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Retailers, consumers and prices

December 4th, 2008

Bratz dolls — Joining the collectibles?

Posted by: Aarthi Sivaraman

Hold on to your Bratz dolls.

A rival to the more demure Barbie, and one of the more fashionable dolls in the market, the Bratz may not be on store shelves from early next year.

A California judge ruled late Wednesday that Bratz owner MGA Entertainment should stop selling the dolls and banned it from using the toy’s name, handing rival and Barbie maker Mattel Inc its biggest victory yet in a years-long legal fight over the Bratz dolls, which pushed Barbie out of the limelight soon after their launch in 2001.

The court battle was marked by testimonies from both Mattel CEO Bob Eckert and MGA CEO Isaac Larian, and more recently, the dismissal of one of the jurors who a judge found to have made racial remarks during deliberations about Larian, an Iranian Jewish immigrant.

For Mattel, the latest ruling is good news. But for MGA, which plans to appeal the ruling immediately, the future look bleak if it has to abandon the toy line, which rakes in more than $1 billion in annual sales according to Larian.

And for consumers — there is still hope that you will be able to own one of these dolls. The injunction issued to MGA has been stayed until after the holiday sales season.

So head out and bring Jade, Yasmin, Sasha or Cloe home. They may be valuable in a few years.

(Photo/Reuters)

November 19th, 2008

Check Out Line: Hannah Montana rising

Posted by: Brad Dorfman

Check out the marketing power of Hannah Montana.
 
Watch out Barbie. Hannah is clawing her way up behind you. At least as far as girl’s toys are concerned.
 
According the National Retail Federation’s 2008 top toy survey, Hannah Montana has moved up four spots to the number two position for girls’ in the Top Toys survey, trailing on Mattel’s Barbie.
 
Toys based on the Disney character, who is played by Miley Cyrus, knocked those scrappy Bratz dolls out of the number two spot. Bratz fell all the way to number four behind just-plain-old, everyday, no-specific-name dolls.
 
As far as boys are concerned, the list is similar to last year, with video games in general topping the survey and the Nintendo Wii in the number two spot. Legos, cars and Transformers round out the top five.
 
While the weak economy is leading to expectations of a dismal holiday shopping season, parents could find some bargains in toys.
 
“The good news for parents is that many retailers are featuring toys as loss leaders this year, heavily discounting and promoting these items to bring shoppers into stores,” NRF President and CEO Tracy Mullin said.
 
Also in the basket:
 
CPI drops at record pace in October
 
BJ’s Wholesale quarterly profit jumps
 
Why Doesn’t Costco accept food stamps? (N.Y. Times City Room)

(Reuters photo)

October 7th, 2008

Bratz and Bakugan make latest hot toy list

Posted by: Aarthi Sivaraman

bratzandbarbie.jpgIf the holiday season is around the corner (or even a little farther away), then it is that time of the year again — major toy retailers, childrens’ magazines and guides announce “hot” lists, predicting which toys and games will likely fly off store shelves during the holiday shopping period.

According to Toy Wishes magazine, girls who are 6 years old or older are likely to go after the Bratz “Girls Really Rock” line of dolls this time around.

Top U.S. toy maker Mattel and smaller, privately held MGA Entertainment have been locked in a legal battle over the Bratz dolls. The chic, snazzily dressed dolls started stealing market share from Mattel’s iconic and more clean-cut Barbie since the Bratz were introduced in 2001. While it is still undecided as to who has the right to make the dolls. Mattel most recently said that it has filed a motion to stop MGA from making or selling Bratz. That could spell bad news for MGA, given toy companies make a lion’s share of their revenue during the holiday season.

Also on the Toy Wishes list: Spin Master’s action-figure warriors Bakugan, Playskool’s dinosaur “Kota the Triceratops,” and Crayola’s Glow Station. Interestingly, Crayola spokeswoman Stacy Gabrielle said at a Toy Wishes event in New York that Crayola is trying to attract thrifty parents with lower-priced items this holiday season. The Glow Station can be purchased for $29.99. 

Just as well. With high prices for fuel and food, the credit crunch, a prolonged housing slump and the financial meltdown, how many parents will readily shell out $179.99 for a toy dog (Hasbro’s Furreal Friends Biscuit, My Lovin’ Pup) or $189.99 for a 15-string Cherry Harp?

Time will tell.

(Photo: Reuters)

July 29th, 2008

Mattel launches My Meebas as Barbie stumbles

Posted by: Aarthi Sivaraman

mymeebas.jpgWhat would Mattel wish for if it had one wish to make? The launch of the toy giant’s “My Meebas” points to one possibility — better fortunes for its girl’s toy business, as Barbie sales continue to face trouble.

Mattel launched “My Meebas” — a toy for girls aged 6 to 12 that houses a plush “Meeba” in a plastic tube, which serves as a gaming device with a movable LCD screen.

The toy is aimed at the latest generation of girls, who like plush toys but are also into electronic games, Mattel said. The launch comes at a time when Mattel is struggling to revive sales in its girl’s division, best known for its iconic Barbie dolls. Sales of Barbie have suffered in past quarters, as other toys such as “Hannah Montana” and Bratz steal market share. 

The “Meebas”, also made in China like many other toys, will retail for $19.99, while a Barbie “Top Model” doll can be bought for $14.97 at Wal-Mart. The toys have gone through extensive checks, Mattel said, following the spate of recalls last year.

With a “Meeba,” the idea is for a user to buy the toy as they make a wish, and then go through seven levels of game play, or over 20 activities, which could take anywhere from seven to 12 hours, according to Mattel. 

The LCD screen can be moved up and down the side of the tube, showing how the “Meeba” grows as game progresses.

Once all activities are completed, the tube pops open, and the user can pull out their ”Meeba” — in a sign meant to signify that the user’s wish has finally been granted.

If the user buys another Meeba, maybe Mattel’s wish will get granted as well.

 The company has 60 such “Meebas” listed under categories such as friendship, love and intelligence.

The bonus? Some tubes have twin Meebas.

Watch out girls! (And make a wish, Mattel.)

(Photo: Mattel)

July 18th, 2008

Check Out Line: Mattel Wins Round 1 in Doll Brawl

Posted by: Brad Dorfman

braatz1.jpgCheck out the fun and games at Mattel.
 
The maker of Barbie dolls and Hot Wheels toy cars posted better-than expected quarterly earnings Friday.
 
But the real boon for the company was its victory over Bratz doll maker MGA Entertainment in a copyright infringement lawsuit.
 
A federal jury found that Carter Bryant, who created the popular Bratz dolls had come up with the characters and name while he was still under contract as a designer for Barbie at Mattel.
 
Mattel is seeking huge damages and an injunction to stop MGA from selling Bratz, the multi-ethnic, big-headed dolls that have cut into Barbie sales. MGA has argued that the dolls themselves were different than Carter’s drawings and were made by MGA designers … an issue that will be a big part of the damages phase of the trial.
 
So the two companies will keep fighting over their dolls.
 
Also in the basket:
 
Talk of change atop Carrefour (WWD, subscription required)
 
U.S. regulators lift tomato Salmonella warning 
 
(Reuters photo)