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 Post subject: Hasbro Fails to Capitalize on Another Success? (DDP in SDCC)
PostPosted: Sat Jul 20, 2013 1:46 am 
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Ok. We all know that SDCC is going on and we have most likely also seen the interviews with Derryl DePriest on various websites.
I would like to quote part of these interviews:

Quote:
Phillip: Should we expect more of those figure waves we've seen at Dollar General and online?

Derryl: There is no additional Dollar General wave planned, if you're talking about a Wave 3 of that. We don't have it on the drawing board, although that channel - we call it the discount channel - does want to see that continue. We just haven't pulled the trigger yet, so there's a possibility that it will continue. But right now, no specific plans.


Now I shall post two quotes (not mine) from other boards that mirror my own thoughts on this statement:

Quote:
It doesn't bode well when DDP says there is currently no plan to continue the Dollar Store line. Really? The line is all repaints/part reuses, has sold successfully, and the dollar stores want to continue it (DDP's words) and there's no plan to continue it?!


Quote:
Someone correct me if I am misunderstanding what he said about the dg or basic line. He suggested that discount retailers want more waves of these but that they have no plans to do any yet. So let me get this straight, one of the problems joe has is that retailers don't want it. Well, this wave, retailers do and hasbro won't make em? I think it's safe to say the basic line has been a success so instead of riding it, they're gonna let the line fizzle out? I'm confused.


I will now quote myself from last year:

Quote:
...Successes are never followed up on:

This really bugs me. I remember how, back in 2006-7, Adventure Team figures were released as store exclusives. It seemed to sell out everywhere (except for the Urban Outfitters Air Adventurer with the wrong outfit). Hasbro decided to capitalise on that success by doing absolutely nothing. Not only that, but according to various message boards, retailers actually asked Hasbro for more AT exclusives, but were turned down! Are you #@$%& kidding me?


So Hasbro is constantly giving one reason after another why they can't do this, that, or the other thing with GI Joe, but when they experience success, they have "no specific plans" to continue the items that were successful? Even though the discount retailers want said items?

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 3:47 am 
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It's a longevity problem. What if they just keep coming? Yeah, we get lots of toys in the short run. But 5-10 years from now, G.I.Joe is "that cheap discount store toy." That may sound like an exaggeration, but is exactly what needs to be avoided.

I'm not saying that I am happy there aren't more planned. I love these figures and it is disappointing. But I totally get why.


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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 3:54 am 
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notpicard wrote:
It's a longevity problem. What if they just keep coming? Yeah, we get lots of toys in the short run. But 5-10 years from now, G.I.Joe is "that cheap discount store toy." That may sound like an exaggeration, but is exactly what needs to be avoided.

I'm not saying that I am happy there aren't more planned. I love these figures and it is disappointing. But I totally get why.

Is that before or after all of the unreleased stock is found at Big Lots/Ross?

I hate to be a Debbie Downer, and I lurked these boards long before I ever registered here, so I've seen the many cries of "End of the line!", but I feel like it doesn't bode well that everything in the "main" line was pushed back, and then this highly successful line is not being continued.

Of course they keep rebooting the line, so I'm curious what the next iteration is going to be. Will they go back to 5" figures like Savage, or bigger like Sigma?


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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 4:59 am 
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Rand wrote:
Is that before or after all of the unreleased stock is found at Big Lots/Ross?


Selling to discounters is a way of cutting your losses, not a way to keep G.I.Joe around. Clearing out stock to discount stores is an entirely different thing than manufacturing them specifically for that purpose.


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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 7:52 am 
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notpicard wrote:
It's a longevity problem. What if they just keep coming? Yeah, we get lots of toys in the short run. But 5-10 years from now, G.I.Joe is "that cheap discount store toy." That may sound like an exaggeration, but is exactly what needs to be avoided.

I'm not saying that I am happy there aren't more planned. I love these figures and it is disappointing. But I totally get why.


That's not really what cast is talking about, imho. He's saying there's an endemic pattern of failing to capitalize, not one specific instance of why they won't continue this one project. Its bled over to the MU line as well.

