BENGALURU: Excerpts from Mattel, Inc., (Mattel) second quarter results (quarter ended June 30, 2014): “For the second quarter, worldwide gross sales for Mattel Girls & Boys Brands were USD689.0 million, down 13 per cent versus the prior year. Worldwide gross sales for the Barbie brand were down 15 per cent. Worldwide gross sales for Other Girls brands were down 11 per cent, primarily due to Monster High, partially offset by Disney Princess and Ever After High. Worldwide gross sales for the Wheels category, which includes the Hot Wheels and Matchbox brands, were down 3 per cent. Worldwide gross sales for the Entertainment business, which includes Radica and Games, were down 19 per cent.”
The key point here is that the company has reported a drop in everything; it’s only the Other Girls brands partly driven by the Disney Princess products and American Girls brands that have shown an upward trend for Mattel in Q2-2014. The same was the case in Q1-2014.
The 108 minute long Frozen with a production budget of USD 150 million is probably one of the highest grossing animation movies at about USD 1.3 billion. The Frozen property was also partly responsible for the 16 per cent increase in revenues and a 25 per cent increase in operating income for Disney’s Consumer Products (DCP) segment as reported by The Walt Disney Company in its third quarter results for the period ended 28 June, 2014. Though a sequel for Frozen has not been officially announced, there is a quiet buzz in the industry and media circles that it would be out probably in late 2018.
Now Disney Princess and Frozen franchise has been grabbed by Hasbro, Inc., (Hasbro). Last week, Hasbro announced a new strategic merchandising relationship with Disney Consumer Products for the globally popular Disney Princess and Frozen properties. The agreement gives Hasbro global rights (excluding Japan) to develop dolls based on Disney Princess stories and characters including Cinderella, Beauty and The Beast, and The Little Mermaid as well as Frozen beginning in 2016.
DCP president Bob Chapek said, “We are excited about our collaboration with Hasbro on the Disney Princess and Frozen franchises and the expansion of a robust partnership that has already yielded tremendous results across our Star Wars and Marvel properties. Hasbro’s focus on quality, innovation, and market-leading products designed for today’s consumer, makes them the best choice to grow one of the world’s most popular girls brands.”
“We are delighted to have been selected by Disney Consumer Products to develop dolls for the Disney Princess and Frozen franchises,” said Hasbro president & CEO Brian Goldner. “Our strategic thought leadership and innovation has led to the steady growth of our girls business over the past several years demonstrating that we have a true understanding of girls globally and how today’s girls want to play. The entire Hasbro team is looking forward to providing consumers with inventive new play experiences based on the beloved Disney Princess and Frozen characters and stories.”
Over the past ten years, Hasbro’s creation of new brands and investment in re-imagining existing brands such as My Little Pony has grown Hasbro’s Girls category revenues from nearly USD300 million to more than USD1 billion in 2013, a record level for Hasbro’s Girls portfolio, states Hasbro.
“Our industry leading design and marketing teams are looking forward to delivering to consumers around the world wonderful play experiences based on these magical Disney properties,” said Hasbro chief marketing officer John Frascotti.