Playmobil makes a loss for the first time in the company's history
Playmobil has been an integral part of many children's rooms for decades. The Horst Brandstätter Group has done good business with the brand. But times have changed: There is tough competition, which is causing the company to be in the red for the first time.
The Playmobil toy brand made a loss for the first time in its history in the last financial year 2022/2023. Playmobil boss Bahri Kurter told the newspaper "Die Zeit". The turnover of the Horst Brandstätter Group's toy brand shrank from 653 million euros to 614 million euros. Kurter explained that he was "satisfied" with the Christmas business. At the beginning of October, the Franconian group of companies announced that it would cut 694 of its approximately 4,000 jobs worldwide by 2025.
For the company, the following must apply in future: "No more thinking, more creativity," said Kurter. Children's play habits have changed and made business more difficult. "Relevance in children's bedrooms has fallen by a third," said the manager. Digital offerings in particular have come into competition with classic toys, which has reduced the target group. "Now Playmobil only works between the ages of four and eight," explained Kurter.
Playmobil was once intended for children up to the age of ten. Kurter was only appointed to the management board of the Horst Brandstätter Group this year. In order to boost demand, he wants to appeal to all age groups in future: Playmobil should "evolve from a product to a brand" that is also interesting for young people and adults. Playmobil social games or emotional figures of prominent soccer players and other stars are being considered.
Playmobil figures, which were first presented at the toy fair in 1974, are known worldwide. According to industry experts, however, the company has missed out on important trends in recent years, such as digitalization. Danish competitor Lego has done better in this respect.
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Despite the significant role Playmobil toys have played in children's rooms for decades, the tough competition in the market led to Playmobil making a loss for the first time in its history. This shift in consumer habits and increasing competition from digital offerings has caused the relevance of Playmobil in children's bedrooms to decrease by a third.
Source: www.ntv.de
