ShareThisBy JON ORTIZ
Thursday, October 26, 2006
The scene was worthy of a major motion picture debut, with screaming fans and a security escort in Times Square. The cause of all the ruckus: T.M.X. Elmo, this year's hottest toy.
Since the "Sesame Street" character's much-anticipated reincarnation late last month, toy retailers haven't been able to keep their shelves stocked with the animated furry red doll that bursts into fits of rolling, hysterical laughter.
Its success has tickled toy store owners and manufacturer Fisher-Price Inc., and symbolizes several encouraging trends for a stagnant toy industry that has watched helplessly in recent years as kids switched to video games, computers and home electronics for entertainment.
Toy makers are integrating advanced technology more effectively with traditional toys such as dolls and cars. Many manufacturers are reinventing old standbys with new twists that appeal to nostalgic parents and their trend-conscious kids.
All of that comes as good news for toy sellers entering the crucial winter holiday shopping season. Experts say that T.M.X. Elmo, Fly Wheels XPV Radio Control Vehicle _ a remote-controlled flying car _ and several other too-cool-to-pass-up toys will give the entire industry a lift this year.
"A really hot toy brings people into the store," said Reyne Rice, a trend analyst with the New York City-based Toy Industry Association. "Hot products give people another reason to shop."
This year will probably go down as one of the best in recent memory for must-have toys, said Gary Lindsey, marketing vice president for Internet retailer eToys.com.
"For the last few years, new video games took all the limelight," Lindsey said.
Last year, Microsoft Corp's Xbox 360 game console was the holiday season's biggest hit, with demand far outstripping supply.
But the November rollout of this year's big video game hardware release, Sony Corp's PlayStation 3, is under a cloud after months of production delays. And unlike Xbox 360, the PS3 isn't expected to push video game technology forward much, Lindsey said, "so this year there's more room for conventional toys."
Toy manufacturers also have figured out that the best-sellers usually appeal to kids and the folks who pay for toys _ parents.
So this year Mattel Inc., which owns Fisher-Price, is selling a Hot Wheels Radar Gun that lets kids track the speed of their cars. There's the Monopoly Here & Now, Parker Brothers modern makeover of its classic real estate board game that lets players buy and sell Times Square, Wrigley Field and Las Vegas Boulevard.
And Barbie this holiday season comes packaged as a princess with a starring role in an accompanying direct-to-DVD movie.
"Many of these brands carry good memories for adults from their own childhood," Rice said. "So you're seeing toys and games that marry tradition with relevant icons of today, like the Monopoly update, or with with modern technology _ like Elmo."
The Tickle Me Elmo line debuted 10 years ago, a surprise sellout sensation that giggled when its stomach was pressed.
The T.M.X. version _ Tickle Me Elmo Extreme _ rachets up Elmo's original chuckle to a fall-down, roll-over, arm-pounding fit punctuated by squeaky guffaws when the doll is "tickled" on its stomach, arm or foot.
Aided by clever mystery-building marketing _ only a handful of people saw the doll before its release date _ the T.M.X Elmo doll sold out within two days of its Sept. 19 premiere at online retailers Walmart.com, Target.com, Kaybeetoys.com and Toysrus.com, Rice said.
In Sacramento, Calif., shoppers cleaned all the Elmos out of one KB Toys' the first day. Store manager Angelica Marble wouldn't say how many units were sold, but the store has taken orders on two more shipments it expects in the next few weeks.
"Both of those presales sold out in one day," Marble said. "It was amazing."
Privately held KB "blew out our entire chain's inventory of the new Elmo on the first day," said KB Toys spokeswoman Nichole Kaley. "It's one of those rare toys where its popularity has matched the hype."
Toys "R" Us in Times Square was Elmo Ground Zero that first day. The store reportedly sold all 1,000 it had in stock within a few hours and a second shipment of 500 in about 10 minutes.
Wal-Mart Stores Inc.'s Web site was still sold out of the doll Thursday, while Amazon.com listed the toy at $137.00, sharply higher than the manufacturer's suggested $39.99 price.
On eBay, bids for several T.M.X. Elmo have all been higher than the list price, and last week the cost for a lot of 15 T.M.X Elmos hit $1,525 _ and still failed to meet the sellers reserve.
"My 6-year-old granddaughter is begging for Elmo," said Sacramento resident Gustava Ruiz as she browsed the aisles at a KB Toys store recently. "I told her to ask Santa, but I have a feeling he may not be able to give her one this year."
The consumer rush to the toy aisle is good news for an industry that has weathered bankruptcies, downsizings, soaring raw materials costs and vicious price wars in recent years.
Must-have items put bodies in the store, KB Toys manager Marble said, and that means more opportunities for sales.
"If someone comes in looking for an Elmo that is sold out, we refer them to other Elmos," she said. "There's always something else that they can buy."
