Carving Out a Construction Niche
Pamela Brill -- Gifts and Dec, 11/1/2011 2:00:00 AM
THERE'S NOTHING BASIC ABOUT BUILDING BLOCKS. Over the past few years, the construction toys category has grown from an assortment largely comprised of traditional wooden blocks and multicolored, snap-in pieces, to a well-rounded genre now including character-based kits, micro-sized blocks, magnetic blocks and glossy blocks with a green bent.
Superstructs. $16.99-$69.99. WABA Fun. 970.278.0468. www.wabafun.com |
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Such a myriad of differentiated product has garnered a lot of attention at the cash register, too. According to the NPD Group, building toys amassed a whopping $1.22 billion in sales last year - a 13-percent increase over 2009's $1.08 billion. As the category continues to expand, several trends are helping shape building toys into an even more robust business.
America, Environment and Adults
According to K'NEX Brands president and CEO Michael Araten, patriotism plays a big role in consumers' toy buying habits. "In a world filled with negative headlines and so much uncertainty, consumers want brands that welcome them home," he tells Playthings. "American consumers crave toys made in America. That's why we're seeing such strong demand for [our] Lincoln Logs, Sesame Street and NASCAR [sets]."
In keeping with this theme, K'NEX will commemorate its 20th anniversary in 2012 with the release of K'NEX Classics, featuring the classic rod-and-connectors construction. "This line both celebrates our roots and satisfies requests we've had from consumers for the original K'NEX building system," adds Araten.
Right alongside Made-in-America brands is the green toys movement, which is being embraced by high-end specialty suppliers like Tegu whose magnetic blocks are made in Honduras with locally harvested wood. "What started out as a niche market a decade or so ago is now a vast empire, particularly as the parenting demographic has drifted north in age and with it, comes an appetite for eco-coolness," notes Tegu's marketing maven Kate Motley.
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Volkswagen T1 Camper Van. $119.99. LEGO.800.835.4386. www.lego.com |
Mario Kart Wii Building Sets. $8.99-$99.99. K'NEX. 800.543.5639. www.knex.com |
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Speaking of age, adult builders are being heralded as the newest demographic of construction toy consumers. Manufacturers like Ohio Art have responded to this market trend with nanoblock, a new line designed for more sophisticated play. "Having a micro-sized building block lets consumers build in greater detail," explains senior vice president of marketing and product development Martin Killgallon. "Since the blocks are so small, they are really not for young kids, but older children and adults."
Introduced earlier this year, nanoblock launched via two series: the Mini Series of animals and Sites to See, which includes architectural-based models like the Eiffel Tower. In 2012, the nanoblock collection will double in size to encompass other animals and sites, along with American-themed sets such as The White House.
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Magnetic wooden blocks. $30-$110. Tegu. 877.834.8869. www.tegu.com |
LEGO already offers a White House building kit as part of its highly successful Architecture Collection, which also features Seattle's Space Needle and various Frank Lloyd Wright homesteads. "As many of today's parents grew up when LEGO building was first introduced in the U.S., it's no surprise that there is a nostalgia factor at play for the brand, which we have successfully translated into specialty models ... for older builders," says LEGO president Soren Torp Laursen. More recently, the company released a Volkswagen T1 Camper Van and Star Wars Super Star Destroyer as highly detailed, collectible models.
Constructive Criticism
While construction kits targeted at adult builders offer additional sales potential for retailers, carrying these products comes with its own set of obstacles. "The challenge becomes finding a merchandising section geared for more mature builders," says Jason Eddy, senior director of marketing, Jakks-Pacific (makers of the Real Construction line). "There are a handful of building projects geared for adults, but it is very niche ... more in line with model kits."
Manufacturers like brinca dada find that effective merchandising is prompted by the need to distinguish between products that offer structured vs. creative play. "I think companies are targeting two distinct customers," explains company founder/CEO Doug Rollins. "First, there are building hobbyists who enjoy ... making large, complex constructions and prefer a blueprint to make sure they are staying on course.
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Wooden building blocks. $59. brinca dada. 917.969.1772. www.brincadada.com |
 Kid Powered Nail Gun. $14.99. Motorized Power Drill, $19.99, also available. Real Construction Toys. 877.875.2557. www.realconstructiontoys.com |
"The second group is people who are more interested in open-ended play and prefer a shorter time to completion," he adds. "They may use the product as a desk toy at work ... and expect a high level of sophistication in the design." Brinca dada's line of handmade teak hardwood focuses on the latter customer, appealing to kids and adults alike. "Young children like to discover what forms they can make from random shapes, while older kids and adults enjoy challenging themselves to create order from chaos," says Rollins.
Tegu's line hinges on a similar open-ended play pattern and also has an established following with children and grown-ups. "Building kits are still marketed primarily toward children, but are increasingly vague as to the intended upper age limit," notes Motley. "We are seeing a trend toward more gift and design shops carrying our products and marketing them toward adults."
To help communicate this message, suppliers are equipping retailers with merchandising tools to showcase their lines for different ages. For instance, Ohio Art is providing its retail partners with an on-shelf diorama that shows three completed sets. "We will also be launching a national digital media campaign this fall centered on the theme, ‘The Older You Get, The Smaller Your Blocks Should Be,'" says Killgallon.
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Nanoblock building sets. $7.99-$14.99. Ohio Art. 800.800.3141. 
Switchbotz. $19.99-$36.99. ImagAbility. 530.295.8570. ImagAbility, makers of WEDGiTS building blocks and the brand-new robotic construction line Switchbotz, offers a universal POS material for its mass and specialty buyers: single, SKU merchandising displays packaged in a vacuum-form tray. "This is the middle ground that can be produced cost effectively and that the retailer can afford in promotional offers and make available in shelf space," says sales director Roger McKinley.
Consumers are also benefitting from such enhanced construction toy marketing. Later this month, WABA Fun will be launching SuperBuilds, an online database of 100-plus building ideas and step-by-step plans for its Superstructs customers. According to company founder and lead product designer David McCloskey, a user simply selects the Superstructs set they own, and the system supplies a list of new building ideas based on those building pieces.
While SuperBuilds was designed to offer possible building ideas, McCloskey is quick to note that the system is, in no way, a substitute for a child's individual creativity. "At the end of the day, we would like to think that presenting an open-ended building set encourages growth in a young mind, but I believe it's the other way around," he tells Playthings. "It's always been those young thinkers that mold the tools we give them into the visions we see."
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