What growth trends do these four brands reveal in 2024? | Data see trend

What growth trends do these four brands reveal in 2024? | Data see trend

Recently, Mattel and Hasbro have released their fourth quarter and full-year performance reports for 2023; Bandai Namco has released financial report data for the first three quarters of fiscal year 2023; based on the full-year financial report released by Disney in November last year, what are the growth highlights? Worth paying attention to?

01

IP driver

Pan-entertainment development expands influence and promotes growth

In 2023, Mattel and Hasbro’s classic IPs will innovate to remain competitive.

▋Mattel: Barbie is a huge success

Mattel’s 2023 revenue is US$5.441 billion, a year-on-year decrease of 1%; net profit is US$214.4 million, a year-on-year decrease of 46%.

The financial report shows that of the four major categories, two categories increased and two categories declined, as follows:

Doll product revenue was US$2.394 billion, a year-on-year increase of 15%. The growth advantage was mainly brought by its own IP Barbie, Elf High School and cooperative IP Disney Princess and Frozen series products.

Vehicle product revenue was US$1.641 billion, a year-on-year increase of 13%, mainly driven by the growth of the Hot Wheels brand.

Revenue from infant and preschool products was US$1.001 billion, a year-on-year decrease of 10%; revenue from movable dolls, building blocks, games and other products was US$1.066 billion, a year-on-year decrease of 24%.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

Judging from the performance of each brand, Barbie stands out the most, accounting for nearly 30% (27%) of Mattel’s total performance.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

In the financial report, Mattel Chairman and CEO Ynon Kreiz highlighted the success of the “Barbie” movie.

The “Barbie” movie was released on July 21, 2023. In the first and second quarters before that, the brand’s revenue fell by 40% and 6% year-on-year; after the movie was released, the third and fourth quarters increased by 16% and 27% year-on-year, boosting Mattel’s performance Strong growth.

In recent years, Mattel’s “IP-driven strategy” has been quite effective. Taking Barbie as an example, in terms of IP value reshaping and IP linkage, Mattel injects new life into Barbie and expands the influence of this IP by continuously developing the cultural added value behind toys.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

Value reshaping: Barbie’s image keeps pace with the times

Barbie, which has been around for 64 years, has been striving to master the “language of the times” and always insists on keeping pace with the times in Barbie’s image and values.

The movie completely updated Barbie’s character and story, arousing emotional resonance among the audience. The film and television and IP-based doll images are becoming an important part of Mattel’s strategy.

Ynon Kreiz said at the company’s financial report meeting last August: “The halo effect of movies will not only affect this quarter, but also the second half of this year and even the next few years. This is not a one-time benefit.”

IP linkage: exploring new paths for marketing growth

Mattel has co-branded with more than 100 brands around the world, launched Barbie derivative products, and co-branded with brands in food retail, clothing and beauty and other categories, all of which have achieved good sales, and some have even directly increased quarterly sales.

Before the movie was released, Miniso launched a new series of Barbie-themed products that can be matched with everything, including headphones, pillows, pet bags and more. More than 120 co-branded products were launched globally for 5 days, and nearly half of the categories were sold out. exhausted. Miniso also opens Barbie theme stores in major cities.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

One week before the movie was released, the fitness platform Keep launched the “Barbie Sports Sweet Star | Pink Girl Online Run” joint event, which is very close to the user demands of platform users, the core values ​​of the brand, and the female image projected by the values ​​​​of the movie “Barbie”.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

During the release of the movie “Barbie”, “Barbie Pink Fever” (barbiecore) started on TikTok. Barbie-related elements and representative colors have become popular, and pink-related items are selling hot on multiple platforms. The Barbie co-branded Crocs launched by Crocs are almost sold out online. Zara has reproduced the costumes of the heroine in the film, and co-branded styles such as jumpsuits, sunglasses, and denim suits are all very popular.

▋ Hasbro: “Dungeons and Dragons” IP revenue increased by 76% year-on-year

Hasbro’s revenue in 2023 is US$5 billion, a year-on-year decrease of 15%, mainly affected by the divestment of its eOne entertainment division.

Wizards and digital game divisions grew by 10% year-on-year. Among them, “Dungeons and Dragons” achieved a substantial growth of 76%, mainly due to the revenue of “Baldur’s Gate 3”.

The financial report shows that “Transformers”, “G.I. Joe”, the relaunched Furby toys, and “Monopoly GO!” 》is the highlight of Hasbro’s performance in 2023.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

“Transformers” revenue will grow by 25% in 2023. Last year, “Transformers: Rise of the Power Rangers”, the seventh film in the “Transformers” IP series, was released.

