Attendees to this year’s Toy Fair may have noticed something amiss on the H Grossman Stand, with the absence of 2013’s much-celebrated Rainbow Loom.
The distributor has confirmed to ToyNews that following a series of disruptions in its relationship with the manufacturer, Grossman made the decision to launch its own version of the girl's craft kit.
Customers and retailers were instead introduced to the new version of the popular playground craze, the Creative Fun Loom at the H Grossman stand at Toy Fair 2014.
Managing director at H Grossman Ltd, Martin Grossman confirmed that the relationship with Rainbow Loom ended due to a "difference in sales approach" just “days before” the show.
Now retailing at £2.99, the new Creative Fun Loom – invented by Grossman in just two and a half hours – is a fifth of the price of the £14.99 Rainbow Loom.
Grossman told ToyNews that the cracks in the relationship first started to form due to disputes in the pricing and marketing of the Rainbow Loom at retail.
“I wanted a mass market roll out of the Rainbow Loom product while they wanted to target arts and crafts specialists," Grossman explains to ToyNews.
"[The owner] came to me and said ‘your customers are undercutting the price of the Rainbow Looms, you must tell them to stop and only sell at our price."
Grossman informed the manufacturer that any discussion of prices with the customers was illegal.
“I am not allowed to discuss prices with the customers. It’s up to them what they do because it is a criminal offence if I suggest they sell at a fixed price of £14.99. I cannot afford to do that," added Grossman.
Grossman was quick to point out to the owners of Rainbow Loom that the issues it was experiencing with pricing was not due to “my punters, but because of all the cheap stuff coming in.”
One week before Toy Fair 2014, Grossman made the decision to proceed without the firm and launch the Creative Fun Loom.
“It was four days before Toy Fair 2014 when up went Creative Fun Loom. I was still doing the artwork in Hong Kong while I was there.
“We had no option but to make our own, we could not stand here with an empty space. I had already paid for people to come and demonstrate. We can confim that the Creative Fun Loom is now selling like wildfire.” concluded Grossman.