Google AI


Modern Australian

how toy makers are making a fortune with child gambling

  • Written by: Louise Grimmer, Senior Lecturer in Marketing, Tasmanian School of Business and Economics, University of Tasmania

For many of us, our first experience with “gambling” was the lucky dip at the local school fete. We handed over our pocket money and hoped the plain packet we selected would contain something worth our 50 cents.

Now the lucky dip has been reinvented and become ubiquitous in the form of the blind bag toy.

Blind bags (also referred to as surprise packs or surprise toys) involve small and collectible toys hidden inside opaque packaging. There are now hundreds of different blind bag lines, from old favourites such as My Little Pony, Transformers and Teenage Mutant Ninja Turtles to new fads like Tokidoki, Zomlings and the hugely popular L.O.L. Surprise! dolls.

how toy makers are making a fortune with child gambling L.O.L. Surprise dolls come packaged inside a plastic ball. www.shutterstock.com

Though no statistics for global blind bag toy sales are available, data from the United States give an indication of their phenomenal growth in recent years. Between 2017 and 2018, market analyst NPD estimates the blind bag market in the US grew by about 60% even while total toy sales fell 2%.

Not surprisingly the US Toy Association declared “The Big Reveal” its top trend for 2018, with “the act of removing a surprise toy from a blind bag” being “just as exciting as the toy itself”.

Read more: The power of rewards and why we seek them out

There’s no reason to think 2019 will be any different in the US or around the world. Indeed, if toy aisles in stores are anything to go by, buyers’ appetite for blind bags appears to be ballooning.

The factors driving this sales growth include social media – in which “unboxing” has become an entertainment in itself – and the growing adult market for toys.

But the three most potent elements are the combination of price, the appeal of collecting and the psychological lure of surprise. It’s these three things that make blind bag toys so ethically problematic.

Collect them all!

Compared with other options, blind bag and surprise toys seem cheap. In Australia, prices range from about A$1.60 to A$15. This makes them attractive to children and adults alike, particularly as stocking stuffers at Christmas.

But the problem is that one is never enough.

how toy makers are making a fortune with child gambling Collect them all! Marvel Ooshies advertising.

Almost all blind bag toys are marketed as collections – with “collecting them all” emphasised in packaging and advertising. There may be dozens to collect. Ooshie maker Head Start International, for example, has released four series of Marvel Ooshies with a total of 164 toys to collect.

So despite not being very costly to buy once, the costs add up.

As we’ve noted before in discussing the Ooshies phenomenon, collecting is attractive to children. While an estimated 30% of adults collect something, more than 90% of children do so. Collecting appeals to children’s natural curiosity and is also a way of understanding the world through gathering and categorising.

Read more: Ooshies – a cautionary toy story about cashing in on childhood innocence

The blind bag business model weaponises this collecting impulse through the gamble of the lucky dip. It combines the pleasure of reward with the element of surprise, which is both compelling and addictive. It taps into the same psychological mechanism that results in gambling addiction – namely intermittent reinforcement.

Intermittent reinforcement

The seductive, manipulative power of intermittent reinforcement (also known as variable ratio reinforcement) was famously shown in experiments with pigeons in the 1950s led by the noted American psychologist B.F. Skinner.

His team trained pigeons to peck a small lever that led to a food reward. When rewarded every time, the pigeons pecked the lever only when they were hungry. But when rewarded intermittently, they became compulsive peckers.

B.F. Skinner explains variable ratio reinforcement.

Th effects of intermittent reinforcement have also been demonstrated in clinical tests with children.

This helps explain the phenomenal growth and profitability of blind bags for toy companies. With the outcome being uncertain and the reward intermittent, the dopamine rush of opening each new bag is maintained.

Loot boxes

A virtual form of blind bag is proving even more profitable for video game companies. They’re known as loot boxes, which players can buy with real money in the hope of scoring “equipment” or “skins” to enhance their game avatar. More often than not they don’t contain anything the player wants. Which is why players keep buying.

A study this year estimated loot boxes could be worth US$30 billion a year to the video game industry.

Concern about loot boxes effectively exposing children to gambling has led to calls in many countries for greater regulation. Belgium has banned them. In Britain, the government is considering making companies that make money using loot boxes hold a gambling licence. In Australia, the federal government says more research is needed before it will regulate.

Read more: Gaming or gambling: study shows almost half of loot boxes in video games constitute gambling

How different is a blind bag toy?

