In this episode of Stuff You Should Know, the hosts explore the history and mechanics behind "must-have" Christmas toys, tracing the phenomenon back to the Cabbage Patch Kids craze of 1983. The episode examines how toy companies and retailers create seasonal demand through marketing strategies, including emotionally charged advertisements and artificial scarcity tactics.
The hosts also delve into the modern landscape of toy recommendations and purchasing, revealing how major retailers charge fees for spots on their "hot toy" lists. They discuss the rise of "toy flipping," where resellers use automated systems to buy popular toys in bulk and resell them at premium prices, affecting parents' ability to purchase gifts at retail prices during the holiday season.

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According to Josh Clark, the phenomenon of "must-have" Christmas toys began with Cabbage Patch Kids in 1983. While Chuck Bryant contests that they were the first, both agree these dolls set a remarkable precedent, creating unprecedented buyer frenzy and media buzz. Following this tradition, other toys achieved similar must-have status, including Nintendo products (1988-1990), Tickle Me Elmo (1996), and more recently, Hatchimals (2016-2018).
Marketers employ various strategies to create toy demand during the holiday season. They launch emotionally charged holiday-themed advertisements, particularly targeting children during prime viewing hours. Companies also use scarcity marketing tactics, as seen with Spinmaster's Hatchimals releases, creating artificial shortages to drive demand. This approach taps into consumers' fear of missing out and can lead to unusual buying behaviors, such as camping outside stores.
The landscape of toy recommendations has evolved from simple department store catalogs to complex marketing systems. Clark and Bryant reveal that major retailers like Amazon and Walmart charge substantial fees for toy companies to be featured on their "hot toy" lists. While some third-party websites like Toy Insider and The Spruce provide independent evaluations, parents must carefully assess the credibility of these recommendations.
"Toy flipping" has emerged as a concerning trend in holiday shopping. Using sophisticated bots that can refresh pages hundreds of times per second and bypass purchase limits, resellers buy large quantities of popular toys to sell at inflated prices. Both hosts strongly criticize this practice, with Chuck Bryant particularly condemning the exploitation of parents during the holiday season. These automated buying systems effectively prevent many parents from purchasing toys at retail prices, forcing them to either pay premium prices or disappoint their children.
1-Page Summary
The concept of a "must-have" Christmas toy has been shaping holiday shopping frenzies for decades, with the Cabbage Patch Kids phenomenon kicking off this tradition in 1983.
Before 1983, there were certainly popular Christmas toys, but none that created the kind of buyer frenzy associated with the term "must-have." The Cabbage Patch Kids dolls revolutionized the holiday toy rush with their unprecedented demand, becoming a sensation that incited media buzz, violent scuffles, and extreme shortages. Josh Clark notes that the Cabbage Patch Kids were the first to incite this type of holiday shopping fervor, and he likens the evolution of this trend to how 'Jaws' sparked the concept of the summer blockbuster film. However, Chuck Bryant contests that they were not the first "must-have" toy, but indisputably, the Cabbage Patch Kids set a remarkable precedent. Coleco, the company behind these dolls, fueled the mania by sending dolls directly to reporters, thus stirring media hype. Clark and Bryant discuss whether prior sensations such as Star Wars toys or Atari's Pac-Man cartridge ever led to the same level of shopper mayhem, with anecdotes of violence distinctly tied to the Cabbage Patch craze, including a woman’s broken leg or a store manager wielding a baseball bat for defense.
Following the Cabbage Patch Kids tradition, numerous toys over the years have captured the title of "must-have" Christmas toy. For example, Nintendo products dominated the Christmas market for three years (1988-1990) with the release of their console, Game Boy, and the Super Nintendo console. Tickle Me E ...
The History and Evolution Of "Must-Have" Christmas Toys
Marketers and advertisers use a variety of strategies to create a surge in demand for toys, particularly during the holiday season, using the power of emotions, scarcity, and the fear of missing out (FOMO).
The holiday season is an emotionally charged time, and advertisers deliberately launch holiday-themed ads to tap into those festive feelings. Marketing strategies play on the notion that people are generally happier and more nostalgic during the holidays. This emotional state is used to influence consumer buying behaviors, associating their toys with the joyous sentiments of being a child at Christmas. Such tactics are particularly aimed at children, who might be exposed to around 100 ads in just a three-hour Saturday morning slot, effectively driving the desire for the latest toys.
Creating a sense of scarcity and urgency is a common tactic used by marketers to increase the appeal of must-have toys. By releasing products in limited quantities and for a limited time, they create a buying frenzy. The perception of scarcity can lead to treasured feelings about a toy and can prompt immediate purchases due to the fear that it might not be available in the future. Marketers may even mislead the public about the scarcity of a product.
Spinmaster, the creators of Hatchimals, were accused of using scarcity marketing deliberately for several years running. Skeptics have argued that companies could ramp up production to meet demand if they wished. Similarly, Fingerlings became a hit, purportedly by surprise, yet were able to increase production to meet demand quickly.
Scarcity marketing is not exclusive to toys and can be found across various sectors, such as restaurants that limit items or grocery stores that create purchase limits. This concept of haves and have-nots is ...
Marketing and Advertising Strategies For Creating "Must-Have" Toys
The approach to holiday toy lists has evolved, where now various retailers and third-party websites suggest must-have toys for the season. The value of these lists, however, may require scrutiny from parents regarding their credibility.
Retail giants and media outlets are influential in shaping which toys become the season's must-haves, a change from the times of department store catalogs being the main source for holiday toys.
Clark and Bryant bring to light that retailers like Amazon and Walmart may receive payments from companies to consider their toys for inclusion on hot toy lists. Amazon charges a staggering two million dollars while Walmart charges ten thousand dollars a month per toy to have them featured as the year’s hot toys. This might lead consumers to believe these toys are predicted to be popular based entirely on merit, when in fact they are paid promotions.
When looking at different sources for holiday toy recommendations, the methods of evaluation and the transparency about these methods vary significantly.
The podcast hosts discuss how there are now third-party ...
Role of Holiday Toy Lists and Recommendations
The growing trend of "toy flipping" has raised concerns as individuals use technology to purchase and resale toys at significantly inflated prices, affecting consumers particularly during the holiday season.
Toy flippers are using automated bots to purchase large quantities of toys, often to the detriment of parents trying to buy these toys for their children. These bots are sophisticated, with the capability to store hundreds of credit card numbers to circumvent purchase limits. They can rapidly bypass CAPTCHAs with the help of human workers.
Bots are able to refresh product pages hundreds of times per second, buying out inventory almost immediately when it becomes available. Subsequently, flippers often resell these toys on online marketplaces like eBay at highly inflated prices. Chuck and Josh explain that this scarcity generated by bots contributes to the frenzy surrounding must-have toys and deprives individual consumers, notably parents, the chance to buy at original retail prices.
Toy flipping, especially during the holiday season, is likened to ticket scalping and is seen as an unethical way to profit from market frenzies. The practice is criticized as taking advantage of others' inability to acquire these products, ra ...
The Issue of High-Priced Toy Resales
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