Brands barbie, fisher—price and moi, that is mattel to find out how his company's fortunes are being revived. Wherever you are joining around the world, once again hello and welcome to the programme. It is a billion—dollar industry driven by creativity and innovation with a global reach and a diverse market. The toy industry is forecast to reach $302 billion in sales by 2030 and that estimate is at the conservative end of the scale. But falling birth rates and some of the highest inflation rates we have seen in decades have created challenging conditions for manufacturers and retailers and signal more tough times to come. While the covid pandemic boosted sales of toys and games temporarily, big—name companies reported sales have started to slip back once again. Let's look at some of those numbers. Local toy sales reached $108. 7 billion in 2023, a 2% drop compared to 2022 with toy companies calling it a normalisation process after that exceptional growth linked to the pandemic. But across the g 12 countries including the uk, france, germany and spain, sales declined by 7% in 2023 compared with the previous year but they were still 70% higher when compared to 2019 before the pandemic. ——17. Icaught compared to 2019 before the pandemic. ——17. I caught up with a bill to pay boss, a loved company that allows shoppers to customise their teddies. She is also the head of the global organisation representing the toy industry. Sharon pricejohn, president sharon price john, president and sharon pricejohn, president and chief executor of bill to ban and chair of the toy association, thank you for joining us. Build to bear is such an interesting business model, born in shopping malls, a place where kids can design, customise their own teddy bears. The company has done really well in recent years but there has been a downturn in real—world shopping and i wondered, did that affect you when it first started to bite? i would say we have had a very successful run. We have had three consecutive years of record results. Some of that was considered and in some cases driven by what is known as the post—covid pump but that has consistently continued for us. And we believe a lot of thatis us. And we believe a lot of that is associated with individuals and people and families seeking out memory making experiences and coming back together, celebrations, and joyfulness of life and that build to bear retail entertainment provides it. Have ou entertainment provides it. Have you steered _ entertainment provides it. Have you steered the _ entertainment provides it. Have you steered the business entertainment provides it. Have you steered the business in entertainment provides it. Have you steered the business in new directions in recent years? yes. That is an interesting question and it also is reflective of a big trend happening in the toy industry now. Some years ago, even prior to 2020, we had started to put an entirely new digital transformation infrastructure in place so we could participate fairly in the digital economy where, over 25 years, old now, if you will, and in that quarter century of experience, we have sold almost at this point 250 million furry friends to people. ——we. That online experience was driven more by the insight we were now in a situation where we could target and communicate and sell products directly to the older consumer, something now known as kid adults. — as kid adults. Fascinating stuff. What _ as kid adults. Fascinating stuff. What kind as kid adults. Fascinating stuff. What kind of as kid adults. Fascinating stuff. What kind of bays i as kid adults. Fascinating i stuff. What kind of bays and characters are they interested in? —— bears. How does that contrast with your more traditional younger customers? a lot of business for adults comes from from what we called trimmed animals. —— call. A great example our spring greet frog, or recently we launched from our vault our pumpkin kitty or the highland cow. But the adult side as you get older, of 18, a lot of that is licensing inaudible licensing. We have in the united states the nfl is a powerhouse license, an important piece of business for us but it is also film licenses. — film licenses. Looking more broadly at _ film licenses. Looking more broadly at the _ film licenses. Looking more broadly at the toy _ film licenses. Looking more broadly at the toy industry, | broadly at the toy industry, and your role as the chair of the toy association, many statistics we are seeing today suggest children are less a part of the toy sector. Is that perhaps because there is more competition for the retention? i believe you have to think about it in terms of obviously how children tend to spend their time and that physical interaction with games and toys and inaudible is an important part of the development of children, but there are other options now and when we speak about things like video games or in some cases also either cellphones or other situations where children have more audiovisual options, when we speak about this from a toy industry perspective, we try to consider the broader realm. Toys, youth entertainment, kids of all ages and in fact the membership of the toy association is inclusive of entertainment company entities. Could the emergence of kid adults make the industry less dependent on christmas all the golden quarter? as adults have their own money to spend all year round?