For 'Frozen 2,' Toy Makers Let It Flow
November 22 2019 - 11:21AM
Dow Jones News
By Paul Ziobro
Hasbro Inc., Jakks Pacific Inc. and other toy makers are
flooding the toy zone with Anna and Elsa dolls, castle play sets
and other items based on "Frozen 2," hoping to avoid repeating the
dearth of merchandise that plagued the launch of the original
film.
Walt Disney Co. and its licensing partners have the benefit of a
track record and now-familiar characters to help sell products
based on "Frozen 2," the company's first-ever big-screen sequel to
a princess movie, opening this weekend.
Disney has allocated the license to more partners and across
more types of products than when the original "Frozen" launched six
years ago, according to a spokeswoman. It has branched out into new
categories, like technology, and into new retail outlets, like
fashion-accessories chain Claire's, to target the movie's older
fans.
Jakks, based in Santa Monica, Calif., has released 18 unique
items for "Frozen 2" so far, including dolls, dresses and a scepter
with the two lead characters encased in a snow globe -- more than
double the eight items released when the original movie came out.
Jakks is planning to release more "Frozen 2" toys over the next 18
months tied to events like the release of the digital movie, said
Lisa Tauber, a Jakks senior vice president.
The "Frozen 2" product line is deeper than what Jakks has done
for other Disney princess movies, in part because children already
know many characters in the film. "Knowing ahead of a movie release
who the characters are will tend to drive sales earlier as well as
deeper into the line," Ms. Tauber said.
Jakks and Mattel Inc. were the two main toy partners for the
first "Frozen," and both had to scramble to keep shelves stocked
with toys after the movie came out in 2013. Mattel spent the next
year pushing manufacturers in Asia to pump out enough "Frozen"
products to meet demand.
"When you have an unexpected hit, you have a massive shortage,"
said Jim Silver, editor at TTPM.com, a toy review website. "When
you plan on something to be big and you have many licensees and
deep product lines, you don't have that shortage."
Mattel soon after lost the license to make Frozen toys as well
as other Disney princesses to its main rival, Hasbro Inc. The loss
cost Mattel some $300 million in annual sales, creating a revenue
hole that the maker of Barbie struggled to fill. Hasbro, based in
Pawtucket, R.I., officially gained the license in 2016.
Hasbro had long been known as a powerhouse for boys toys like
G.I. Joe and Transformer action figures, Nerf blasters and Star
Wars toys. After winning the coveted "Frozen" license, it built out
a team of doll designers to handle the new business.
Hasbro revamped the line of classic princess characters like
Cinderella and Snow White and oversaw toys for "Moana." But the
"Frozen" franchise was viewed as the hot property of the
package.
Amid moving targets on toy tariffs, Hasbro rushed "Frozen"
merchandise into the U.S. to ensure its arrival for early October,
when retailers held special events to showcase the new items. On an
earnings call last month, Hasbro Chief Executive Brian Goldner
singled out a $200 "Ultimate Arendelle Castle Playset" as one key
item selling better than expected.
Samantha Lomow, a president at Hasbro overseeing the company's
entertainment properties, said the company made "Frozen 2" toys
available early to "meet demand ahead of, during and after the
theatrical release."
Early results have been promising. "Frozen" has been the
third-largest toy property by sales, according to the research firm
NPD Group Inc., trailing the popular doll brands L.O.L. Surprise
and Barbie.
Children who grew up around "Frozen" are six years older now,
and may not be as interested in toys, but toy makers are betting a
new generation can pick up the slack.
"There's a whole new group of 3, 4 and 5-year-olds who weren't
alive," said Juli Lennett, a NPD vice president who follows the toy
industry. "That's a whole new group of kids to fall in love with
the toys."
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
November 22, 2019 11:06 ET (16:06 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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