"You can't cuddle with a cell phone"
Steiff is one of the best-known German brands and has turned the teddy bear into a cultural asset. In the podcast "Die Stunde Null", company boss Frank Rheinboldt talks about Christmas business, James Bond bears and the question of how his company wants to become modern.
How is Christmas business going? Are you already counting the number of teddies sold?
Frank Rheinboldt: We've actually been counting them since November. That's when the Christmas business really starts to make itself felt. My impression is that promotions such as Cyber Monday or Black Friday are anticipating Christmas business to a certain extent. December is gradually becoming less important, especially when it comes to toys. Customers are simply stocking up in advance because some products are available at a slightly reduced price.
You took over Steiff nine months ago, it's a brand with a brand awareness of over 90 percent in German-speaking countries and a long tradition. Isn't there a lot you can do wrong?
It's important that we don't question the special features that Steiff stands for - quality, tradition and longevity. This is a major commitment, and the employees at Steiff are aware of this. "Fast food cuddly toys" at Steiff would not be good. And that's not our strategic aim either. But we have to make sure that we remain contemporary to a certain extent and not just traditional.
How do you stay contemporary with such a traditional brand?
You have to recognize one thing: The teddy bear for children is our core business. But we have always had Steiff collectors for whom limited editions were developed. The share of total sales is around 15 percent. However, a few decades ago it was 50 percent.
How do you want to increase this share again?
Collaborations are key. We made a bear with Elton John, we made one with the Beatles, there is a James Bond bear. Our partners are companies like Disney and Universal. It's about creating things that not only work for children, but also for adults - who then remember their childhood. To Snoopy, Mickey Mouse or other Disney characters. Kidults - adults between 25 and 30 - are an important target group.
Does that mean Steiff wants to become faster?
We have to be prepared to move faster in terms of product development and product cycles. It's also about picking up on trends more quickly. For example, when a special movie is announced, we have to be faster than in the past. What's more, dates such as Halloween or Mother's Day are becoming increasingly important in Germany. Maybe we should make a teddy bear with a pumpkin. Or a slightly more feminine teddy bear for International Women's Day.
Steiff generates 70 percent of its sales in Germany, Austria and Switzerland. Yet the brand is actually known globally. What are you doing to become more international?
Steiff has actually always been international, we have been selling at Harrod's in London since 1894. America is also a good market for us. However, we don't play the same role in these countries as we do in Germany. And of course we are doing something: we believe that there is a market for premium toys in China, which is why we have set up our own joint venture there. We now have our own organization, our own logistics warehouse and our own local quality control. There are also department store chains there that are looking towards Europe. I also believe strongly in digitalization.
What do you mean by that?
We are still quite weak in the USA with our own online store. That's why we now have a new management team there. For me, the USA and China are the two big growth markets.
How digital can Steiff's own products become? Will there soon be a teddy bear with an RFDI chip in its ear?
Of course we can think about RFDI. And of course we are also trying to make audio plays or audio books. But Steiff is something special. You can't cuddle with a cell phone. And that remains the focus. Nevertheless, the question is whether the teddy bear won't be able to talk to you at some point, as artificial intelligence offers many new possibilities. But that's a long way off.
Listen to thenew episode of "The Zero Hour"
- What the second most popular Steiff animal is after the teddy bear
- Why the Barbie film could be a signpost for Steiff
- Why Steiff doesn't want to appear on some online platforms
You can find all episodes directly on RTL , Apple or Spotify or via Google.
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How does the toy industry impact the Christmas business for Steiff?
Frank Rheinboldt mentioned that December becomes less important for toy sales as customers are stocking up in advance due to promotions like Cyber Monday or Black Friday.
Is Steiff exploring collaborations to increase its appeal to adult collectors?
Yes, Rheinboldt mentioned that collaborations with companies like Disney and Universal, and limited edition bears with celebrities like Elton John and the Beatles, help attract adult collectors, which adds around 15% to their total sales.
Source: www.ntv.de
