Survival of the Smallest

Why Specialty Toymakers Should Band Together

By Alison Marek

PLAY ON! Will the Fun Survive? is an upcoming documentary that covers the real struggles and triumphs of new specialty toy inventors at Toy Fair 2008 – and asks "Where are they now?"

If you ask Sari Wiaz, founder of the crinkly, soothing phenomenon known as Baby Paper®, why she’s still in business after years of supply chain chaos and aggressive tariffs, she won’t give you a corporate spiel. She’ll give you the truth.

“The only reason I’m still sticking in is because I’m stubborn, naive, and stupid,” Wiaz jokes. “I could have worked a minimum wage job and been further ahead.”

It’s a laugh-to-keep-from-crying sentiment shared by many small manufacturers right now. For the boutique toy industry, the last few years haven't just been a hurdle; they’ve been a wall.

"Every day I’m hearing more and more of my retail partners who are giving up," Wiaz says. "They don’t want to be in specialty anymore. Rents are too much. They're tired of fighting Amazon. It's very hard right now for a small brand to make it: Even the ones who have great brand recognition. People put up their houses for collateral."

Wiaz recalls being at Toy Fair when the tariffs were first announced.

“The first day, it was 10% and everyone went ‘UGH.’ Then, the next day, they said 20%. It sucked the oxygen out of the room. Small brands work on really small margins. We can’t afford a hit like that.”

The "David vs. Goliath" of Inventory

The logic of "just make it in America" hits a snag when you look at the ledger. Wiaz looked into domestic sourcing long before the trade wars began. The reality? Raw goods still come from China, domestic production is significantly more expensive, and labor shortages make it nearly impossible to scale.

This creates a vicious cycle for cash flow. Unlike the "Big Guys" who stock up with six months of inventory to ride out storms, small brands buy cautiously to protect capital.

The Cash Flow Trap: Bringing in goods slower kills cash flow.
The Price Hike: Raising prices to cover tariffs reduces sales volume.
The Retailer Fatigue: Buyers are tired of hearing about price increases and supply chain woes.

“My retailers have fatigue,” Wiaz explains. “They don’t want to hear about tariffs or emails about stock. They want something positive. But how do you create that positive feeling when you’re watching your hard work go out the window?”

Finding Strength in the "Small"

So, how do the small players survive when rents are high, Amazon is predatory, and trade shows seem to prioritize the giants? They stop trying to be big and start trying to be connected.

Wiaz runs the Small Manufacturers Networking Group, a quarterly gathering of minds that has become a lifeline for independent creators. They aren't just crying on each other's shoulders; they are strategizing.

To combat the high costs of shows like Toy Fair -- which doesn't have much space for or interest in small brands -- Wiaz and her small manufacturing group band together. Last year, they were the main occupants of the "Petite Pavillion," which Toy Fair had constructed at Wiaz's insistence. Still, they had poor visibility. Wiaz isn't heading to Toy Fair this year.

They also share resources: From media contacts to sourcing tips, the group operates on a "rising tide lifts all boats" mentality.

The Consumer Disconnect

Perhaps the most telling insight Wiaz offers is the difference between the industry and the customer.

At a recent ChiTAG event open to the public, Wiaz shared space with ChattySnaps®. While retailers often obsess over packaging footprints and category fit, the actual consumers—parents and kids—obsessed over the feel.

“Every kid and adult walking by my table stopped to touch [Baby Paper],” Wiaz says. “The consumer looks different than the retailer.”

For Wiaz, and the brands she networks with, the goal now isn't a massive exit strategy or a buyout—options that have dried up in the current climate. It’s about keeping the legacy alive, maintaining the passion, and helping the manufacturer next to you stay afloat.

“I don’t regret one moment in this industry because of the people I’ve met,” Wiaz says. “It’s interesting, creative, but hard work. I also believe in my product.”

To join Sari’s networking group, email her at sari@wizechoicecreations.com.

The pressures Sari faced are the same challenges threatening specialty toy creators everywhere.

PLAY ON! Will the Fun Survive? is a documentary film that highlights the untold stories of lone inventors who launched their new games and toys at Toy Fair 2008.

Support the film with a tax-deductible donation and help the next generation of independent inventors.