Chris Cocks

And, you know, they tend to want more sophisticated play things and collectibles.

And so, you know, if you're a company that has the expertise in that and has the brands for that, like a Hasbro, I think it's pretty good for you.

Yeah.

Well, I think there's a bunch of things happening in kind of traditional toy space.

It's never been easier to become a toy company.

There's a city in China, just a couple hours drive north of Shanghai, sorry, of Hong Kong called Shantou.

You can go there and walk through 10 Costco's worth of a showroom of toys that, you know, a thousand different manufacturers are coming with you.

And you have...

You know, if you have a decent sized checkbook, you can go and go on a walkthrough and say, I'm going to pick that one and that one and that one and buy a bunch of toys.

And suddenly you are a toy OEM.

And then you have a massive amount of distribution options ahead of you, especially with the rise of e-commerce.

But on the flip side, it's never been harder to be a traditional toy company.

There's more competition than ever.

Like we talked about before, there's more substitution, especially from digital than ever.

And you've got a narrowing set of customers to be able to appeal to.

The great thing about that is there's going to be more choice for a kid and there's going to be a higher cycle time.

The bad thing from a business perspective is it's really hard to establish a moat.

The kids cycle through and they learn about things in unpredictable ways.

A lot of kids are exposed to social media, even though they're not supposed to at earlier and earlier ages.

They watch YouTube.