Biggest toy makers Mattel and Hasbro are planning to merge businesses amid a continuing drop in sales. Each of the companies currently has a capitalization of about $10 billion, and a potential merger could spur the price of securities and positively affect the development of the segment as a whole.
According to the International Business Times, the parties began merger talks at the end of 2015. At the end of the year, the companies' capitalization was $10.7 billion for Mattel and $9.2 billion for Hasbro. Moreover, the position of the latter is more profitable: against the backdrop of falling sales from Mattel of such key brands as Barbie, Hasbro received the right to produce Star Wars toys, interest in which is now incredibly high all over the world.
Recall that Mattel has been on the market since 1945, it produces not only the most famous dolls, but also Fisher-Price toys for kids, toy cars under the Hot Wheels and Matchbox brands, owns the right to release Sesame Street, Barney toys Ferrari. The founders of the company are the spouses Elliot and Ruth Handler, and it was Ruth who created the Barbie doll in the mid-50s of the last century.
The sales of the flagship brand have been falling so much and for so long that at the end of last year Mattel carried out a total repositioning of the brand. The famous doll blonde has become not only of different races, skin colors and hair, but also of different heights and builds. The promotion strategy has also changed: Mattel marketers that girls need dolls to play adulthood. This is reflected in Barbie's new "Imagine the Possibility" ad campaign.
Hasbro's position in the market is more favorable, despite no less capitalization. Founded in 1923 by brothers Henry and Helal Hasenfeld, the company has seen significant recent growth in board game revenues (Monopoly, Jenga, Scrabble, fantasy card role-playing series Dungeons & Dragons and Magic: The Gathering). ) and licensed games (Transformers, Pokemon, My Little Pony, and Star Wars).
According to experts, Hasbro has a more balanced portfolio of brands, which is better adapted to the modern consumer. The abundance of popular licenses gives the company increased attention among the younger generation, which is a fan of "Transformers" and "Jedi". And the generation of "millennials" rediscovered board games, which they spend time in an anti-cafe or at a friendly party.
The idea to merge is not the first time that the management of Hasbro and Mattel comes to mind: back in 1996, negotiations on the merger of the two leaders in the toy market reached a fairly deep stage. However, the deal was canceled at the last moment: Mattel was the initiator of the gap, which accused Hasbro of pressure through the media.
John Amerman, then CEO of Mattel, accused Hasbro Chairman Alan Hasenfeld (a descendant of the founders of the company, which is still a family business) of a scorched earth policy, increased PR pressure on Mattel through the media, due to which the company sees no point in further negotiations.
Andrey Savchenko, General Director of the Russian division of Mattel: “I wanted to get an office with a complete concept - like a toy that you pick up and feel good about. In my opinion, everything worked out. The architects had a task - to create a bright and spacious room, without dark tones, which would please the eye. I wanted to create an atmosphere of light karma. I deliberately did not interfere in the design process. There was such an impulse when I saw on the renders the chairs around the negotiation tables, which, in my opinion, look like country houses. But I followed the decision to completely surrender to the hands of professionals. In the end, I didn't regret it. On some things, probably, it would be possible to save money: for example, the carpet was brought to the office from Spain, but I did not understand why it was impossible to buy it in Russia. But the architect said that there is no such thing as it should be with this drawing.”
The interior of the office is designed in white and red colors, consonant with the company logo, with accents in the form of bright pink Barbie-colored chairs at the entrance and colored poufs in the seating area. The meeting rooms are named and decorated after Mattel toys: in the Thomas zone there is a floor-to-ceiling print with the famous train, and in Barbie there is a gallery of portraits from the very first modification of the iconic toy to the latest. Matte film on the glass, a wall of vertical slats separating the recreation area, and decorative cladding at the entrance are made to order.
Most of the space is occupied by open space. In total, the company employs about 100 people: some of the employees work "in the fields", 66 are sitting directly in the office. Places for work are organized taking into account the possible replenishment of the team. It is also planned that, as in coworking spaces, incoming employees will use the same desktops, while having personal bedside tables.
Employees of Mattel's Moscow representative office regularly communicate with colleagues from Spain, Germany and England: according to corporate tradition, offices of all countries gather for large international video calls. Especially for such events, two meeting rooms are equipped with an adjacent sliding wall, forming together a spacious conference hall.
The kitchen area is similar to a lounge cafe: a table in the form of a bar counter, large designer lamps, and a slate wall. On the wall, in theory, you can write with chalk, but the manual does not allow this yet - so as not to deteriorate.