Maybe you are always assured a toy, but the relative scarcity of different toys in a series means some are worth much more than others, and the desire for those will drive further purchases. It’s a business model that still fundamentally works on the same principles that make poker machines, scratchies and other forms of gambling so addictive.

So while blind bag toys can be fun, the use of “blind” packaging and intermittent reinforcement to drive sales must be considered ethically problematic, especially given they are targeted at children.

As in all things, awareness and moderation are key.

Authors: Louise Grimmer, Senior Lecturer in Marketing, Tasmanian School of Business and Economics, University of Tasmania

Read more http://theconversation.com/blind-bags-how-toy-makers-are-making-a-fortune-with-child-gambling-127229

Breach of Contract in Business: What Are Your Options?

Contracts are essential to business relationships. They establish expectations, allocate responsibilities and provide a framework for delivering goods...

How Pest Control Companies Can Rank for the Problems Customers Search First

Introduction SEO for Pest Control needs to start with the customer’s problem. Most people do not search for pest services in a neat or technical wa...

What Are the Benefits of Renovating an Older Home in Sydney?

Sydney has plenty of character homes, from Federation cottages to mid-century brick homes. Renovating rather than rebuilding can preserve what makes t...

Pool and Deck Design: How to Plan the Perfect Outdoor Living Space for Your Sydney Home

For many Australians, the backyard is where life happens. Summer barbecues, weekend swims and long evenings outdoors are all part of the lifestyle, ...

Is Solar Pool Heating Worth It? What Sydney Homeowners Should Know

There's nothing quite like a backyard pool on a hot Sydney day. But once autumn rolls in, many pools sit unused for months because the water is simp...

Planning a Luxury House Move: A Week-by-Week Timeline for Prestige Sydney Homes

Selling or buying a prestige home is a major milestone. Whether it's a waterfront residence in Birchgrove, a grand Federation home in Haberfield or ...

Downsizing or Upgrading Your Caravan? Here's How to Sell It Without the Hassle

Selling a caravan can feel like a major task, especially when you are unsure about its value, paperwork, or how to find a buyer. Whether you are dow...

The Best Overseas Adventure Holidays for Australians Who Love the Outdoors

Australia offers no shortage of incredible outdoor experiences, but sometimes the best way to satisfy your sense of adventure is to head overseas. A...

Cape Town Wine Shuttle: Winelands Tasting & Tours

Embark on an unforgettable journey through the picturesque Cape Winelands, where world-class wines and breathtaking scenery await. Our Cape Town Win...

Metal Fabrication: Choosing Metal Fabrication Melbourne Services for Custom Projects

What Modern Metal Fabrication Involves From individual components to complete structures, metal fabrication brings together processes such as desig...

Why Giant Rats Tail Grass Keeps Coming Back After Spraying

Giant Rats Tail Grass (GRT) is one of the most frustrating pasture weeds for farmers and lifestyle property owners. You spray an infested area, see th...

When Custom Cardboard Boxes Make Sense for Your Business

Custom cardboard boxes can be useful when a standard carton does not fit a product, packing method or presentation requirement particularly well. A ...

Full-Height vs. Pop-Top Caravan: Which Is Better for Family Travel across WA?

A pop-top caravan is an excellent choice for travellers who want the comfort of a caravan without committing to a larger, bulkier setup. With a lowe...

Bottle Label Printing: Key Factors for a Professional Finish

Why the Printing Method Matters When businesses need packaging or printed containers developed for a particular application, the right supplier can m...

Virtual Livestock Fencing and GPS Tracking: Improving Visibility Across Cattle Properties

What Virtual Livestock Fencing Means for Modern Cattle Management Managing cattle across extensive properties requires more than knowing where anim...

Sydney Pawnbrokers Explained: How Hocking Your Car Actually Works

Sometimes you need cash, and you need it soon. If you own a car, you may already have a way to get it. That's what people mean when they say they've...

Moving Interstate from the Gold Coast to Brisbane (or Back)? What Removalists Wish You Knew First

Have you talked to anyone who’s done the move? They say the same thing: the drive up the M1 is the easy part. It's everything around it that catches...

Why the Spring School Holidays Are a Great Time to Visit Coffs Harbour

The spring school holidays are a good time to spend a few days on the Coffs Coast. The weather is starting to warm up, there is plenty to do outdoor...