From dazzling princesses to funky scooters; invaluable action figures to lovable board games, they’ve got it all! All of our favorite toys and characters that made our childhood sublime were created by this amazing brand. Nostalgic memories of our days as tiny tots are filled with Barbie dolls, UNO cards, Rock-a-stacks, Mega Bloks and Hot Wheels. These toys have been the bragging rights of many a-childhood friendships, thanks to the guys at Mattel Inc!
From a garage to a multi-million-dollar company, let’s unravel the rollercoaster of-a-journey of the world’s leading toy manufacturer.
Humble Beginnings
Elliot and Ruth Handler were no business tycoons right off the bat. They started off as a humble couples’ business in California, selling picture frames and furniture out of their garage. It was in 1945 that the two realized their talents Elliot found success in making dollhouse furniture and Ruth excelled in marketing them. They joined hands with Harold “Matt” Matson to form Mattel (an amalgamation of “Matt” from Matson and “El” from Elliot).
In 1947, they came up with “Uke-A-Doodle” a cute instrument designed to make music fun for kids. It was a huge hit and Mattel saw their first profits. The next year was a big one for them. As the Handlers and Matt realized they had a chance to succeed in the toy industry, they incorporated Mattel and headquartered in Los Angeles.
Toddling to Success
The 50s and 60s were a quirky couple of decades and Mattel’s toys reflected that loudly. The Magic 8 ball (1950) inspired by a clairvoyant, the Xylophone, Corn Popper and Snap-Lock Beads (1957), the Safety School Bus (1959) were all gangbusters among the kids.
However, nothing could compare to the success Mattel had with the one and only Barbie. When Ruth Handler observed her daughter Barbara playing with paper dolls and acting out scenes, she realized how much better it would be if the dolls were three dimensional and could be dressed up and accessorized. So, in 1959, Mattel produced the first ever Barbie named after the Handlers’ daughter. The doll was designed in a way to inspire young girls to act out their dreams and wishes for the future. Barbie soon became a household name and the tagline “You can be anything!” was on every young child’s lips. Fueled by the Barbie doll boom, Mattel introduced Chatty Cathy in 1960, a first of its kind talking doll that became the second biggest seller after Barbie. To be honest, who wouldn’t love an adorable doll that talks on the pull of a string? This was also the same year the company went public.
Mattel soared to great heights thereafter, with new toys being introduced almost every year. In 1961, the Ken doll, named after the Handlers’ son, was introduced as Barbie’s boyfriend. Shortly after, Barbie’s dreamhouse, Astronaut Barbie and a few other toys were brought to the market. It was in 1968 that two very
The company began to diversify further and went on to produce action figurines, cards and even television shows. In 1971, UNO was launched, which quickly became a fun family game. As they grew bigger, the people at Mattel realized the impact their products have on the world. As the topics of inclusion and diversity stirred revolutionary movements, the company contributed to the celebrations. The Barbie doll line now includes 9 body types, 35 skin tones and 94 hairstyles. It also includes dolls with prosthetics, vitiligo and bald heads.
‘Bloks’ along the way
The path to victory isn’t all sunshine and rainbows. There are bound to be some setbacks along the way. It wasn’t all smooth sailing for Mattel as it faced a handful of legal and financial problems through their journey. The biggest of their fallouts was the 2007 recall. On August 2nd of that year, they first recalled 1.5 million Fisher-Price toys and on August 14th they further recalled more than 18 million toys. The products had exceeded the US limit of 0.06% on lead concentration in surface coatings. This incident sparked questions regarding Mattel’s ethical framework, which had been intact up until then. In addition to rewriting their subcontracting policy, an apology from the chairman and CEO was also issued. Following this, in 2009, the company paid a fine of $2.9 million to the Consumer Products Safety Commission.
However, Mattel did not shy away from the consequences of their mistakes. Rather, the toy company publicized the recalls and made immense efforts to regain their image. They strengthened their public relations front by communicating all the changes and stringent measures they took in real time. They developed better marketing strategies and were eventually back on their feet.
The Game Today
As of this year, Mattel completes 75 years as one of the largest toy manufacturers with operations in 35 locations and products available in more than 150 countries. The company has acquired various famed brands over the years including Fisher-Price, Mega Brands, HIT Entertainment, Tyco Toys and Radica Games. It has set a remarkable record by receiving four “Toy of the Year” awards at the 2020 Toy Association’s annual award ceremony. Hasbro, LEGO, Bandai Toys and McFarlane Toys continue to be Mattel’s biggest competitors.
The company has been no stranger to the unprecedented perils of the COVID-19 pandemic. The stock prices slumped and the net sales for their first quarter went down by nearly 14%. It also had to cut more than 2,000 jobs and close 3 factories to make up for its losses.
However, it is reassuring to note that Barbie continues to be a bestseller in these trying times, with the gross sales in North America going up by 3%, serving as a testament to the lovable doll’s popularity.
Lessons from the Class
Mattel has come a long way from a home business to a multinational company. Revolutionizing the toy industry with a single doll, a cultural icon so massive that it broke down all barriers of language, geography and culture - this is the power of Mattel. Barbie was and is their biggest star, but the company isn’t one to live off of past glories. They have evolved and improved, coming up with newer toys and games in sync with each generation. Sensitizing themselves with what intrigues today’s kids, the corporation has brought video games, web series, vlogs and apps accordingly. Mattel is well aware of how important trends are and that’s the reason they continue to stand tall.
The crisis of 2007 was handled admirably by the firm. Unlike certain other companies, they did not go back on their word or start to point fingers. Publicly apologizing and owing up for their blunders was lauded by many publications including FORTUNE magazine.
Mattel’s story teaches us that no matter how reputed we are, mistakes are mistakes. Singular popularity does not mean we mustn’t aim for more and it certainly does not abdicate us from social and ethical responsibilities. It also teaches us to be prepared to put in the hard work because only then can we bounce back up from adversities.
From being told off by parents for throwing tantrums in the kids’ aisle to the cries of joy on unboxing the same toy on birthdays, Mattel holds a special place in all of its customer’s hearts, something only a few companies manage to achieve.
Edited by
Shivom Dixit - 3 BBA B
Kanishka Saravanan - 1 BBA C
Rimjhim Agrawal - 1 BBA F
Designed by
Lavesh Karwa - 1 BBA A
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