By Rieva Lesonsky
It’s becoming rarer these days to hear of a small business triumphing over the giants. That’s why I was delighted to read this New York Times story about Squinkies, a hot kids’ collectible that’s taking the holiday shopping season by storm.
If you don’t have any kids on your gift list, here’s a quick rundown of Squinkies: The tiny, plastic characters, packaged in plastic bubbles, sell for $10 for a pack of 16—making them an affordable gift for cash-strapped parents. If you do have kids who love Beanz, Polly Pockets or other tiny toys, you can clearly see the appeal.
There are several lessons any growing business that’s trying to launch a consumer product can draw from the Squinkies story.
- Stay on top of trends. Squinkies creator Bill Nichols’ 8-year-old company, Blip Toys, has only 16 employees but has had hits with several novelty toys in the past. Nichols was trying to get an idea for a low-cost toy, so he strolled the aisles at Toys R Us to see what small toys existed. He saw there wasn’t a lot that was new (Polly Pocket, a main competitor, has been around for a while).
- Know what your target customers like. Nichols learned from connections in Wal-Mart’s Japanese division that vending machine toys are popular there. He also saw they were popular at malls, amusement parks and elsewhere in the U.S., so he decided to package Squinkies in a plastic bubble, just like vending-machine toys—creating instant familiarity for kids.
- Fit the product to the need. There are still plenty of high-priced toys out there, but parents watching their budgets are desperate for affordable items that still pack enough punch to be exciting. At $10 for 16 Squinkies, the product fits the bill.
- Spur desire for more. Squinkies are collectible—each one is different—so no kid is going to want to stop at that first pack of 16. Like Bandz (those rubber wristbands that come in different shapes) Squinkies are a cheap way to satisfy kids’ urge for more, more, more.
- Use influencers to spread the word. Before the product hit shelves in August, Nichols targeted influential “mommy bloggers” by sending them test product. He garnered tons of reviews that helped spread the word.
End result? Squinkies are in such high demand that stores are already running out and were nominated for a Toy of the Year award.
Image by Flickr user Alan Cleaver (Creative Commons)
Google+Web.com is now offering forums designed to support small businesses in cities throughout the US. Learn more about these forums here: http://Businessforum.web.com/
Tags: Innovation, inventors
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