As economy fades, toy makers stress play value

Safety efforts come after millions of Chinese-made toys, including Elmo, Barbie and Polly Pocket, were recalled last year mostly for lead, which is toxic if ingested by young children.

Mattel, the world’s largest toy maker, recalled more than 20 million toys alone, costing the company about $110 million.

“We are much more aware of safety,” said Neil Friedman, president of Mattel brands, in an interview. “We have stricter rules in place. I think toys will be the safest they’ve ever been.”

Maybe. Yes, manufacturers have boosted toy testing — and local governments and Congress are pursuing safety legislation. The House passed a bill that would ban lead from toys, mandate testing by independent labs and hike funding for the Consumer Product Safety Commission. The Senate has yet to do so. And that means the new federal regulations won’t apply to this year’s Christmas toys.

“Consumers are still asking ‘Is this safe?’” said Byrne, the trendspotter. “There’s some work to do with raising that consumer confidence.”

Last year’s recalls frightened a number of parents into boycotting Chinese-made toys – and started a movement to only buy American. That proved tricky, though, because 80 percent of playthings are manufactured in China. Yet some independent toy makers saw their sales tick up.

“What will be interesting to see is if companies that make toys in the U.S. can keep that spirit going,” said Annicelli of Playthings.

Same goes for eco-friendly toys, another emerging trend. They range from playthings made with sustainable wood or soy ink — to those that are one with their packaging.

While the industry giants hog the spotlight at the Toy Fair, the little guys, which may sell American-made or “green” toys, might catch their big break — and get noticed by retailers.

“This is the show where we find the little gems of our business,” said Fred Hurley, chief merchant at eToys.com.

Video   Elmo Live debuts Feb. 14: The latest Elmo doll opens his mouth when he talks, tells jokes, sings, dances, plays games and crosses his legs. NBC News Web Extra

How toys fare in a recession
And little gems might just help the industry through these tough economic times.

Historically, the business has taken comfort in knowing that parents don’t completely deny their children toys — ever. (That’s just mean.) Here’s proof: Parents even scrounged for playthings during the Great Depression in the 1930s. But the toy industry did suffer. Hundreds of toy makers went under — and others slashed profits and produced cheaper toys to survive.

“Anytime the economy gets rocky, which we’re certainly in that situation, you have to look at it and expect an impact,” said Anita Frazier, an analyst with NPD group. “How big? You don’t know.”

Must-have toys saved the industry later in the Depression: Popular cartoon characters — Superman, Popeye and Mickey Mouse — came into vogue and triggered a buying frenzy of their plush toys and action figures.

“If it’s the right thing that a mom wants for her child, we’ll overcome issues out there,” Mattel’s Friedman said in an interview.

Toy Fair 2008 coverage Interactive: Get a sneak peak of top '08 toys   Slide show: Photos from the N.Y. toy fair   Video: Great toys being unveiled at the fair As economy fades, toy makers stress value Newsweek: Toys go high-tech — and green Toy makers tweak lines to offset rising costs

Regardless of monetary problems, kids will continue to want the coolest toys. Parents have literally trampled over one another to snag must-haves like Elmo. Thursday, Fisher-Price announced his reincarnation, which had been kept hush-hush. Elmo Live, retailing for about $59.99, can speak, sing, play games — and bob his head, wave his arms and cross his legs. Another “it” item: Play Along’s $179.99 Hannah Montana Malibu Beach House, a dollhouse replica of that on the hit Disney show staring Miley Cyrus.

Tie-ins to movies like Speed Racer, Batman and Indiana Jones could also move toys such as Lego’s $39.99 Cruncher Block and Racer X, Mattel’s $279.95 Batmobile — and Hasbro’s $14.99 Mr. Potato Head: Tater of the Lost Ark of Indian Jones, respectively. Kids are consumers like the rest of us — and they know what’s hot and not.

“They want what their friends have,” Byrne, the trendspotter, said about kids. “You don’t want to have the cheap one.”

But parents hold the pocketbook.

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