WEBVTT - Businessweek Extra-Richard Dickson

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<v Speaker 1>This is Bloomberg Business Week from Bloomberg Radio. I'm Carol Master.

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<v Speaker 1>Welcome to the Bloomberg Business Week Extra. It's our weekly

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<v Speaker 1>podcast with a favorite conversation and from the week we

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<v Speaker 1>caught up with Mattel President Richard Dixon. Now, last month,

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<v Speaker 1>Mattel launched Mattel Creations. It features curated items for sale,

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<v Speaker 1>highlights creator collaborations past in present, and kind of offers

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<v Speaker 1>a peek into the creative process with Mattel's very own designer.

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<v Speaker 1>Mattel Creations was launched in tandem with the brand seventy

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<v Speaker 1>fifth anniversary and is being led by Mattel President Richard Dixon,

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<v Speaker 1>who joined us to talk about it and well just

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<v Speaker 1>to talk about toys. Well, first off, thank you for

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<v Speaker 1>having me. Sure. I know there's a lot of news

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<v Speaker 1>happening that should be the fun part of the day.

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<v Speaker 1>It usually is, but not today, but it is now

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<v Speaker 1>that you're here. Well, look, I mean the good news

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<v Speaker 1>as we try and find it in today's you know,

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<v Speaker 1>uh challenging times, is that families are obviously spending a

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<v Speaker 1>lot more time together results of obviously you know, the pandemic,

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<v Speaker 1>and in fact it's reinforced the importance of play and toys. Um,

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<v Speaker 1>you know, the whole toy industry has continued to search.

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<v Speaker 1>We had a great third quarter overall in the industry,

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<v Speaker 1>and we're incredibly proud of Mattel's performance, which outpaced actually

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<v Speaker 1>the overall market. We've been gaining share and ultimately really

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<v Speaker 1>obviously responding to our consumers and providing the right toys

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<v Speaker 1>and the right assets, if you will, to occupy during

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<v Speaker 1>these challenging times at home. What have you seen in

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<v Speaker 1>terms of trends in terms of the types of purchases

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<v Speaker 1>people are buying? From my understanding, people were buying barbies,

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<v Speaker 1>they were buying hot wheels. What what were people buying?

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<v Speaker 1>Were there any interesting trends that you noticed in the

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<v Speaker 1>buying Yeah, well, certainly, again, as I mentioned, the whole

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<v Speaker 1>industry was up. Almost all categories posted growth and within

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<v Speaker 1>the Within the industry, of course, as I mentioned, Mattel

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<v Speaker 1>is leading and in our portfolio, you've just had you know,

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<v Speaker 1>enormous success with of course, categories like dolls. You know,

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<v Speaker 1>Barbie has had an incredible run for the year. Uh,

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<v Speaker 1>you know, great great increases, terrific new product reflecting obviously

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<v Speaker 1>diversity and inclusivity, great new toys. The game's piece of

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<v Speaker 1>our business has also been incredibly successful. You know, obviously

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<v Speaker 1>families spending time at home using games as a way

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<v Speaker 1>to occupy their time. You know, the number one card

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<v Speaker 1>game in the United States. I love you, you know,

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<v Speaker 1>can I just say love it, love it, love it? Right?

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<v Speaker 1>But we love hearing that, and many many other people

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<v Speaker 1>do love you. You know. In fact, um Uno is

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<v Speaker 1>going to be celebrating it's fiftieth year, if you can

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<v Speaker 1>imagine that next year, which we've got a lot of

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<v Speaker 1>excitement and new new product coming. To keep those new

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<v Speaker 1>fans going, we play kind of a hubo un version

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<v Speaker 1>at the beach. My brother has created a version that's

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<v Speaker 1>just ramped up and it's just a riot. We play

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<v Speaker 1>for hours. So, um that's good to hear fifty fifty years.

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<v Speaker 1>So I do wonder, Richard, do you would anticipate that

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<v Speaker 1>the trends that you're seeing, Because I'm thinking about the

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<v Speaker 1>holidays and I'm thinking it's been a rough year and

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<v Speaker 1>you know, wanted to be a good holiday season. I'm

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<v Speaker 1>not going to be around a lot of family, um

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<v Speaker 1>And I do wonder what you anticipate for the holiday season. Well,

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<v Speaker 1>I'll tell you, um that the toy shopping as we

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<v Speaker 1>see at the outlook for the fourth quarter is strong.