As to this DG issue, I think its more due to factory scheduling issues. That's more central to Hasbro's problems across all their non-movie lines and distribution overall. Hasbro apparently has difficulty finding additional factories to expand production, and has to squeeze manufacturing of the smaller lines in between the movie-supported lines.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 8:03 am 
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I have one question. Does Hasbro sell these cheaper to the discount stores or do they sell them at the same price as mass retail? Dollar General sells them for 40% less than mass retail, but are they taking that hit or is Hasbro? If it's Hasbro I can see why they would be weary about continuing until they see the final sales numbers of the second wave.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 9:28 am 
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Hasbro sees the final sales numbers as soon as DG's check clears. What happens to the figs once they're DG's property has no bearing on Hasbro's income. Since the line is built around minimally-accessorized repaints, the only consideration should be whether Hasbro gets enough money from the materials, labor, and shipping to warrant fitting the figs into their production schedule; which they apparently don't.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 9:44 am 
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Hasbro may receive their income once they sell to Dollar General, but the final numbers for Dollar General still very much has an impact on Hasbro. Dollar General may want a wave 3 because of the popularity of wave 1, but what happens when Hasbro goes through the 6-12 month process of producing wave 3. Meanwhile wave 2 doesn't sell as expected so Dollar General declines to purchase wave 3. Now Hasbro is stuck with product and no retailer.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 9:53 am 
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notpicard wrote:
Rand wrote:
Is that before or after all of the unreleased stock is found at Big Lots/Ross?


Selling to discounters is a way of cutting your losses, not a way to keep G.I.Joe around. Clearing out stock to discount stores is an entirely different thing than manufacturing them specifically for that purpose.


Yup, to Notpicard you listen.

Would you count a success as selling a product that normally goes for $10 each to one retailer for 50% of MSRP to be a success? How many of those could they have really sold? How much profit could be in selling one product to one store? Hasbro works on a global scale.

The old figures could be cranked out at $3 each because they had:

Wal-Mart
K-Mart
Sears
Med-X
Eckerd's Drugs
Service Merchandise
Venture
TG&Y
OTASCO

And thats just a few of the places I personally bought Joes back in the day. I think maybe the DG runs were just to keep the factory lines open and engaged for additional product later. You quit using those lines they are gonna gear up to produce something else and you've lost them for your needs later.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 10:07 am 
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I don't have any idea about the why's, but this is kind of disappointing. It would have been neat to see another wave with different characters.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 10:26 am 
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There have been figures at Dollar General since Valor Vs Venom. Why start worrying about 'image' now?

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 11:19 am 
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notpicard wrote:

Selling to discounters is a way of cutting your losses, not a way to keep G.I.Joe around. Clearing out stock to discount stores is an entirely different thing than manufacturing them specifically for that purpose.



Pretty much this. And discount exclusives like the Dollar General things aren't really going to probably make money for hasbro as much as help them not lose money or "recoup" I suppose in a very indirect and complex manner. Maybe they reap a profit from it I dunno. I'm just guessing they don't OR it isn't a black and white thing.

Don't get me wrong..... I think continuing it is something they should do but it is not even remotely their bread and butter I don't think by any means nor could it ever be.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 1:47 pm 
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AdrienVeidt wrote:
notpicard wrote:
It's a longevity problem. What if they just keep coming? Yeah, we get lots of toys in the short run. But 5-10 years from now, G.I.Joe is "that cheap discount store toy." That may sound like an exaggeration, but is exactly what needs to be avoided.

I'm not saying that I am happy there aren't more planned. I love these figures and it is disappointing. But I totally get why.


That's not really what cast is talking about, imho. He's saying there's an endemic pattern of failing to capitalize, not one specific instance of why they won't continue this one project. Its bled over to the MU line as well.

As to this DG issue, I think its more due to factory scheduling issues. That's more central to Hasbro's problems across all their non-movie lines and distribution overall. Hasbro apparently has difficulty finding additional factories to expand production, and has to squeeze manufacturing of the smaller lines in between the movie-supported lines.

Thank you for getting what I'm saying.

As far as factories and other such issues, I believe that Hasbro may have grown too big and is trying to produce too many lines at once. Notice that a few years back, Marvel Universe only got two waves that whole year because Avengers and other Marvel tie-ins were the focus. It seems that Hasbro lines are competing not with other companies' lines, but with each other.

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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 2:53 pm 
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We don't have access to sales numbers, just our best guesses based on what we see lingering on or flying off of pegs. Is it better to wait until a toyline causes retailers to lose money to pull the plug or is it better to stop while you are still ahead?

I still don't see the window of opportunity that Hasbro has missed, at least not a big one. I often feel that companies tend to think too short term, only looking at how well they did this year vs last year. But this isn't one of those cases. If they want to be able to revitalize G.I.Joe, they need to make sure they don't burn bridges.

Wal-Mart had dropped the 30th line. That doesn't sound like Hasbro passed an opportunity to me. It sounds like the opportunity wasn't there. Retaliation was tied up in the delay. Not much opportunity there. If you aren't talking about the DG figures specifically, what great opportunities do you mean?

And they did have the VvV repaints at discount stores years ago, but...that was years ago...almost a decade now. The world has changed a lot in that time.


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 Post subject: Re: Hasbro Fails to Capitalize on Another Success? (DDP in S
PostPosted: Sat Jul 20, 2013 8:23 pm 
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Several of my local DGs still have the JvC figs. Picked up another TeleViper not six months ago.

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