Listen to this article now

This holiday season, retailers plan to promote smaller and less expensive toys in an effort to entice wary consumers as inflation drives up the cost of everything from gas to groceries.

According to MGA Entertainment’s CEO Isaac Larian, who also produces the LOL Surprise and Bratz dolls, more than 200 new toys will be available for purchase for under $10 in the coming months. Compared to 10 or 15 new toys that cost $10 or less last year, this is.

We are targeting that market because fewer people have money to spend, according to Larian.

This holiday season, retailers plan to promote smaller and less expensive toys in an effort to entice wary consumers as inflation drives up the cost of everything from gas to groceries.

According to MGA Entertainment’s CEO Isaac Larian, who also produces the LOL Surprise and Bratz dolls, more than 200 new toys will be available for purchase for under $10 in the coming months. Compared to 10 or 15 new toys that cost $10 or less last year, this is.

We are targeting that market because fewer people have money to spend, according to Larian.

When shipping costs skyrocketed and larger toys took up too much room in containers that cost $20,000 to ship from Asia to the US, some of the plans were already in place last year.

Joshua Loerzel, co-owner of Sky Castle Toys, told The Post that “retailers started pushing back on bigger packages and telling us that they want to dedicate more space on their shelves for lower price points.” Big-ticket items that were challenging to move in the beginning of the year are now oversaturated in retail channels.

As a result, Loerzel said that the majority of Sky Castle Toys’ holiday lineup falls into the $10 and under price range. Among them are DoodleJamz, soft drawing pads filled with gel that retail for $9.99 instead of the larger version’s $25 price tag when it was first released in June 2021.

Loerzel said, “We immediately recognized that we needed to pivot to a lower price point.
Hasbro, the world’s largest toy company, warned of “higher inventory levels” as it reported disappointing third-quarter results and said it anticipates “flat” revenue this year compared to 2021. According to CEO Chris Cocks, the company’s disappointing results were “further impacted by increasing price sensitivity for the average consumer.”

When trimming its profit forecast for the year and announcing that it is rethinking its expectations for 2023, Mattel also issued a warning about “increased market volatility” last month.

The toy selection at any Target or Walmart store is all about price, according to Yanofsky. “There will be a lot of stock, which is completely different from last year. This year, supply is outpacing demand.

“It looks like the first week of January in the stores right now,” Loerzel observed. “There are a lot of early price reductions that you wouldn’t ordinarily see until right after the holidays.”

Lower-priced items, meanwhile, have been selling more briskly, and they have the dual advantage of selling well throughout the year, experts say.

The original 11-inch Bratz doll from MGA turns 21 this year, and Target is selling a special birthday edition called “Girls Nite Out” for $36. A new line of two-inch Mini Bratz dolls, however, are also available for $9.88 on Amazon, Walmart, and Target.

Yes, there will still be pricey toys under the tree this year, but the number of them, according to toy insiders, will be much smaller.

The CEO of Basic Fun, the company that makes Tonka trucks and Lite Brite, Jay Foreman, predicted that consumers would spend over the coming quarters, but probably in smaller amounts.


What do you think of that inflation process which influences toys segment as well ? Please let us know in the comments.