What makes a toy go viral

This section discusses how squishy dumplings became a viral sensation among kids and teens, driven by social media platforms like TikTok. The toy's appeal is partly due to its mystery packaging and the element of surprise, which taps into the psychology of collecting and gambling behaviors. The segment highlights how influencers sharing unboxing videos fuel demand and create scarcity, amplifying the toy's popularity and leading to major resale markets.

The episode explores the strategic business practices that made the squishy dumpling a viral success. Zach Barber of RMS Toys emphasizes the importance of tweaking existing toys rather than inventing new ones from scratch, leveraging trends and adding surprise elements like rare variants and limited series to boost sales. RMS's nimble supply chain, which manufactures toys on short notice based on real-time demand, allows them to quickly capitalize on virality and avoid excess inventory. The focus on scarcity, limited editions, and peak short-term production has been crucial in maintaining consumer excitement and market dominance.

This section delves into why surprises and scarcity appeal to consumers, drawing parallels with collectible trading cards and casino gambling. The psychology of variable ratio reinforcement keeps consumers engaged by constantly risking and hoping for rare items. The episode explains how the cultural phenomenon of limited-edition drops, exemplified by beanie babies and other collectibles, has shaped modern toy marketing. The playful yet strategic manipulation of the supply chain and marketing builds consumer excitement and reinforces the trend.

Zach Barber describes RMS's innovative supply chain approach that is designed for rapid response and minimal inventory. Unlike traditional toy companies that produce and stock large quantities in advance, RMS produces toys just in time, based on immediate orders. This just-in-time model allows them to react quickly to social media trends, release limited quantities, and maintain a sense of scarcity without the risk of unsold excess. The strategy has been instrumental in handling the explosive growth of products like the squishy dumpling.

The episode discusses how viral toy trends are difficult to predict and how big toy companies are struggling to keep up with small, agile competitors who excel at social media marketing and trend responsiveness. The influence of platforms like TikTok is undeniable, and companies are now employing social media specialists to monitor viral trends. The episode concludes with a reflection on the fleeting nature of trends and how companies must continually adapt to maintain their market share in a rapidly changing landscape.