Impulsive Selling
Impulse and novelty toys and gifts geared to kids — or the kid within — help retailers stay afloat in a trying economy.
By Karyn M. Peterson -- Gifts and Dec, 7/1/2009 12:00:00 AM
During times of prosperity, impulse and novelty gift items and toys primarily serve as a supplemental category for retailers, diversifying the merchandise mix and keeping a store's cash-wrap area exciting, innovative and inviting. But all that has been changing. With consumers being more cautious than ever about spending, retailers are increasingly relying on providing a more expansive selection of lower-priced items to attract customers — and to make sure they don't leave their stores empty-handed.
Manufacturers that specialize in the impulse and novelty arena, as well as those for which the category represents a fraction of their business, both are taking advantage of the strong demand for inexpensive items; the category is rapidly growing to include a much wider variety of arts & crafts products, kids' accessories, room decor, games and outdoor toys.
"[There is] no question the current economy favors lower price-point products," observes Rich Ockwell, director of merchandising for Sumner, WA-based Toysmith. "We feel strong-selling impulse items are absolutely essential to the success of specialty retailers. They deliver the fastest turns and highest margins in the smallest selling footprint."
Freedom of Choice
The specialty toy and gift manufacturer offers retailers a selection of more than 1,400 impulse and novelty toys, as well as more than 100 games, activity kits, puzzles and gizmos from Toysmith's DaMert division. In addition, this spring, it acquired the assets of Lolipop Kids, the Coral Springs, FL-based marketer of personalized gifts for children, such as Sweet-Enz hairbrushes, dotted wall letters and Name Itt! room signs.
Another company providing lots of choices for budget-conscious retailers is Rowley, MA-based Schylling Toys, which offers a range of popular under-$10 items that include wind-up toys, rubber ducks, pocket games, activity toys and friction vehicles. The company also offers impulse-priced retro tin toys and other licensed items based on popular brands like Curious George, Flower Fairies and Sock Monkey.
For Woodinville, WA-based Play Visions, business has been holding steady, according to sales manager Kiley Rose. "Being an impulse novelty company with the majority of our items in the low price-point range, we're doing okay," she says. "People are still willing to spend $5 on a toy."
However, she also notes, "Business is tough; when our customers struggle, we struggle. We need them to stay in business to have success." Key to creating that success is having a wide selection of items, so stores can find what works best for them.
"Keeping a fresh mix of impulse/novelty items is a key factor in the success of the specialty retailer," Rose says. "Those [retailers] are always trying to find the next hot item. It's vital to keep things fresh — moreover, keep the same kids [and their parents] coming back to see what's new."
Eye on Safety
In terms of innovation, Rose notes that the new CPSIA regulations will likely result in the slowdown of the company's own design and development of new products; however, there may be some welcome consequences of the new testing environment that will benefit both manufacturers and retailers. "Our competitors are now in the same situation," she explains. "The knock-off companies will not go through the expense to copy an item, and test it for safety without the knowledge that it will be successful." Thus the original will have a longer shelf life before the knock-off hits the market.
At the moment, Play Visions offers hundreds of impulse and novelty toys from its main division as well as selections from a smaller company it acquired, Club Earth.
Rose credits the company's ongoing success in this tough market to its recent acquisition of the zoo/aquarium toy-focused Club Earth as well as another smaller company, the plush-focused Cascade Toys.
Adding more Spontaneity
A number of companies, known for their higher-end gifts and children's products, are tapping into the impulse business as well, while others are capitalizing on their reputation for quirkiness to increase sales.
Cleveland-based Creativity for Kids, the specialty kids' division of art supply company Faber-Castell, is getting deeper into the impulse action, according to company representative Lisa Brody. This year, the company introduced four new Creativity Kits — Press On Nail Party, Mini Flower Frames, My Handprint and Clay Key Chains — all impulse-priced below $10.
For Accoutrements, a Seattle novelty gift and toy vendor, absurdity and randomness is the order of the day; the company prides itself on its distinctive styling and the innovation that it puts into its popular novelty lines.
Some top selling new items this year for Accoutrements are its Fairy Eggs (tins of egg-shaped bubble gum), the electronic Yodelling Pickle, Finger Monkeys rubber puppets and the Shimmering Jewels Puffy Stickers, according to company representative Jerilyn Davidson. Also popular recently is the company's new cupcake-themed impulse line.
Chicago-based Sassafras Enterprises also creates impulse-priced kids' products with a unique license-free look. Its line includes animal-themed school supplies, kids' accessories, wooden games and activity toys. New this year are an expanded collection of room decor (memo boards, door hangers, picture frames) and paint-your-own bird house and bird feeder kits.
For Midwest-CBK, creating its own everyday line — and making sure to include lots of lower-priced offerings — has led to growing business in recent months in both the kids' toy and gift area, according to Beth Lorentz, Midwest-CBK vice president of marketing.
"The impulse side of Midwest's business is strong this year," she said. "[Our] novelty, low cost gift items are some of our best selling items this season. This is driven by our retail customers' need and desire for proven winners that have high sell-through potential. Especially strong are 'mini-shimmers' and Genuine Monkeez sock monkey backpack clips and plush monkeys."
Lorentz encourages specialty retailers to stock up on these lower-priced items because of their track record already at retail. She notes, "Strong-selling impulse items help specialty retailers keep their customers coming into the store to discover new, fun, inexpensive items to purchase for their own families or as gifts, especially in a tough economy when many families are trying to stretch their dollars."
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