Adult Collectors Become Tariff-Proof Consumers for Toymakers

As the global trade war threatens to disrupt the toy industry, companies like Hasbro, Lego, Mattel, and others are turning to adult collectors, dubbed "kidults," to provide a tariff-proof consumer base. Adult collectors are willing to pay high prices for exclusive, high-end toys designed by artists, which are pitched as works of art for display rather than mass-produced products for children's play. This strategy aims to attract a niche market of collectors who are less sensitive to price changes caused by tariffs.

Key Takeaways:

• Adult collectors, or "kidults," are a growing market for toys, with sales of franchises like Barbie and Lego, and collectibles like trading cards, increasing faster than the market overall.
• Toymakers are creating exclusive, high-end toys designed by artists, such as $350 Barbie dolls and $8,000 Lego sets, which are pitched as works of art for display rather than mass-produced products.
• Companies like Hasbro, Lego, and Mattel have created dedicated websites to sell these higher-end toys to collectors, including sites like Mattel Creations and Secret Lair.
• The collaboration between toymakers and artists has led to the creation of unique and expensive art pieces, such as the $400 Madsaki He-Man statue and the $8,000 Lego sculpture by Ekow Nimako.
• The Uno card game has attracted artists like Gary Baseman, Shantell Martin, and Takashi Murakami, with each card being a "little, tiny canvas" for the artists to express themselves.
• The market for adult collectors is expected to continue growing, with experts predicting that adult collectors will be less sensitive to price changes caused by tariffs.
• Toymakers are also exploring other revenue streams, such as creating exhibitions and events to showcase their art pieces, like the Mattel Creations exhibition at the Corey Helford Gallery.

Statistics:

• Global toy sales fell 0.6 percent last year, a second consecutive annual decline, according to the market research firm Circana.
• Nearly 80 percent of toys sold in the United States are made in China, which faces the steepest potential tariffs threatened by President Trump.
• The president has downplayed the potential effect of tariffs, saying that children "will have two dolls instead of 30" and that those two dolls would "cost a couple of bucks more than they would normally."
• 49-year-old Teddy Biaselli, a producer at Netflix, paid $400 for a Madsaki He-Man statue to represent his love of the character in an "elevated way."
• The Mattel Creations site has sold out of some of its art pieces, including a collection of surreal Barbie dolls created by Mark Ryden, which ranged from $150 to $500.
• Lego's more affordable "Botanicals" line has proved popular among older buyers, with elaborate floral arrangements made from toy bricks selling for up to $500.

Sources:

• "Global toy sales fell 0.6 percent last year, a second consecutive annual decline" - Circana
• "Nearly 80 percent of toys sold in the United States are made in China" - The New York Times
• "The president has downplayed the potential effect of tariffs" - The New York Times
• "49-year-old Teddy Biaselli paid $400 for a Madsaki He-Man statue" - The New York Times
• "The Mattel Creations site has sold out of some of its art pieces" - The New York Times
• "Lego's more affordable 'Botanicals' line has proved popular among older buyers" - The New York Times
• "Gary Baseman, an American artist, holding a plush doll he designed based on a vintage Mattel mascot" - The New York Times
• "Keith Haring, Annie Montgomerie, and Takashi Murakami" - The New York Times
• "Ekow Nimako's wall-mounted art built from Lego bricks sells for up to $8,000" - The New York Times