Yahoo Finance Mattel crowdsources its next big toy
As Barbie sales slump, Mattel (MAT) is turning to crowdsourcing for a comeback. The toy maker announced a partnership with Quirky, an invention site, to produce its next hit toy.
Through Quirky’s online platform the public can submit proposals for toys and games. If an idea is selected, Quirky manages the design, manufacturing, and distribution of the product. The inventor who submits a winning idea will get a share of the royalties.
Quirky and Mattel will begin developing new products this year, which may be available as soon as the holiday season.
"This marks a new era for Mattel," said Richard Dickson, Mattel COO, in a statement. "Leveraging Quirky's platform allows us to discover new ideas for our toys…this new partnership will enable us to accelerate the speed and scope of invention.”
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Yahoo Columnist Rick Newman doesn't think crowdsourcing ideas will help Mattel's bottom line.
“Mattel's problem here, [Barbie] is a toy from what the 1950s,” he says. “I mean look around at what kids are doing these days and everything is on a tablet…Everything about Barbie just seems very dated and I don't know if opening this up to outside ideas is going to change anything. It sounds like a desperation move to me.”
Mattel's partnership with Quirky could generate more excitement for its toys, notes Yahoo Finance Senior Columnist Michael Santoli.
“I think it could be a good idea on the margin,” he says. "I mean it could surface better innovative type toy ideas than they've had before, but only around the margins. It's not something that's going to change the core.”
Mattel's Q1 report posted a narrower-than-expected loss of $0.08 a share. Revenues declined 2.5% year over year due to a drop in sales of Barbie brands.
