CONTACT: KidStuff Public Relations

Lisa Orman, 608-767-1102

or Lisa@KidStuffPR.com

Hong Kong to Atlanta to Dallas;

Diverse Insights' top trends from January Trade Shows Dallas, TX (January 30, 2017) - - "How was your year?" Those

four words were uttered by me more than any other during the

first four weeks of the year. Meetings with suppliers, licensors,

PR firms, inventors, warehousers, representatives, and anyone

else tied to the toy and gift business. I learned that most people

had a year that was brilliantly described by one savvy Houston

merchant "As not our worst year, but not our best." The industry

overall was on pace for another growth year with Q3 ending up

7% and finished the year up 5% year over year. Supercategories

that led the way included Games/Puzzles, Dolls, & Outdoor Toys.

The surprising trend of building sets being down was confirmed

with a 3% decline year over year.

Focus on Small Doll

W/ Evergreen Play Pattern

The Following are the latest trends I discovered during my travels to

Hong Kong Toy Fair (Jan. 3rd—8th), Atlanta Gift Show (Jan. 10th—15th),

& Dallas Gift Show (Jan. 18th—22nd)

In no way do I believe girls 4 - 11 are going to stop

collecting Shopkins (#1 girls brand); however the market

for static micro collectibles is getting oversaturated. A new

trend emerged of combining impulse product with a classic

play pattern like hair play, micro poseable plush, and

velvety flocked mini figs. Everything mentioned in this

trend retails for under $9.99 - and most under $5

keeping true to pocket money budgets. We aren't trying to

reinvent the wheel here from the last two growth years,

just inflate the tires.

Trade Show

Trends

Safaris, SIMBA DICKIE GROUP

Cute, flocked, dragons have come from Europe to the US! These

really stood out to me because of how sweet & wholesome they

looked - almost a throwback to 90s style guides. They come in

bright colors and surprise blind bags, they are soft, textured, and

ultra collectible.

‘A new trend emerged of combining impulse product with a classic play pattern like hair play, micro poseable plush, and velvety flocked mini figs.’

Piwi Pets, Blip

The most adorable and potentially biggest volume

new introduction from the shows was Piwi Pets.

Think mini beanie baby posable plush that were

made from fabric scraps & fun vibrant colors in

patterns! Really cute blind box that resembles

Chinese take out and a massive TV campaign through fall that will carry this new introduction

to the finish line.

Cupcake Surprise, Sunny Days Ent.

One of the biggest hits in this space in 2016 was a brand

you've never heard of - combining simple transformation,

classic hair play, and scented character - cupcake surprise

sold over 12 million units in Europe last two years! Support-

ed by spring TV to launch in the State, this should be a

winner pre-Easter.

One of the greatest impulse products is

BACK! Or rather a new version! The

team behind the original magnet craze is

back after going head to head with the

CPSIA and winning with a new addicting

magnet product called SPEKS! Think of

it as magnetic sand that you can build

with at your desktop! Already 23 million

Facebook video views when Will Smith's

daughter Willow shared the sizzle!

SPEKS: The Evolution of BUCKYBALLS

Although officially a mobile accessory

that allows you to comfortably hold any

phone or mini tablet - don't overthink

the fidget factor. This addicting phone

holder also doubles as a stand for

watching Netflix. Adhering to any

phone manufacturer's product allows

maximum sku potential ... Oh, and it

was the single hottest item in Atlanta

and Dallas gift shows.

THE YEAR OF FIDGET

Fidgeting was never considered a play pattern, much less a category in the industry but I

believe this trend will reshape retail in 2017. Fidget items are gender neutral, carry a higher

perceived value, and have a wide target audience range. The dollar per square foot productivity

of the category is significantly higher than core impulse and blind bags. FIDGETing helps you

stay focused. The American Psychiatric Association (APA) says that 5 percent of American

children have ADHD but the Centers for Disease Control and Prevention (CDC) puts the

number at more than double the APA's number. The CDC says that 11 percent of American

children, ages 4 to 17, have the attention disorder. This creates a gender neutral market for

kids that need something tactile to help them stay focused. Millennials (83 million in US), who

now outnumber any other portion of consumer society use fidget toys as stress relief and a

break from mundane office life - perfect for your back to school/college planograms. Adult/

executive gifting is another area where this trend can live at retail as white space exists there

when it comes to innovation.

‘FIDGETing helps you stay focused.’

POP SOCKETS BY POP SOCKETS

Fidgety Block by Fidgety

Another absolutely addicting click/shift/joystick toy that fits in the palm of your hand.

Seriously this thing looks so simple but once you figure out each of the 6 sides is a

unique fidget toy, you obsess about which is your favorite! Great pop colors make it

fashionable to take it on the go!

Although Pantone called Greenery its color of the year, it was very evident that rose gold

was the color in the gift industry. Products blushed in various categories from barware &

hydration to stationary. Muted flat colors like teal, violet, peach, were also prominent.

WE

LIVE

LIKE

THIS

Paper-

clips,

NPW

Plum & Punch,

Hallmark Corp

hydration, Manta

I wrote about this in Diverse In-

sights' Dallas Fall Toy Preview:

Trends & Licensing Recap, PJ

Mask is the NEXT BIG THING.

Preschool is the largest super

category in the toy business and

this new license on Disney Jr. is

proving to be the fastest rising

license. After a successful exclusive launch at TRU, the brand is

now open to all retailers and is already seeing stellar sell-through

in store and online. "This will be my 2nd biggest preschool play in

2017 only after Paw Patrol" said one buyer at a prestigious mass

PJ MASKS

Micro Lights from TECK 4 KIDS

Hideaway Play Tents from Play Hut

POP CULTURE AUTOMOTIVE

There are a lot of signs pointing to the vehicle as the next pop culture decor spot. If

fandom has already filled basements, living rooms, cubicles, and offices - why wouldn't

a little pop culture go on your preferred mode of personal transportation? The auto

industry knows their consumers are fans and are already trying to market with that

message - remember this commercial for Nissan Rouge One Star Wars Edition?

Think of a baby on board sticker that adheres to the backseat driver side

window. It lets you play chauffeur to your favorite political figure or pop culture

licensed character (in development). An under $9.99 novelty that will for sure

be a head-turner in the HOV lane!

Ride With by Thumbs Up

Transformer Family Decal Sticker Set

by Elephant Gun

Thank you for taking the time to read this, if you would like to

discuss anything in this trend report in more detail please don't

hesitate to contact me SteveS@DiverseMail.com or follow

my adventures visually on Instagram at @RedStarArmy1.

Steve Starobinsky

Chief Discovery Officer

Diverse Insights