— their own money to spend all year round? built to bear has seen a bit — year round? built to bear has seen a bit of _ year round? built to bear has seen a bit of a _ year round? built to bear has seen a bit of a flattening year round? built to bear has seen a bit of a flattening of i seen a bit of a flattening of that. What has typically been a steep curve in the fourth quarter. Part of that has to do with affinity toward build to bearfor with affinity toward build to bear for birthdays. About of the third bout business is from birthdays and the piece has been growing and that is true in both europe and the united states. In part, it is the fastest growing segment of the toy industry right now. That is also a post covid phenomenon of people wanting to get back to more simple things and enjoy and remember the childhood and some of those big categories, inclusive of plush, which is where we participate, is in this taldra and games and puzzles and that licensing area. ,,. ,. ,. . , ~ area. Sharon price john, thank ou for area. Sharon price john, thank you forjoining _ area. Sharon price john, thank you forjoining us. _ area. Sharon price john, thank you forjoining us. Thank area. Sharon price john, thank you forjoining us. Thank you | you for “oining us. Thank you so you forjoining us. Thank you so john _ you forjoining us. Thank you so john _ you forjoining us. Thank you so john. Much. _ you forjoining us. Thank you so john. Much. The you forjoining us. Thank you so john. Much. The toy i so john. Much. The toy industry — so john. Much. The toy industry is _ so john. Much. The toy industry is a _ so john. Much. The toy industry is a fickle so john. Much. The toy| industry is a fickle business and predicting just which type of toy will be popular with consumers as a fireman out. Let's talk —— take a look at some of the most popular toys. Building set such as lego are currently claiming the top spot with sales of these growing by 4% followed by plush toys which are growing at 3%. Experts say it is notjust children snapping up these two key products. As you heard, one of the surprising new trends in the surprising new trends in the toy industry is the rise in over 18 spying toys, so—called kid adults, the fastest growing age group of consumers over the last two years, overtaking preschoolers in the us as the industry's most important demographic for the first time ever. In europe, hit adult consumers were responsible for $4. 8 billion worth of toy purchases last year and 28. 5% of the region's annual toy market revenue. The teen and aduu market revenue. The teen and adult toy by demographic has grown by 2. 5% since 2022, now a key driver in the uk, spain, italy and france. Meanwhile, the number of toy buyers under the number of toy buyers under the age of 12 in the region has declined by 3% over the last decade. Brands like star wars and pokemon continue to be popular with teens and adults, but one company capturing the trend for older consumers is lego with its lego icon sets. One can set you back more than $500. | one can set you back more than $500. Italked one can set you back more than $500. I talked about that trend and more with the chief executive of lego. Great to have you on the show. My pleasure. You are outperforming the wider toy market. What is setting your products or maybe a retailing strategy apart from others in the sector? i a retailing strategy apart from others in the sector? others in the sector? i think it is probably _ others in the sector? i think it is probably not _ others in the sector? i think it is probably not one others in the sector? i think it is probably not one silver| it is probably not one silver bullet, the combination of a very strong brand right now combined with a broad portfolio of products catering for different ages and interests and then, as you say, on the retail sale, are still opening stores, investing heavily behind also online sales, so i think the combination has worked well for us. Think the combination has worked well for us. You mention creatin: worked well for us. You mention creating toys _ worked well for us. You mention creating toys for _ worked well for us. You mention creating toys for all _ worked well for us. You mention creating toys for all ages. Creating toys for all ages. Some of the biggest growth has beenin some of the biggest growth has been in those states for more advanced builders, perhaps older builders, the icon series i am thinking of in particular. For you is the toy business no longerjust about children? irate longer 'ust about children? we serve longerjust about children? serve everybody that would like to get into the universe of lego bricks and it caters for kids and adults. Very often adults and kids are building together, the family is building together so it may say 18 plus on the set, may be complicated to build, but you would be amazed how good kids hour, even at ten, 11, 12 or into the teens, how capable they are a building, so it is fantastic the way it caters for everybody and brings families together, so we are happy with this development. But together, so we are happy with this development. — this development. But some of our icon this development. But some of your icon series _ this development. But some of your icon series sets _ this development. But some of your icon series sets are this development. But some of your icon series sets are very l your icon series sets are very expensive. Your icon series sets are very “pensive— your icon series sets are very exensive. . ,. . , expensive. Who is