Perspective: Q&A with Michael Keaton, Toysmith’s New CEO

March 25, 2019 | As part of Toy News Tuesday’s “Perspective” series that spotlights the people and companies who help drive the business of toys, we recently caught up with Michael Keaton, the new CEO of Toysmith. Keaton shared his plans for growth at the 38-year-old company, and how Toysmith will compete in a changing retail environment. Prior to joining Toysmith in early March, Keaton spent 13 years at The LEGO Group and three years with Schleich. He also sits on The Toy Association’s Board of Directors and is the Association’s representative to the Canadian Toy Association’s Board of Directors. Here’s what he had to say …

What appealed to you about the role as CEO of Toysmith?

Keaton: I’ve been a big fan of Toysmith, and always wondered how they were able to secure such strong customer loyalty. It’s Toysmith’s superpower. This doesn’t happen by accident – the founder, Bill Smith, was able to bring the right mix of values, resourcefulness, and strong relationships necessary to create an amazing team and business. Through decades of growth, Toysmith has stayed close and connected to its customers, serving them to the highest of standards, and scaling the business from Bill Smith’s garage to the powerhouse it is today. 

Now that I’m in the CEO role, I am humbled by the responsibility of safeguarding the culture, values, and business model that has made Toysmith great, and at the same time, I want to help the team adapt to the new and rapidly changing environment and create new value for the company, our retail partners, and ultimately for consumers. It’s a great opportunity to serve, and I don’t take it lightly.

Where do you see opportunity for the company to grow?

Keaton: I see opportunity everywhere! Toysmith has an amazing foundation to build from — an infrastructure and reach that positions us for growth, including expansion into new retailers or channels, creating more world-class distribution partnerships, and evolving our product portfolio as marketplace needs change.

Are there any product categories Toysmith is currently not in that you see opportunity to get into or categories that can be expanded?

Keaton: Our portfolio is very well-rounded in many categories, and that’s partially due to the amazing distribution partnerships we’ve built over the years. I can’t share much detail on our specific plans for obvious reasons, but you’re safe to assume that Toysmith will be capitalizing on current trends and bringing innovation to the table as well. As toymakers this is what we always strive to excel at, and we’re certainly developing new ways to bring value to our retailers, and surprise and delight kids of all ages.

With so much change over the past year, how can toy manufacturers navigate the changing retail environment?

Keaton: Toy manufacturers today have to be more agile than ever before by shortening lead times; keeping costs and complexity to a minimum to be able to react to – and invest in – emerging opportunities; strengthening communication throughout organizations; and staying closely connected to customers. In short, it’s exactly what has been attributed to Charles Darwin: “It is not the strongest of the species that survives, but rather, that which is most adaptable to change.” But the difficult question is, what change do we need to adapt to and how? The only way to know is to be out there, talking to people, and examining the marketplace first-hand. 

On a personal note, what was your favorite toy growing up?

Keaton: Easy answer: the Kenner SSP Super Sonic Power Gyro Car (from the early ‘70s). I would constantly dream up and engineer new ramps to jump, new techniques for going faster and winning races against my friends, and imagine myself piloting such a speedy vehicle. For me it was the perfect toy and brings back such fond memories.

Any final thoughts?

Keaton: Really, all toy companies need to be nimble and change with the dynamic landscape that is the toy industry. We’ll always focus on how we can do that with long-term growth as a core aspect of our planning and by leveraging the solid foundation we have built over the years. So stay tuned, we won’t stand still!

Got a story to tell? Toy Association member companies interested in being featured in an upcoming Toy New Tuesday article may submit ideas to Laurie Chartorynsky.