Ten Ways to Kill a Toy Company

Playthings reported today on comments from a recent speech by Toys R Us president, John Barbour. Much of it is common sense, but it's a good list for anyone in the consumer products business.

• Believe your product or brand is immune to competition—“Yes, believe that. Even Lego and Barbie have come under siege. That will give you some idea about how immune your product is. Paranoia is critical because one day you will be challenged…be paranoid everyday.”
• Dramatically cut product development investments when times get tough—“It’s new products that save a business—research and development. One day an inventor will save your company.”
• Be fourth to market with a worse mousetrap—“Just look at a buyer’s eyes after seeing five other exact same products.”
• Only your new products require care and attention—“It’s the old stuff that pays the bills till new products [gain acceptance].”
• Your profits are safe despite price erosion and product commoditization—“It’s the biggest issue facing our business today. If none of us are making money, none of us are buying product.”
• Stick with what you know—“Don’t go taking on things you have no knowledge of…recipe for disaster.”
• Only Wayne, Bentonville and Minneapolis matter—“It’s about the stores. Only when you get out to the stores do you see the packaging or the promo item gathering dust…store checking, I hate it. But that is where the business happens.”
• How little manufacturers know what customer flow is—“I see people thinking they are doing great by getting more shelf space. Little do they know it is the backside of a display that no one sees. You only find out things like that by getting into the stores.”
• Rarely get beyond the buyer—“You succeed by getting beyond the buyer.”
• Ignore problems, they’re sure to go away—“Problems are not like red wine, they don’t get better with age. Take problems head on and fix them.”
• A toy’s a toy’s a toy—“Believe that? I don’t think so.”