buying them? that is not _ expensive. Who is buying them? that is not the _ expensive. Who is buying them? that is not the way _ expensive. Who is buying them? that is not the way we _ expensive. Who is buying them? that is not the way we think that is not the way we think about it, that they should be exclusive to any consumer group, but i think to the point, we have had the opportunity now to enlarge the product portfolio. That means we can cater for product portfolio. That means we can caterfor more product portfolio. That means we can cater for more interests and things and allows us to cater for new interests that also would be of interest to adults, so in that sense, we have more inaudible channel was more opportunity to get to both kids and adults. —— breadth. There is something for everybody and that is fantastic. — everybody and that is fantastic. ,. , , , fantastic. Many of your biggest recent successes _ fantastic. Many of your biggest recent successes have fantastic. Many of your biggestj recent successes have involved brand collaboration with the video game fortnight, for example, you announced branding arrangements with nightly. How important is that when it comes to getting consumers excited with your products? if to getting consumers excited with your products?— to getting consumers excited with your products? if you look at kids, inaudible _ with your products? if you look at kids, inaudible |_ with your products? if you look at kids, inaudible i have with your products? if you look| at kids, inaudible i have often said we are in the business of competing for the kids' time, so it is about the lego brand is very relevant to kids and adults but especially in this case kids we have seen as cool and out onto some of the patients they have those patients they have those patients right now, kid spending more and more time on tablets, on digital, playing games and we are uniquely positioned as a blind —— brand to bridge that gap between digital and inaudible fortnight is in sample. Sport is a creatorfor is in sample. Sport is a creator for outgoing think that kids do and the combination of the lego brand and sports also we know from history resonates well, so it is about being where consumers are, where kids are in being relevant. You mentioned _ are in being relevant. You mentioned kids _ are in being relevant. You mentioned kids being are in being relevant. You mentioned kids being distracted by video games, by the tablets. Is that your competition now rather than other toy makers? it is not really a competition because we are also there. The lego brand is present where kids are, we are on fortnight, have computer games and digital experiences but it is very often tied to the physical world our case. We are the ones that dig this hybrid play as we call it and allow kids to, whatever they manage on, they can live out physically and kids like it, parents like it and super good for kids' development. — and super good for kids' development. You are the bi. . Est development. You are the biggest toy _ development. You are the biggest toy maker development. You are the biggest toy maker in development. You are the biggest toy maker in the l development. You are the biggest toy maker in the world. Are you ever concerned the industry produces too many toys, that we should be enjoying our toys for longer rather than getting new ones? it is a fantastic question. I am happy. When you asked that question i'm happy with the fact that we know that lego bricks stay and play for a long time. You have families with bricks that have had them for decades, have been given onto children, neighbours orfamily children, neighbours or family so children, neighbours orfamily so i don't think you find many products that stay and play all use for as long as a lego brick and in that sense i think that is probably a natural balance that make sure we were not over sell and we do not see lego bricks in ways —— waste, don't see appetite for consumers to get tricks and that tells me they are in play and being valued, so less concern from that point of view. I know sustainability is important to let go. Why do you take it so seriously? sustainability is important for us because as a company we have a very special role with the lego brand and we are working hard on all the elements of sustainability. The one i am particularly proud of right now with this half—year is that we made a big leap forward on the sustainable use for the brick. The lego brick in the first half of this year has 22% of renewable in it. More than one fifth of the lego brick is already renewable and sustainable, as we speak. That also means that we have a half year that we have grown the company by 13% and we have pumped less oil out of the ground to make plastics for lego. That is an important milestone and i think it proves that we are starting to see the benefit of some of the significant investments we are doing in this area. — doing in this area. What new roduct doing in this area. What new product are _ doing in this area. What new product are you _ doing in this area. What new product are you excited doing in this area. What new. Product are you excited about? what do you think your big seller will be this holiday season?