Company Profile - Schleich

Schleich - where stories begin

Following an exceptionally strong 2021, Schleich has unveiled a major new global brand strategy aimed at paving the way for more imaginative play and an even stronger presence at retail. Toy World’s John Baulch and Rachael Simpson-Jones paid a visit to the company’s new UK head office to meet up with Schleich GmbH CEO Dirk Engehausen and managing director Udo Rother, Schleich UK’s country manager Thomas Randrup and marketing manager Paul Dearlove – plus a very special guest.

In January 2022, Schleich announced that the company had enjoyed its best year in its entire 87-year history. In 2021, its turnover grew by 39% in both the US and France, and by 21% in the UK, while in its home market, Germany, Schleich recorded sales growth of 17%. This performance not only vindicated CEO Dirk Engehausen’s predictions for the period, it also continued into 2022, resulting in a very strong Q1. However, when speaking with him in May, Dirk noted that global markets were slowing and that he expects this year’s performance to be more on par with those of pre-pandemic years. However, given that 2021 marked Schleich’s eighth consecutive year of growth, this would still represent a significant achievement.

Schleich GmbH MD Udo Rother believes that consumer preferences are changing once again, with shopping habits starting to swing away from eCommerce. Schleich benefits from strong retail listings across a range of channels and territories, meaning this shift hasn’t impacted sales. And with Q3 and Q4 2022 set to be particularly strong for the business, thanks to a raft of new product launches and other major developments, Udo is optimistic that 2022 will yield significant further growth. Looking specifically at the UK & Ireland, Schleich UK has doubled its turnover during the past three years, despite the many challenges the toy market has faced (not all of which are yet resolved). March’s NPD YTD figures showed Schleich UK up +81% while the rest of the market was down -12%. Clearly, things are going well.

You’d therefore be forgiven for wondering whether Schleich’s new, recently unveiled global brand strategy was truly necessary. As the old saying goes: ‘If it ain’t broke, don’t fix it’. But Schleich has good reasons for the overhaul, and Dirk is adamant the second half of the year holds what he calls a once in a lifetime opportunity to elevate the brand to the next level.

The most consumer-facing elements of the new brand strategy are a redesigned logo and packaging, and new visual language. The Schleich logo has been modernised and simplified, now emulating the shape of a thought cloud as a nod to the spirit of ‘What if?’, while the new tagline – ‘Where stories begin’ - is a short, memorable expression of the new brand essence. The logos of the six product lines have also been revised to appear fresher and more playful.

The brand’s digital channels are also being modernised, including a relaunch of the Schleich website at a global level. Via new calls-to-action embedded throughout its brand elements, Schleich will invite fans worldwide to share their own stories inspired by playtime with its characters, using the hashtag #wherestoriesbegin on Instagram or Facebook.

However, the Schleich team is keen that the new brand strategy isn’t watered down simply to the new logo, revised colour scheme or reinvented strapline: there’s a much higher purpose at play here. Since 2019, Schleich GmbH has been owned by a Swiss private equity firm called Partners Group. Dirk says such acquisitions are made with ‘strategic glasses on’, and that from the very earliest meetings it was clear the company’s new owners were keen to invest heavily in digitalisation and rebranding. He also says the group has been hugely supportive of its work in this regard, something that has proven invaluable during times of such economic uncertainty.

In essence, Schleich’s rebrand is focused upon ‘Shaping Storytellers for life’. We were presented with little Schleich rabbits at the beginning of our meeting, which Dirk says will have started a story in our minds, consciously or otherwise. This is especially true of kids, and even more so when they’re standing in front of a shelf brimming with Schleich animals. Pick up a Schleich figurine and a story begins, and this is what the company wants to foster; the creation of tales and adventures, of courageous quests and enchanting journeys, with Schleich figurines at their heart. The rebrand also wants to promote free play, something us grown-ups can be notoriously bad at. Kids, however, naturally possess the imagination and unselfconsciousness required to create their own worlds, and Schleich is bringing this to the fore. The company is saying no to formulaic, rigid play, and yes to no-holds-barred experiences limited only by a child’s imagination.

Dirk himself has quite the imagination: “We want children to take their Lamb, Lion and T-Rex Schleich figures, get in their Schleich SUV and head to a nice imaginary coffee shop to discuss where they will spend their holiday that year – the Moon or Mars. This is what Schleich is all about: that level of openended, unconstrained play. There’s no ‘punishment’ for getting things wrong with Schleich, unlike some other brands or toys which need to be played with in a certain way. With Schleich, we’re saying: ‘these are your toys, and this is your story’.”

