Collectables are very similar to magazines in the sense that they encourage repeat purchases but managing to get the best sales out is very different.

The recession has had a beneficial effect on sales of pocket money treats and toys as parents buy their children something fun without parting with large sums of money,” says Chris Clover, client services manager of distributor Magazine Marketing Company.

For independent retailers, aside from the obvious sweets and pick and mix treats, the beneficiaries from such a trend are also collectables.

In recent years the traditional sticker album with stickers that we all grew up with remains core but has also exploded into new areas as Brand Licences become more lucrative and technology allows multi platform communication.

Recent changes

Trading cards, have come down in price in recent years to meet the price of stickers, has meant collectables are seen as good value for money,” says Panini’s Head of circulation, Rebecca Smith.

The collectables market has strengthened its performance in the past 24 months, as well as its hold on kids, many adults now are able to enjoy collectable with BBC TOP Gear turbo boost and WWE franchises appealing for adults too.

The total market in 2008 was up 60% year on year and volumes up 34%.

Bankers

Magic Box’s Gogo’s Crazy Bones continues to be the success story of the moment, while Topps’ Match Attax remains the biggest seller by volume.

What are the Pitfalls

The downside is that these top-sellers often sell out fast - sometimes quicker than they can be replaced and this can lead to Customer dissatisfaction

“We’ve even heard of local primary schools banning collections because it was getting so heated in the playground,” says Punal Patel, owner of CTN Goodey’s News in Loughton. He says that Gogo’s was, indeed, “crazy” last year, with some mums coming in to buy £10 worth at a time. 

Building sales

To build on this demand, publishers claim to be investing more than ever in marketing, from TV to in-store display materials.  A major TV campaign is planned for Magic Box’s fourth Gogo’s series, while Panini has also pledged to spend more on its “higher potential” collections.

All plan to be more creative with its marketing spend to get the best value for money, developing online elements, games, quizzes and video uploads for collections.

PASS

In addition to marketing and endorsed by the NFRN, Panini has kicked off a new investment programme, focusing on point of sale and retailer relationships with its Panini Approved Sticker Stockist (PASS) initiative. It plans to sign up retailers who are proactive in the sector, communicating its product marketing plans every three months, offering PoS, an email point of contact at Panini, a 48-hour period of guaranteed allocation for launches, and prizes for outstanding sales.

Product development & Price Point

With the success of the huge Gogo’s, Brand kids are not just asking whether they just want to collect stickers, but whether or not trading cards, games or even 3D figures are on offer.

A recent Gogo’s series, for example, included a trading card game and feature metal figures, on which it “has worked hard” to maintain the all-important sub-£1 price point.

Topps’ recent WWE PowerChipz collection also stepped collectables up a gear, featuring a game using magnetic chips with a magnetic ball. Topps remain determined not to rise above the £1 price tag and has had to shop around to keep its manufacturing costs low. “We are avoiding passing increasing costs on to customers as far as possible by sourcing new materials and suppliers,” says Topps communications manager Susanne Graham.

Distribution

As the Far East supplies more of the UK’s collectables market, publishers are aware that the all-important availability issue will become increasingly challenging.

“Gogo’s has been massive for us, but we’ve not been able to get them since before the schools broke up,” says Susan Broughton, owner of newsagent and c-store Eckington Stores in Pershore. “That was the biggest collection we have seen in a long time. It’s a real nuisance that you then can’t get hold of more when it’s in full flow.”

Ben Harper, UK & Ireland director of Magic Box, admits that maintaining availability on top selling lines can be “incredibly challenging”. “Production and distribution timings are much longer than for a paper-based product. But while there have been times of shortage over the past 18 months, overall availability has been good and the longevity of the craze speaks for itself.”

“When kids started asking for Club Penguin I had no idea what they were talking about. I rang my wholesaler to order four boxes and we sold through one box in the first week,” explains Mr Patel of Goodey’s News.

Panini too says it is working to improve its distribution. “We plan to do more work on segmentation,” says Ms Smith. “Retailers know their local area far better than we do.”

Local Knowledge is King

One example of local knowledge was when Doncaster Rovers was promoted last year. “Sales of Championship stickers have suddenly done very well since promotion,” says Stephen Maxwell, manager of Doncaster CTN Smiths News. “At 20p a pack, we now have people coming in and buying five or 10 packs at a time.”

An increasing focus on the local market as well as wider trends, such as the World Cup in 2010, mean that the year ahead is likely to be a bumper year for stickers, trading cards and the new generation of collectables.

So what next?

The Football World Cup

The biggest collection of all is only a few months away, Panini plans to give away 4.5 million World Cup albums in the lead up to the World Cup, while Topps has World Cup and England-related activity planned from the Spring.

Staying on top of your game

To stay on top of the trends, retailers must talk to kids, explains Ms Broughton of Eckington Stores – especially as they return to school.

She has created a kids area, merchandising all her collections alongside penny sweets. “The most important thing to do is listen to children and find out what they do and don’t like. A lot of people underestimate kids, but we must do our best for them. They are our future customers.”

Retailer viewpoint

“In Loughton we often get kids coming in and spending £2. They seem to have money to burn,” says Punal Patel, owner of CTN Goodey’s News in Loughton. “We even get girls buying football cards, even though they don’t like football, just because their friends do.

“We have up to 15 collections at any time and we like to give them all a chance. We give a range up to a month before sending them back. We don’t want boxes sitting around gathering dust in our store for three weeks or more. We’d rather send them back and get credit. If the trend picks up again, we re-order.

 “My biggest tip is to always listen to what the kids want. So many people think of collectables as a small thing, but if you have the right ones in you can sell through 300 packs at 40p quickly. It’s amazing how word can spread among 6-13 year olds.”

Publisher:

National Federation of Retail Newsagents

Published Date:

10-Feb-10

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