Batteries Not Included

MP3 players, digital cameras, toy cell phones. The line between Toyland and technology has eroded as youngsters crave the same gadgets Mom and Dad have for their own toy box.

And toy manufacturers, determined to retrieve a slice of market share crowded by MP3 players and video games, are answering the call. At the American International Toy Fair in New York in February, brands set their sights on younger audiences touting toys that blend electronics with the traditional play experience.

Fisher-Price, for example, will fuel its electronics’ line for preschoolers with its Kid-Tough Digital Camera. The $69.99 rubber-protected camera features a 1.3-inch color LCD preview screen, memory for 50 photos and two viewfinders for little eyes.

Better yet, kids can “download” their favorite song or story from Fisher-Price’s Digital Song & Story Player. The $69.99 music player hits store shelves in July.

“Kids love to emulate their parents,” says Lisa Mancuso, VP-marketing, Fisher-Price. “[They] want to take pictures, they want to listen to music on MP3 players. We are just evolving what kids want.”

“Kids want to play with products that relate to real life,” adds Reyne Rice, toy trends specialist for the Toy Industry Association. “They’ve been raised in a digital world. It’s a natural progression for kids to want to use the cool tools they see…others using.”

Brands are hopeful the electronic trend will revive lagging toy sales in the $21.3 billion industry. The youth electronics category dropped 8% in 2005 to $600 million from $651 million in 2004, per NPD Group, Port Washington, NY.

Music to their ears

Thanks in part to the iPod, musical electronics continue to dominate Toyland. This year, Hasbro will extend its iDog music companion to include the iCat and the iDog Pup. The device, which sells for $29.99 this fall, plugs into an iPod or other music device and bops along to the beat. The iDog Pup, a smaller version of the original, will retail for $14.99.

Zizzle is creating new buzz around its musical toy iZ with a new color (pink). The $30 musical toy, now in stores, controls a song’s beat with its belly and ears.

To enhance the brand, Zizzle will team with Kool-Aid this summer via an instant-win promotion for 1,000 Kool-Aid-colored iZ devices. Bannockburn, IL-based Zizzle also plans a fourth quarter kids’ meal promotion with a yet-to-be named QSR.

“IZ is all about kids and fun,” Zizzle CMO Marc Rosenberg says. “Anytime we can work with partners who promote these values we…extend our presence beyond the toy aisle.”

Acting out

Toyland isn’t just about electronics. Some brands are resorting to good, old-fashioned role-play. Cranium’s Giggle Gear line lets kids transform their tiny bodies into aliens, fairies, bugs and robots with interchangeable pieces. The gear hits stores this fall and will sell for $19.99.

“[Role-play] is bringing the hero of your imagination to life,” says Christina DeRosa, president, Seattle-based Cranium. “It’s not just putting on a dress and looking in the mirror.”

Other manufacturers have high hopes for role-play tied to upcoming films. With its superhero line of licenses, including master toy licensee Mattel, experts say Warner Bros.’ Superman Returns — in theatres June 30 — will fly to the rescue of dwindling toy sales.

“Whenever you have an evergreen property like Superman, retailers will enjoy enormous success…because recognition is so high,” says Kelly Gilmore, senior VP-global toys and themed entertainment for Warner Bros. Consumer Products.

With make-believe play at the forefront, retailers no longer need Halloween as an excuse to roll out costumes, Rice says.

Through Mattel’s Superman Returns Inflato Suit, kids can morph their bodies into their muscle-packed superhero or feign superhuman strength with Mattel’s Punch ‘N Crunch Gloves, which feature a sound chip to simulate crunching steel.

“Role-play is extremely important to kids,” Gilmore says. “It’s really the closest way the child can truly become their favorite superhero.”

Beyond toys and games, some brands are creating a niche market for all things crafts.

Tweens can create their own mini purses with Klutz’s Ribbon Purses book. The step-by-step book includes ribbon, beads and satin cording and sells for $14.95. For younger crowds, kids can turn ordinary clothespins into mermaids, princesses or ballerinas with Klutz’s Clothespin Cuties. The kit, which includes clothespins, glue and embellishments, retails for $9.95.

Starting April 17, Klutz will launch an in-store promotion with 6,300 Wendy’s restaurants in the U.S. and Canada featuring Klutz toys in the QSR’s Kids Meals. Klutz will add a sweepstakes overlay dangling a trip to its Palo Alto, CA, headquarters and a photo opportunity for a spot in an upcoming Klutz book.

Whether consumers choose traditional play patterns involving dolls, cars or crafts or opt high-tech gadgets, “It’s really a balance in the toy box,” Rice says.