Company Profile - Mattel

Mattel - always raising the bar

It’s fair to say that Mattel enjoyed a stellar 2023, with the pop culture phenomenon that was the Barbie movie bolstered by strong performances with hero brands including Hot Wheels, Polly Pocket and Monster High, and categories including Games. Toy World editor Rachael Simpson-Jones paid a visit to the company’s Slough UK HQ to catch up with Michael Hick, vice president UK & Ireland, Benelux & Nordics, and Kelly Philp, senior director marketing, to find out what comes next.

It's something we’ve heard a lot from our contributors and interviews in this issue, but when even Mattel notes what a challenging year 2023 was for the toy industry, you know it’s true. Michael says: “Following +22% growth from 2019 to 2022, the global toy industry was down in the third quarter 2023, per Circana, and we expect the industry to decline mid-single digits for the full year. However, we believe the toy industry is a growth industry and expect it will continue to grow over time: after all, toys and play remains a significant part of life for kids and families.”

As tough as it may have been for the industry, 2023 was the Year of the Barbie Movie. While everyone at Mattel knew all along that Greta Gerwig’s blockbuster was going to be something special, it’s fair to say both Kelly and Michael were taken aback at just how hard Barbie-mania gripped the nation. Unsurprisingly, for anyone familiar with Greta Gerwig’s previous directorial successes (2019’s Little Women and 2017’s Ladybird among them), the movie tackled big themes of equality, love, parenting and beach, and, in line with the brand ethos, becoming anything you want to be. At the time of writing, Barbie – the highest grossing movie of 2023 - had just been nominated for a staggering nine Golden Globes, making it the second most-nominated film ever.

“We could never have enjoyed this moment without re-engaging with our brand purpose,” explains Kelly, when asked how Mattel, which partnered with Warner Bros. on the film, managed to pull off such a remarkable feat. “This movie has been years in the making, ideating and waiting for the right talent and partners. There was no better combination of talent, creatives and leaders to have delivered this incredible movie. As one of the world’s most recognisable icons, Barbie has never been more relevant than she is today. The work we’ve done allows us to speak to Barbie as more than a doll.”

She continues: “I don’t think anyone could have foreseen the way the world embraced Barbie in the summer, to have predicted the cultural phenomenon the film became. When you hand over your IP to such talented people you have to trust their creative vision and allow them the space to do what they do best: we had to get comfortable with being uncomfortable. Greta, Noah [Baumbach] and Margot [Robbie] had their own Barbie story to tell, and we knew the brand was in a place where telling that story would resonate with fans and underscore our own brand values, as well as welcome a whole new audience to the brand.” Mattel’s senior leadership has spoken previously about the company’s desire to be successful in a way that creates a bigger pie for the whole toy industry to have a slice of, and the movie has certainly done just that. Anecdotally, Michael tells Toy World that he heard from multiple retailers following the release of the movie that consumers were visiting to shop for Barbie, then purchasing products across multiple other categories too, both online and in-store. A carefully curated ‘surround sound’ approach to brand awareness, encompassing the entire cinematic release window, drove footfall to retail: as reported on by Toy World last year (check out our September 2023 issue to see the full article), this included over 160 retail partners, multiple innovative activations and live events that, combined, made the phenomenon impossible to miss.

“We pride ourselves on working closely with our retail partners,” says Michael. “Our dedicated retail activation team comes up with some of the most innovative campaigns in the world, which bring our brands to life at retail in ways previously unseen. This is a key focus for us: the opportunity to introduce theatre and magic to the retail experience.”

Of course, 2023 wasn’t just about Barbie, despite her ‘She’s everything’ strapline. Kelly highlights the rollout of the company’s Monster High toy range and TV movie Monster High 2 (currently available to stream on Paramount+) as a particular high point of the year, saying the property picked up some serious momentum last year thanks to the fantastic results generated by the content, which continues to capture new fans. Hot Wheels, meanwhile, continues to go from strength to strength, alongside Mattel’s licensing partnerships with Pokémon and Jurassic World. Games has also been a top performing category for Mattel. The company has seen phenomenal success with Uno: Uno No Mercy was a sold-out smash hit. Mattel’s growing position as a partner of choice to major entertainment companies will see new introductions from Disney and Universal as well as ongoing development within Mattel’s Pokémon, DC Super Friends and WWE licences. There’s also an exciting new launch on the way for Batwheels, based on Warner Bros.’ new animated preschool content.

Mattel’s rich portfolio of brands offers plenty more besides for the months ahead. Early this year, an all-new animated children’s series, Hot Wheels Let’s Race, will debut on Netflix, and Hot Wheels Legends, the ultimate car competition, returns as Mattel continues to excite its adult collectors (a growing segment for the company, and indeed the industry in general). A new ‘Challenge Accepted’ brand campaign also promises to engage even more parents and kids. Additionally, the company will be bolstering its successful Fisher-Price Smilestones and Thomas & Friends Laying Tracks to Success campaigns, as well as launching Fisher-Price Wood, Planet Friends, Sensimals Newborn ranges and My First Thomas.