To get into the spirit of the company and better understand the product, many employees keep toys on the tables. True, they are not taken home: these are samples for the office. Once a year, the company gives employees the opportunity to choose dolls and cars for a certain amount so that they can play at home.
The location of the office also works to maintain the corporate spirit and a special vision of the company's mission: “Trains remind me of the old Nike slogan “Life is a journey,” says Andriy Savchenko. - Our company is constantly in motion, transformation: we come up with new toys, new approaches. Now we are moving from physical toys to virtual ones. And it all fits in with the office as one big playroom overlooking the station and the outgoing trains.”
is an American multinational toy company founded in 1945 and headquartered in El Segundo, California. In 2014, the company was ranked 403 in the Fortune Global 500. This is a ranking of the world's 500 largest companies based on their revenue. The company's products include a number of major toy lines: Fisher-Price toys for toddlers and preschool children, Barbie dolls, Monster High dolls, Ever After High dolls , Winx Club dolls, Hot Wheels and Matchbox toys, Masters of the Universe toys, American Girl dolls, board games and toys WWE Toys, Warner Bros goods including Harry Potter, Batman, Superman, Looney Tunes products. The company also manufactures products under license from Disney. In the early 1980s, Mattel produced video game systems under its own brands under license from Nintendo. Mattel has its own factories in China, Indonesia, Malaysia, Mexico and Thailand, as well as independent contractors located in the US, Europe, Mexico, the Far East and Australia. The company has a presence in 40 countries and territories and sells products in more than 150 countries. It is the world's largest toy manufacturer in terms of revenue and market capitalization. The company name comes from Harold "Matt" Matson and Elliot "el" Handler.
From picture frames to toys 1945-1949
Mattel was founded in 1945 by Elliot and Ruth Handler. The youngest of ten children of Polish immigrants, Ruth was a secretary at Paramount Pictures in Los Angeles when she married Elliot Handler, an industrial engineer.
Handler was about to start designing lighting fixtures, but soon began making furniture by running sales in her garage. The business attracted four partners and quickly grew to $2 million in gift items and costume jewelry. By 1945, Elliot Handler was worried and wanted to make a new approach to doing business in order to stay competitive in the rapidly changing post-war world. Eliot's plans led to a dispute with his partners and he sold his stake in the company at a loss. 
Meanwhile, also in 1945, Ruth met with an old friend, Harold "Matt" Matson, and they began creating Mattel with Elliot designing products. The name Mattel was formed by combining Matson's surname with Handler's. Ill health soon forced Matson to sell his stake in the company to the Handlers. Mattel first entered the photo frame business using bits of plastic and wood. With the remaining wood planks and plastic, Elliot Handler began designing furniture for the dollhouse. Ruth Handler created a simple sales organization, and the company began its journey to the top. In the first year, a company that pulled $100,000 made $30,000 in profit.
The Handlers had little business experience and even less capital, but booming birth demographics plus the post-World War II situation gave them a unique opportunity. Despite favorable conditions, it took them several years to see a profit. In 1946, Mattel began producing inexpensive furniture, doll cosmetics, and clothing. Such toys as "Birdy Bank" and "Make-believe Makeup set" appeared.
And the following year, a real hit appeared - a miniature ukulele "Uke-A-Doodle". The toy was an unprecedented success and attracted large orders. In 1948, encouraged by the success of the ukulele, Mattel released a plastic piano, but quality problems related to the sound mechanism prevented it from becoming a hit. For every piano sold, the company lost 10 cents. 
These early business lessons taught the Handlers some important lessons: avoid obsolete products, keep an eye on prices and competition, keep an eye on costs and product quality. They realized that a successful business needed to produce unique and original products of superior quality and durability that could not be easily copied by competitors.
The company moved to California in 1948. The Handlers, together with other inventors, began to develop a music box using a unique mechanism. The shortage of capital and the refusal of banks to lend to the young firm suspended the project. But the Handlers did not give up, but borrowed $20,000 from Ruth's brother, which helped complete the project, and thus a new masterpiece from Mattel was born - the music box. Taking an old world idea and adapting it to modern production methods, the Handlers beat out the Swiss competition that had hitherto dominated the US domestic music box market. As Elliot Handler later recalled, “Our music box had a patented mechanism that could play continuously when the child turned the knob. It was different, it was well made, and we were able to mass-produce it, the price was lower than that of imported goods.” The success of the music box taught the Handlers several other lessons. First, they found that child participation was essential to any quality toy; children should be able to interact with the toy and want to play with it often and for long periods of time. Secondly, they recognized that a toy with a long circulation period is preferable to short-lived faddish products and can serve as a basis for the continuation of other toys.
