Zhu Zhu Pets playing the disappearing game: Will they be around for Black Friday?
Filed under: Shopping, Consumer Ally
The elusive Zhu Zhu Pets faux hamsters showed up at major retailers on Sunday and disappeared from most shelves before the morning ended. Such is the life of the hot toy of the year -- following the likes of Furby and Tickle Me Elmo in the annals of toys whose scarcity was part of their allure.Zhu Zhu mania is bordering on the absurd -- creating a secondary market where the tantalizingly inexpensive toys ($8 at Walmart) become, well, expensive toys ($35.88 for one and $98 for a three-pack on Amazon.com).When the shipments came in this past weekend at some Walmart stores and were spotted on shelves, customers were denied the right to purchase them at the register. The sales were blocked.
Here's Walmart's statement posted under news on the Zhu Zhu Pets website after wannabe buyers were turned away:
"Zhu Zhu Pets hamsters are among the most sought after toys this holiday season and are quickly selling upon arrival in stores. Walmart stores have been receiving new shipments this week in preparation for their Sunday ad circular. Zhu Zhu Pets™ hamsters are currently 'blocked for sale' at stores to ensure the product is available on Sunday when advertised. Unfortunately, a few were mistakenly placed on the sales floor too early which caused the confusion at the registers. We apologize for the situation and any confusion. Zhu Zhu Pets hamsters will be available for sale at Walmart stores again on 11/8/2009."
Toys R Us instituted a rationing plan at several stores visited by WalletPop -- limiting purchases to one per family. Store managers said they expected more shipments of the critters and the habitats and accessories that make them amusing, but on no certain schedule.
Some retail analysts have said stores under-ordered in general as a conservative strategy in a down market. The consequence of that is not having the products people most want when they want them. Over the next month, as Black Friday comes and Christmas draws closer, it will become clear whether that was the problem or if consumers were being drawn in by a clever ploy to make desired items appear in short supply.
What is going to be on the list of most-desired toys isn't that big of a mystery to the retailing giants, who use their considerable tools and resources to figure it out.
"Select Toys R Us stores in Phoenix tested Zhu Zhu Pets earlier in the year," Toys R Us spokesman Bob Friedland told WalletPop. "The fun and interactive nature of the Zhu Zhu Pets hamster excited kids. During the test, we saw Zhu Zhu Pets selling well and knew it would be a hot toy."
Such testing is done regularly around the country, he said. Friedland said the issue of supply should be directed at manufacturers.
Mike Nakamura, CEO of the Chicago-based toy company Senario, told WalletPop the Zhu Zhu phenomenon seems legit.
"It follows the same format as the Beanie Babies or Webkinz. It's collectible," he said. "Those don't come along all the time."
Dan Fishback, CEO of DemandTec -- a company that turns consumer behavior into science, said even the idea that a toy can be hard to get can stimulate demand.
"It has to be perceived that it's hard to get," he said in an interview. "It doesn't have to be hard to get."
Thinking back at some past hits, such as Tickle Me Elmo, Fishback said it is less about the toy and more about how it is positioned.
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"The product has the least amount to do with it," he said. "The discretionary toy has more to do with marketing and more to do with understanding the market you are going after."
As for Zhu Zhu, which has done little advertising to spur its big build-up: "I think it's great marketing... They're creating the buzz without spending any money on advertising."
What has happened in the interim is the growth of a secondary market -- people who were able to get some of the toys and sell them at a significant premium.
If there really was a problem with under-ordering, toy manufacturers said being able to build back inventory from Chinese production plants is a challenge to do in short order.
Thinking back at some past hits, such as Tickle Me Elmo, Fishback said it is less about the toy and more about how it is positioned.
Watch "The Black Friday (Can't Get No Zhu Zhu Pet) Blues
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"The product has the least amount to do with it," he said. "The discretionary toy has more to do with marketing and more to do with understanding the market you are going after."
As for Zhu Zhu, which has done little advertising to spur its big build-up: "I think it's great marketing... They're creating the buzz without spending any money on advertising."
What has happened in the interim is the growth of a secondary market -- people who were able to get some of the toys and sell them at a significant premium.
