5 Consumer Product Launches to Watch in 2010
|Click here for consumer products to watch this year. |
>>Search for Highest Dividends by Rate or Yield "So even if the Monster High launch does not gain traction at retail, it will be at a time that Mattel will have other growth drivers supporting the company's top line, helping to balance the risk and reward." Sterne Agee analyst Margaret Whitfield has noted that Mattel's lineup is the strongest she has seen in a decade. The momentum will likely "build in 2011 with added toy lines and a full year of marketing the new Monster High franchise," she noted. Mattel's Monster High franchise targets tween and teenage girls, and is designed to bring the "hip" teenage descendants of the world's most famous monsters, like Dracula and Frankenstein, to the trials and tribulations of high school.
Carroll said that Mattel is seeking increased control over the growth of its entertainment revenues, and "while the company has historically been a major licensee of entertainment content from such companies as Disney and Nickelodeon, it is now looking toward the successful launch of the Monster High franchise to demonstrate that it, too, has the ability to create a franchise that can become culturally relevant among teen and tween girls." In a press release, Mattel said that the property will be delivering "rich" content and "relatable" storytelling through publishing, Web, animation and live-action theatrical entertainment, and launching consumer products in toys, apparel and accessories. While there have been concerns about Mattel's margins due to higher raw material costs, labor, freight and distribution, KeyBanc Capital Markets analysts believe that Mattel should be able to offset them and preserve margins, given that it's implemented low to mid single-digit price increases on the 2010 product lines. Those analysts believe that Mattel has the ability to further push up prices if input costs continue to rise.
-- Reported by Andrea Tse in New York Follow Andrea Tse on Twitter and become a fan on Facebook.