The toy business is big business, but also a very competitive one. A company must be able to set itself apart in order to drive higher margins to deliver the type of returns that shareholders want. Big box retailers have felt the pressure, with some analysts saying that diving profits at Toys 'R' Us were the reason that owners Bain Capital, KKR & Co. (NYSE: KKR) and Vornado Realty Trust (NYSE: VNO) yanked the initial public offering earlier this year. Toy manufacturer Mattel, Inc. (NASDAQ: MAT) has cannibalized sales of its iconic Barbie doll, with profits from the fashion doll falling 12 percent in the second quarter, marking the fourth consecutive quarterly decline. Taking away part of the profits from Barbie are newer lines like Monster High or the more expensive American Girls brand. Barbie is not going anywhere, but it looks like consumers want something different.
Through its subsidiary, The One World Doll Project, One World Holdings, Inc. (OTCBB: OWOO) is readying to launch a unique line of multi-cultural fashions dolls branded "The Prettie Girls!" that could likely capture all the market that the young company can handle. The company, founded by serial entrepreneur Trent T. Daniel, has a world-class team executing a business model focused on targeted demographics with a novel approach to the storyline behind their dolls.
One of the reasons that Monster High dolls have cut into Barbie sales is because they are clearly distinguished from the Malibu-based doll. One World has a strategy of marketing to consumers of various ethnicities with a real-world message to children delivered with their 11-1/2” dolls, rather than the all-glamor life of Barbie. The Prettie Girls! line features girls that are diverse in culture and interests as part of a marketing campaign that showcases the melting pot that the U.S. has become. In the company's own words, "The One World Doll Project is not just a doll company. We are a movement to influence a more positive self-image among our young women and girls across the globe."
To add a bit more color to the picture, Valencia is a "bold & daring" Hispanic with an affinity for working-out, watching cooking shows and then testing her skills by preparing healthy meals for her friends to try. Dahlia, of Middle East/India descent, is funny by nature, a community volunteer and has a puppy that she rescued. Other dolls include Lena (African-American), Alexie (Caucasian) and Kimani (African), each with their own passions and ambitions.
In addition to giving the dolls real-world personalities and goals, One World has changed the physical appearances to be ethnically correct, mirroring the colors, shapes and characteristics of real people. Gone are the days of merely spraying the same Barbie figure with a different color paint, as Mattel used to do. Leading the designs for One World is Stacy McBride-Irby, a former 15-year vet of Mattel where she designed countless Barbie fashions, notably heading up the “So in Style” collection which was Mattels's first ever African-American doll line to have facial and body features that more closely resembled girls of color. Keeping the manufacturing authentic, One World has partnered with Steve Varner of Varner Studios in the creation of its doll line and will be working with him for all 3D modeling and sculpture work on One World's upcoming line of celebrity dolls. Varner grew his industry fame working on toys products for Star Trek, Lara Croft Tomb Raider and more.
Gene Insley serves as One World's Chief Manufacturing Consultant. Insley has more than three decades' experience in toys, primarily at Fisher-Price and then Mattel once the companies merged, including his position as Senior VP Engineering of all Girls products at Mattel.
One World's approach will likely have mainstream consumer appeal, especially within different ethnic groups, which falls right into One World's marketing wheelhouse. The company has Sheryl Shade running PR and strategic partnerships. Shade, a Principal of marketing and representation firm Shade Global, has built an impressive client list including a bevy of Olympic stars such as Gabby Douglas, Shannon Miller, Shawn Johonson, Paul Hamm and Bela Karolyi. Shade has a deep reach in the marketing world that should quickly deliver brand exposure.
In a conversation with Trent Daniel, he explained that the company has many targeted channels to develop the brand. For example, to help showcase dolls of African descent, popular medians like Ebony, BET, Essence and Jet Magazine, will be utilized. Because of the uniqueness of the dolls, CNN has already run a small piece on them in the inAmerica blog section of their website, according to Daniel.
Clearly One World is a growth play, but the rubber is about to meet the road with the first lot of 20,000 dolls manufactured and ready for roll-out on Black Friday in November. Lena and Valencia will be the first dolls to market with the other dolls expected to be available in the first half of 2014. The company anticipates the price of the dolls to be between $16 and $18, netting the company about $6 per doll in profit. With a market capitalization of only $582,000, it won't take many sales to position the company with revenue higher than its valuation.
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