Innovation, diversification and success: 1950-69
Mattel achieved several important innovations in 1955: sales rose to $5 million; the company presented another hit "Burp Guns". 
In what seemed like a risky venture, the Handlers agreed to sponsor a 15-minute segment of Walt Disney's Mickey Mouse Club on the ABC (American Broadcasting Company) television network. The handlers signed a contract for a period of 52 weeks and for $500,000, equal to Mattel's net worth at the time. Until that time, toy manufacturers relied mainly on retailers to display and sell their products. Advertising was connected only during the holiday season; never before has a toy company spent money on advertising all year round. With television, toys could be marketed directly to children across the country. So with the slogan "You can tell it's Mattel, it's swell" ("You can tell it's Mattel, it's wonderful"), the Handlers started a marketing revolution in the toy industry that had immediate payoff. The company sold many Burp Guns toy guns and made the Mattel brand name known to the audience. Mattel company logo 1945–1969
In 1957 the company, capitalizing on the popularity of TV Westerns, introduced toy replicas of classic Western guns and holsters. From the core mechanism of the Burp Gun, Mattel developed the "Fanner 50" Western handgun and a toy version of the Winchester rifle, complete with bullets. Mattel's sales reached $9 million and reached $14 million the following year.
Then in 1959, Mattel made a new hit in the toy industry with the Barbie doll, the best-selling toy of all time. The idea for the doll came from Ruth Handler, who noticed that their daughter preferred to play with grown-up looking paper dolls than normal baby dolls. Elliot and Ruth Handler with son Kenneth and daughter Barbara
Throughout the 1960s, the company continued to introduce popular toys: Baby First Step (the first doll that could walk on its own), live action dolls with movable eyes and mouths, the See 'N Say series of educational toys, the Vac-U-Form machine, and a whole line of Thingmaker toys, including Creepy Crawlers, Fun Flowers, Fright Factory and
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Another exciting hit, Hot Wheels miniature car models, was introduced in 1968, which turned out to be a pivotal year for Mattel as the mass of its products dominated the market, including its original toy music boxes that sold more than 50 million. The company moved to Delaware, and by the end of the decade it was the number one toy manufacturer in the world.
During the 1960s, the company began to actively diversify throughout the world with many acquisitions: Dee & Cee Toy Co. Ltd. (1962); Standard Plastic Products, Inc., Hong Kong Industrial Co., Ltd., and Precision Molds, Ltd. (1966); Rosebud Dolls Ltd. (1967); Monogram Models Inc. and A&A Die Casting Company (1968); Ratti Vallensasca, Mebetoys, Ebiex S.A., H&H Plastics Co., Inc., and Metaframe Corp. (1969).
Challenging 1970s and 1980s
During the dawn of the 1970s, Mattel was still absorbing other companies such as Ringling Bros, Barnum & Bailey Circus, and others. But the good times soon passed. In 1970 Mattel's manufacturing plant in Mexico was destroyed by fire, and the following year a strike at a shipyard in the Far East cut off toy shipments. To support the corporate growth trend, Seymour Rosenberg, executive vice president and chief financial officer, reported orders as sales, even though many orders were canceled and no shipments were made. For two years, Mattel issued false and misleading financial statements, until 1973, when the company reported a $32 million loss just three weeks after shareholders were assured the company was in good financial health. Mattel's stock immediately fell, and the Securities and Exchange Commission (SEC) became interested in fraud. Ruth Handler and Seymour Rosenberg appeared before Judge Robert Takasugi of Los Angeles District Court to defend themselves against SEC charges.
In 1974, Rosenberg was fired, the banks pressured the Handlers to resign, and a court ordered Mattel to restructure its board so that its majority was outside the company. In addition, the court fined Ruth Handler and Rosenberg each $57,000 and gave them 41-year sentences, which had suspended executions, on the condition that they both perform 500 hours of charity work annually for five years. Finally, in 1980, the Handlers sold most of their shares, ending their involvement with the company they had founded. Approximately 12 percent of the company's shares were worth about $18.5 million.
Ruth Handler founded Nearly Me, a company that makes prosthetic breasts for mastectomy patients.
