Mattel banks on keeping kids busy during the pandemic
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Early on during stay-at-home orders, people were looking for ways to stay busy. Toy industry analyst Chris Byrne said they reprioritized spending.
“Money that went into vacations or other types of entertainment for families is now really going into toys,” Byrne said.
Even people who are out of work are still shelling out cash for toys, said San Jose State University sociologist Elizabeth Sweet. “Parents were trying to buffer their children from the immediacy of the crisis,” Sweet said.
That worked out for some toy companies. People were buying puzzles and games families could play together. But toy analyst Richard Gottlieb said it didn’t work out for Mattel.
“The products they sold were not the products that were in demand,” Gottlieb said. That includes Barbie, American Girl dolls, Hot Wheels, Fisher-Price — they were not flying off the shelves in the same way
Mattel pivoted during the pandemic, said Khaled Samirah, an analyst with Euromonitor, playing to the moment at hand with marketing that uses the phrase “play is never canceled.” The company filled its blog with do-it-yourself activities built around their brands that parents can use to educate their kids while they play.
“They are becoming more important now to parents, as they are now getting into the habit of teaching their kids at home,” Samirah said.
As the lockdown drags on, parents may be looking for toys that feel familiar like Mattel’s, Sweet said.
“What I see that toy industry doing is continuing to go back to old tried-and-true things instead of exploring new avenues,” she said.
But to fully regain the ground it lost early in the pandemic, Mattel needs movie theaters to reopen and Hollywood to get going again, said Kevin Sandler, a film and media studies professor at Arizona State University.
That’s because “movie franchises are essentially toy franchises,” Sandler said.
And without splashy opening days, like the one Universal Pictures postponed for its “Minions” movie this spring, those toys don’t have the big “gimme! gimme! I want!” push behind them.
COVID-19 Economy FAQs
Millions of Americans are unemployed, but businesses say they are having trouble hiring. Why?
This economic crisis is unusual compared to traditional recessions, according to Daniel Zhao, senior economist with Glassdoor. “Many workers are still sitting out of the labor force because of health concerns or child care needs, and that makes it tough to find workers regardless of what you’re doing with wages or benefits,” Zhao said. “An extra dollar an hour isn’t going to make a cashier with preexisting conditions feel that it’s safe to return to work.” This can be seen in the restaurant industry: Some workers have quit or are reluctant to apply because of COVID-19 concerns, low pay, meager benefits and the stress that comes with a fast-paced, demanding job. Restaurants have been willing to offer signing bonuses and temporary wage increases. One McDonald’s is even paying people $50 just to interview.
Could waiving patents increase the global supply of COVID-19 vaccines?
India and South Africa have introduced a proposal to temporarily suspend patents on COVID-19 vaccines. Backers of the plan say it would increase the supply of vaccines around the world by allowing more countries to produce them. Skeptics say it’s not that simple. There’s now enough supply in the U.S that any adult who wants a shot should be able to get one soon. That reality is years away for most other countries. More than 100 countries have backed the proposal to temporarily waive COVID-19 vaccine patents. The U.S isn’t one of them, but the White House has said it’s considering the idea.
Can businesses deny you entry if you don’t have a vaccine passport?
As more Americans get vaccinated against COVID-19 and the economy begins reopening, some businesses are requiring proof of vaccination to enter their premises. The concept of a vaccine passport has raised ethical questions about data privacy and potential discrimination against the unvaccinated. However, legal experts say businesses have the right to deny entrance to those who can’t show proof.
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