Center for Digital Strategies

Top Tech Toys

Tuck professor releases toy buyer's guide for concerned consumers

FOR IMMEDIATE RELEASE — November 19, 2007

CONTACT: Kim Keating, 603-646-2733

HANOVER, N.H.—Gadgets, game consoles, and high-tech toys top many of the must-have lists this holiday season. But Tuck School of Business at Dartmouth management professor M. Eric Johnson says shoppers vexed by months of toy recalls should think old-school if they want to allay safety concerns and still have something to put under the tree.

Johnson, director of Tuck's Center for Digital Strategies and a supply chain management expert who has studied the Chinese toy industry, notes that consumers' toy fears are largely unfounded, since recalled items make up a small fraction of total merchandise on U.S. store shelves. Nevertheless, the spate of highly publicized recalls—from cribs, to pet food, to toothpaste—has touched a nerve with a certain segment of the buying public.

"There's no doubt there's a set of customers out there who are going to avoid buying Asian-made products," says Johnson. For those consumers, he's come up with a buyer's guide for avoiding toys from that region.

More than two thirds of toys in the U.S. are manufactured in Asia. At discounters like Wal-Mart and Target, that figure runs higher, says Johnson. The exceptions are throwback board games like Pop-o-Matic Trouble and Monopoly—along with vintage playthings like puzzles and premium teddy bears—which continue to be produced in the United States. Hasbro, for instance, still manufactures its line of classic board games in Longmeadow, Mass. while Crayola continues to produce crayons out of the same Easton, Penn. factory.

"They're the toys people remember when they were kids," adds Johnson. "A lot of old niche toys are still made in the U.S. and Europe typically because the volumes are low."

Johnson recommends steering clear of toys that employ electronics or technology if you have concerns about recalls. Their origins can likely be traced back to China where manufacturers use low-cost suppliers for the various components. Cautious consumers should also avoid the big discount retailers, opting instead for specialty toy stores and shops that carry classic European brands like Playmobile or Brio. High-end retailers like FAO Schwartz also allow customers to search for toys based on their origin. "However, be ready to pay more. Toys are made in Asia because of the low cost," Johnson notes.

Better yet, "head out to craft shows to find local hand-crafted toys," he advises. "These won't find their way to Wal-Mart and may not even show up in small toy stores."

Much of Johnson's supply chain research has focused on the toy industry, where short product lifecycles provide ample learning opportunities. "They're like the fruit flies of business," he adds. "You see toys go through many cycles quickly compared to other products." Johnson says the toy industry is also on the leading edge of low-cost sourcing, and as a result is often an indicator for manufacturing trends in other sectors.

The Center for Digital Strategies' picks for top-tech toys can be found on the center's website.

Founded in 1900, Tuck is the first graduate school of management in the country and consistently ranks among the top business schools worldwide. Tuck remains distinctive among the world's great business schools by combining human scale with global reach, rigorous coursework with experiences requiring teamwork, and valued traditions with innovation.