A new management team under Arthur S. Spear, vice president of Mattel, replaced the Handlers in 1975, and by 1977 the company had returned to profitability. By 1980, Mattel was operating numerous other businesses, including Ringling Bros., Barnum & Bailey Circus; Shipstad & Johnson's Ice Follies; Western Publishing, the largest publisher of children's books; and a whole line of electronic toys, most notably Intellivision video games.
Yet, unfortunately, Mattel stumbled badly during much of the 1980s. Many of the company's acquisitions proved unprofitable and had to be sold. In addition, a large decline in video game sales in the early 1980s forced Mattel out of video games with a loss of $394 million in 1983, pushing the company to the brink of bankruptcy. Mattel might have gone bankrupt if New York venture capital firms E.M. Warburg, E.M. Warburg, Pincus & Co, and Drexel Burnham Lambert stepped in with $231 million in 1984 to save the company from the video game fiasco. However, in 1985 the company fell behind Inc. as the world's largest toy company.
New direction: 1987-92
By 1987, Mattel suffered a $113 million loss when the company had to close the Masters of the Universe line. As a result of Mattel's troubles, stocks plummeted from their 1982 peak. $30 per share to $10 per share in 1987 But the company's fortunes took a sharp turn when John W. Amerman joined the company in 1980 as head of the international division. He was appointed chairman. Under his leadership, the division's sales quadrupled, far outpacing the profitability of Mattel's internal operations. Amerman cut Mattel's overhead by closing 40 percent of the company's manufacturing facilities, including plants in California, Taiwan and the Philippines. He cut payroll at Mattel's California headquarters, saving an estimated $30 million a year. Mattel also refinanced debt and cut advertising costs.
Amerman reshaped the company, focusing on major brand names such as Barbie and Hot Wheels and making selective investments in the development of new toys. An example of this choice was the resurgence of Disney toys, due to a chance encounter in Tokyo, which, beginning in 1988, licensed the licensing rights to Mattel for a new line of plush toys. The resumption of cooperation with Disney turned out to be more than successful for Mattel. Their union in the 1990s would prove to be much more profitable than Amerman had originally imagined.
Despite a lackluster economy and usually sluggish sales in the toy industry, Amerman's strategy was paying off. The Barbie line was maintained and expanded to include approximately 50 different dolls per year and approximately 250 additional items ranging from shoes and clothing to furniture backpacks and a cosmetics line. Barbie's 30th birthday ad campaign in 1989 propelled her to the cover of Smithsonian magazine, confirming her status as a true American icon. fisher price logo
Mattel's emphasis on other major brands, including Hot Wheels, big dolls, Disney products, See 'N Say preschool toys, has provided a number of continuous hits. Mattel also aggressively expanded into other areas of the toy business, including plush toys, board games, action figures for boys and educational toys, which accounted for 46 percent of the total toy market. By entering these areas, Mattel has increased its participation in the overall industry from 34 percent to about 80 percent, becoming a full-range toy company. The company has made a particularly strong move in toys for boys, where it has traditionally been weak, with a range of new products including: Bruno the Bad Dog (a monster truck that turns into a ferocious dog); figurines based on films with Arnold Schwarzenegger; And
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A strengthened strategic alliance with the Walt Disney Company allowed Mattel to sponsor and develop rides and sell toys at three Disney theme parks. The agreement gave Mattel unprecedented impact on the millions of children and adults who visit the parks each year. Mattel has also negotiated exclusive rights to sell dolls, plush characters and preschool toys based on Disney movie characters such as Cinderella, Beauty and the Beast and Aladin. The agreement was a boon for Mattel, and Amerman predicted that Disney line sales would top $500 million by 1995. In addition to Disney, Mattel also reached an agreement with Hanna-Barbera to market toys based on the cartoon characters Yogi Bear, Boo-Boo, Cindy Bear (Cindy Bear), and Flintstones (Flintstones); another agreement with Turner Broadcasting allowed Mattel to develop and market products based on the Tom and Jerry cartoon. The push into the board game market led Mattel to acquire International Games, Inc. in 1992, maker of such lucrative mainstream franchises as UNO and the card game Skip-Bo.
Mattel executives believed that the best opportunities for the company's growth during the mid-1990s were overseas markets. Thus, external sales grew from $135 million in 1982 to $1.7 billion in 1992, with much of the sales through retail giants Toys 'R' Us and Wal-Mart. Total net sales of Mattel products reached $2.6 billion.
Bigger and better than ever: 1993-98
In 1993, the company made a landmark acquisition of the venerable toy manufacturer Fisher-Price Inc., the world's leading toy company for toddlers and preschoolers. 
