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SYSK's 12 Days of Christmas… Toys: What Makes a Must-Have Christmas Toy?

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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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SYSK's 12 Days of Christmas… Toys: What Makes a Must-Have Christmas Toy?

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SYSK's 12 Days of Christmas… Toys: What Makes a Must-Have Christmas Toy?

1-Page Summary

The History and Evolution Of "Must-Have" Christmas Toys

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).

Marketing and Advertising Strategies For Creating "Must-Have" Toys

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.

Role of Holiday Toy Lists and Recommendations

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.

The Issue of High-Priced Toy Resales

"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

Additional Materials

Counterarguments

  • The idea that "must-have" Christmas toys began with Cabbage Patch Kids in 1983 could be contested by pointing out that earlier toys, like Barbie dolls introduced in 1959 or Hot Wheels in 1968, also caused significant consumer excitement and could be considered "must-have" toys of their time.
  • While scarcity marketing is criticized, an alternative view is that it can increase the perceived value of a product and can be a legitimate business strategy when not taken to extremes or used unethically.
  • The criticism of holiday-themed advertisements targeting children could be met with the argument that responsible advertising can also create positive excitement and holiday spirit, contributing to the festive atmosphere of the season.
  • The issue of high-priced toy resales and the use of bots could be countered by noting that the secondary market allows for the availability of products that are otherwise sold out, providing an option for those who may have missed the initial sale, albeit at a higher price.
  • The criticism of major retailers charging fees for featuring toys on "hot toy" lists could be challenged by arguing that these lists help consumers navigate the overwhelming number of options and that the fees are part of the cost of doing business in a competitive market.
  • Regarding the criticism of toy flipping, one could argue that it is a manifestation of supply and demand in a free market, and that it is the responsibility of manufacturers and retailers to implement measures that prevent such practices if they wish to maintain fair market conditions.

Actionables

  • You can create a personal toy evaluation system by setting criteria such as educational value, durability, and child's interest level to assess toys independently of marketing influence. For example, before the holiday season begins, make a checklist of qualities you value in a toy and compare potential purchases against this list, rather than relying solely on "hot toy" lists or advertisements.
  • Develop a holiday gift-giving philosophy that prioritizes experiences or non-material gifts to reduce the impact of scarcity marketing on your purchasing decisions. Instead of focusing on the latest must-have toys, plan special outings, craft projects, or book readings that create lasting memories without the need to compete for scarce items.
  • Use browser extensions or apps designed to alert you when items are back in stock at regular prices to avoid overpaying due to toy flipping. These tools can monitor online stores for you and send notifications when the toy you're looking for becomes available, helping you to buy at a fair price without constantly checking websites yourself.

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SYSK's 12 Days of Christmas… Toys: What Makes a Must-Have Christmas Toy?

The History and Evolution Of "Must-Have" Christmas Toys

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.

Cabbage Patch Kids Were the First "Must-Have" Christmas Toy, Sparking a 1983 Tradition

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.

Must-Have Holiday Toys After Cabbage Patch Kids: Nintendo, Tickle Me Elmo, Hatchimals

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 ...

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The History and Evolution Of "Must-Have" Christmas Toys

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Counterarguments

  • The assertion that Cabbage Patch Kids were the first "must-have" Christmas toy could be contested by considering earlier toy crazes, such as the hula hoop in the 1950s, which also caused a significant consumer rush, though perhaps not as media-fueled as later frenzies.
  • The idea that prior popular toys like Star Wars figures or Atari's Pac-Man cartridge did not lead to the same level of shopper mayhem might be challenged by those who experienced or have knowledge of significant demand and long lines for these items, even if they did not result in the same level of violence.
  • The claim that Nintendo products dominated the Christmas market for three consecutive years might be nuanced by acknowledging other popular toys during that time, which also had significant market impact.
  • The role of media in amplifying the demand for Tickle Me Elmo could be seen as part of a larger trend where media endorsements often influence consumer behavior, not just for toys but for various products.
  • The popularity of Hatchimals and their status as a "must-have" toy could be contextualized within broader trends in children's preferences for interactive and technologically advanced toys, suggesting that Hatchimals were part of a larger shift in the ...

Actionables

  • You can create a personal holiday shopping strategy by setting up alerts for trending toys early in the year to avoid the rush. Use apps and websites that track product popularity to get notifications when a toy starts trending, ensuring you can purchase it before the holiday frenzy begins.
  • Develop a family tradition of handmade or non-traditional gifts to sidestep the holiday shopping chaos. Engage in crafting sessions with your family to make personalized gifts, or choose experiences like tickets to events or a family outing as presents, fostering quality time over material goods.
  • Start a blog or social media page dedicated to ethi ...

