What kind of toys appeal to the digital natives? Is there any space for old favourites? Volatile sales are causing iconic toy brands to reassess what exactly they sell, as toymakers face a shrinking market of kids that are growing up fast.

Barbie is getting a digital makeover. In addition to her fierce sense of style and diverse work history, she'll soon be able to partake in two-way conversations with her owner. Barbie sales have been falling. But now that Barbie can talk back, is her reign really over?

In 2013, Gen Y helped grow sales of licensed merchandise to $51 billion in the US and Canada. Determined to raise their children in their own geeky image, Gen Y parents are introducing them to their pop-culture interests at a young age. How are these geeks reinventing family time?

Under pressure from digitisation, music labels are seeking alternative sources of revenue. One Direction has transformed merchandising into a multi-channel branding operation that covers everything from phone covers to fake nails.