STEVENS, Pa. -- (BUSINESS WIRE FEATURES) -- June 25, 2002 -- Ever since the Ty company announced the official retirement of their hit Beanie Babies beanbag toys at the end of 1999, the market for plush, stuffed and beanbag toys has taken a nose-dive.
Plush sales have been on a steady downward spiral after 1999 when the Beanie Babies fad peaked, dropping nearly 40% from its high of $2.85 billion in 1999 to $1.8 billion in 2002, according to the new market research report from Unity Marketing, The Plush Report, 2002: The Market, The Competitors, The Trends.
"The plush market has been reeling since Ty announced the official retirement of the Beanie Babies product line, only to retract that decision shortly after the announcement. The latest consumer research for this year's plush report shows clearly where the new opportunity in the plush business is and that is gifts," says Pam Danziger, president of Unity Marketing and author of the new book Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002). "Nearly 80% of consumers buy plush to give as a gift. Retailers and manufacturers should be targeting the plush gift market as the best way to overcome the current stagnation in plush sales."
One plush company that has fully embraced the shift into the gift market is The Vermont Teddy Bear Company which offers its Bear-Gram gift teddy bears along with a wide range of USA-made gift items through its SendAmerica catalog.
A telephone survey among 1,000 U.S. households found that about one-fifth of all households purchased a plush, stuffed or beanbag toy in the past year. Households under 45 years of age are the prime market for plush, while households with children present are twice as likely to buy plush than single person or two-person homes. "Demographically women are more likely to buy plush than men. However, when men shop for plush, they are searching out gift items and tend to spend more than the typical $11 to $22 price tag," Danziger explained. The complete consumer survey results analyzing consumer purchasing behavior and demographics is included in the report.
The results of a telephone survey conducted among specialty plush retailers nationwide enhance the value of this research report. Despite the fall in the Beanie Babies sales, retailers report that the Ty brand is still the leader in plush sales. Gund is the number two brand at retail, with Applause and Mary Meyer trailing in a tie for third. Among the stores surveyed, plush is their number one product category accounting for over 25% of store sales.