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<v Speaker 1>In fact, toy shopping has already been planned earlier than

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<v Speaker 1>last year. And with the um you know, a surge

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<v Speaker 1>with online and e commerce, the ability to shop early

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<v Speaker 1>is more enticing than ever. Uh. You know, our research

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<v Speaker 1>shows almost shoppers planned to start holiday shopping even even

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<v Speaker 1>just before November. And obviously we're already in November, and

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<v Speaker 1>with everything that's going on with the pandemic, some families

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<v Speaker 1>are actually planning on making these holidays, you know, truly

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<v Speaker 1>extra special for their kids. It's been it's been a

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<v Speaker 1>really challenging year, uh, four kids in many in many aspects,

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<v Speaker 1>and I think parents are recognizing, you know that the

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<v Speaker 1>simple rewards of toys and and fun. So there's there's

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<v Speaker 1>a lot of h I think excitement around the industry

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<v Speaker 1>and certainly in the Mattel portfolio for the fourth quarter.

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<v Speaker 1>Have you well, what's your supply chain been like during

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<v Speaker 1>this process? You know, it's an asset Formattel. You know,

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<v Speaker 1>we we have an incredible group of dedicated people and

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<v Speaker 1>facilities around the world that have been working. Tires Lee

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<v Speaker 1>certainly under the current you know, restrictions that have been

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<v Speaker 1>in place in verious different places, but ultimately working to

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<v Speaker 1>supply the demand. You know, given that there's been such

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<v Speaker 1>a great surge uh in the industry and in particular

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<v Speaker 1>for our brands and toys, our supply chain has been

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<v Speaker 1>working incredibly well. And as you know, in any business,

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<v Speaker 1>it's about execution, and our execution has been really, really terrific.

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<v Speaker 1>It's been a great year of excellence in performance driven

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<v Speaker 1>metrics for the company. So in any kind of so,

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<v Speaker 1>I found that fascinating your supply chain, like so any

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<v Speaker 1>of the manufacturing that was needed to be done, Um,

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<v Speaker 1>I'm assuming a lot of it happens outside the United States.

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<v Speaker 1>None of that stopped well, you know, we certainly had gaps,

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<v Speaker 1>but if you look at when the timing of the

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<v Speaker 1>most restrictions based on where our facilities were, primarily in Asia,

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<v Speaker 1>that really took place, um at the end of last

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<v Speaker 1>year and in fact the beginning of this year, if

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<v Speaker 1>you were called January in February, and and in terms

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<v Speaker 1>of production, the slow side of our business where we

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<v Speaker 1>really ramp up in production is uh In in uh

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<v Speaker 1>In the start of the second half, where restrictions were

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<v Speaker 1>lifted and we were able to resume much of the

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<v Speaker 1>workforce and UH and working patterns. So really from a

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<v Speaker 1>timing perspective, UM, as odd as it's sounds, it worked

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<v Speaker 1>favorably in terms of production and supply chain. Hey, one

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<v Speaker 1>last question that I want to talk about Mattel creation,

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<v Speaker 1>So working from home? Are your employees working from home?

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<v Speaker 1>Can some work from home? What's your take on you know,

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<v Speaker 1>what's happening in terms of the potential for a hybrid

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<v Speaker 1>workforce well as as you can imagine, our first priority

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<v Speaker 1>is our people and has been our people, their health,

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<v Speaker 1>their wellness and certainly well being. UM. And I have

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<v Speaker 1>to tell you just you know, being part of the

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<v Speaker 1>Mattel community, we really are about collaboration and we've we've we've,

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<v Speaker 1>of course, like many other companies, had to transition to

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<v Speaker 1>a work from home environment, you know, using digital first mindsets,

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<v Speaker 1>tools that we put into place very very quickly, UH

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<v Speaker 1>and mobilized around the world to accommodate from a technological

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<v Speaker 1>perspective as well as UM programs to ensure that our

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<v Speaker 1>people had the right breaks at the right times, had

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<v Speaker 1>the right hemily engagement UH. And we've done a lot

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<v Speaker 1>of great work with that in mind, and ultimately, our

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<v Speaker 1>our community has been incredibly resilient um and and the

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<v Speaker 1>results speak for themselves, but we've we've had a really

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<v Speaker 1>wonderful bonding if you can imagine over the pandemic and

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<v Speaker 1>uh and the work ethics that have risen because of it.

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<v Speaker 1>So does hybrid stick from Mattel, Well, I think it's

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<v Speaker 1>going to stick, not just for Mattel, but for many companies.

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<v Speaker 1>I think there is a degree of recognition that, you know,

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<v Speaker 1>working from home is possible, and as as we sort

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<v Speaker 1>of moved through whatever the new normal will be, I

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<v Speaker 1>think they'll be recognition that you can work from anywhere.