If there really was a problem with under-ordering, toy manufacturers said being able to build back inventory from Chinese production plants is a challenge to do in short order.
"If a product takes off faster than you, as a toy company, has forecast it, your ability to replace that product is based on your supply chain," Scott Levin, CEO of U.S. toy manufacturer Step2 said in an interview. "If you don't have it in inventory to replace it immediately you have to re-order and there's longer lead times."
When you're dealing with Chinese factories, he said, it could take 90 days to retool a factory, manufacture the products and have then shipped to the U.S., Levin said. Step2, which makes molded plastic toys such as play kitchens and sandboxes, produces them in U.S. factories and can make the adjustment far quicker, he said.
Joe Battat, CEO of toy maker Battat Inc., said he tries to focus his company away from trying to develop the one-hit wonders that might light it up one holiday season. Instead, he told WalletPop, the goal is to produce toys that can remain on the shelves for years. His line of Our Generation dolls, a low-price version of Mattel's American Girl, have steadily grown their sales over the past several years, he said.
Battat said he'd rather have more of that kind of toy in his lineup than a product that flames out after a single season. He explained that it could take three years of good sales to recover all the development costs that go into a new product.
"As manufacturers, what happens with people like us, we try to come up with items that are more evergreens," Battat said. "We want to build a following with consistency...Furby lasted for one year. The guy who owned the company sold it to Hasbro. A year later it was out. Transformers went away and now it's big.
"You don't know what's going to grab the attention of kids. Kids are very hard to understand "
"You don't know what's going to grab the attention of kids. Kids are very hard to understand "




Reader Comments (Page 1 of 3)
11-10-2009 @ 4:18PM
Jon said...
Yeah Zhu Zhu Pets are quickly becoming the hottest toy on Christmas 2009. People are already having trouble getting them in November, think about December.
Reply
11-11-2009 @ 1:20PM
Wayne said...
Aren't real hamsters cheaper?
11-10-2009 @ 6:01PM
Zhu Zhu Pets said...
http://www.getzhuzhupets.com has a bunch in stock, and not too expensive, although everywhere seems to be marking them up
Reply
11-15-2009 @ 7:13PM
dara said...
this link went to amazon which is one of the jerks selling them for $50
11-10-2009 @ 9:13PM
Zhu Zhu Pets said...
There are few deals online, I'd say check them out before you buy them and make sure your kids will like them. Here is a good review site http://www.bestzhuzhupets.com
Reply
11-11-2009 @ 6:37AM
Beth said...
I can't think of anything I would rather do less than shopping the day after Thanksgiving. It is usually cold and I am still stuffed from being a piggy they day before. And the stores are pure chaos.
I can't wait to get a bargain, but you can get the same deals online. I love being a "frugalista". I just found out that the lingerie under the Gilligan and O'Malley name at Target is actually made by Victoria Secrets...and so much cheaper!
Target is also great for fashion and funky home stuff that looks like it cost a lot more, as well as for great everyday staples.
I shop at all my favorite stores through an online website fatcrumbs http://www.fatcrumbs.com that gives me the unpublished discount codes and or free shipping at about 700 stores (including Target, Walmart, Best BuyThe Gap, Best Buy, Old Navy, Drugstore.com, etc) as well as giving me between 5 and 50% back in cash on my purchases. And I can shop from the warmth of my own house in my pj's!
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11-11-2009 @ 6:44AM
linda said...
I agree, I try to do most of my shopping online. Avon offers a lot of inexpensive fashion items, cute kids items and funky jewelry as well of course their skin care and makeup. Their products as always look far more expensive than they are, so they make great gifts.
My personal favorite Avon products for me are from the Anew anti aging line. This product line is the is the greatest insider secret. I love their newest anti-aging product that is incredible. It is called Anew Reversalist Renewal Serum. The product is insanely good and much cheaper than dermatologist brands that don't work anywhere nearly as well. This serum actually helps reverse wrinkles and made my skin feel tighter and look younger. I am a huge fan of expensive serums, but this product is better than anything I ever got at my Dr's. I also love Avon 14 karat lipsticks that have actual gold fleck and are very creamy. I always buy at http://www.everydayfabulous.com where there are always discounts, coupon codes and/or free shipping
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11-11-2009 @ 8:22AM
North said...
