Hi Barbie… is something that might be hearing quite a lot these days and honestly no one can be blamed for that because the marketing done around the new Barbie movie is mindblowing. The movie starring Margot Robbie and Ryan Gosling demonstrated the sheer power of nostalgic marketing for contemporary consumers. It was last summer when the Barbie movie made it to headlines over its hefty US $100 million budget. It was said that a significant part of this budget went into its decadent set which also led to a global shortage of pink paint as well as a massive marketing campaign in which partnerships were seen with brands like Airbnb, Xbox, Forever 21 and a plethora of different brands in multiple sectors.
However, as one delves deeper into the narrative, it becomes evident that Mattel encountered numerous obstacles during the early part of the 2020s, which adversely affected its financial health and stock price. As digital toys and entertainment mediums started gaining traction, conventional toy manufacturers were thrust into fierce competition. This shift in children’s play preferences towards online games and virtual activities took a toll on Mattel’s revenue. Additionally, the company had to grapple with interruptions in the supply chain and escalating production expenses. These problems collectively led to a downturn in Mattel’s stock performance, casting doubts on the company’s capacity to remain significant in a rapidly changing marketplace.
Still, Mattel did not give up but rather initiated a shift in Barbie’s branding starting in 2016, when they updated the doll’s facial features, body shapes, and skin tones, all while promoting the idea of breaking free from gender stereotypes. This strategy turned out to be quite successful. The refreshed approach and new Barbie content strategy contributed to an impressive 87% increase in global gross sales, reaching $276 million. Undoubtedly, Barbie dolls and the character overall are tied to the powerful childhood memories of many. Nevertheless, we live in an ever-evolving world, as a result, in this age of metaverse Barbie was not kept limited to just being a doll to play with or a television character to watch, rather she is now also becoming a social media influencer.
Barbie first stepped into the virtual world through PC games in the early 2000s, later expanding her digital footprint to widely used social media platforms where she engages with her followers through real-time posts and comments. The most notable is her animated manifestation, which started vlogging on YouTube in 2015, offering life advice and a peek into her closet. She also stays all modern and trendy by participating in trending TikTok challenges. With 11.4 million YouTube subscribers, 2.4 million Instagram followers, and 1.1 million TikTok followers, Barbie is positioned among the world’s top-tier virtual influencers.
By transforming Barbie into a virtual influencer, Mattel has essentially reimagined one of the most famous toys worldwide, emphasizing both its nostalgic value and its newly recognized potential benefits for child development. This has allowed Mattel to connect with new demographics, such as young parents who are more inclined towards educational devices rather than traditional toys. If Barbie effectively promotes the messages of self-esteem and wellness through inspiring vlogs, then investing in Barbie merchandise may not be such a negative choice after all. Barbie has evolved from being seen as a superficial, disposable plastic doll embodying unrealistic physical beauty standards, to being considered a positive role model that children admire and respect.
Mattel also initiated an ambitious cinematic adventure to revitalize the Barbie brand, by launching a Barbie movie on July 21, 2023. The film offered a unique perspective on the renowned doll, incorporating an engaging narrative and contemporary themes to appeal to modern viewers. Google also joined in the excitement of this highly anticipated summer blockbuster by adopting Barbie’s signature pink color scheme. Upon its debut, the film received commendations from critics and audiences, outperforming expectations with a gross earning of $155 million at the domestic box office and an extra $182 million internationally during its opening weekend itself.
The film’s ability to trigger nostalgic feelings and engage adult viewers provided Mattel with an unforeseen promotional edge. This appeal to adult audiences might have sparked an amplified interest in Barbie products and collectables. After the film’s launch, Mattel’s stock value observed a significant uptick. The commercial success of the Barbie movie was met with a positive response from investors who saw it as a landmark event for the company. The escalating stock value was a reflection of investors’ renewed confidence and also an affirmation of the film’s potential to rejuvenate the brand’s charm and profitability.
The Barbie movie’s success played a crucial role in shaping Mattel’s future strategic choices. The triumph of their entertainment-oriented strategy showcased that storytelling and engaging plots were essential elements for the firm’s product innovation. As a result, Mattel might focus more on alliances with filmmakers, scriptwriters, and animators to produce captivating content that goes beyond mere toys in the upcoming time. The 2023 Barbie movie launch signified a pivotal moment for Mattel, breathing new life into its brand image and stock performance. With this new momentum, Mattel is well-positioned to capitalize on the Barbie movie’s success to venture into new territories and secure its growth and prosperity in the ever-adaptive toy industry.