I'm not very crafty, but the word Toyland brings to mind the image of the Nutcracker for some reason. Also, wooden toys like rocking horses, and dolls. Maybe the ladies could dress as dolls complete with the round, bright red cheek paint and lipstick, and exaggeratedly long eyelashes. You might look through Christmas-themed books from 100 years or more ago for ideas.
I am not at all creative with this sort of thing, but there is a cartoon called Babes in Toyland my kids used to love. Maybe you could get some ideas from this cartoon. For example, Humpty Dumpty plays a part and you could maybe dress some people up as toy soldiers. Santa is part of course, and there is also a train that is "alive". Hope this helps some.
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