By Sonal Gandhi
Chief Content Officer at The Lead
In this week’s news, toymakers are upping their partnership game in order to beat the tariff threat. Some are partnering with artists for higher-end collectibles while Mattel also announced a partnership with OpenAI. Meanwhile, investment in stores continues – H&M is investing in store technology to improve the experience while Nordstrom is expanding its local format into Brooklyn.
Under threat from the global trade war, toymakers are looking for a tariff-proof consumer. They are trying to attract adult collectors by teaming up with artists to create exclusive, expensive toys like $350 Barbie dolls and $8,000 Lego sets. These are generally pitched as works of art intended for display rather than mass-produced products designed for children’s play. Hasbro, Lego, Mattel and others have created dedicated sites to sell these higher-end toys to collectors. (NY Times)
Mattel is partnering with OpenAI to design AI-powered products and experiences for the toymaker’s brands. Mattel will use ChatGPT Enterprise as part of its product development and to better engage with its audiences. The companies plan to develop “a series of products and experiences” for age-appropriate play experiences, the first of which they plan to announce later this year. (Retail Dive)
H&M is investing in RFID, along with AI and live analytics, to evolve how its 4,000 worldwide stores operate. The goal is to bring the same level of data and responsiveness found in e-commerce to the store floor. RFID tags have become cheaper in recent years, meaning brands now pay $0.10-$1.50 per tag while getting tracing and product info at all stages in the supply chain. In-store sensors then track how products move and which displays attract shoppers. And finally, AI-powered dashboards update in real-time, giving staff live insights into what is selling and what is not. (Glossy)
Nordstrom is expanding its New York footprint with the June 26 opening of a Nordstrom Local in Brooklyn. Services in the 3,000-square-foot Williamsburg location include online order pickup, alterations, returns, gift wrapping and clothing donation. (Retail Dive)
Farfetch is expanding and ramping up support for the brands on its platform with the relaunch of its in-house advertising business. The aim is to give regional brands the opportunity to reach a wider audience, and global brands the potential to accelerate their growth. (WWD)
Sperry is heading back to the U.K. and Ireland through a distribution partnership with Gardiner Bro. (WWD)
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