Chris Cocks

I think the tough thing about toys is it's a super low-margin business, especially in manufacturing, and it's a very labor-intensive business.

And the SKUs change a lot every year.

I think...

I think close to 60% of our toy skis are new every year.

So it's tough to automate just because stuff changes.

I think that's a tough business to nearshore to the US.

Like the way you nearshore is usually through automation.

I think for there to be meaningful nearshoring for something like toys, you would need...

you would need a step change technology.

Like you'd have to really be able to figure out 3D printing on a mass scale, which was the equivalent quality and cost of mass produced plastic mold injection.

It's probably in the neighborhood of 50% to 60% more to make a toy in the U.S.

than it is in Southeast Asia.

And that's a factor of labor.

Yeah, you'd need real automation, real standardization, or some kind of massive process innovation, like a whole new way to kind of make things.

And then it would just kind of negate a labor advantage because it wouldn't really create a lot of net new jobs because so many of those jobs would just be automated.

That $100 million was kind of all in to outsized data sourcing and new data analysts and custom market research and all that kind of good stuff.

And I would say...

I would say it's worked out pretty well.

Like, you know, certainly businesses like Magic the Gathering, which I think since we talked is maybe 80 or 90% bigger, it's really worked out.

Like it's really helped us be able to understand what the customers want, how to segment products, what people to partner with that would appeal to that customer base.