[ad_1]
New York
HIDDEN in Mattel's announcement of freefall sales and massive layoffs were two bright spots that may be the key to the manufacturer's turnaround – and they have been around for more than 100 years. [19659002] Barbie, Mattel's biggest-selling 59-year-old doll, recorded a 12% jump in sales in the second quarter, a third consecutive gain. Hot Wheels, which has just celebrated its 50th anniversary, has recorded a 21 percent increase in its revenues
What's behind the revival of old-school brands? A strategy that boils down to "giving them a new vision of what they've watched all along".
The "them" refers to the young parents of today, who may have grown up with Barbies and Hot Wheels, only to hide themselves. they favor educational apps and fancy gadgets for their kids. Mattel is trying to attract these customers by refounding the image of toys to play not only on nostalgia, but on a more recent notion: they are beneficial for the development of the child.
Sales gains indicate that this new point of view could well be imposed. 19659002] "When you apply the right strategy behind these brands, you can not reverse them, you can put them on an accelerated growth path," said Ynon Kreiz, Mattel's CEO. "We will take the same approach with the rest of the business."
A broader recovery remains a challenge. Mattel's total business figure dropped 14% to 841 million US dollars in the second quarter, without Wall Street projections, while other big brands, like Fisher-Price and American Girl, have sunk. The California company, hit hard by the liquidation of the retailer Toys & # 39; R & # 39; Us, also announced that it was eliminating more than 2,200 jobs, or about 22% of its workforce, as part of a cost reduction plan. [19659002] Mattel's action fell by 10% on Thursday, wiping out the year's earnings
But the growth of Hot Wheels, the second-largest brand, and especially Barbie, who saw sales lowering in three of the past years According to Gerrick Johnson, an analyst at BMO Capital Markets, "everything they reported about Barbie and Hot Wheels was positive," said Johnson, who recommends buying Mattel's shares . "They have two brands that really work."
And the foundation for these gains is this new vision, according to chief operating officer Richard Dickson. Parents, who were already overloaded with choices for their children, were increasingly considering these frivolous and disposable products – Hot Wheels was selling for only US $ 0.99 – and this limited their growth potential.
For Barbie, the problems were greater: a growing perception of the brand as a collection of outdated stereotypes – all girls care about clothes and boys – while setting an unrealistic standard of physical beauty. In the era of women's empowerment, it felt death.
million. Dickson constantly talks about the "purpose" of the company's brands and how it should drive everything from products to marketing. For Barbie, it boils down to being good for girls. And it 's not just that the doll is fun, but that the game that inspires her is a good development tool for the kid.
"We are redefining our game as beneficial," said Dickson
. It may seem far-fetched that a doll can engender creativity and ambition, while a miniature car is a hot bed for critical thinking – and that parents believe in such a concept. But there is a growing movement of academics and educators who are pushing mounds of research that show that such open play is paramount to developing these essential skills. Something as commonplace as the gambling house is a role play that builds empathy, teamwork and communication. "The game was absolutely crucial for human evolution," said Peter Gray, professor of psychology at Boston College. And the decline in playing time of all the structured activities that have been hoisted on children is "clearly having adverse effects" like less resilience and not being able to solve their own problems.
million. Dickson is hooked on Mattel's search for millennial parenting behavior. A growing number are more worried about what their children consume – be it food, entertainment or toys. And with the aftershocks of the Great Recession and globalization making life more competitive, they are spending on child development.
American parents of a middle class of a child born in 2015 are expected to spend $ 38,000 in education and development from birth to age 17, according to the US Department of Agriculture. This is an adjusted inflation increase of US $ 10,000, a 35% gain over a decade earlier. For high-income families, spending is expected to increase by 85 percent to US $ 87,000.
million. Dickson internalized this and saw Mattel go ahead by superimposing the developmental benefits of the game on his brands. In order to stand out, he should continue to make toys loved by children, but now, more than ever, to be approved by parents.
A change began in October 2015 with the Imagine the Opportunity advertising campaign. In this document, girls teach neuroscience and coach a men's football team. The spot ends with the viewer realizing that these are just scenarios that a girl plays in her room with a Barbie doll. According to Mattel, the ad, which is still airing and has 120 million views online, has helped lift the brand's affinity scores. "This was the turning point for Barbie and her perceptions," said Johnson. "It's a 180-degree turn:" I do not want my daughter Barbie idolatrous, "" my daughter can use Barbie to live up to her aspirations. "
Three months later, Mattel did more for the Brand approval ratings by giving Barbie curved hips, shorter legs, seven skin tones and 22 eye colors – diversifying from the mostly white, blond-haired character that she had The press was radiant, including the cover of Time magazine.
The return of Barbie gave Dickson even more confidence that the company's pivot to a beneficial game will work. to follow when Mattel will have introduced a range of toys – anchored by his brand Fisher-Price toddler – that can help develop the skills that children need from birth to primary school. China – which offers parents assessment tools, product advice and recommendations, and Mattel can "capture them for a decade or more," Dickson said.
If society has room for maneuver This remains to be seen. The stock has lost about a quarter of its value over the past year. BLOOMBERG
[ad_2]
Source link