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SYSK's 12 Days of Christmas… Toys: What Makes a Must-Have Christmas Toy?

Marketing and Advertising Strategies For Creating "Must-Have" 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).

Advertisers Tap Holiday Emotions to Enhance Toy Appeal

Brands Launch Holiday Ads to Tap Into Festive Feelings

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.

Marketers Use Scarcity and Fomo to Drive Demand for Must-Have Toys

Frenzy Tactics: Limited Supply, Wave Releases, and Bot Purchases

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 ...

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Marketing and Advertising Strategies For Creating "Must-Have" Toys

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Clarifications

  • Scarcity marketing creates a perception that a product is rare or in limited supply to increase its desirability. This tactic leverages psychological triggers, making consumers feel urgency to buy before the item runs out. It often involves controlled production, timed releases, or artificial limits on availability. The goal is to boost demand and encourage quick purchasing decisions.
  • Spinmaster is a toy company known for creating Hatchimals, interactive toys that "hatch" from eggs. Hatchimals became highly popular due to their novelty and limited availability, sparking intense demand. The company was accused of intentionally limiting supply to boost hype and sales. This case highlights how scarcity marketing can manipulate consumer behavior in the toy industry.
  • Fingerlings were marketed as a surprise hit, creating organic buzz rather than relying solely on artificial scarcity. Their production was quickly ramped up to meet demand, unlike Hatchimals, which faced accusations of deliberately limiting supply. This approach made Fingerlings seem more accessible while still benefiting from perceived scarcity. The strategy combined affordability with timely availability to sustain consumer interest.
  • Bots are automated software programs that quickly buy large quantities of limited-edition toys online. They outpace human shoppers by completing purchases in milliseconds, reducing availability for regular customers. This artificial demand inflates scarcity, driving up resale prices and consumer frustration. Retailers often struggle to prevent bot purchases despite implementing security measures.
  • Pappy Van Winkle whiskey is produced in very limited quantities, making it rare and highly sought after by collectors and enthusiasts. The Disney Vault was a marketing strategy where Disney would restrict the availability of certain classic movies, releasing them for a limited time before putting them "back in the vault." This created urgency and exclusivity, encouraging consumers to buy before the products became unavailable again. Both examples use controlled supply to increase demand and perceived value.
  • FOMO triggers anxiety about missing out on rewarding experiences or products, pushing consumers to act quickly. It heightens urgency, making people prioritize immediate purchases over careful consideration. This emotional pressure can override rational decision-making, leading to impulsive buying. Marketers exploit FOMO to increase demand by suggesting limited availability or exclusive access.
  • Wave releases refer to launching a product in multiple small batches over time rather than all at once. This strategy keeps demand high by making the product appear continually scarce. Consumers feel urgency to buy quickly before the next batch sells out. It also generates ongoing media buzz and consumer attention.
  • Parental guilt arises when parents feel pres ...

Counterarguments

  • The effectiveness of holiday-themed ads may be overstated, as consumers are becoming more aware of marketing tactics and may not be as easily influenced by emotional appeals.
  • The targeting of children with ads is increasingly seen as unethical, and there is a growing movement to restrict advertising to children to prevent manipulation.
  • The idea that scarcity always leads to increased demand can be challenged, as some consumers may be turned off by aggressive marketing tactics and choose not to engage with the product.
  • The perception of scarcity is not always a result of deliberate marketing strategies; sometimes, it is due to genuine supply chain issues or unexpected demand.
  • Not all consumers are influenced by FOMO or social pressures; some make purchasing decisions based on practical considerations or personal values that resist marketing pressures.
  • The success of scarcity marketing in other sectors does not necessarily validate its use in the toy industry, as different products and markets may respond differently to these tactics.
  • The argument that companies could always ramp up production to meet demand oversimplifies the complexities of manufacturing, logistics, and market forecasting.
  • The assumption that all unusual consumer beha ...

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SYSK's 12 Days of Christmas… Toys: What Makes a Must-Have Christmas Toy?

Role of Holiday Toy Lists and Recommendations

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.

Retailers Reveal Hot Toy Predictions for the Season

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.

Lists May Be Influenced by Paid Placements and Sponsorships, Not Just Objective Assessments

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.

Holiday Toy Guides Vary In Transparency About Evaluation Methods

When looking at different sources for holiday toy recommendations, the methods of evaluation and the transparency about these methods vary significantly.

Parents Must Evaluate Toy List Cribility

The podcast hosts discuss how there are now third-party ...