What this article fails to mention is what the pets do and why anyone would want to get them.
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11-11-2009 @ 1:10PM
Matt said...
They do what hamsters do, exercise wheel, etc except eat and poop
11-11-2009 @ 9:17AM
Therisa said...
Well, theres no doubt where these are made and due to all our jobs and the outsourcing, there should be plenty of these to go around. Whats the population over there? Bet there are alot of Americans who would like to work for a company making things like these over here! Ridiculous!
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11-11-2009 @ 3:59PM
greenflea8 said...
I agree - I know lots of people who wants jobs. The problem is that most of these people also want union pay. One guy has a job but wants to be laid off so he can get unemployment AND work on the side.
11-11-2009 @ 9:36AM
Denina said...
There is no reason why people should buy these things. They're lame excuses for a real hamster. People need to stop being pansies and get themselves a real hamster. Deal with all the emotions, especially grief when your best friend dies.
Reply
11-15-2009 @ 1:31PM
NikNik said...
Uhh, wrong! Tried that, didn't work out so well. Guess who gets stuck cleaning the cage, if you want it done correctly? Have you ever seen a 5 yo boy "hug" a REAL hamster? I understand it is important to teach children respect for animals, but hamsters are so tiny and fragile. We have two live bunnies, and two live dogs, so my kid does have real sweet live animals to care for and learn about. But, hamsters stink, they are escape artists, they BITE when "hugged", and are a lot of trouble to maintain. So, IMO, these little Zhu critters are the perfect thing for a kid who wants a hamster w/o all the work and worry. Absolutely perfect! Too bad Amazon allows these 3rd party sellers to sell them at 500% inflated pricing. I personally will NOT be shopping on Amazon for xmas this year, if ever again because of this, and they WILL miss me, because I've bought every xmas there since 2002.
11-11-2009 @ 10:13AM
stfuhr said...
I found this site where you may still be able to get them: www.zhuzhupethamster.net .I am sure they are marked up from WalMart prices, but I bet they will sell out soon even at these prices.
Reply
11-11-2009 @ 10:08AM
anchor1234 said...
What we CAN do is not be sheep! Don't let stores manipulate you! They don't want to sell them to us when WE want them? FINE! DON'T buy them for Christmas at all. Your child has a birthday. Wait until the stores sre stuck with them after Christmas and THEN buy one for your child's birthday, or as a special treat.
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11-11-2009 @ 10:10AM
maxiesmom067 said...
Sure, go to Walmart and pay for more junk made in China. Just don't complain when YOUR job is outsourced to a foreign country and you wind up flipping burgers for a living.
Reply
11-11-2009 @ 11:36AM
Katherine said...
I am really beginning to hate that people are using comment posts to promote their own websites and agendas. And trying to mask them as real insightful comments.
Isn't there anyway to block these crap posts?
Reply
11-11-2009 @ 1:54PM
J said...
I also find these blatantly self-promotional comments extremely annoying. That's why I went to blockRediculousSpam.com and bought their new browser add-on to block this type of trash. I've just been using it for a few days now, but already I find myself much calmer. I am sleeping better, I have new-found strength and energy, my hair is no longer falling out, and the wrinkles on my face are fading.
11-11-2009 @ 11:46AM
julie said...
There's no reason anyone HAS to have this for Christmas and spend 8-10 times what they cost normally. They will be back to $8.00 in January. Our children won't die if they don't get these at Christmas. Those that spend the extra money are pure suckers
Reply
11-11-2009 @ 12:04PM
Sandra said...
The sale is supposed to start at 12:01 am at Walmart, HOWEVER the manager can decide unfairly if he wants to let you buy the toy or save it for later in the morning. I was done this way with a computer. Thankfully, because they did me a favor, because I found a much better computer at Best Buy with a much better price. and had great employee's wanting to sale it to me. In my opinion Walmart has gotten a little to big for it's britches ( old saying) and needs to come back down to reality. I don't buy anything there but food and that's only because they are the closest one to me since they ran everyone else out of business.
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