In quest for growth, German toymakers are keeping it real

NUREMBERG, Germany — In an industry upended by the changing play habits of techsavvy kids, German toymakers are pinning their hopes for growth on traditional, realworld toys — with a little help from the big screen.

At the world’s biggest toy fair in Nuremberg last week, it was a large panel showing a bearded Playmobil figure peeking from behind a curtain that perhaps best exemplified an industry in flux.

“We see us 2019” read the tagline, a tongue-in-cheek nod to how a German person with clumsy English might say it.

The teaser for the first-ever Playmobil movie may seem unremarkable — rival Lego has been doing movie tie-ins for years.

But for a company that has hardly tweaked its recipe for success since 1974, it marks a sea-change — evidence of the upheaval sweeping the sector as toymakers compete not just with each other, but also for the attention of children glued to tablets and smartphones.

Toy companies have in part responded by joining kids in the digital world, with apps, online games and YouTube videos.

They have also chased licensing deals with Hollywood studios, hoping that links with popular movie or television characters will win fans in new markets.

But some of Germany’s favorite toy brands are bucking these trends, keeping the focus on the physical products that they themselves created.

“It’s much easier for a child to really understand the fascination of an elephant, giraffe or cheetah by having it in your hand instead of just swiping over the surface of an iPad,” said Schleich chief executive Dirk Engehausen, whose company is best known for its handpainted, plastic animal figures.

Daniel Barth, CEO of Steiff, the 138-year-old company behind the iconic teddy bears with a button in their ear, agreed.

“We see ourselves as an analog brand,” he said. “You can’t cuddle an iPad.” So far, the strategy has paid off. In a near-stagnant toy market, Schleich’s global revenues climbed 9 percent in 2017 to a record 156 million euros ($194 million).

“In Germany, traditional toy manufacturers have a higher status than in other markets,” said Joachim Stempfle of the NPD research group.

Playmobil only entered the licensing game last year, creating “Ghostbuster” toys and a line based on the animated film “How to Tame Your Dragon”.

Playmobil sales shot up 11 percent to 679 million euros, and although the Bavarian giant does not release a breakdown of revenues, spokesman Bjoern Seeger said licensed toys brought “new momentum” to the brand.

Seeger said licensed toys and the upcoming Playmobil Movie allowed for “new ways of storytelling” that would bring greater attention to the brand as it seeks to expand in the United States and China.

But ultimately, there’s no substitute for children “playing with Playmobil figures in their rooms and dreaming up their own adventures,” he said.