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Role of Holiday Toy Lists and Recommendations

Additional Materials

Clarifications

  • Clark and Bryant are likely podcast hosts or commentators who discuss consumer topics, including holiday shopping trends. Their perspective is relevant because they analyze and reveal behind-the-scenes practices in retail marketing. They provide insights into how toy lists may be influenced by paid promotions rather than purely by product quality. This helps parents make more informed decisions when choosing toys.
  • Department store catalogs were once the primary way families discovered and chose holiday toys. These printed catalogs showcased a curated selection of toys, often with detailed descriptions and images. They provided a trusted, centralized source for parents to browse and plan purchases before visiting stores. This method offered a more straightforward, less commercialized shopping experience compared to today’s digital and sponsored lists.
  • Paid placements mean toy companies pay retailers or websites to feature their products prominently on holiday toy lists. Sponsorships involve financial support from toy makers to have their toys highlighted as recommended items. These payments can influence which toys appear popular, regardless of actual consumer demand or quality. This practice is common in marketing to increase product visibility during peak shopping seasons.
  • Retailers charge toy companies fees to feature their products prominently on holiday toy lists, which boosts visibility and sales. The two million dollars Amazon charges is likely a one-time or seasonal fee for high-profile placement, while Walmart’s ten thousand dollars monthly fee suggests ongoing promotion. These payments are marketing investments by toy makers to increase the chances their toys become popular gifts. Practically, this means some toys appear on "hot toy" lists due to paid promotion rather than purely on quality or popularity.
  • Retailers' hot toy lists are often created by the stores themselves and may include toys that companies pay to promote. Third-party websites are independent and usually review toys based on features, safety, and popularity without direct retailer influence. These sites aim to provide unbiased recommendations to help parents make informed choices. However, both types of lists can vary in transparency and credibility.
  • Third-party websites typically evaluate toys based on safety, educational value, age appropriateness, and entertainment quality. They often test toys personally or gather expert and user reviews to assess performance and durability. Some also consider innovation and inclusivity in their selections. Transparency about their evaluation criteria varies by site.
  • Credibility in toy lists means the trustworthiness and reliability of the recommendations. Parents can assess it by checking if the list explains how toys were chosen, such as through expert r ...

Counterarguments

  • Retailers and third-party websites might argue that their holiday toy lists are a form of curated content that helps consumers navigate the overwhelming number of options available, providing a service to those who may not have the time or expertise to research on their own.
  • Retail giants could claim that their influence on popular toys is a reflection of their understanding of market trends and consumer preferences, which they gather from extensive data analysis and customer feedback.
  • Companies like Amazon and Walmart might defend their fees for featuring toys on hot toy lists as part of their advertising and promotional services, which are standard practices across many industries.
  • It could be argued that the high fees for placement on these lists ensure that only companies with a strong belief in their product's potential success will invest, which could indirectly indicate a level of quality or appeal.
  • Some may suggest that the responsibility lies with the consumer to understand that featured lists in retail spaces are often a form of advertising and to research and cross-reference information accordingly.
  • Third-party websites and publications might highlight their editorial integrity, emphasizing that their evaluat ...

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SYSK's 12 Days of Christmas… Toys: What Makes a Must-Have Christmas Toy?

The Issue of High-Priced Toy Resales

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" Use Bots to Buy Toys, Then Resell At Inflated Prices

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.

This Behavior Deprives Parents Buying Toys For Their Children

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: Unethical Profit From Holiday Season

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 ...

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The Issue of High-Priced Toy Resales

Additional Materials

Counterarguments

  • The use of bots and technology in commerce is not inherently unethical; it's the application that can be problematic. Automation can be used responsibly and within the bounds of fair competition.
  • Reselling items at a higher price is a common practice in many markets and is not illegal; it's a fundamental aspect of a free market economy where supply and demand dictate prices.
  • Some may argue that toy flipping is simply a savvy business practice that capitalizes on market inefficiencies and consumer demand.
  • The responsibility to prevent bot purchases could be seen as falling on retailers and manufacturers, who should implement better anti-bot measures and purchase limits.
  • The inflated prices on the secondary market could be viewed as reflecting the true market value of the toys, based on consumer willingness to pay.
  • Collectors and enthusiasts often rely on the secondary market to obtain rare or sold-out items, which could be seen as a service provided by resellers.
  • Some may argue that the criticism of toy flipping ignores the agency of consumers, who have the choice not to participate in the inflated secondary mark ...

Actionables

  • You can support local toy stores and small businesses by purchasing directly from them, which often don't face the same level of bot interference as larger retailers. By doing this, you contribute to your local economy and reduce the impact of bots on toy scarcity. For example, visit local toy shops, craft fairs, or markets where you can find unique toys and gifts that aren't targeted by bots for flipping.
  • Create a toy exchange within your community to ensure that children have access to toys without competing with bots and flippers. This can be done by organizing a local toy swap event or setting up a social media group for parents to trade toys. This not only fosters a sense of community but also recirculates toys, making them more accessible and affordable.
  • Educate friends and family about the impact of ...

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