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Its official: You won’t be able to afford as many dolls as in the past. Thats based on Mattels first quarter financial report, released yesterday. While the results indicated that the company had a resilient first quarter, it also foreshadowed price hikes to come. In a meeting with investors, the company reported net sales of $827 million for the period, up 2% year over year, but pulled its full-year 2025 guidance, given the volatile macroeconomic environment and evolving U.S. tariff situation. Mattel CEO Ynon Kreiz also shared that while Mattel has a three-pronged plan to mitigate tariff-based losses, prices for some products are expected to rise. The Barbie-makers report comes as President Trump has turned dolls into a kind of symbolic flashpoint in his ongoing trade war. According to the Toy Association, a national industry group, nearly 80% of the toys sold in the U.S. are sourced from Chinameaning that toy and doll companies have been scrambling to absorb the impact of Trumps 145% tariff on Chinese goods. Last week, the president commented on reports that store shelves could soon be empty due to the tariffs on China, and the resulting tanking import volume, by acknowledging potential price hikes. Somebody said, Oh, the shelves are going to be open, the president told reporters. Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more. Now, it appears that the presidents uncharacteristically frugal suggestion is inching closer to becoming a reality as Mattel is forced to rethink its supply chain and prices in order to offset the cost of Trumps tariffs. Mattel has a 3-part tariff mitigation strategy On yesterdays call, Kreiz told investors that Mattels tariff-mitigation plan includes three main approaches: Accelerating diversification of our supply chain and further reducing reliance on China-sourced products, optimizing product sourcing and product mix, and where necessary, taking pricing action in our U.S. business. Shifting the supply chain away from China is one of Mattels top priorities for a reason. The U.S. represents about half of Mattel’s global toy sales, and the company imports about 20% of its goods sold in the U.S. from China, according to a Reuters report. Mattel told Reuters it would reduce imports into the U.S. from China to below 15% by 2026. The company was planning to reduce reliance on Chinese manufacturers even before Trump took office, assuring investors back in December that, in 2025, Mattel will source less than 40% of its goods from China, as opposed to the industry average of over 80%. Ultimately, there will be price hikes on playtime But for Mattel, these supply chain steps likely still wont be enough to absorb tariff-based fees, which company finance chief Anthony DiSilvestro said in a post-earnings call are expected to reach $270 million in incremental costs over the course of the year, starting in the July quarter. As an added measure, Kreiz told investors that consumers can expect pricing adjustments on some products. While he didnt share details on specific products or price increases, he did predict that 40% to 50% of all Mattel product will remain at or under the $20 threshold. This is something we are committed to do, Kreiz told CNBC this morning about the new prices. To continue to create quality product and find the right balance of price and value, all in the service of the consumer. Deeper supply chain disruption could be yet to come The Mattel price increase announcement comes amid deep disruption to store supply chains, which are expected to increase as U.S. imports from China plummet and stockists pause orders. There was a nearly 43% drop in containers received from China, week over week, between April 21 and April 28, according to port data from Vizion. Retailers typically place orders for the holiday season around now as well, indicating a possible negative downstream effect later in the year. We have a frozen supply chain that is putting Christmas at risk, Greg Ahearn, chief executive of the Toy Association, told The New York Times. However, consumers could notice reduced product availability and purchasing power even sooner. Retail inventories may actually look lean in coming months, a May report from the Bank of America Institute stated. Fast Company has reached out to Mattel for more specific examples of the coming price hikes. The company did not respond by time of publication.
Category:
E-Commerce
Elon Musk has ruffled plenty of feathers since stepping more prominently into the political arena. Now, it seems hes also a bad neighbor. In 2022, Musk purchased a six-bedroom, $6 million mansion in the upscale Austin suburb of West Lake Hills, Texas. At the time, he didnt knock on doors or introduce himself to his new neighborsbut word spread quickly, especially when visibly armed security personnel and their vehicles began appearing on the quiet suburban street. Since moving in, Musk has erected an unauthorized 16-foot chain-link fence, installed a metal gate, and mounted outward-facing camerasactions that have irritated local residents, according to a recent report by The New York Times. I call that place Fort Knox, said Paul Hemmer, a Tesla owner and retired real estate agent who lives across the street. Hemmer is also president of the neighborhood homeowners association. When Musk later attempted to retroactively gain permission for the additionswhich violate six city ordinancesthe West Lake Hills Zoning and Planning Commission voted unanimously against granting variances. Wed incentivize people to break the rules, one commissioner told the Times. The matter is now set to go before the West Lake Hills City Council in a session scheduled for May 14. Unless the Council overrules the commissions decision, the fence and gate may need to be removed or modified to comply with town regulations. The mansion is one of three Musk has purchased in the area over the past three years, with plans to create a compound for his children and their mothers. Musician Claire Boucher, better known by her stage name Grimes, previously lived there with the three children she shares with Musk. Shivon Zilis, a brain technology executive and mother to four of Musks children, lives just a 10-minute walk away. In recent months, the house has been quieter, as Musk has spent more time in Washington advising President Donald Trump. But neighbors say they are bracing for his return. Hemmer, who now flies drones over Musks property to check for city code violations, also has round-the-clock video surveillance in place, he told the Times. Musks security team has taken noticereporting Hemmer to police for allegedly standing naked in the street (he was on his property, wearing underwear). On another occasion, Hemmer was caught urinating by Musks cameras. The cameras got me, he said. Its scary they have guys sitting and watching me pee.