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<v Speaker 1>But there's also the need to you know, show up

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<v Speaker 1>work together being an environment where, particularly from Mattel, which

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<v Speaker 1>is a creatively lead company, where design, development and marketing

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<v Speaker 1>get together and really look at product and and and

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<v Speaker 1>I d e uh that in person um arena is

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<v Speaker 1>still incredibly meaningful and important. And so is social engagement. Uh.

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<v Speaker 1>You know that's where you get you know, bas and creative.

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<v Speaker 1>So you can't replace that all right. Well, speaking about

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<v Speaker 1>creative ideas, tell us about your new digital platform called

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<v Speaker 1>matel Creations. What it's all about what you're trying to

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<v Speaker 1>do here. Well, thank you for asking that question. It's

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<v Speaker 1>a meaningful new brand for us UM and it's commensurate

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<v Speaker 1>with the seventy five anniversary for Mattel. This year is

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<v Speaker 1>our seventy fifth anniversary. We were started in in a garage,

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<v Speaker 1>which is of course a great story by itself, but

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<v Speaker 1>the tie into the name Mattel Creations is because that

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<v Speaker 1>was the name above the garage door. Uh. And ultimately,

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<v Speaker 1>when you think of the name Mattel Creations, you imagine

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<v Speaker 1>working in it are the creators who began our company

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<v Speaker 1>and certainly set us up on the journey that we

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<v Speaker 1>uh that we are enjoying today. So to honor that legacy,

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<v Speaker 1>we launched a new brand called Mattel Creations and it

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<v Speaker 1>is an e commerce content platform that's going to feature

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<v Speaker 1>really incredibly exciting collector products um from designers, both designers

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<v Speaker 1>that you know and designers that you will know, because

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<v Speaker 1>we're gonna be launching them on matel Creations. Taking our

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<v Speaker 1>products and we have over four hundred brands at Mattel

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<v Speaker 1>and inviting designers to recreate them with us. So creating

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<v Speaker 1>limited edition much sought after curated collector product scarcity. We

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<v Speaker 1>know collectors love the hunt and the limited editions, and

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<v Speaker 1>it will really be um an engine for us that

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<v Speaker 1>pairs internal creators and innovators outside of Mattel to create

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<v Speaker 1>new and exciting collectible toys. Is this for the adult population?

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<v Speaker 1>You know, I think it's well, clearly, you know eighteen

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<v Speaker 1>plus will enjoy, you know, the curated assortment, But at

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<v Speaker 1>the end of the day, they're toys. And depending on

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<v Speaker 1>know who you are and how much you love, you know,

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<v Speaker 1>what you see, it certainly can be playable, but it

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<v Speaker 1>certainly is going to be designed for more of a

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<v Speaker 1>collector orientation. Limited editions, you know, highly sought after and look,

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<v Speaker 1>we've got amazing celebrated designer relationships traffic. Scott has worked

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<v Speaker 1>with us with Hot Wheels, Kylie Jenner, recently with Uno,

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<v Speaker 1>the late Carl Lagerfeld with Barbie and and even recently,

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<v Speaker 1>you know, Harry Duke of Sussex works with us on

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<v Speaker 1>Thomas and Friends. So there's an incredible array of pop

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<v Speaker 1>culture curators that are inspired by our brands and looking

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<v Speaker 1>forward to the play date for Mattel Creations. So we're Bloomberg.

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<v Speaker 1>I just have to quickly ask is this expected to

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<v Speaker 1>be kind of a productive revenue stream for you guys? Look. Absolutely,

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<v Speaker 1>you know that one of the fastest growing segments in

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<v Speaker 1>the toy industry has been the adult collector. And while

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<v Speaker 1>Mattel has always had a great collector orientation and following

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<v Speaker 1>in each of our brands Barbie, Hot Wheels, American Girl,

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<v Speaker 1>this is the first time that we're presenting Mattel as

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<v Speaker 1>a brand that features all of our brands and drives

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<v Speaker 1>a collector orientation, which we know is a segment within

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<v Speaker 1>the industry that's growing very fast. We believe not only

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<v Speaker 1>are we going to create a lot of fun for

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<v Speaker 1>collectors as a community, but this absolutely will be a

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<v Speaker 1>driving segment for the company. And that wraps up the

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<v Speaker 1>Bloomberg Business Week Extra podcast with Betel President Richard Dixon

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<v Speaker 1>on that new digital platform it's called Mattel Creations. Check

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<v Speaker 1>out more of our favorite conversations. You could find it

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<v Speaker 1>on Apple Podcast and at Bloomberg dot Com. I'm Carol Masser.