In addition to the storytelling aspect, the Schleich red has been brought to the fore as part of the rebrand. The colour yellow has become strongly associated with Lego, Blue with Playmobil and Ravensburger. Red is Schleich’s colour, and the new in-store materials and POS solutions hammer this home like never before.

Dirk is unfailingly honest about the fact it may be many months before the company can truly say the strategy is paying off. The aim has never been to create an overnight sensation. Schleich has been around for 90 years and is an iconic, household brand. Change can come slowly to such big players. Consumers and gift givers need to understand and appreciate the message the rebrand communicates, and that can take time, despite the financial support being placed behind the new strategy and its related marketing campaigns.

I was keen to find out if the team thought pivoting the brand strategy of a nearly 90-year-old established company would be significantly harder than doing so with a much younger one, or one that wasn’t as well known and loved as Schleich is. According to Dirk, the answer depends on where in the world you are looking at Schleich from. He explains: “If you asked me from a German perspective, I’d give a different answer to that of Thomas or Paul, with their UK perspective, or to our colleagues in the Netherlands, where Schleich went live only last year.”

Thomas Randrup, country manager Schleich UK, highlights that Schleich UK has long enjoyed a mutually beneficial relationship with the specialist indie toy sector and that he therefore fully supports the company’s re-brand strategy and its dedication to creating a ‘red corner’ in stores. While Schleich has always been strong in figurines, the past few years have also seen it massively ramp up its range of play sets and themed worlds, and the new play set packaging seen across all the franchises really carries through the red that Schleich is seeking to take ownership of. It may take a while for the new packaging to 100% replace the old, of course: retailers have stock from before the new strategy was unveiled to sell through. The new logo, he reiterates, is much friendlier than its predecessor, being softer and warmer, more open and inviting. All TV and print advertising, press releases and other marketing will ultimately reflect the new look and brand message of Schleich. The packaging materials are more sustainable now too, something consumers are increasingly on the lookout for when shopping: plastic is avoided wherever possible, instead replaced with materials that are both recycled and recyclable.

Although Schleich has made great inroads within the UK market, according to Schleich UK’s marketing manager Paul Dearlove, the company is conscious there’s still a long way to go. Schleich has previously invested in major installations at flagship Hamleys and Selfridges store, and thoughtful retail support has filtered right down to the smallest of indies. But the company isn’t resting on its laurels, and the new strategy will provide huge opportunities to get behind its retail partners even more. In the UK and in other markets, the rebrand rolls out from 1st July, though a necessary element of prioritisation means that not all accounts will be ready to join the rebrand from that day. An element of choice also came into play: retail partners able to take advantage of the rebranded materials from the very start can decide for themselves whether to do so from day one, or month six. Happily, they’ve by and large appeared happy hit the ground running with it – Schleich supports its retailers, and they support it right back.

Schleich UK moved into its new offices, where this interview was held, in November 2021. It’s a much bigger, lighter and airier space than its previous Stansted location, with a subsidised canteen, free gym and on-site parking for the use of all employees, plus a handy shuttlebus service that runs back and forth to the train station each day for those that use public transport. The move has given the company the room required for employees to immerse themselves in the product, too: the seating area is inhabited by a large white tiger model – the same one that apparently had to have its ‘modesty’ preserved after being installed at a major retailer, lest it shock the kids – and there’s a permanent showroom that displays all Schleich’s franchises. The walls feature large-scale marketing assets created as part of the new brand strategy campaign. The photography is stunning: children are presented as they would actually play, different product lines and toys are combined, and characters are dressed up or depicted in completely new contexts: a cow swimming in an aquarium, a fairy playing in the mud, a dinosaur having fun at a street carnival.

Thomas explains that the company has taken over the top floor of the Asos head office, a set-up that has worked out brilliantly. The building’s inhabitants make it a vibrant and energetic place to work, and there’s quite literally room for a pony too. Our interview included a surprise visit from the utterly adorable Teddy the Shetland pony, who has set the bar very high indeed for future guest appearances at meetings.

“The move to this new office reflects the ambition of both Schleich GmbH and Schleich UK,” adds Paul, who is clearly proud of his new surroundings. “Our previous offices were much smaller - we didn’t have proper facilities or meeting rooms. Moving here will certainly help our perception within the trade and attract new team members to our growing business. It’s obviously a much nicer place to welcome guests to as well.”

