By Cydni Tetro, White Clouds
Much like virtually every modern industry, the toy business is now in the midst of a technological revolution unlike anything we have seen before. From drones to virtual reality to 3D printing, new technologies are infiltrating the toy industry, enabling savvy creators to push the boundaries of toy making ever further. And nowhere was this more prevalent than at Toy Fair 2016.
The toy market is estimated to be worth $80 billion worldwide, with an average of $371 dollars being spent annually per child in the U.S. alone. And while these numbers are astounding, toy manufacturers are still looking in all directions for trends that can help them create the next big digital age hit.
Advertisement
Here are the three biggest tech trends from Toy Fair 2016 that manufacturers and retailers need to pay attention to:
Personalized Play 2.0
Remember Creepy Crawlers, and how groundbreaking it was to be able to make your own toys? Or how fun it was to be able to customize your Barbie collection with new accessories, even though she didn’t quite look like you? Enter the digital age.
Now Mattel, which makes Barbie, Monster High and Hot Wheels, among others, has created even better versions of these classic toys through the marvels of new digital sculpting technologies to deliver custom and personalized dolls and toys, and even bring 3D printing to kids through its new ThingMaker. Furthermore, this type of “build your own” toy making introduces STEM education and “techniques and skills that can be applied throughout life,” according to the Toy Industry Association.
And with more than 36% of consumers reporting they are interested in personalized products or services, customization is opening whole new monetization options in industries like food, lingerie and skin care.
Blurring Human and Machine Boundaries
The third industrial revolution was defined by manufacturing going digital — remarkable technologies converged such as savvy software, novel materials, robots, new processes like three-dimensional printing and a whole range of web-based services. This rise of technology and automated production spawned several sophisticated upgrades in toy categories such as robots and game systems.
Revolution 4.0 is defined by the blurring boundaries between humans and machines — dawn of the cyborg? Close! Exoskeletons and robotic prosthetics are great evidence of this revolution writ large. This revolution will drive all things to be connected to people, each other and the Internet — called the Internet of Things. In the toy business, a current example is a classic “analog” toy that has blurred the human/machine boundary.
The old View Finder was a classic but wouldn’t a virtual reality version be better? With over $600 million spent on just 119 deals worldwide last year, virtual reality is finally becoming reality, and it had a huge presence at this year’s Toy Fair. Furthermore, it is estimated that over 14 million virtual reality units will be sold this year, and with brands such as Electronic Arts, Mattel, Apple and more investing in the space, virtual reality is poised to leave a real mark on the toy space in 2016.
Bringing Digital to Physical
Playing with a toy or game is only one part of the equation, and companies are beginning to look into opportunities in which they can create deeper experiences with consumers, bridging a one-time purchase to a whole line of merchandising.
For example, Angry Birds is one of the most popular games of the past decade with over 2 billion downloads in just four years. But why stop at one screen? Sure, digital is great and offers shareability and monetization opportunities, but why restrict a property to just one medium? With that in mind, Angry Birds owner Rovio Entertainment has looked for fresh ways to merchandise the game, and has done so successfully with the Toy Fair debut of new Lego sets and even a movie.
Another strong example of this diversification in merchandising can be seen in the Star Wars: The Force Awakens Toy Fair debuts, where the brand released a new set of Hot Wheels cars, Egg Head Dolls and even a Star Wars themed ant farm, among other items. Granted, Star Wars has always been a merchandising juggernaut but licensing to any and every category should be something that brand and content owners always keep in mind moving forward.
Every year industry pundits predict “the best year yet.” But with some new technologies now ready for mass marketization, the toy industry will be able to leverage them to expand merchandise lines. With 3D printing, VR, drones, robotics and RFID leading the way, 2016 may just live up to the hype.
Cydni Tetro is a leading product entrepreneur with a focus on building product and driving customer acquisition. She is currently the President of Retail and Chief Product Officer at WhiteClouds, which acquired 3DplusMe where she was the CEO and founder. She worked on technology commercialization for Disney and has worked with the largest brands and retailers in the world to deliver product including Marvel, Star Wars, MLB, MLS, Warner Brothers, Dreamworks, NFL, Disney Stores, Target, Walmart and Toys R Us. She is an Operating Partner at Mercato, a growth equity firm, faculty for the Goldman Sachs 10k small business initiative and founder and President of the Women Tech Council. Tetro holds a master’s degree in business administration and a bachelor’s in computer science from Brigham Young University.