There are also anniversaries on the horizon for two of Mattel’s doll brands, as Polly Pocket prepares to celebrate her 35th anniversary and Barbie her 65th. “There is so much more coming for Barbie,” says Kelly. “Having long defied the 3-5-year life cycle of a typical toy’s popularity, Barbie has inspired three generations of girls, celebrated 250 careers, and sold more than a billion dolls – all before the movie even came out. In her anniversary year, we will be leveraging this moment to fuel the Barbie franchise and answer growing demand from our new, much broader audience.”

Always one to celebrate in style, Barbie will have her own exhibition at the Design Museum in London as part of the anniversary celebrations. The exhibition will draw upon the extensive archives of the Barbie brand, promising to be a unique experience that will delight Barbie enthusiasts of all ages. Mattel is also planning even more incredible marketing activations as it attempts to build upon what was undoubtedly the brand’s best year ever. It’s a tough act to follow, but Michael and Kelly seem unfazed, noting: “2023 will always be a memorable year, but we’re constantly raising the bar. With the talent of our product designers and marketers behind it, the entire Mattel team has lots to be excited about for 2024.”

One of the biggest opportunities for the year ahead, Michael and Kelly explain, is the gap created by the Hollywood writer’s strike and the subsequent slowing of movie releases: this means core brands, such as those within Mattel’s portfolio, will be required to step up and keep providing consumers with the content they want. The growing Kidult market offers further possibilities. The spending power of Kidults (buyers aged 12 and over) is now worth ~29% of the UK toy market, making this an area that Mattel will be developing further as it leans into exciting new opportunities. Under the Mattel Creations platform, the company produces high-end collectibles which give older consumers plenty of room for self-expression. Mattel Creations aims to connect adults to toys and toys to art, creating an unrivalled experience in terms of what’s possible for adult collectors. The Kidult pound (or dollar) is also powerfully linked to nostalgia, meaning own brands such as Polly Pocket, as well as partner brands including Super Mario, Ninja Turtles, Star Wars, Disney Princess, Friends and WWE all drive sales among parents keen to share their love of these toys with their own children and grandchildren.

Kidult will be a big focus for Mattel at this year’s Spielwarenmesse, where the show’s Life’s a Playground and Game-Playing Adults themes will represent these growing demographics. Featured brands and toy ranges will include Masters of the Universe (MOTU), Jurassic World and Turtles of Grayskull – a unique assortment of Teenage Mutant Ninja Turtles and MOTU crossover action figures – alongside movie-licensed Barbie and Ken collector dolls and the new If You Were adult party game. Hot Wheels Premium and Pop Culture collectibles, based on popular movies, TV shows or video games, will also be showcased.

As powerful as the Kidult spend is, the pressures on consumers’ expendable income are unlikely to change in the near future. Guided by the knowledge that roughly two-thirds of its sales stem from sub-£20 lines (according to Circana), Mattel is addressing pricing head on and working closely with its retail partners to build strong plans and strategies that will keep its brands and products front of mind with shoppers, even when belts are being tightened. The company is introducing a raft of new products across several categories that offer the same level of play value for the important sub-£20 price tag. In fact, spring 2024 welcomes over 200 new lines, 175 of which fall within this price bracket. What’s more, a third of these new launches are completely new for spring/summer, while the rest are brand expansions. Barbie, Hot Wheels and Fisher-Price are each welcoming over 20 of these lines.

All new launches will be supported by a varied, farreaching and inventive slate of marketing campaigns and activations. Kelly says Mattel is always trying to stay one step ahead, reviewing consumer trends and shopping habits, and analysing where the company gets its information from. She adds: “The continued fragmentation of the media landscape means we must constantly evaluate the most effective way to reach, and engage with, our target audience. We need to find creative ways to generate stand out in all channels and inspire meaningful conversation with consumers.”

Retail support will also continue throughout 2024. Michael says: “Every retailer has different challenges to overcome this year, from online and brick & mortar to indies, hobby specialists and grocers. What we’re seeing is stores being much more creative when it comes to attracting shoppers and an influx of alternative destinations versus the more traditional. As the high street evolves, we’re also seeing more in the way of creative collaborations, with retailers and manufacturers alike working hard to develop opportunities that encourage consumers to support their local toy stores. And of course, we’ll continue to support independents and toy specialists, ensuring our products have a presence on the high street 365 days of the year. We want to remain the No. 1 strategic partner for our retailers by listening and working in partnership with them to find solutions to any problem they face.”

As we head into what looks destined to be another huge year for Barbie, bolstered by healthy investment in what Michael refers to as ‘bigger and better’ bets that will expand the categories Mattel plays in, the company looks set to outpace the challenging market. Sure, the company has set the bar high, but it always has: Michael says the Barbie movie was simply the first step in Mattel’s mission to drive significant growth in its IP-driven toy business. After all, what are glass ceilings for, if not to smash through?

“That movie was an unprecedented moment in Barbie’s history and shone a light on the cultural resonance of our IP, our ability to attract and collaborate with top creative talent, and the capabilities of our franchise team,” Michael says. “I think it’s clear there’s a lot more to come from Mattel.”