Fisher Price sales and Generation Next

Call them “Millenials”, “Generation Y”, “Generation Next”, “Generation Net” and even “Echo Boomers” but whatever you call them make sure you call them our newest generation of parents.   Born between 1975 and 2000, these are largely the children of the Baby Boom generation and they are very different in how they see the world.

This generation, particularly its younger members, is seen as more frugal and less consumerist then their parents. They like products that carry values in which they believe.

I thought about these shoppers when I considered the flat sales of Fisher Price in the 4^th quarter. Mattel’s Barbie and Hot Wheels were up in double digits but Fisher Price lagged behind. This surprised me as the common wisdom has been that mass merchandisers, due to “age compression,” were targeting the under five age group. Based upon this, one would have thought that if anything was going to be up this year, it would have been products in that age category.

Some say it was the retail price of Fisher Price products that slowed its sales. That is certainly a factor. It may be an even bigger factor for a generation of parents that is careful with its money (I wonder how many Fisher Price toys were sold on eBay) and avoiding plastic products that it sees as harmful to the ecosystem.

Keep an eye on this generation. They are going to be game changers.