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Success Never Looked So Cute: How Beanie Babies Took the World by Storm

Article Overview: “Some companies are in it for the quick buck,” Warner once said back in 1996. “I want longevity.” In 1998, Ty Inc. surpassed Mattel Inc. and Hasbro Inc. to become the largest toy company in the U.S. How did this college drop out earn himself a spot on Forbes’ World’s Richest List?

Success Never Looked So Cute: How Beanie Babies Took the World by Storm

"Some companies are in it for the quick buck," Warner once said back in 1996. "I want longevity." In 1998, Ty Inc. surpassed Mattel Inc. and Hasbro Inc. to become the largest toy company in the U.S. How did this college drop out earn himself a spot on Forbes' World's Richest List? Scarcity: Warner employed a carefully calculated strategy of distribution - using only smaller niche stores - and marketing - limiting supplies to stores and retiring select styles sporadically. In doing so, he was able to create a ‘now or never' mentality around his toys and "control the fad". Collectors and retailers alike became anxious to get as many styles as they could before time ran out.

Secrecy: "It was fun," Warner said after one of his rare visits to a toy store where he autographed Beanie Babies for eager children. "But I think leaving it all a mystery is better." Warner traded in his early eccentric ways for a reputation as a recluse that helped create a mystery around not only himself but also his products. By not revealing too much, he always left people wanting more.

Determination: Ignoring the critics who called his original Beanie Babies "road kill," Warner continued on his quest to create the world's best quality plush toy in the child-friendly price range of $5. He understood what they wanted - something cute, cheap and easy to carry - and gave them exactly that, ignoring all those who stood in his way.

Risk: He quit college to try his hand as an actor in Hollywood. He wore a fur coat and drove a Rolls Royce to sell children's toys. He invested his life savings into a $5-20 dollar toy business. At every point turning point in his life, Warner decided to embrace the riskier decision, to take a chance and roll the dice. He was betting high and winning even higher.

Partnerships: Despite shunning the traditional advertising methods throughout most of his career, Warner knew that when the time was right, he would be willing to embrace select strategic partnerships. That time came with McDonalds, and it came with Cyrk, two companies he teamed up with in promotional campaigns that proved wildly successful. He thought outside of his own product range to embrace the possibilities of partnership.

While the Beanie Baby craze might have cooled down in recent years, Warner continues to rank as one of the world's wealthiest people. Today, he remains at the helm of Ty Inc., manufacturing and distributing Beanie Babies, Ty Girlz and a range of other plush toys. He has also diversified with investments in hotels, property and golf courses.

Becoming a billionaire off of a product line that retails for between $5 and $20 is no easy feat. But Warner's master skills as a marketer and insight into the minds of children across the U.S. have proved a deadly combination, one that has taken him from college dropout to business legend.

Related Articles
  Lesson #3: Listen To Your Customers, Not Your Critics
  Taking Beanie Babies to the Bank: Warner’s Company Takes Off
  Lesson #1: Tease Your Customers into Wanting More
  The Toy Tycoon: The Early Years of Beanie Babies Founder Ty Warner
  Lesson #2: Use Secrecy to Seduce Your Customers

Article Tags: beanie babies, forbes world, hasbro, hasbro inc, longevity, marketing, mattel, mattel inc, niche, scarcity, toy company, ty inc



Related Forum Posts
Profile Ty Warner next? - Hi Evan, I'm not sure if there's enough info... but what about a profile on Ty Warner, the founder and CEO of Ty Inc. and things like Beanie Babies?
Name for website - Hmmmm Authors World Authors Network Authors World Wide Weblog World Wide Authors Arboretum (or some other alliterative word) WritertoWriter Writer to Reader WritersWorld WritersConnect AuthorsandtheirReadersBlog
Commercial cleaning - [quote:2zma5fer]Recently she started a commercial cleaning business. [/quote:2zma5fer] Well... why not take advantage of the fact that it's your Mom's business? Take advantage of the cliche of mother's cleaning (although is the cliche the mothers-in-law who clean, thanks to Everyone Loves Raymond). Why not Psycho Mom's Cleaners or Clean Enough For Mom. Although admittedly that doesnt sound quite as professional as the two names you've advanced. Cute and memorable, vs professional and lost amongst others....
Re: A great Women's Industry - Actually as far as "women" industries are concerned, I've noticed more specialty niches popping up for products for new mom's etc. There's a woman on Twitter who even specializes in product for aunties. Now that more baby products are popping up to help new moms - wrking moms etc - I see that as a women's industry that women can REALLY own. Adding a blog for new moms will never get old. Babies are born every day and we all know - it's easy to get pregnant (for most) but what to do when the baby comes?
Re: THE SECRET TO SUCCESS IS ALL IN YOUR HEAD...RIGHT NOW!!! - Success = Thinking (Head) + Heart (Feeling / Interest) + Hand (doing/ action). Success - H3 Robert


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