Dirk adds: “This level of investment in people, office and infrastructure is a big undertaking. A year ago, if we’d met at the old Stansted office, my company laptop and phone wouldn’t have been able to automatically connect to Schleich’s global system. Here, they do. It might not seem like a big thing, but this helps us all feel like we’re part of a connected mission to conquer the toy market and become one of the biggest brands in the world. We’re moving our French office in Lyon to bigger and better premises too, but it won’t matter where you are in the world. If you work for Schleich, you’ll feel part of a cohesive team.”

The second half of the year will see Schleich launch new product innovations plus extensions to its existing best-selling ranges and themes. A line extension of Horse Club, Sofia’s Beauties launches in September. The range, which proved incredibly popular at London Toy Fair, comprises horse models with beautiful long manes and equally luxurious tails, which can be brushed, decorated and freely interchanged. The collection will include four individual horses and three starter sets at launch - each with a horse that has a long mane and rider plus plenty of colourcoordinated accessories – as well as two play sets and two standalone accessory sets. Paul says the reception to this range has been as good as the company has ever experienced. It’s a gloriously simple concept and in many ways already a proven winner: Schleich’s detailed and realistic horses combined with brushable manes and tails kids can swap and style? What’s not to love.

Dirk adds: “Sofia’s Beauties will also resonate with younger children from pre-school age and is the perfect introduction to Horse Club. I have enormous respect for competitor products, and what’s great is that Sofia’s Beauties doesn’t cannibalise Horse Club, because our models are very realistic rather than highly stylised. Authenticity is in our product DNA, and Sofia’s Beauties is a shining example of how this level of commitment to realism continues to open new doors in the toy market and carve out new spaces.”

As well as the addition of several popular horse breeds, Schleich’s Horse Club sees its first modular offering launch this month. The new range allows young horse fans to build their own equestrian centres. The impressive hero play set, the Lakeside Riding Centre, is launching alongside two add-on sets which simply click onto the sides to provide extra room for more horses. The range will appeal to gift-givers as it spans a variety of price points, and to committed collectors with large numbers of equines to house.

Of course, it’s not all about horses. Five authentic new dinosaur species join the line-up for 2022, as well as two new play sets: the Dinosaur Transport Mission and Parachute Rescue. Farm World welcomes six new play sets in July, while five new Wild Life sets have expanded Schleich’s strong partnership with National Geographic Kids. The company also continues to broaden its collectibles offering, with two new series of foals added to the bayala range and further launches including a Llamacorn and Rainbow Dragon continuing to delight fans of mythical creatures. Alongside all this, Eldrador Creatures welcomes an array of new monsters and introduces a fifth world, the Shadow World, to fans of the franchise, plus the Eldrador Master Robot.

2022 will also see the return of Schleich’s Black Friday, which enjoyed its debut last year. Limited edition black figurines were released to drive footfall into stores, and huge black installation models were created to provide a little theatre. The black T-Rex now stands guard in the entrance foyer of Schleich’s new UK office, though it did abandon its post temporarily in May (with permission, I’m sure) to pay a visit to the Toymaster show in Harrogate. And in addition to all the coverage generated by the announcement of the new global brand strategy, Schleich is also investing in new TV commercials and a huge brand campaign towards the end of the year that encompasses the entire portfolio, not just the company’s individual properties.

All in all, the team is confident that, no matter what else may happen over the coming months, Schleich will enjoy a robust, double-digit performance during the second half of the year that will ultimately deliver what would be its ninth consecutive year of growth. Dirk says there’s still a huge amount of untapped potential within Schleich’s brands, pointing out that its figures aren’t based on flash-in-the-pan trends or licences that may come and go.

“We are on a strong footing, particularly in the UK, France and the US, and with Germany as our home market there’s so much scope for growth and development into new areas,” he adds. “A lot of our success over the previous eight years boils down to the fact Schleich is very good at identifying an opportunity and sticking with it, seeing it right through to fruition. Schleich commits itself totally - if we say it will be done this way, it will be done this way. So much hinges upon creativity. The rest depends on execution.”

Dirk also says that Partners Group is proud of the team Schleich has built, pointing out that two of its veterans, Udo and Thomas, were in the room with us. Udo, however, was quick to point out that he was one of the youngest employees when he joined the company and would prefer the term ‘stalwart’. In any case, Schleich’s motivated and enthusiastic workforce certainly has plenty of experience to tap into – model leadership, if you’ll excuse the pun – and with the launch of its new global brand strategy, Schleich will see the next chapter of its own story begin.