Mattel has unraveled its five-pronged strategic plan that will see the largest toymaker in the US make major strides in creating digital content, internet-connected toys and products that promote learning.
The strategic focus was presented by CEO Margo Georgiadis whose experience of six years at Google has shaped the company’s focus since the top job became hers in January.
The strategy will see the company right-size its dividend by more than half to free up resources for re-investment. According to Mattel, the investment to execute its new strategies in both capital and operating expenditures will total up to US$350 million.
Moving forward, Mattel will focus on building its Power Brands including American Girl, Barbie, Thomas & Friends, Fisher-Price and Hot Wheels into 360-degree connected systems of play and experience.
A brand development framework will extend these IPs into digital systems while further growth will be driven by consumer products, gaming, content and live experiences.
The toy company also plans to bring new scaled, digitally connected toy offerings into the fold by next fall.
The strategy will also focus on accelerating growth in emerging markets. The toymaker will take a digital-first approach to localize products and will focus on territories including China, India and Indonesia.
Announcing in April that it would expand its partnership with global e-commerce powerhouse Alibaba Group to develop, market and sell playthings specifically designed for Chinese consumersMattel has predicted that its business in China will grow three or four times larger by 2020 and the company has already made strides in the region .