Max Rangel, global president and CEO at Spin Master, talks about the company’s growing success and its strategic approach in the Toy Book’s annual State of the Industry Q&A.
The Toy Book: Spin Master had a record-breaking third quarter last year despite navigating supply chain issues. How has the company’s strategic approach to its toys, entertainment, and digital games creative centers drive this revenue?
MR: The establishment of our three creative centers diversifies our global revenue growth and enables us to create meaningful connections with kids across the world and in multiple dimensions. Our portfolio of innovative products and brands, in addition to multiplatform entertainment franchises and open-ended digital games, also lessens our reliance on physical items.
It’s rewarding to see that our strategic approach is driving growth. In Q3 last year, our digital games and entertainment creative centers had a strong quarter, growing more than 120% on a combined basis compared to the year prior. Approximately 15% of our total revenue in the third quarter stemmed from digital games and entertainment, more than double what it was in 2020.
While our teams were very successful in working through global supply chain disruptions with our retail partners to ensure we delivered our goods to stores and digital shelves, this positive mix effect of digital games and entertainment helped to offset toy margin pressure.
TB: How will Spin Master Ventures grow the company this year?
MR: Spin Master Ventures’ goal is to accelerate growth in each of our three creative centers: toys, entertainment, and digital games. The kids’ entertainment space is rapidly changing, and we will make strategic minority investments in startups and with entrepreneurial game changers with promising ideas through Spin Master Ventures.
These investments will help them grow their business while giving us access to new ideas, products, and services that complement our own research and development. We aim to become the ultimate partnership generator, widening our relationships, networks, and knowledge, while bolstering our leadership position in the kids’ entertainment space.
This article was originally published in the February 2022 edition of the Toy Book. Click here to read the full issue!
