Mattel recently announced its intentions to further expand its presence into other segments like consumer products, digital gaming, and NFTs. The toymaker hopes this strategy will allow it to tap into consumers’ enthusiasm for toys like Barbie, Hot Wheels, and Uno while delivering new ways for kids and adults to experience its brands.
“The first part of the turnaround was to restore and then improve profitability,” said Ynon Kreiz. CEO of Mattel. “Making sure the toy company is on solid foundation and strengthen our balance sheet. This has been the focus and we’ve always said the opportunity to capture full value was mid to long term.”
Mattel laid out this new strategy in a prepared presentation for analysts. It is a playbook that many others (in and outside of the toy industry) have used — take beloved franchises and make them available to consumers across multiple segments. This strategy has been proven effective. Providing new entertainment content — like movies, television shows, or video games — keeps the brand in the cultural zeitgeist, and helps fuel sales of a variety of items, from apparel to houseware.
In addition to driving revenue, the strategy complements its toy offerings as it provides a new way for consumers to engage with Mattel’s brands. Digital entertainment — including video games, mobile games, and NFTs — is a part of that opportunity. Mattel’s team notes that digital gaming alone represents a $170 billion industry and it is a space that the company has only just begun to explore. Mattel already has mobile games centered around Uno and Phase 10 as well as a racing video game, Hot Wheels Unleashed, but is still looking to expand this area of its business.
(All information was provided by CNBC)
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