This acquisition literally cemented Mattel's position in the toy industry. At the end of the year, net sales reached $3.4 billion, of which Fisher-Price products earned $750 million. Barbie sales revenue was about $1 billion (35% of total revenue), Hot Wheels 5% or $150 million. Disney 10 % or $330 million. Mattel also doubled the capacity of its manufacturing facility in Indonesia; opened offices in Austria, Scandinavia and New Zealand.
Mattel made two strategic acquisitions in 1994. J.W. Spear & Sons PLC is the UK company that owns the international rights to the popular games Scrabble and Kransco, whose Power Wheels and Wham-O (which included frisbee and hoop) brands round out their ever-growing list of products. The following year, Mattel became the new licensee of the Cabbage Patch Kids dolls, a premium addition to the company's large line of dolls. 1994 and 1995 were record years for the company, with net sales of $4 billion and $4.4 billion, respectively, and net income of $225 million in 1994 and $338 million in 1995.
Also in 1995, Mattel approached Hasbro about the possibility of a merger between the two largest toy companies in the world. Negotiations took place in secret for several months until Hasbro's board unanimously rejected a $5.2 billion merger proposal in early 1996 that would have given Hasbro shareholders a 73 percent premium at the then current selling price.
In 1996, sales rose to $4.5 billion, with revenue of $372 million. The 38-year-old Barbie was once again the top contributor to $1.7 billion in revenue, up 20 percent from the previous year. Hot Wheels sales also increased nearly 20 percent, while Disney products rose 8 percent to break the $500 million mark. International sales, however, were relatively weak due to a stronger dollar. At the end of the year, Mattel initiated the acquisition of another major player in the toy industry, Tyco Toys, Inc., the third largest toy manufacturer in the US. Tyco's merger with Mattel, completed in March 1997, made the latter an unparalleled industry leader, far ahead of any of its competitors. Tico's successful products, such as Sesame Street brand toys and its radio-controlled and electric race cars, have supported Mattel's children's and boys' toy line.
As the decade drew to a close, the changing of the guard was inevitable. John Amerman, who took Mattel from plummeting sales and mismanagement to the top of the toy business, has stepped down as Mattel's chairman of the board after 17 years. The reins of government have passed to Jill Barad. 
Barad moved forward with new Barbie innovations and aggressive expansion. International sales rose a cautious 3 percent (in local currency terms), net sales of $1.2 billion in Canada and Europe, and $2.1 billion in net sales in Asia and Latin America, representing a 35 percent jump for Latin America and market launch in Japan. In the US, doll sales rose 14 percent to $1.9 billion, especially in the burgeoning interactive market, where the Barbie CD-ROM brand quadrupled to $20 million. Barbie outfits by Oscar de la Renta and Vera Wang were released. .
In early 1998, Mattel celebrated Barbie's 39th birthday. Continuing its interactive success, a new website (Barbie.com) was introduced, as well as new dolls, including one with the official uniform of the Women's National Basketball Association. This year also marked the 30th anniversary of Hot Wheels with booming sales, as well as the 15th anniversary of the Cabbage Patch Kids dolls. Mattel in July 1998 purchased the Pleasant Company for $715 million, the Wisconsin-based manufacturer and direct marketer of the popular American Women's brand, consisting of books, dolls, clothing, accessories, and American Girl magazine. Pleasant's founder and president, Pleasant Rowland, became vice chairman of Mattel. The company has also gained a reputation as a great employer, named one of Forbes' "100 Best Companies to Work For" and praised by Working Mother for the fifth year in a row.
The collapse of the Learning Company and its aftermath: 1999 and beyond
Although the acquisition of the Mattel Pleasant Company, which brought together the toy brands of the world's two biggest girls - Barbie and American Girl - proved to be very successful, the company's next acquisition turned into a real disaster. In May 1999, Mattel took over The Learning Company in a $3.5 billion deal. Based in Cambridge, Massachusetts, Learning Co. was a major player in computer games and educational software, creating such "edutainment" titles as "Rabbit Reader" and "Carmen Sandigo". This acquisition was intended to expand Mattel's product line and help Mattel sell more products that appeal to boys, but Learning Co. started reporting unexpected losses before the deal was even completed. In October, Mattel announced that its revenue would fall well below expectations, prompting the departure of the two founders of Learning Co. During the year, Mattel posted a net loss of $82.4 million on sales of $5.52 billion, resulting in approximately 3,000 job losses, and Learning Co. also posted a loss in the fourth quarter. in the amount of $183 million. The last loss led to Barad's abrupt resignation in February 2000. Meanwhile, Mattel stock has fallen below $10 a share from $45 in 1998. 
