In a strategic pivot to cater to an evolving market, Hasbro is increasingly focusing on adult consumers, often referred to as “kidults.” As highlighted in a recent Wall Street Journal article by Jennifer Williams, approximately 60% of Hasbro’s revenue now stems from individuals aged 13 and above. This demographic shift underscores a growing trend where adults are investing in toys that evoke nostalgia, leading to a surge in demand for certain higher-priced, collectible items.
The Rise of Nostalgic Collectibles
Adults are not just revisiting their childhood favorites; they’re willing to pay premium prices for them. Brands like Jellycat, known for their plush toys, and American Girl dolls have seen increased interest from adult collectors. These items often carry sentimental value, prompting consumers to invest in them as collectibles or display pieces. The emotional connection to these toys, combined with their perceived rarity or uniqueness, drives up their market value.
3D Printing: Customizing Nostalgia
To cater to this demand for personalized and nostalgic items, Hasbro has embraced 3D printing technology. The company’s “Selfie Series” allows consumers to create custom action figures with none other than their own faces. By leveraging stereolithography (SLA) 3D printing, Hasbro can produce these personalized figures at scale, offering the emerging “kidults” demographic a unique way to engage with their favorite franchises.
This customization goes beyond action figures. Adult fans of American Girl dolls can now envision tailored accessories or outfits, while Jellycat enthusiasts might seek one-of-a-kind plush designs. Thanks to advancements in flexible 3D printing materials like TPU filament , companies can create soft, durable, and detailed components that enhance the tactile appeal of collectibles. TPU filament’s elasticity also makes it ideal for creating accessories or wearable elements that add to the uniqueness of each product.
Navigating Tariffs and Supply Chain Challenges
The toy industry faces significant challenges due to escalating tariffs on Chinese imports. With nearly 80% of toys sold in the U.S. sourced from China, companies like Hasbro are grappling with increased production costs. In response, Hasbro aims to reduce its reliance on Chinese manufacturing, targeting a decrease from 50% to below 40% over the next two years.
3D printing emerges as a viable solution to mitigate these challenges. By shifting parts of the production process to domestic or alternative international locations equipped with 3D printing capabilities, Hasbro can reduce dependency on traditional manufacturing hubs. This approach not only circumvents tariff-related cost increases but also allows for more agile and responsive production cycles.
Strategic Product Line Optimization Through 3D Printing
To further streamline operations and focus on high-demand products, Hasbro can utilize 3D printing in several key areas:
Customized Action Figures: Expanding beyond the Selfie Series, Hasbro can offer a broader range of customizable figures, allowing fans to personalize characters from various franchises.
Limited-Edition Collectibles: By producing small batches of exclusive items, Hasbro can cater to collectors seeking unique additions to their collections, enhancing brand loyalty.
Personalized Board Game Pieces: Offering customized tokens or game pieces for popular board games can enhance the gaming experience and appeal to adult enthusiasts.
Bespoke Accessories for Dolls and Plush Toys: Providing options for personalized outfits or accessories for products like American Girl dolls or Jellycat plushies can tap into the adult market’s desire for unique, tailored items. In fact, American Girl offers a “Create Your Own Doll” feature that allows customers to customize their purchase from head-to-toe.
The Research & Development Tax Credit
The now permanent Research and Development (R&D) Tax Credit is available for companies developing new or improved products, processes and/or software.
3D printing can help boost a company’s R&D Tax Credits. Wages for technical employees creating, testing and revising 3D printed prototypes are typically eligible expenses toward the R&D Tax Credit. Similarly, when used as a method of improving a process, time spent integrating 3D printing hardware and software can also be an eligible R&D expense. Lastly, when used for modeling and preproduction, the costs of filaments consumed during the development process may also be recovered.
Whether it is used for creating and testing prototypes or for final production, 3D printing is a great indicator that R&D Credit-eligible activities are taking place. Companies implementing this technology at any point should consider taking advantage of R&D Tax Credits.
Conclusion
By integrating 3D printing into these areas, Hasbro can not only meet the growing demand for personalized, nostalgic products for the “kidults” market but also navigate the complexities of global manufacturing and trade challenges.