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Barbie was rather more than the highest-grossing film of the yr, although raking in $1.4 billion worldwide was actually spectacular. For Mattel, the blockbuster sparked a growth in Barbie toy gross sales—and helped the toymaker keep away from the sort of horrible yr that Hasbro and different rivals are having.
This week, Hasbro introduced it will cut nearly 20% of its staff, or about 1,100 jobs, with CEO Chris Cocks saying that “the market headwinds we anticipated have confirmed to be stronger and extra persistent than deliberate.”
Hasbro, like different toymakers, has been hit onerous by a post-pandemic slowdown, which noticed dad and mom reduce on toys after loading up on them whereas staying residence. The corporate’s shares have fallen practically 20% this yr, and analysts count on its gross sales to say no by 19% this quarter—a vital one given vacation toy buying.
The robust trade situations have been felt much less acutely by Mattel, due to Barbie. The film boosted gross sales of dolls, equipment, and Dreamhouses, serving to the corporate beat Wall Road’s estimates with a 9% improve in third-quarter gross sales.
As for this key quarter, “the success of the film will probably be an vital contributor” to vacation outcomes, Mattel CEO Ynon Kreiz told the Wall Road Journal in October. “The film opened the aperture for Barbie. Barbie now appeals for extra followers, a broader demographic.”
The corporate did endure the trade headwinds in different classes, nevertheless, with its video games, actions figures, and constructing units all seeing gross sales declines.
Motion pictures primarily based on toys are nothing new, after all, however the slowdown and large success of Barbie means many extra such movies will observe, even for concepts which were stalled or in a state of partial improvement for years. Mattel, which sees Barbie as a template, introduced earlier this yr upcoming films primarily based on UNO, Scorching Wheels, Magic 8 Ball, Polly Pocket, and Rock ’Em Sock ’Em Robots. Hasbro has plans for Monopoly and Play-Doh films.
And this week, Mattel said it’s growing a live-action movie primarily based on the American Lady doll line. Lindsey Anderson Beer, who will write the script, mentioned in an announcement: “They’re traditionally correct toys and equipment that function elaborate and immersive backstories uniquely suited to carry to display. I’m so excited to inform a narrative that tackles the problems of girlhood in an actual and compelling approach.”
If that feels like a stretch, take into account Barbie. It’s “a narrative about humanity—we elevated Barbie past a doll to an idea,” Lisa McKnight, government vice chairman and chief model officer of Mattel, advised Fortune.
“It’s not about promoting toys, it’s about telling the very best tales,” added Robbie Brenner, president of Mattel Movies. “Should you’re not making one thing that feels out of the field and completely different and sticky, then you don’t have any enterprise making content material.”
Time will inform if Mattel has come across a successful formulation or if moviegoers will shortly tire of toy-centric flicks, nevertheless good the tales.
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