Robert A. Eckert was named chairman and CEO in May 2000. He was the division head of Kraft Foods Philip Morris Companies Inc. Meanwhile, Mattel entered into a global alliance in July 1999 with Bandai Co., Ltd., Japan's largest toy manufacturer and best known for Power Rangers action figures and Tamagotchi electronic virtual pets. Initially, the alliance meant that Bandai would handle Mattel's marketing in Japan, and Mattel would do the same for Bandai in Latin America. In February 2000, Mattel reached an agreement with Warner Bros. making Mattel the primary toy licensee for the best-selling Harry Potter book series and for the first two Harry Potter feature films. The same year, the company received multi-year licensing rights to characters owned by the popular children's cable television channel Nickelodeon.
In October 2000, shortly after Eckert took over, Learning Co. was sold to Gores Technology Group. Mattel agreed to pay $500 million in Learning Co.'s debt, and the losses from the sale resulted in a net loss of $430.9 million in 2000. The aftermath of this disastrous acquisition is widely regarded as one of the biggest corporate blunders ever, but it was not yet All. Numerous lawsuits were filed by shareholders in 1999 and 2000 accusing the company of mismanagement and breach of fiduciary duty by the company's management and board of directors. In November 2002, Mattel agreed to pay $122 million to settle these disputes.
Eckert took a conservative approach to managing Mattel, focusing more on getting the firm back to profitability than on finding new toys that would significantly increase revenue. As a result, earnings were relatively flat during his first two years at the helm (2001 and 2002), but net income figures were decent: $298.9 million and $230.1 million, respectively. Successes during this period included Harry Potter products, a Nickelodeon-derived product line, the hit SpongeBob SquarePants, and a line of big-eyed talking dolls called Diva Starz. As part of Eckert's strategy to expand Mattel's core brands, the company released its first video in October 2001 Barbie, "Barbie and the Nutcracker" (Barbie in the Nutcracker), which sold quite well. Overall, however, sales of the Barbie line have been declining under the pressure of new competitive dolls, especially from MGA Entertainment with the Bratz dolls, which debuted in 2001.
In the PC gaming sector, Mattel has taken a new partnership-oriented approach by entering into licensing agreements with PC game makers Vivendi Universal and T-HQ Inc. in 2001 to develop interactive software games based on brands such as Barbie, American Girl, Hot Wheels and Fisher-Price. In terms of licensing, Mattel has dropped the license for toys based on new Disney films that tended to either excel or fail, but retained the rights to famous Disney characters like Mickey and Minnie Mouse. Eckert's other early initiatives included cutting costs, overhauling the supply chain, and an additional focus on international sales.
In early 2003, Mattel streamlined its operations by consolidating Boys' and Girls' Entertainment into a new business unit known as Mattel Brands. The Pleasant Company was separated from the Girls division and placed in a new unit called American Girl Brands. The firm's third division, Fisher-Price Brands, remained unchanged. Meanwhile, while Mattel's line of dolls were vying with the upstart Bratz dolls, Fisher-Price was under pressure from another upstart, LeapFrog Enterprises, Inc., which quickly became a leader in e-learning after its founding in the mid-1990s. years. Fisher-Price responded in August 2003 with the launch of the PowerTouch system through which youth could play and learn from interactive books. The PowerTouch competed directly with the popular LeapFrog LeapPad system, and LeapFrog was concerned enough about the similarities between the two products to file a patent infringement lawsuit against Fisher-Price in October.
August 14, 2007 Mattel recalled over 18 million products due to their coating contained elevated rates of lead. Additionally, some toys were recalled that could endanger children due to the use of strong magnets.
In early 2010, Mattel received a license from HiT Entertainment to produce Thomas & Friends toys. And in October 2011, Mattel agreed to acquire HiT Entertainment for $680 million.
In July 2010, Mattel presented his hit collection of Monster High dolls. Monster High was created by Garrett Sander, with illustrations by Kellee Riley and illustrator Glen Hanson. In addition to dolls, the line included many consumer products such as stationery, bags, key chains, various toys, play sets, video games, web series and DVD movies. The main characters are the children of famous monsters, such as: Frankenstein, Count Dracula, Mummy, Zombie, Werewolf, etc. The entire franchise was rebooted in 2016.
