Whats Up With Action Figures?

It seems that Toy industry figures* are indicating that even though overall toy sales remain positive year on year, sales of action figures have declined, and significantly enough to warrant concern.. With some major franchises returning to the action figure arena this year, i wanted to know why the decline might be happening and whether the return of 'boys' movies might change this, and whether its worth keeping faith in Action Figures in 2011? I have no answers specifically, and can only point to a number of factors why i believe the decline has happened:

Firstly, action figures have become expensive. Growing up, I was a consumer of Star Wars toys, and today remain a collector. We all know that in 1978 they retailed at pocket money value of £1.59. Today new Star Wars action figures are £7.99-£8.99 a piece. I know that these prices are comparative to other boys toys in the market, Bakugan, etc, but its probably a reason why these types of boys toys are not selling as well (Spaceships to house these figures cost over £50 in some cases).

I'm also not content with the price or supply of these toys in the European Markets, and won't be the first to be unhappy that the price points here don't match the US. In the US, a £7.99 Star Wars action figure is priced at $7.99 - at the current exchange rate that is just £4.89. Surely its not costing more to get these toys to the UK, certainly not £3.10 more. (Those of you in Europe are even worse off with action figure prices nearing €11.99). And overall supply is poor in the UK, we get waves 1,2 & 3 of a series, then nothing, US stores still get the full compliment of waves, vehicles, everything. UK buyers are hard done by, in this regard. (check my store when it launches as we intend to stock the harder to get figures and ranges as well as the usual bog standard 'high street' ranges). I'm still seeing left over 'female' Star Wars figures from lines released 3 years ago on the shelves of Toys R Us, such as the 2008-2009 legacy collection Breha Organa & the super unpopular Yarna Dal Gargan.

Secondly, there might just be too many action figure lines out there, just off the top of my head, there is Ben 10, Star Wars, Doctor Who, Iron Man, Pirates of the Caribbean, Thor, Harry Potter, as well as almost every action movie series releasing a range. Boys find it hard to pick a series / franchise / line to follow and collect, and they just keep coming too.

Thirdly, classification of toys and similar alternatives. What boys determine as 'action figures' may have changed, but the measure of action figure sales might not. Lego Mini figures don't fall under action figures at all, neither do toys like Playmobile, Pixar Cars vehicles, Bakugan, Pokemon. Boys are still out buying all of these products instead of action figures and playing 'action' games with them. How does the Toy industry classify Transformers, for example, are they Vehicles or Action Figures? Hasbro has been pushing its NERF range for a while and sales of these types of action toys where by 'you take over' the action might even be replacing action figures themselves. Sales of 'safe' weapons and water toys have rocketed in the past year, and its no coincidence that these sales increases have mirrored the decline in action toys.

Lego has, I believe, hugely impacted the Action Figure Market. Their mini figure ranges have impacted significantly on the 'action figure' model. With low price points but the same playability and collectorbility factor, Lego is cornering a market it doesn't even generally trade it. With Character Building coming along with its HM & Doctor Who ranges too, the future is looking bleaker for the traditional 'action figure'. With Lego licensing more and more products, like the Pirates of the Caribbean range, and continuing its now long standing range with Star Wars, its only going to help the brand and impact on the Action Figure Market.

Cars, by Disney are also capturing what i believe is a part of the Action figure market. With a massive range of toy cars, which are undoubtedly NOT action figures, but fall under the vehicles market, have been selling to boys consistently well since the original film was released in 2006. Helped by the Cars Toon series and innovative updating of the pre-existing range. Cars 2 vehicles just released are also going to start flying off the shelves, and I fear at the expense of Action Figures. Again these figures retail at a much more competitive price point where two vehicles can be bought for the same price as one Action figure. You can race two cars against each other, a single action figure is pointless without a friend! Cars, you may argue are selling to the general boys market who buy toy cars anyway, but I think the Cars range is different, because each car is a character. Unlike hot wheels where the car is unique, but still is based upon a real car, the Pixar Cars have faces and can become playable characters, with an 'action' ability. Certainly the younger boys are buying and collecting Cars characters, probably in place of collecting a range like Star Wars.

The bright points on the horizon are the number of new action movies due to hit in 2011. Despite my claim that the action figure market is perhaps overloaded, even more action based toys might revitalize the market. Coming in 2011/12 are the following films which will all be 'action figure' and boy toy friendly: the Star Wars Clone wars - series continues, Star Wars Episode I -3D, Scheduled for release in 2012, Harry Potter Deathly Hallows Part 2, Pirates of the Caribbean 4, X-Men First Class, Thor, Real Steal, Transformers, Captain America, The Avengers, Green Lantern, MI:IV, The Adventures of Tintin, Batman 4, Spider Man, and possible movies, like Cowboys and Aliens, Rise of the Planet of the Apes, Men in Black III, Star Trek II & The Hobbit.

It is a tough market, but as retailers we have to cater for everyone in it, and we must remember that Action figures are NOT just for collectors.

Personally I believe prices have to become more consumer friendly, but in these economic times, it is perhaps difficult for manufacturers to cater for this. Boys still love action figures. As I believe what boys deem to be classed as 'action toys' has changed, this might be affecting the plight of the traditional multi articulate blister packed figure.

The solution as ever is down to retailers and manufacturers to work together to sell and stock the right ranges at the right prices. It seems in recent months the major stores have made some odd decisions on stock and availability of lines, Doctor Who and Star Wars are two I can think of where 'shelf warmers' are common, and popular figures are in shorter supply than normal. Maybe the new and upcoming film licensed ranges will change these perceptions and bring the action figure toys back to life. I'm particularly looking forward to the Real Steel range, and think this could be the jump start the action figure market needs.

* Full year 2009 vs 2010 growth figures:

Action Figures     -17%
Total Toy Market  +7%
Building Sets (including lego) +48% 

Toy News, March 2011

Let me have your comments.