Monday, January 11, 2010

How the Hamsters Saved Christmas: Zhu Zhu Pets Recharge Battery Category

So I get a call from my dad a couple weeks before Christmas that went like this:

Dad: Does your cousin's iPod run on AA batteries?
Me: No, sorry Dad.
Dad: What about his cell phone?
Me: Nope.
Dad: Game Boy? CD player? Anything?

Me: No, why?
Dad: I just bought 100 AA batteries at Costco for Christmas presents. I'm not sure what to do with them now...

Poor Dad, alkaline batteries used to be his go-to gift and now he's lost in a sea of rechargeables and lithium ion. If you've found yourself in a similar predicament recently, read on:
Loading up on alkaline batteries was once a familiar rite of holiday shopping for parents, but the category has been in a funk since well before the recession as traditional battery-operated toys and gadgets lost cachet to smartphones, laptops, iPods and other portable devices using different power sources.

But a funny thing happened this holiday season: Alkaline batteries had their best quarter for volume growth in at least three years and their first positive holiday quarter in terms of volume in four years. Zhu Zhu pets, one of the biggest breakout toy hits in years, may deserve the credit, though a round of savage price-cutting also played a role.

Don't worry, there's hope for you next year, Pops. :)



(Courtesy of AdAge.com)

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