Barbie was far more than the highest-grossing film of the 12 months, although raking in $1.4 billion worldwide was definitely spectacular. For Mattel, the blockbuster sparked a increase in Barbie toy gross sales—and helped the toymaker keep away from the sort of horrible 12 months that Hasbro and different rivals are having.
This week, Hasbro introduced it could 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 laborious by a post-pandemic slowdown, which noticed dad and mom in the reduction of on toys after loading up on them whereas staying house. The corporate’s shares have fallen almost 20% this 12 months, and analysts anticipate its gross sales to say no by 19% this quarter—an important one given vacation toy procuring.
The powerful business circumstances 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 might be an necessary 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 business headwinds in different classes, nevertheless, with its video games, actions figures, and constructing units all seeing gross sales declines.
Motion pictures based mostly on toys are nothing new, after all, however the slowdown and large success of Barbie means many extra such movies will comply with, even for concepts which were stalled or in a state of partial growth for years. Mattel, which sees Barbie as a template, introduced earlier this 12 months upcoming motion pictures based mostly on UNO, Sizzling Wheels, Magic 8 Ball, Polly Pocket, and Rock ’Em Sock ’Em Robots. Hasbro has plans for Monopoly and Play-Doh motion pictures.
And this week, Mattel said it’s growing a live-action movie based mostly on the American Woman 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 deliver to display screen. I’m so excited to inform a narrative that tackles the problems of girlhood in an actual and compelling means.”
If that appears like a stretch, contemplate Barbie. It’s “a narrative about humanity—we elevated Barbie past a doll to an idea,” Lisa McKnight, govt vice chairman and chief model officer of Mattel, instructed Fortune.
“It’s not about promoting toys, it’s about telling one of the best tales,” added Robbie Brenner, president of Mattel Movies. “If you happen to’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 profitable components or if moviegoers will shortly tire of toy-centric flicks, nevertheless good the tales.