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Posted February 3, 2009
Mattel just reported dismal 4th Quarter sales results, and like every other company in America, they are cutting budgets and laying off workers. Here at Lund we are battening the hatches because it feels as if we may be sailing into stormy waters ahead. But we are not cutting staff, or cutting back. Companies can cut expenses, but they can’t save their way out of a difficult business environment.
We have hired, and expanded the categories we work in, and intend to spend/invest our way through this current economic downdraft. For Mattel, and others, innovation investment may be the best long term solution. The toy industry needs to create great products, innovative and compelling products that people have to have, products that deliver great value once the consumers have spent their hard earned dollars. I was contemplating a couple of licensed character toy concepts recently, and concluded that, as toys, they were crap. Good for a chuckle, like a Gemmy-type animated novelty dancing hamster, catchy music, but zero real or enduring play value.
We endeavor to create great toys, with deep play value and multiple play patterns that engage the user again and again, to surprise, delight, and tickle their funny bone. We work hard every day to create toys that are a great value, embodying new technologies, but also imbued with entirely new play patterns, humorous scripting and choreography of their movements.
And the consumer will buy and value great products.
And another thing….
I have almost gone out of business a couple times in our 25 year history, as a result of my own ineptitudes, as well as simultaneous failures of many companies that have licensed our products. I was ready to shutter the doors, but instead, we put our collective heads down, resolved to make better toys, better ideas, and better executions of our concepts.
The result of getting our proverbial ass kicked was that we were forced to become better at what we do. Today, we create product that is light years beyond what we were doing not so many years ago. And to weather this storm, we will have to rededicate ourselves to inventing even better products, to being better at what we do, in every aspect of our business.
The players of our industry, large and small, can answer this wake up call by dedicating themselves to creating better product, more compelling and innovative toys and games that the consumer must have, and will be well satisfied with once they get them home. Difficult times like these can sharpen the blade. The Chinese character for crisis is literally “opportunity riding the dangerous wind.” In this very difficult business climate there is great opportunity for us to emerge better, stronger, faster, and create “must have” products that the consumer and user will delight in owning. Good luck to us all.
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