Magic: The Gathering grew 2%. In 2023, “Magic: The Gathering” will be linked with many well-known IPs such as The Lord of the Rings, Jurassic World, and Doctor Who, expanding the player base. Its linkage with the classic IP “Lord of the Rings” will have a significant effect on sales.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

It is reported that in 2024, “Transformers” will celebrate its 40th anniversary, and Hasbro will soon release the retro-style animated film “Transformers: One”; this year is also the first edition of “Dungeons and Dragons” For the 50th anniversary of its release, Hasbro will film a documentary on the classic role-playing game.

▋ Bandai: One Piece has grown significantly

Bandai Namco released financial report data for the first three quarters of fiscal year 2023 (April 2023-March 2024), with revenue of 772.035 billion yen, a year-on-year increase of 3.9%. Operating profit was 78.28 billion yen, down 26.3% year-on-year.

According to the financial report, its toy sales business led the growth, with revenue of 390.212 billion yen, a year-on-year increase of 13.1%; toy sales contributed 69.717 billion yen in profits, a year-on-year increase of 31.7%.

Among them, “One Piece” has achieved significant growth. During the financial reporting period, “One Piece” generated revenue of 84.4 billion yen, a 40% increase from 59.8 billion yen in the same period last year. “One Piece” has also become Bandai’s third major IP pillar after “Gundam” and “Dragon Ball”.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

Last year, the animated film “One Piece: The Red-Haired Diva” recorded box office revenue of more than 20 billion yen in Japan, which is approximately 972 million yuan. The One Piece trading cards and the mobile game “One Piece: Bounty Hunter” released by Bandai have attracted the attention of fans in Japan and overseas markets.

02

Emerging Markets

Asia-Pacific and Latin America usher in new opportunities

Mattel’s revenue in Asia Pacific, Latin America, and North America will all grow in 2023, with increases of 11%, 3%, and 1% respectively. Revenue in the EMEA (Europe, Middle East and Africa) region fell 5%.

In Hasbro’s financial report, revenue in the four major divisions of North America, Europe, Asia Pacific and Latin America will all decline in 2023, but the decline in Asia Pacific and Latin America is relatively low, down 13% and 1% respectively.

The Disney China market is growing steadily. In November last year, Disney released its fourth fiscal quarter and full-year report for fiscal year 2023 (October 2, 2022 – September 30, 2023). For the full year of fiscal 2023, Disney’s revenue was US$88.898 billion, a year-on-year increase of 7%. Among them, experience business revenue increased by 16% year-on-year.

Among the experience businesses, the international business including Shanghai Disneyland has the best revenue performance. This quarter’s revenue increased by 55% year-on-year, and operating profit increased by five times. The performance of authorized consumer products in China has achieved double-digit growth in fiscal year 2023, among which the sales of plush toys have maintained an average growth of 50% in the past three years.

What growth trends do these four brands’ financial reports reveal in 2024?  | Looking at trends from data

03

Focus on strengths and core business

Affected by the market environment, several major toy companies have chosen to focus on their core businesses and build competitive advantages.

Due to the success of the “Barbie” movie, Mattel management emphasized that it will continue to implement the established strategy, develop IP-driven toy business and expand entertainment products.

It is reported that Mattel has a total of 14 projects including “Hot Wheels”, “Pocket Polly”, “Major Matt Mason”, “Rock Robot”, “Wishbone” and “Matchbox”, which are about to be adapted into film and television.

In addition, Mattel will also launch the “Optimizing Profitable Growth Plan,” a multi-year cost-saving plan designed to further reduce costs and increase efficiency.

Hasbro further focuses on core IPs such as Transformers, Peppa Pig, and Magic: The Gathering, and improves profitability through pan-entertainment represented by digital games.

In its latest financial report, Hasbro emphasized that it will lean toward a “fewer, bigger, better” brand strategy in the future.

Conclusion:

In 2023, classic and popular IPs will still maintain strong competitiveness. The pan-entertainment approach allows IPs to have more touch points and attract consumers from different circles through different media, enhance the emotional connection of fans, drive brand performance improvement, and realize people’s desire for a better life. pursuit.

From March 28th to 29th, the 14th China Brand Licensing Annual Conference (referred to as the industry conference) and the China Children’s Industry Development Conference hosted by the China Play Association Licensing Industry Branch will be held at the Dongguan Guest House. At the same time, the “17th China Brand Licensing Annual Conference” will be held. “China Brand Licensing Summit Forum” to discuss the beautiful new life of IP linkage.

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