Mattel is facing some tough times. The toy market is changing and the company has to do the same in order to continue to be among the top brands.
This is why it already has big plans on how to reinvent itself. The plans feature three different top priorities, Mattel’s CEO Margo Georgiadis told Fortune.
“It is time to reinvent this company because of where the world is headed. As an industry, we are all challenged to do things differently”, she says.
The approaches feature a faster pace of toy development. This means that the company should become quicker to bring new toys to the market and stay on top of the trends.
Mattel also plans to focus more on digital play experiences. “Toy time is holding steady, but kids are spending more time on digital and toys need to adapt… Our vision is to inspire the wonder of childhood as the global leader in learning and development through play,” said Georgiadis. “As we shift our business aggressively in a new strategic direction and transform how we operate, I believe we have the assets to achieve this vision and shape the future of the toy industry”, she adds.
Mattel will also focus on the emerging markets more. “The strength of the underlying Mattel franchise supported by important trends such as a growing global toy market and an increasingly digital, mobile-first world provides an opportunity for Mattel to create significant long-term value for our investors”
The global toy market is expected to grow by $20 billion over the next four years. Most of this growth will come from emerging markets. This is why Mattel will focus more efforts there. This doesn’t mean that established markets like the US and Europe will take a back seat. Mattel will continue its presence there and focus on providing the said digital play experiences and more toys faster.
