The toy industry is "three pillars", who is the ultimate hegemon?

Japanese media said that the dressing doll "Barbie doll", building block toy "Lego" and the chess game "Monopoly" are fiercely competing for competition in the toy industry.

According to the "Nikkei Business News" website reported on April 27, these three products are the main products of the toy company Mattel, the LEGO and the Hasbro. Mattel is currently ranked first in the industry, but continues to reduce revenue. Lego and Hasbro are catching up.

For LEGO, Asia is an important market. Former company CEO Jon Vig Knutd Stop said that "Asia will be popular in the future compared to Europe and the United States, which has been in contact with LEGO since the parents' generation." LEGO's Asian market continues to maintain double-digit growth in recent years. In 2016, LEGO's first Asian factory was just put into production in the suburbs of Shanghai.

LEGO's performance has expanded smoothly. Sales in FY2016 (as of December 2016) increased by 6% year-on-year to reach 37.934 billion kronor (approximately RMB 38.43 billion). Mainly thanks to the products launched in cooperation with the movie "Star Wars". Lego's sales have grown about four times in eight years and are the fastest growing companies in the industry. It is expected that the 2017 fiscal year will continue to increase revenues, driven by the cooperative film "Batman".

At the same time, among the US companies on the other side of the Atlantic, the growth momentum between the first Mattel and the next Hasbro is significantly different. Hasbro's sales for the first three months of 2017 released on April 24th were US$849 million, up 2% year-on-year, while Mattel's sales for the same period were US$735 million, a year-on-year decrease of 15%. Hasbro achieved Counterattack.

The obvious difference between the performances of the two companies is mainly due to the "change of ownership" of the popular cartoon characters of Walt Disney in the United States. In December 2015, Hasbro obtained the manufacturing and sales rights for the movie "Frozen" from the rival Mattel. The popularity of "Frozen" and "Beauty and the Beast" contributed to the performance of Hasbro.

On the one hand, Mattel still has structural problems. The signature product Barbie is in a downturn. Sales of Barbie products decreased by 13% from January to March 2017. In the United States, in response to the diversification of aesthetic consciousness, Mattel added a Barbie doll with three fat, tall and small shapes in 2016. Although it was once sought after, this momentum soon came to an end.

The sales of Mattel FY2016 (as of December 2016) was $5.456 billion. At the most recent exchange rate, Lego’s performance as of FY2016 has exceeded that of Mattel, and the gap between the two is narrowing. If Barbie’s distress is still difficult to eliminate during the Christmas season in the peak season, it is likely that the first place in the 2017 ranking will be handed over to Lego or Hasbro.

Source: Reference Message Network

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