In 2011, Robert Eckert stepped down as president of the corporation. He was replaced in January 2012 
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In July 2013, the company introduces the Ever After High series of dolls. This is a companion line to Monster High dolls. However, in this line, the characters are based on fairy tales and fantasy stories instead of monsters.
On July 2016, NBCUniversal announced that Mattel had acquired the license to manufacture toys based on the Jurassic Park franchise after Hasbro's rights expire in 2017.
Doll Wars
Alexandra Ponomarev
| Photo: IDP Newsland |
"News"
MGA Entertainment, the manufacturer of the Bratz dolls, has filed its lawsuit in federal court in Los Angeles. The lawsuit notes that for 15 years, Mattel employees conducted intelligence activities at toy shows around the world. Using fake invitations, "spies" were engaged in stealing ideas, studying the pricing policy and advertising strategies of competitors, including MGA. The reports were then studied by all Mattel employees, including the head of the company, Robert Eckert, the lawsuit emphasizes. The MGA believes that the "spoiled Cossacks" also acted at exhibitions of other toy manufacturers, such as Hasbro, Lego and Sony. The allegations are based largely on a story told by former Mattel employee Sal Villasenor.
The purpose of Mattel's spy work was to secure a competitive advantage in the toy market and also to convince everyone that Mattel is the embodiment of good and MGA is the embodiment of evil, the lawsuit says.
Toy Litigation
These two competing companies have been having quarrels for more than a year. Bratz dolls hit the market in June 2001. And then the toy four - Jasmine, Chloe, Sasha and Jade - hit first place in the list of the most bought dolls in France, Spain, Italy and second in the UK. Just a year later, the Bratz gained fame all over the world, seriously competing with Barbie.
The creators of Bratz caught something important in the psychology of girls. So important that even grown girls aged 23-25 buy them and play with them! - explains marketer and part-time doll collector Irina Ivanova. - The image of a girl who is like an adult, but at the same time a child, turned out to be psychologically correct. By the way, their clothes were from real designers. Bratz has its own "chips". They have big, like children's heads, and absurdly big, like teenagers' legs. Their legs are removed from the ankle. For adults, this is a shock, but children like it. Still - these are the first dolls that were given names. Each has its own individual characteristics: for example, Jasmine has a mole on her cheek.
Barbie decided not to give up without a fight. Mattel sued MGA Entertainment for $40 million in 2008. A California court ruled that Bratz creator Carter Bryant came up with the idea for the doll while he was at Mattel.
There were rumors that Mattel was developing a new doll, as the Barbie Princess concept turned out to be too cloying. Allegedly, the chief designer - the developer of the doll - fled to Isaac Larian, the founder of MGA Entertainment, and brought sketches of the doll with him, - says Irina Ivanova.
In July 2010, the US Court of Appeals overturned the 2008 decision.
Mattel cannot own the rights to all fashion dolls that are modernly dressed and look "sassy and bratty". These are not ideas that can be protected by copyright, the court's verdict said.
And now another trial is coming - in the case of industrial espionage.
Tens of billions at stake
Strictly speaking, Barbie manufacturers could be accused of espionage 50 years ago. The creator of the first toy blonde, Ruth Handler, took the German doll Lilly as a model. One of the founders of the Mattel empire liked the idea of a doll that would become not a child for a girl, but an older friend. But then not very big money was spinning on the toy market, and no one began to sue. But now the production of toys is a super-profitable business. According to Maxim Klyagin, an analyst at the Finam investment company, the volume of the world toy market is about $80-85 billion, and this does not include other children's goods.
The thing is that toys are obligatory consumer goods. It is clear that they cannot be put on a par with food and medicine, but nevertheless, if you have a child, then you will definitely buy a toy. And since demand is guaranteed, competition in this market is very tough. Therefore, in the "toy" world, espionage passions are in full swing.
Greetings from China to Russia
Both Barbie and Bratz are made in China - it's cheaper that way. Approximately 70% of toys are imported to Russia from there.
The volume of the Russian market of children's goods as a whole, according to various expert estimates, is about 12-14 billion dollars. The segment of games and toys (excluding set-top boxes, computer games) accounts for about 15% of the total market volume. According to Rosstat, in 2009 sales of games and toys amounted to about 26.5 billion rubles. Before the crisis, Russians spent between 3,100 and 4,600 rubles on children's goods, according to a Nielsen study.
But we practically do not have our own production.
The share of domestic products, according to expert estimates, does not exceed 10-12% of the total market, - says Klyagin. - At the same time, the proportion of counterfeit goods is very high.
