Supply chain issues could fuel a new holiday toy craze

As the holidays near, toy companies and retailers warn that some presents might be harder to find as businesses struggle against inflated shipping costs, labor shortages and other supplychain issues.

The result could be a phenomenon only experienced a few times in the last four decades: a toy craze, which erupts when a toy captures the hearts of children, producing a feeding frenzy around the holidays as panicked parents try to secure one. The ensuing craziness can fuel a new line of products — or even save a famed television show.

In 1977, 22-year-old Xavier Roberts created Cabbage Patch Kids, making each of his one-of-a-kind “Little People” by hand. The soft, squishy baby dolls had round features and eyes set a little too close together.

Roberts showcased his creations at “Babyland General Hospital,” a recreation of a maternity ward where employees portrayed nurses delivering babies from cabbages. Children watched the baby’s birth, swore an oath to take care of it and signed adoption papers. Instead of prices, babies came with “adoption fees,” ranging from $125 to $1,000.

In 1982, a small manufacturing company, Coleco, licensed the “Little People” rebranding them as Cabbage Patch Kids. Retailing at $20, the dolls were no longer hand-stitched but were still one-of-a-kind and came with a birth certificate.

Cabbage Patch Kids hit the shelves in June 1983. Coleco launched an ad campaign targeting parents with commercials in adult programming and a feature on NBC’s “Today” show. The ads extolled how the wholesome and nostalgic dolls — which needed loving homes and parents — would teach children to be kind and nurturing.

The campaign hooked parents. Demand quickly exceeded Coleco’s expectations and their supply. Stores that stocked 200 dolls were flooded with thousands of parents.

Scarcity only made the dolls more popular as the holiday season approached. Securing the must-have toy became a symbol of status, even as interviews revealed that most shoppers found the dolls to be ugly. “I don’t like their faces,” one shopper remarked, “but I want one.”

Grown women ripped dolls out of the hands of children. A stampede of shoppers trampled a woman in Virginia, breaking her leg. A West Virginia store clerk attempted to protect himself from angry shoppers by climbing on the store counter and brandishing a baseball bat.

By the end of the holiday season, Coleco had sold 3.2 million dolls, grossing $65 million.

Sales kept exploding for another year, but by late 1985, supply finally met

demand. Parents could find a Cabbage Patch Kids without physically fighting or haggling for the best price. The craze was over.

Toy inventors Greg Hyman and Ron Dubren planted the seeds for the next toy craze in 1992. They presented Tyco executives with a toy monkey that laughed when someone touched his belly. The executives liked the idea but wanted to tie it to a licensed character.

In 1996, they landed on Elmo, a popular secondary character on “Sesame Street.” Crucially, there were no Elmo toys yet, and his high-pitched giggle and loving personality made the character a perfect fit. The final product was a 17-inch plush doll that laughed when you pressed Elmo’s belly. If you pressed it again, he laughed harder and started to shake. His laughter escalated until he exclaimed, “Oh boy, that tickles!”

Parents trampled each other and store clerks to get their hands on the fuzzy red Muppet. One Walmart worker caught in a stampede suffered injuries including a broken rib and a concussion. Tyco quickly sold out of their stock of 400,000 Tickle Me Elmos and rushed to make more.

Adrienne Appel, senior vice president of marketing communications at the Toy Association, a nonprofit trade association for toy businesses, recently commented that because of ongoing supply-chain issues, toy experts “don’t think there is necessarily going to be one standout toy like in years’ past. Instead, the hot toys will be the ones that are actually in stock.” But history tells us otherwise. Scarcity and heightened media attention are two of the elements in toy crazes, so I wouldn’t count your toys before they hatch.