Image Source Visual China
Mattel and Hasbro, represented by Barbie and Transformers, respectively, may be one family.
The Wall Street Journal reported quoting anonymous sources saying Hasbro's takeover or renewal of the Mattel negotiations, although the conditions for the current transaction have not yet been confirmed and the transaction may not take place, but the capital markets are the largest of the two markets After the rumor spread that Nov. 10, Mattel shares rose more than 24% after the stock, Hasbro shares rose about 3%.
It was reported in 2016 that the two companies have been intermittent and intermittent negotiations, and Mattel's share price fell by more than half this year, which will be a better chance for Hasbro. About 11 billion US dollars, while the US-Thai market value of about 50 billion US dollars.
If Hasbro acquired the success of the United States and Thailand, will be the birth of a new toy giant. Transformers Representative of the boy toy market, while the Mattel Barbie is more inclined to the girl market.Moreover, the merger of two competitors will also reduce each other because of competition caused by consumption Hasbro from the hands of the United States and Thailand snatched Disney toys Authorization, and the United States and Thailand also grabbed the "Harry Potter and the Magic Stone" toy license from Hasbro.
However, this does not mean that the new toy giant will be able to reproduce that success decades ago, the more pressing challenges for these traditional toy makers are the changes in consumer buying channels and the impact of electronics on children Their attraction.
Under the dual impact of electronics and internet sales, the largest toy retailer, Toys R Us, filed for bankruptcy in North America in September this year, which has also exacerbated the impact on toy maker performance, which has long been dominated by Including Mattel and Hasbro and other toy manufacturers, including the important sales channels.
Among the latest results released by Mattel in the third quarter, global net sales dropped 13% to just $ 1.56 billion, with sales of Barbie, which sold $ 1.1 billion at its peak in 1994, a 6% year-on-year drop to $ 329.6 million, Demand for Thomas Small and Hot Wheels is also declining.
Margo Georgiadis, the company's chief executive, said the disappointing performance was due in large part to the negative impact of the application of bankruptcy protection by Toys R Us, the tightening of retail inventory management and the underperformance of its brands.
Hasbro released third-quarter results better-than-expected, but fourth-quarter results are expected to grow less than half of analysts' estimates. The company said the weak economy in Britain and Brazil, except for the impact of its application for bankruptcy protection, Also caused drag.
Giants need to adapt to new trends to make changes.
After all, the toy market is still growing, especially as emerging markets, including China, have become the driving forces for growth, and consumers are more inclined to experience better physical stores and more convenient and cheaper online channels.
Although Toys R Us bankruptcy will affect the sale of toys in the short term, toy makers are also an opportunity to adjust their own channels by picking the more popular retailers or taking online channels more seriously.
Although electronic products invade their children's toy time, the demand for intelligence development is still needed by parents, especially in emerging markets like China.For example, the establishment of LEGO, which is related to education and development of intelligence, was earlier laid out in the Chinese market, Currently, it occupies the first place in the toy market in China. In 2016, LEGO increased 6% globally and its market in China reached 25%.
Mattel this year announced that it will focus on the development of digital content, networking toys and learning products.It is said that in 2018 the new smart toys will be catered for parents who have intellectual development needs, while in China, in July this year, Mattel Announced the establishment of a joint venture with Baby Tree, the largest online maternal and child community in China, to set up 1,000 early childhood education centers and develop learning products.
No matter the success of the merger between the giants, to re-attract the children is the most urgent.