Peter Broegger, managing director of Asia-Pacific with Mattel Photo: Courtesy of Mattel
A senior official at one of the world's largest toy companies said he's confident in the robust development of the Chinese market, especially since the government is now allowing couples to have a second child.
"The Chinese toy market continues to develop at a very healthy pace that is significantly ahead of most global markets, and that comes despite some turbulence and uncertainty in the market. I am very pleased about where the Chinese toy market is heading," Peter Broegger, managing director of Asia-Pacific at Mattel Inc, said in an e-mailed interview with Global Times on Wednesday.
The interview was made days after the Mattel Children's Foundation signed a three-year memorandum of understanding with Beijing Children's Hospital Group, under which the two parties will cooperate.
Mattel, with popular toy brands such as Barbie, Hot Wheels and Thomas & Friends, has six plants with more than 30 original equipment manufacturers in China. Those factories account for 60 percent of its total manufacturing globally. China has become one of its key priorities from both growth and market points of view.
"For Mattel specifically, we had our best year ever in China in 2015 … and growth reached a high double-digit level," he said, without giving more specific figures. He said that 2015 "was really the first year that we locally designed and developed products. So these products are made by Chinese for Chinese. This is an initiative we started more than two years ago and 2015 was the first year when we really saw it in the marketplace."
Over the years, Mattel has built up a strong network of distributorships in China and across the region. Its distribution network covers more than 70 cities, from first- to third-tier, and the company also works with off-line and online distributors to help expand its reach across the country.
According to Broegger, online sales in China only contributed about 2 percent of the total five years ago, but now the figure is about one-third.
"The online sales contribution is significant to Mattel given that China has the largest online community in the world," Broegger said.
E-commerce is the most important channel to consumers, he said.
"I think one of our priorities is to make sure that we cooperate with all retail channels to the best of our ability. One way we do that is to partner with some really outstanding companies like Taobao, amazon.com and JD.com," he added.
However, Broegger said the company also faces the problem of counterfeit products in China.
"For a brand owner, we have to address it together with the authorities when we have an opportunity to do so. My concern is more toward children and consumers than it is toward our brand. If you put the copycat product in the hands of your child, you put the child at risk," he said.
Broegger said the company continues to increase the number of brands every year. "Octonauts is a brand we launched in 2015 and there will be new brands coming in 2016."
Global Times