— seller will be this holiday season? ~. ,. ,. ,. ,. Season? we have not announced them et season? we have not announced them yet so _ season? we have not announced them yet so i — season? we have not announced them yet so i am _ season? we have not announced them yet so i am not _ season? we have not announced them yet so i am not going season? we have not announced them yet so i am not going to i them yet so i am not going to announce them here either but there are some super interesting things coming. The holiday season is an important one, of course. We have many occasions throughout the year, made four with star wars and all different times but this most important one globally is the christmas season and is always we are very focused on making sure that we are on kids wish list and we are on kid's wish list and we are on there was some exciting things. Chief executive of lego, thank you forjoining us on talking business. If you take a walk down the aisle of any toy store you will be hard pressed to find a toy that does have some kind of a movie or a television tie—in. Licensed toys, those tied to big brands like star wars, marvel and pokemon continue to play a vital part in the overall health of the toy industry. Accounting for around one third of the total toy market in 2023. One toy company that even has its own film division is mattel, known for brands like hot wheels, thomas and friends, matchbox, polly pocket, masters of the universe and, of course, barbie. The film barbie produced by warner brothers broke records. To date it has made more than $1. 4 billion and became the highest grossing film in warner brothers's 100 film in warner brothers's100 year history. Masters of the universe film is scheduled for release in 2026. And there are other films currently in the works as well. So in a challenging market are licensed brands and movie tie—in is a critical part of a toy company's portfolio? i spoke to the president and chief commercial officer of one of the world's biggest toy companies, mattel. Welcome to talking business. You have been on quite a rollercoaster over the last 5— six years. Serious losses in and around 2018 and a subsequent restructuring to focus on your moneymaker brands and then that big push into the movie industry with blockbuster result. When you look back, what mistakes were made and are you confident you are now on the right track?— you confident you are now on the right track? thank you, it is ureat the right track? thank you, it is great to — the right track? thank you, it is great to be _ the right track? thank you, it is great to be with _ the right track? thank you, it is great to be with you. It i the right track? thank you, itj is great to be with you. It has been a fantastic ride over the last five or six years as we started our turnaround, we moved into transition and now we're back into growth mode. If i look at five or six years ago when the ceo came in, he focus the organisation and we began to organise by category versus brand, to spread our expertise. We got alignments we looked at our global supply chain to make sure we optimised a global footprint and we looked at accelerating commercial organisation and focused on all channel growth strategy and it has been quite a ride. Channel growth strategy and it has been quite a ride. There is a lot to talk — has been quite a ride. There is a lot to talk about _ has been quite a ride. There is a lot to talk about on has been quite a ride. There is a lot to talk about on the i a lot to talk about on the entertainment front but when it comes to the toys, what you are famous for, you have some of the biggest toy brands in the world in a stable. Barbie, hot wheels, fisher—price. How have the toys themselves evolved to match the demands of children or their parents who have been buying them in recent years? you are right. We have one of the most iconic portfolio of children's brands and entertainment in the industry. These toys create emotional connections that last a lifetime. It is notjust toys. Make sure that the toys are surrounded by content, entertainment, u—tube, netflix, feature films in some cases and it comes down to the toys must be innovative and new and they must be fun to play with. That is really the key to much of the success in this industry. Let's talk about the big moment of the past year or so for you, the barbie movie. It was a huge success and i have to say i did not expect to like it but i did. What has that done for the dolls? has it breathed new life, brought new fans into the barbie universe?— barbie universe? absolutely. I am clad barbie universe? absolutely. I am glad you — barbie universe? absolutely. I am glad you enjoyed barbie universe? absolutely. I am glad you enjoyed it. I am glad you enjoyed it. Personally i loved it and i was at the soundstage in london during some of the filming and it was a blast. It was a blast for everyone. It has absolutely brought new fans and audiences to the barbie franchise. We had over165 to the barbie franchise. We had over 165 brand—new consumer product partnerships and it was from young girls to adults across the gamut so it definitely expanded barbie's audience. Excitement came in to this year where barbie continues to gain market share as she does most years as the number one fashion doll in the world. She retains the number one spot on u—tube for dolls so, yes, barbie truly is cemented in the zeitgeist of the world. This movie was not meant to sell toys, per se, we looked to make a great movie and create a cultural moment. We knew if we did that toy sales and consumer product sales and consumer product sales will take care of themselves and that is a good recipe for us as we move forward. We have 16 other movies in our development. He man and masters of the universe is next out. That will be in june 2026. We have movies based on a rock robots and american girl and monster hi and hot we also set up with jj abrams. So the mattel cinematic universe is off to a great start with barbie. Abs, is off to a great start with barbie. �*. ,. ,. . ,, ,. , barbie. A lot of crossover between _ barbie. A lot of crossover between the _ barbie. A lot of crossover between the movie i barbie. A lot of crossover between the movie and l barbie. A lot of crossover i between the movie and toy worlds. Does it say, though that even a character, a character with a history of a barbie, these days they need to occupy both of those worlds to be a success? in occupy both of those worlds to be a success?