Why don't we have anything like Bratz or Barbie? I think because you need to know and love children deeply in order to offer such a thing. It is necessary to study the psychology of children, their dreams and aspirations, and then something amazing will appear, - says Irina Ivanova. - An intelligent person will deal with a question - he will get a result.
The same opinion and analysts.
The market for the production of toys, of course, has a very high potential, primarily due to import substitution. If modern full-cycle production is created, oriented, for example, to the middle price segment, the project may turn out to be quite successful, - says Klyagin.
Some attempts to establish toy production in Russia, it should be noted, are already being made. So, in Togliatti they are looking for investors for the technopark "DetProm - Togliatti". It is assumed that the resident companies will produce goods for newborns, bicycles, sports games and toys for outdoor activities, educational and educational games. Children's designers, electric cars and some bicycle models will be assembled from imported parts with subsequent localization of components.
In 2017, the company will release 14 character dolls, which will be sold both separately and in various sets. Books and coloring books will be on sale later this year. Enchantimals, and at the beginning of the next - plush toys. The brand has great potential in so many categories, such as "creativity" and "puzzles", and for the "children's fashion" segment, original designs with animal prints have already been developed.
HOT WHEELS
Marketing Manager at Mattel Artem Frolov spoke about the successes and plans for the development of the brand Hot Wheels, which turns 50 next year.
Basic machine HotWheels became the best-selling toy in the world and in Russia. To promote content, we now have our own YouTube channel - Hot Wheels Russia, which hosts over 300 videos, with 90% of the content produced by product fans - children. Recently, Mattel launched the Race Off gaming application, which has already gained 1.5 billion downloads in Russia alone in six months.
In 2018, the anniversary year for the brand, several major promotional campaigns are planned, for example, a collaboration with Uber. In addition, a new product, Hot Wheels City, will be launched next year, featuring a series of play sets inspired by iconic cityscapes.
Guzel Davletshina : "Hot wheels is the fastest growing brand in the licensing business and this trend is being seen across almost every category.”. The magazine went on sale last year. HotWheels, which quickly became one of the three most popular magazines for boys in Russia. Among other categories, FMCG products are actively developing. Another important direction was clothes for boys, the brand is widely in demand in the mass market: this year gap offered customers a collection of clothes branded Hot Wheels.
FISHER PRICE
Fisherprice- the brand No. 1 in terms of turnover for Mattel. Toys for the smallest consumers are produced in 37 languages, with annual sales exceeding $2 billion. In 2017-2018, Mattel is running a promo campaign under the working title "Keeping the Nature of Childhood". Margarita Lapidus talks about the purpose of this action: “We are returning to the origins of the brand, remembering the history of its creation, the first toys of the brand. At the same time, remembering the special importance and value of communication between mother and child in the first years of a baby’s life, we continue to broadcast the values of the brand to the target audience of mothers and, thanks to this, the trust of the target audience in the brandFisher-Price" remains and continues to grow.
Brand recognition Fisherprice in Russia is more than 80%, which makes it possible to use this success in the development and promotion of licensed goods. New product packaging fisher price, as well as style guides for licensed products were developed by the world famous western designer Jonathan Adler. At the same time, the packaging design for licensed toys is completely identical to the packaging design of the main assortment.
Megablocks became one of the brightest launches of the last two years. Brand Mega includes two lines aimed at different age groups: Megablocks is positioned as the very first constructor for babies from 12 months to 5 years old, and a product was released for children from 6 to 14 years old Mega Construct, which in 2017 will continue to strengthen its position, including through popular franchises DespicableMe And Pokémons. In 2018 in the line Mega Construct a new ambitious project "Universe" will be launched. In this project, designed for both boys and girls, a large number of characters and exciting stories will appear.
TOMASANDFRIENDS
This year's cartoon Thomas and his friends is released in the best time slot on the Karusel channel, the ratings of the animated series have doubled. In addition, the brand is actively conquering the digital space. Number of unique website users Tomas&friends today reached 9 million. This year, a Russian-language channel about Thomas was launched, which already has 466 thousand subscribers.
Thomas and his friends- a brand based on content, and the development of a brand is impossible without the development of the plot of a popular cartoon. In 2018, Thomas will make the first transcontinental journey. The story will receive massive support on TV and on its own YouTube channel.
Product line Thomas and his friends includes magazines, reading books, coloring books, scooters, bicycles, food, art supplies, puzzles, clothes, including for girls.
