What does the Toy business have in common with the Mafia?

It might sound like an unlikely comparison, but there are some surprisingly interesting parallels between the way organised crime networks operate and the commercial structures of the global Toy industry. From loyalty and personal connections to territorial control, negotiating power and the importance of reputation, there are lessons to be explored from one of the world's most notorious organisational models. And no, we're definitely not suggesting that Toy companies should start making their competitors offers they can't refuse!

In this episode of Playing At Business, Toy industry consultant Steve Reece takes a slightly unconventional look at what really makes businesses successful. Why are relationships so important in the Toy trade? When does loyalty become a liability? How can smaller companies gain leverage over powerful customers, and why might a strong network of trusted partners be more valuable than a huge corporate infrastructure? It's a thought-provoking look at the people, power and relationships behind the business of toys — with a distinctly Godfather-inspired twist!

Playing At Business Podcast – Episode 116: The Great Toy Industry Margin Squeeze: Who Is Actually Making Any Money?

The global toy industry is facing a curious contradiction. Toy sales are growing, retail prices are rising, and some categories are enjoying remarkable success, yet many toy companies are finding it increasingly difficult to make a decent profit. Rising manufacturing costs, retailer demands, promotional expenditure, licensing royalties and the spiralling costs of bringing new products to market are all squeezing margins. So where is all the money going, and who is actually making a decent return in today's toy business?

In Episode 117 of the Playing At Business podcast, toy industry consultant Steve Reece examines the winners and losers in the increasingly challenging economics of the global toy industry. From major manufacturers and powerful retailers to smaller, more agile toy businesses, we explore why growing sales doesn't necessarily mean growing profits, which business models appear best positioned to succeed, and what toy companies need to do differently to protect their financial future. Is the toy industry becoming too obsessed with growth at the expense of profitability? Tune in to find out!

Indonesia is rapidly emerging as a serious contender in global toy manufacturing, driven by its huge workforce, competitive labour costs, and a fast‑maturing industrial base. While many in the toy business still view Indonesia through the lens of Java and domestic consumption, the country now offers export‑ready capabilities that mirror what modern toy brands need — especially for electronic, interactive, and connected products. With rising wages in China and brands pushing for diversified "China + 1" strategies, Indonesia's manufacturing evolution is becoming impossible to ignore.

Within this landscape, Batam stands out as Indonesia's most advanced electronics export‑manufacturing hub — a unique island‑wide Free Trade Zone just 20km from Singapore, built on three decades of electronics production. In this episode, Steve speaks with Chrispin from Tunas Prima Industrial Estate - https://tunasindustrial.com/en/ - who explains how Batam's deep ecosystem of PCB assembly, battery integration, plastics, finishing, and box‑build makes it a natural fit for toy brands. Add in Disney‑certified factories, a young labour pool, seamless Singapore logistics, and ready‑to‑use industrial infrastructure, and Batam becomes one of the most compelling new manufacturing bases for global toy companies exploring Indonesia for the first time.