Isaac Larian, Founder and CEO of MGA Entertainment, discusses the company’s expansion into entertainment, the state of retail, and the Toy Fair shift to fall in this extended edition of The Toy Book’s 2023 State of the Industry Q&A roundtable. Want more insight from the all-stars of the toy industry? Click here to explore this year’s lineup!
The Toy Book: How will the opening of MGA Studios factor into the company’s long-term content and toy development plans?
Isaac Larian: MGA Entertainment is one of the world’s largest and fastest-growing privately held toy and entertainment companies and we have always been committed to growing in the entertainment space to further the connection between physical toys, entertainment, and the digital world. While continued innovation in the toy category remains a key driver for our business, we understand the world is changing and are fully committed to carrying our winning legacy into this new and evolving digital landscape. In addition to growing our large catalog of TV, movie, and streaming content through MGA Studios, we aim to create smaller and safer mini universes for our children to grow and develop in a seamless digital and physical entertainment ecosystem.
TB: What are the biggest new product innovations that retailers can look forward to from MGA this year?
IL: Innovation has always been a key component of all we do at MGA Entertainment — from Bratz 21 years ago to L.O.L. Surprise! almost seven years ago to the [recent] launch of MGA’s Miniverse Make It Mini Food — and 2023 is no different! While I can’t share specifics, look for us to make a huge splash in the plush category, as well as [offering] new and exciting products across Miniverse and L.O.L. Surprise! and three major new products in Little Tikes preschool and outdoor and sports. Stay tuned!
TB: Access to hot products at a fair price has been a hot-button issue for independent retailers that lack the buying power of the big-box stores. How is MGA connecting with those stores?
IL: To ensure we can provide our newest, hottest, most innovative products to independent retailers at a fair price, MGA works with distributors, such as ACD Distribution. Doing this helps us to provide better service to these retailers and guarantee them a fair price.
TB: How is MGA working to keep pricing in line amid rising inflation and economic concerns?
IL: MGA has an advantage most of the other major toy companies do not: We are a private company. As such, we do not have to answer to shareholders or Wall Street and are able to take a different approach, not raising prices, and in some cases even lowering them, despite rising inflation. It’s important to us to preserve our consumers’ loyalty to the MGA brands they love.
TB: How does Toy Fair moving from February to September impact your business, and what’s your current take on the trade show shift?
IL: Holding Toy Fair [in New York] at the same time as [the unofficial] Toy Fair [in Los Angeles] doesn’t make business sense for us. Also, I don’t feel toy fairs in general serve the same purpose they did 10 or 20 years ago. As a result, we will not participate in Toy Fair [in New York] this year. A great example I think the toy industry should look to is the electronics industry. CES is five times bigger than any of the toy fairs and there is only one per year for the industry.
TB: What are your overall predictions for the state of the toy industry and toy retail this year?
IL: The toy business is product driven. For 2023, those companies who have hot, new, original, innovative products will win with retailers and consumers, and those without will not. We are fortunate here at MGA Entertainment that innovation has been at the heart of all we do, and 2023 is no exception. Our just-launched, hot, new MGA’s Miniverse line, including Bratz Minis, Mini Little Tikes, and the newest Make It Mini Food lineup has sold out repeatedly out of the gate. We are just getting started with more surprises heading into the spring, fall, and holiday seasons this year.
A version of this Q&A was originally published in the 2023 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!
