 302
The now infamous ‘How to Spend it Well at Christmas’ TV programme once again helped to chivvy up consumers in the run-up to the festive season. The show didn’t disappoint, although not all the toys featured came out covered in glory, and the dress-up segment was particularly ridiculous – most kids would surely be dressing up for a party, rather than a spin round a muddy army assault course. However, a 60 minute thinly-veiled advertisement for a strong selection of the latest toys can only be a good thing for the industry. Among the products which garnered plaudits from the testers were Tomy’s Rizmo, John Adams’ Bank Attack, Jazwares’ Roblox, a Spin Master radio control truck and a stretchy piece of poo from HTi for £1.99. Never let it be said that the programme doesn’t reflect the glorious diversity of our wonderful trade… Another group of people who have finally got something to smile about are Star Wars licensees; to be fair, it’s been a bit of a slog for some of them in recent years, but there may finally be some light at the end of the tunnel after the breakout character from The Mandalorian, The Child – or Baby Yoda as everyone is calling him - became a viral sensation almost overnight. There have been more Baby Yoda memes on my social media timelines than Boris Johnson memes, which really is saying something. There has been some chuntering from retailers frustrated by the fact that merchandise for The Child won’t be arriving until early summer last year, and on the face of it, you can see why they feel it is a missed opportunity. I’ve also had several media outlets contact me in the hope that I would say something uncharitable about Disney for its launch strategy. On this occasion, they were disappointed. Unlike Frozen the first time round, it’s not that Disney didn’t know what it had on its hands; they know exactly how big this could turn out to be. It’s also not true that shortages are being cynically manipulated to massage demand; from what I have read online, the demand out there is going to be massive whenever product hits shelves. And contrary to what some journalists believed, I don’t believe that demand will dissipate over the next six months. Sure, it would have been great to add some incremental sales in 2019 – every little really would have helped this year. But Mandalorian director Jon Favreau was apparently adamant that he wanted the programme to lead the way, not the merchandise, and he clearly won the argument on this occasion. In a sector where commercial decisions frequently outweigh artistic or creative considerations, and where merchandise can sometimes seem more important than the film or show itself, I actually think this little victory might be one we should all quietly celebrate. Patience, young Jedi… Finally, I have just realised that I will be attending my 40th London Toy Fair this year. It has always been a hugely enjoyable event and I still get just as excited as I ever did as the show approaches. Whether you’re a regular visitor or attending for the first time, I hope you have a fantastic, productive show. You can find Toy World on stand GH37, right on the central aisle. We look forward to seeing you there.