Isaac Larian, Founder & CEO of MGA Entertainment, talks toys, entertainment, and retail in this extended edition of The Toy Book’s 2024 State of the Industry Q&A. For our annual roundtable, The Toy Book brings together a panel of industry leaders, manufacturers, retailers, and distributors to discuss the trends, wins, challenges, and opportunities shaping the North American toy industry as it regroups after a tough year and gets ready to rock and roll. Click here to explore the series archives.
The Toy Book: What are some of the big moments that retailers and consumers should get excited about from MGA in the months ahead?
Isaac Larian: MGA has been known in the toy industry as being the interrupter with new, original innovations for the past three decades. We love toys and we love kids. In 2024, MGA’s Miniverse will be the No. 1 toy brand globally; L.O.L. Surprise! has some surprises in store and will start growing rapidly; Bratz will be the biggest surprise in the industry, starting with the reissue of Bratz Babyz; Little Tikes will grow again with innovation and more points of distribution; Fluffie Stuffiez will grow 100%; Rainbow High — currently the global No. 1 fashion doll in the industry — will continue to grow in the double digits; and we have a few more new, disruptive brands launching later this year. The hits keep on coming!
TB: Next year, MGA will make a big play in the action aisle for the launch of Armorsaurs — how has that project been shaping up now that MGA Studios has a full year under its belt?
IL: We are very excited about this big property for MGA. We have taken our time to do the entertainment and toys right. Armorsaurs will disrupt the market when it launches in early 2025.
TB: What are the biggest challenges and opportunities facing the overall industry this year and how is MGA approaching them?
IL: I believe the biggest challenge to the toy industry is the lack of innovation from the big, publicly traded toy companies. Their management is incentivized for short-term stock price gains rather than investment in innovation. The other challenge is the complete disarray and meltdown of The Toy Association. I predict the toy business will be down this year as a result of all of this. MGA, on the other hand, will grow substantially. We have doubled our research and development budgets and are focusing on bringing consumers the most innovative toys on the market.
TB: International retailers have strengthened their merchandising efforts over the past year. How can retailers in the U.S. follow suit and do better?
IL: International retailers — especially Smyths — have invested in retailtainment. Toys bring foot traffic to stores and those consumers buy other goods. This allows for growth and market share gain overall. U.S. retailers must invest in in-store events — retailtainment — to gain market share and increase foot traffic. And, retailers must invest in in-store labor in their toy departments during the fourth quarter.
TB: What are your overall predictions for the state of the toy industry this year?
IL: I predict the toy business as a whole will be down 5-7% in 2024 and that a new, independent Toy Association will be formed in Los Angeles.
A version of this story appeared in the 2024 edition of The BIG Toy Book. Click here to read the full issue. Want a copy in print? Click here for back issues and subscription options.
