Cool toys for the holidays
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October 19, 2000: 4:01 p.m. ET
Retailers bet on high-tech dogs, dolls, computer games this holiday season
By Staff Writer John Chartier
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NEW YORK (CNNfn) - If it barks, goes fast or beeps and blips, your kids will want it.
At least that's what U.S. toy retailers are banking on this holiday season.
Industry watchers say there hasn't been one major toy to replace the Pokemon craze, which has subsided (c'mon you really think they're kind of cute). This year, retailers and analysts believe kids will go for a wide range of items, many of which are high-tech interactive toys.
By far, scooters, including the Razor Scooter and Huffy's Micro Scooter, lead PlayDate Inc.'s list of this year's "must-have" toys.
Robotic dogs and PC games are also high on the list.
"The lists of projected bestsellers we received from the retailers clearly cited that the scooter craze was not just a summer fad," Sean McGowan, a toy analyst with Gerard, Klauer, Mattison & Co. said. "Aside from scooters, there really doesn't appear to be any other dominating property or category this year. Compared to last year, there is a relatively wide range of items that are among the most sought-after products, from electronic dogs to finger bikes, from sports-related video games to Harry Potter."
McGowan is co-founder of New York-based PlayDate Inc., a marketing services company that sponsors an annual toy industry trade show called PlayDate 2000. The company released its annual survey of the toys retailers think will be hits this year at the show held Tuesday.
About 40 merchants turned out to show off their picks for the hottest sellers this season. Toy retailers are edgier than normal this holiday season as a spate of decreased consumer spending, rising oil and gas prices and higher interest rates hit as they approach the season that comprises the majority of their yearly sales and earnings.
In addition, a worldwide computer chip shortage has increased costs for high-tech toys. So retailers are relying more on a variety of both high-tech and low-tech toys to meet their sales estimates for the year.
Aside from speedy scooters, other bestsellers that made the list include Amazing Babies from Playmates. The dolls learn to talk over time and respond to hugs and kisses. Animatronics allows them to move their heads like real babies. They also turn their heads in response to the voice of their "mommy." The dolls, which will be available this fall, retail between $39.99 and $44.99.
Powered pups are heading up holiday lists of Toys R Us (TOY: Research, Estimates) and other retailers. Such electronic dogs as Poo-Chi, the Interactive Puppy from Hasbro's (HAS: Research, Estimates) Tiger Electronics division, Manley Toy Quest's Tekno the Robot Puppy and Rocket the Wonder Dog from Mattel's (MAT: Research, Estimates) Fisher Price are thought to be big winners this year. (And you don't even need a pooper scooper!)
Toys R Us, whose Web site, toysrus.com has partnered with Amazon.com this year, is also banking on scooters as well as old standbys such as Mattel's Holiday Celebration Barbie and Let's Pretend Elmo. Amazing Babies also figures into their mix.
Harry Potter merchandise and the Sony PlayStation 2 are also big items for Toys R Us as well as a pint-sized set of Home Depot-branded tools. The licensed toys go along with a series of kids workshops at the home improvement retailer.
Video games also top the high-tech lists led by Baldur's Gate II: Shadows of Amn, from Interplay. The LeapPad by Leapfrog is expected to be the best-selling toy sold in specialty shops. Highly anticipated, retailers say, is Tony Hawk's Pro Skater 2 from Activision.
In addition, Sony's PlayStation 2 is generally thought to be the hottest-selling video game hardware.
"I think it's great. I think it's fantastic. I've seen the graphics on it and it's got a lot of great titles on it," Greg Ahearn, vice president of marketing and business development for toysrus.com said.
For younger kids, Clifford the Big Red Dog CD-Rom from Scholastic (SCHL: Research, Estimates) is on PlayDate's "Hot ones to watch" list.
KB Toys is also looking to the computerized canines, but also some of its own private label products such as the Dance Diva karaoke machine and the Groovy Tunes Keyboard.
And if Tyler Giacobbe is any measure, the keyboard is sure to be a success. The 3-year-old accompanied his parents to the show Tuesday and spent a good 10 minutes wailing out groovy tunes.
Collectible marionettes of the members of popular boy band 'Nsync by All Entertainment Inc. & Living Toys also figure prominently in KB's holiday lineup.
"There's an exciting mix of merchandise this year that reflects the increased presence of technology in toys," Tom Alfonsi, KB's vice president of merchandising, said.
ToyMax is getting behind its futuristic new radio-controlled vehicle, the Dragonfly. The toy, which is a combination car, rocket and plane, flips, drives upside down, pops wheelies and features "x-tech" wings that open and close allowing it to squeeze through narrow spaces. It retails for $69.99.
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