In a world gone high-tech, how can a company almost 100 years-old, that produces simple, red wagons possibly thrive, let alone survive? I’m talking about this.The Radio Flyer wagon. I’ve owned one of these toys since I was too young to get in it by myself. Today, the company that makes this wagon is rolling along just fine, thank you very much…and here’s how this nearly century old company is doing it. By innovating!
A decade ago, wagons accounted for virtually all of its sales. Now, they drive less than one-third. Radio Flyer and its CEO Robert Pasin, he likes to call himself the ‘CWO’ Chief Wagon Officer’ by the way…says they keep innovating with new scooters, like this one for girls called the Groove Glider, that comes with a built in speaker and holder for your mp3 player or smart phone. The Shockwave for boys made with special, flexible shocks in the rear that give riders the feeling of jumping extra high. They’ve even got tricycles now, leveraging into the $22 billion a year toy industry. You see we live in a nation where customers demand innovation, and reward strong brands. Think about it, Starbucks no longer just sells coffee, McDonalds no longer just sells burgers. In the words of Pasin, ”We had no choice but to innovate.” It’s paid off. Radio Flyer, sales have doubled to almost $90 million over the past eight years. With Radio Flyer’s 100th anniversary just a handful of years away, CEO Pasin is asked what the company might be making 100 years from now. He says with a smile “One thing I know for sure, we’ll still be making wagons.” Here’s the point don’t give up your legacy and brand… but like Radio Flyer has done, roll into new categories put a twist on the old ones…and leverage that nostalgia and loyal following you have into staying relevant…And speaking as someone who has 20, OK 30 in his rear view mirror…something things do get better with age, right?
Michael Burger for the Relevant Report