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Webkinz Speaks Says "Pressure" on Retailers Was Self-Generated
 TDmonthly: There were a lot of rumors circulating about what caused last year’s Webkinz shortage. What’s the real story?George: We weren’t expecting such a huge explosion. Everybody ordered at the same time.Also, we weren’t expecting people to collect them. A child needs just one toy to get on the website. TDmonthly: Why was Ganz not getting the message through to its retailers that the company was overwhelmed? George: There was high demand all at one time. Not only orders, but phone calls, emails. TDmonthly: Couldn’t the company have sent out mass emails to their retailers? George: We did email blasts to our customers; the problem is that you don't have email addresses from all your customers.  We expected a tidal wave to come in at 20 feet, but it came at 80 feet, so we got buried. TDmonthly: Retailers complained to TDmonthly that they were being forced to buy unwanted product, such as the everyday line, to get Webkinz. George: They didn't have to buy anything from us to get Webkinz, but we limited the quantity based on what they were buying. If someone wanted to place an order for 36 pieces, they didn't have to buy anything. But if they wanted 2,000 pieces, we had to create different levels. We had to rank them by what they were buying. If they wanted something from us and wanted to get higher ranking, there was only one way to get there. TDmonthly: I attended a meeting of about 50 retailers, many of whom felt pressured by Ganz to buy product, such as a 6-foot witch, that they later had to raffle off or discount heavily to buy Halloween Webkinz. George: If [retailers] felt pressured, it was only to be the first with the most Webkinz. A lot of that [complaining about pressure] started on a retailer's website … so we had to put up our own website where you could put up any questions you wanted.  The day it came out that Wal-Mart was going to have Webkinz, everybody [in the chat rooms] said we did it. But we didn’t do it. TDmonthly: The toys are still in Hallmark and J.C. Penney. George: I think J.C. Penney is on our website. [Editor’s Note: www.webkinz.com, store locator, Janesville, Wisc.] Hallmark stores are where we do the majority of our business. Webkinz were developed for Hallmark-type stores (i.e., card and gift stores). The first 200 stores where we tested the product in April 2005 were Hallmark stores. TDmonthly: What about Webkinz being sold in leather stores and gas stations? George: That was all third party. We don't think we can stop it all, but we stopped a lot of it this year. TDmonthly: If things are under control, how are you getting that message out to specialty retailers? George: We have their email addresses now. …We send email blasts to all of them and encourage sales reps to have them go onto our retailer website. TDmonthly: How do you think toy-store owners feel about Ganz and Webkinz in 2008? George: The retailers who stayed with us, their sales are up over last year. The biggest concern they have now is can they get enough? We're limiting what we put out there [because we’re] trying to control the gas stations, 7-Elevens — that kind of reselling of the product. TDmonthly: How many specialty retailers did you lose during the shortage? George: We lost the ones we shut down because they were reselling the products. TDmonthly: Is the number of small stores that carry Webkinz up or down from last year? George: We’re about the same. TDmonthly: What about sales? George: They’re definitely up. TDmonthly: What can you say that might help regain the trust of retailers who felt burned by Ganz? George: Retailers told me they never thought they'd see another item as big as [Ty’s] Beanie Babies. They've experienced something twice. It was our first experience. …. We learned a lot in a year and things are going pretty smooth right now. [Editor's Note: Ganz is now promoting a "Webkinz Day Extravaganza," which will allow retailers to give away free Webkinz with minimum purchases on April 25, 26 and 27.] To find out how to deal with a burning hot toy, read How to Survive a Monster Hit. To learn more about retailers’ frustration during the shortage, read Webkinz Get Sued. To read about one retailer's experience with Ganz's Loyalty Program, visit TDmonthly's Forums. And here are the Webkinz:
 Writer's Bio: ALISON MAREK is an award-winning writer, director and cartoonist whose work has been published by Fairchild Publications and DC Comics (Piranha Press), broadcast on Showtime and other cable networks, and viewed worldwide in film festivals. See her short films and print work on www.alisonmarek.com. Watch her nefarious villains in the web series www.MuggsMovers.com. Get inspired by her cartoons "Daily ARFFirmations to Unleash Your Inner Fido" at www.ARFFirmations.com. Phew! And then ... Read more articles by this author |
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