Mattel's Big Splash: Turning Toys into Experiences

Mattel, known for its toys, is diving into a new adventure: indoor water parks. This move comes after a tough financial quarter, where the company didn't meet Wall Street's expectations. But Mattel's CEO, Ynon Kreiz, sees a silver lining. He believes the company's brands still have strong consumer demand worldwide. Mattel's revenue has been up and down since 2021. But Kreiz has been steering the company into new waters, starting with the hit "Barbie" movie. Now, Mattel is building theme parks and planning five indoor water parks. These parks will feature beloved brands like Barbie and Hot Wheels. The first water park is set for Orlando, Florida. But Mattel already has plans for more parks, aiming to finish them by 2034. This is ambitious, especially since Mattel's first adventure park in Arizona has faced delays. It was supposed to open in 2022 but is now pushed to late 2025. Mattel is partnering with experts in water park design and management. They want to create a unique experience where fans can interact with their favorite brands in a new way. The demand for indoor water parks is growing, and Mattel wants to capture that market. Kreiz calls this a "capital-light approach. " Mattel will license its brands and share in the parks' profits. He sees this as a smart move, using strong brands to create new business opportunities beyond toys. The U. S. water park industry is booming, with over 1, 000 parks and 85 million visitors in 2023. Indoor parks are growing too, offering year-round fun. Mattel's move could succeed, given its history of turning bold ideas into hits. But will it work? Only time will tell. Mattel has a good track record, like the "Barbie" movie. Yet, building theme parks is a big step. It's a risk, but one that could pay off if done right.