— be a success? in the toy business _ be a success? in the toy business i _ be a success? in the toy business i will _ be a success? in the toy business i will say i be a success? in the toy business i will say that l be a success? in the toy i business i will say that the evolution of demand creation is moved up on our strategy base. Creating demand for your product has been little more complex with the fragmentation of the media world. Part of the way to address that is content. Whether that is short form content on youtube or tiktok or instagram, longerform content instagram, longer form content on instagram, longerform content on netflix all feature films. Many of the franchises you see today that are sustaining have content as a key component in addition to the great toys and play patterns you mentioned earlier. Is play patterns you mentioned earlier. ,. , play patterns you mentioned earlier. . . , , , earlier. Is that because the competition, _ earlier. Is that because the competition, your earlier. Is that because the i competition, your competition, your toys competition these daysis your toys competition these days is coming from the media? kids are playing computer games or going on tiktok these days. Instead of playing with dolls or toy cars?— or toy cars? traditional toys whether videogames or toy cars? traditional toys whether videogames or i or toy cars? traditional toys whether videogames or on i or toy cars? traditional toys i whether videogames or on the 3pp, whether videogames or on the app, one thing is true, traditional toy play is always part of a child's daily regime. Sometimes we see a little bit of a backlash when there is too much screen time. Parents like to get a traditional toy to play. It has so many benefits. It creates imaginative play, cognitive development. We did a doll�*s story of —— study a couple of years ago where it creates empathy. Traditional toy play is incredibly important for children and families. Important for children and families— important for children and families. ~. ,. ,. , families. What about some of our families. What about some of your other — families. What about some of your other brands _ families. What about some of your other brands that families. What about some of your other brands that have l families. What about some of l your other brands that have not been performing so well? fisher—price is when i played with as a child, american girl, i've seen the shops in the united states. Those are two product lines that have been underperforming. Could some movie magic help to revive them? , movie magic help to revive them?. . ,. Them? first of all, fisherprice i them? first of all, fisher price is i them? first of all, fisherprice is 94| them? first of all, i fisherprice is 94 years. Them? first of all, _ fisherprice is 94 years. You fisher—price is 94 years. You played with it, i played with it, it truly is an iconic brand. We have been adjusting the range and ifeel very confident that we are on the right track. We expect to have a good holiday season with fisher—price. When it comes to american girl we are on a roll. We grew in q1 and q2 and renewed partnerships with disney and american girl and it is on ourfilms disney and american girl and it is on our films late. Bind disney and american girl and it is on our films late. — is on our films late. And the to s is on our films late. And the toys themselves, _ is on our films late. And the toys themselves, what i is on our films late. And the toys themselves, what is i is on our films late. And the | toys themselves, what is the future of them look like? i know you have been looking at embedding technology into some of your favourites. What is in the pipeline there?— the pipeline there? toys are one thing — the pipeline there? toys are one thing that _ the pipeline there? toys are one thing that is _ the pipeline there? toys are one thing that is true. I the pipeline there? toys are i one thing that is true. Newness innovation and creativity works whether it is that mattel or our competition, we use technology sometimes to advance the toy play. Sometimes it is just good old—fashioned play value. I mention fisher—price earlier. It is off to a great start. Forthis earlier. It is off to a great start. For this season is a great example. The fisher—price record player that i played with in the 1970s, without meaning to date myself, we are relaunching that. We have a partnership withjohn legend who is doing an entire album behind it. It is fun like that, putting a new twist on an old favourite. That seems to resonate very well with the consumer of today. Fascinating stuff. Consumer of today. Fascinating stuff thank — consumer of