Following my recent LinkedIn post highlighting two companies in my “naughty corner,” I’ve been thinking more about ethics in the toy industry. It’s not the most glamorous topic, but it’s one that shapes everything – from the products on shelves to the long-term health of the sector.
The toy industry runs on trust. Parents and educators expect the toys they buy to be safe, well-crafted, and enriching for children. That trust, however, is fragile. When companies cut corners – copying ideas, squeezing suppliers, or bending regulations – they chip away at that confidence. Rebuilding it isn’t easy, and once it’s gone, the damage can linger.
The problem isn’t hidden. We all know who copies who and which companies bend the rules. It’s not exactly whispered behind closed doors – it’s just accepted as part of the business. Why? Because playing it safe and chasing short-term profits feels easier than taking risks to do things the right way.
I’ve seen it firsthand. Some distributors watch which products are selling, then launch a clone as soon as they see success. Negotiating hard when the balance of power shifts? That’s just business. But copying and passing it off as “innovation” is a shortcut that ultimately undercuts the industry’s creative foundation.
The toy industry needs creativity, imagination, and integrity to thrive. Without them, we’re stuck in a downward spiral – margins thin out, innovation slows, and trust fades.
Another ethical issue that often goes overlooked is the treatment of agents. Principals sometimes fail to pay what is owed to their agents, even when the work has been completed and the results delivered. This not only damages relationships but also undermines the essential trust that keeps the industry moving forward. Similarly, some customers bypass agents altogether, thinking they’ll save on commission. What they often fail to realise is that agents add value through their expertise, networks, and market insights – by passing them may save money in the short term, but it can lead to missed opportunities and weaker results in the long run.
So how do we move forward?
First, ethics needs to mean more than just checking boxes. It’s not about compliance certificates or the occasional feel-good project. Ethical business is about consistently making hard choices – even when no one’s watching. That means treating partners fairly, respecting intellectual property, and producing toys that go beyond the bare minimum required by law.
Second, accountability matters. It’s easy to ignore bad practices when everyone else is doing the same. But unless we start calling out the nonsense, nothing changes. The industry needs to foster an environment where cutting corners isn’t just frowned upon – it’s unacceptable.
Retailers can drive much of this change. They decide what ends up on shelves, and by prioritising companies that play fair, they can shift the industry’s direction. Consumers are already paying more attention to how products are made – it’s time the toy industry caught up.
Ethics isn’t just about avoiding bad behaviour – it’s also about actively contributing something positive. Developing toys that encourage learning, inclusivity, and creativity isn’t just good practice – it’s the future of the business. The companies that get this right will be the ones still thriving in years to come.
I’m realistic – the industry won’t transform overnight. But every step towards ethical business counts. For the companies sitting in my naughty corner, maybe it’s time to ask whether the short-term wins are worth the long-term hit to reputation.
The toy industry can do better. It should do better. And it starts with those of us who care enough to make the change.
Thierry, a seasoned international sales and marketing expert, founded Konomocha in 2015. With over 20 years of experience, he helps toy and stationery brands expand into EMEA and APAC markets.
This article originally appeared in Edition 14 of The Toy Universe Magazine