today. Fascinating stuff. Thank you _ consumer of today. Fascinating stuff. Thank you for _ consumer of today. Fascinating stuff. Thank you for talking i stuff. Thank you for talking business with us today to get as been a great pleasure and enjoy your holiday season. I wish you a happy holiday season ahead as well, even if it is three or four months away. 118 da s! three or four months away. 118 days! that _ three or four months away. 118 days! that is — three or four months away. 118 days! that is it _ three or four months away. 118 days! that is it for _ three or four months away. 118 days! that is it for this three or four months away. 118 days! that is it for this week. | days! that is it for this week. I ho e days! that is it for this week. I hope you — days! that is it for this week. I hope you enjoyed _ days! that is it for this week. I hope you enjoyed the i days! that is it for this week. I i hope you enjoyed the show. Don't forget you can keep up with the latest on a global economy on the bbc website or the smartphone app. You can also follow me on social media. Thank you for watching and we will see you again soon. Hello. This weekend will take us out of august and into september — technically speaking, the start of the meteorological autumn. But in spite of that, there is some warmth and some humidity on the way. Warm and humid conditions drove a lot of the showers and thunderstorms across the western side of continental europe during friday. That warm and humid air wafting its way northwards over the weekend. And while there will be some spells of sunshine, we also have the chance of some pretty intense thunderstorms, although there is still a lot of uncertainty about exactly how many of those there will be and where they might crop up. And actually, saturday will be a largely dry day. Quite a lot of sunshine around, more cloud spilling into southern parts of england, perhaps south wales, and the chance of one or two showers and perhaps the odd thunderstorm across the channel islands and perhaps south—east england later in the day. A breeze will keep things cool close to these north sea coasts — 17 for aberdeen and newcastle. More generally, though, 19 to 22 or 23 degrees, so quite a warm day. Quite warm and humid overnight, through saturday night into sunday, especially across the south, and we will see further, very well—scattered showers and thunderstorms pushing northwards, i think especially across some eastern counties of england. 16 degrees the overnight low in london, a cooler 9 degrees there for glasgow. As we go through sunday, well, that warm, humid air continues to push northwards. With it, quite a lot of cloud and the chance for one or two of those showers and thunderstorms. If they do crop up, they could bring a lot of rain, perhaps some squally winds, maybe some hail thrown in, especially across eastern england, but many spots will avoid the showers and stay dry. 19 to maybe 27 or 28 degrees down towards the south—east. Now, through sunday night, we will see further showers and thunderstorms, perhaps most especially across eastern england. But low pressure�*s swirling in from the west, and that means from monday, there will be a lot of cloud, there will be some outbreaks of rain. Some of that rain will be heavy, possibly thundery. It could really be quite misty and murky around some coasts out towards the west, but we will see some spells of sunshine as well. Still getting up to around 25 degrees across parts of east anglia, but out towards the west, things will be turning cooler and fresher. And that sets the theme, really, through the middle part of the week — some cooler conditions, some rain at times. It might warm up again, though, for some of us by the end of the week. Live from washington, this is bbc news. A russian strike on an apartment complex and a playground in ukraine's eastern city of kharkiv kills at least seven people. And ukraine's president fires the commander of the country's air force, days after a deadly fighterjet crash. Plus, another deadly strike on an aid convoy in gaza. And riding high in the polls — the far—right alternative for germany looks set to come out on top in state elections this sunday. Hello. I'm helena humphrey. Glad you could join me. We begin in ukraine, where a russian air strike killed at least seven people on friday in the city of kharkiv. Among those killed was a 14—year—old girl on a playground. The six others were killed when the strike hit an apartment building. Many others were wounded, including 20 who are in a severe condition according to the regional governor. Ukrainian officials said the area was hit by a guided bomb. Kharkiv has come under heavy russian attacks for months. Our correspondent abdujalil abdurasulov has the latest. The city of kharkiv is located just 30 kilometres from the russian border so moscow targets the city on a regular basis using bombs, using drones and guided bombs as well. And for many people in kharkiv their life is basically russian roulette. Each day they can only guess who and what moscow will target next. Today, russian bombs killed people in an apartment block. They also killed a 14—year—old girl in a playground. The guided bombs that moscow used to attack kharkiv,
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Complex , Ukraines President , Countrys Air Force , Fighterjet Crash , Im Helena Humphrey , Correspondent Abdujalil Abdurasulov ,
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