Category:
E-Commerce
Ashlee Piper is a former political strategist turned eco-lifestyle journalist. She has been a Professor of Sustainability Marketing at Loyola University Chicago and eco instructor for LinkedIn Learning. Well-known companies, such as Airbnb, LUSH, and Nissan, have sought her counsel on sustainability practices. Piper has spoken at the United Nations, SXSW, and has a popular TED Talk. Whats the big idea? A life of overconsumption can feel almost inescapable in our hyper-personalized advertising ecosystem. Billions of dollars go into getting people hooked on shopping. Fortunately, a way out of this addictive cycle is the No New Things challenge, which guides anyone fed up with buyers remorse toward a healthier, happier, more sustainable lifestyle. Below, Ashlee shares five key insights from her new book, No New Things: A Radically Simple 30-Day Guide to Saving Money, the Planet, and Your Sanity. Listen to the audio versionread by Ashlee herselfin the Next Big Idea App. 1. Its not you, its us. If you wrestle with overconsumption or just buy way more stuff than youd like to, then youre not alone. Fifty-four percent of Americans report feeling stressed by their stuff, 60 percent say they dont have enough time in the day, and 80 percent are in some form of consumer debt. Overconsumption distracts us from whats important and steals time, energy, money, and peace of mindnot to mention harms the planet. Its safe to say that if youre uncomfortable with your relationship to shopping, youre probably experiencing one or more of these side effects. 2. Its not your fault. Our drive to buy more, buy better, and seek out stuff to meet or fulfill every need and emotion we experience is the result of decades of deft marketing programming. Starting at the dawn of the Industrial Revolution, Americans fundamentally shifted their consumption habits, and World War II turned consumerism into a patriotic act. From 1941 to 1945, advertising expenditures grew from $2.2 billion to $2.9 billion, and the 1950s were seen as the advertisers dream decade (think Mad Men). Today, companies collectively spend nearly $515 billion annually on marketing in the US, much of which is devoted to consumer insights, data, and research. Our drive to buy more, buy better, and seek out stuff to meet or fulfill every need and emotion we experience is the result of decades of deft marketing programming. I dont want to sound like Im wearing a tinfoil hat, but there are entire departments that track how you buy, when you buy, and what you buy, as well as your demographics like income, gender identification, marital status, and more. Its no wonder we are constantly exposed to advertisements that show us exactly what we need or what they can convince us we need. 3. This is your brain on shopping. This conditioning isnt just historical; its omnipotent and happening to you right now. It has morphed over the years to create an uncomfortable, unsustainable pattern that keeps industry overproducing, marketing playing on our emotions, and advertising driving us to buy because we dont feel good enough. The act of browsing merchandise initiates the release of dopamine, so what you sometimes conflate with a feeling of pleasure is really you being flooded by desire. Lets say youre a little stressed or excited when going out on a shopping trip. In that scenario, adrenaline enters the equation, heightening your senses and making you more impulsive. Youre essentially high, teetering between feeling in control and out of control, which ratchets up the dopamine release even more. The emotional high isnt meaningfully sustained. The interesting part about dopamine is that its released in anticipation of getting the thing you want. Before you even receive the item youre coveting, dopamine begins to Irish Goodbye, leaving you feeling . . . sort of empty. Thats why many shoppers regret buying many of their impulse purchases. The emotional high isnt meaningfully sustained. If you repeat this process regularly (aka: you shop at the same places around the same time), dopamine interacts with the part of the brain responsible for habit formation, recognizes your behavior as a pattern, and eventually automates it into a habit. In that way, impulsive shopping gets coded in your brain. This is biochemically similar to what happens when someone is addicted to drugs or alcohol. When you feel powerless over your shopping impulses, remember that youre wired to chase your next fix. 4. The No New Things solution. Help is on the way in the form of my 30-day No New Things Challenge, designed to help you build strong neural pathways that move you away from knee-jerk shopping and toward more sustainable, economical, circular ways of getting your needs met. Each day is designed with an action item and reflection that is relatively easy to do, but incredibly powerful for building a new relationship with shopping. You dont need any supplies or fancy connections to get started. Moreover, these action items help you extend the longevity of the things you already own, tap into gratitude for the abundance you already have, declutter your space and schedule, save loads of money, focus on your goals and dreams, and nurture the things that actually matter and make your life better. You dont need any supplies or fancy connections to get started. No New Things is as easy as turning off of the shopping tap and learning to redirect shopping impulses to healthier-for-you activities. 5. Make it stick. The rest of the book covers how to keep the No New Things mindset going as an enjoyable lifestyle. Youll hear from some of the people who have done the Challenge with remarkable results, from the family that saved enough money and got organized so they could adopt a little girl to the woman who saved a whopping $36,581 just from items she wanted to buy, tracked, and didnt. And yes, I consider that savings because she saved herself from spending that amount. No New Things gives you the tools, guidance, and support to shift your mindsets and habits, and in turn, live betterwhile also being better to others and the planet. Thousands have participated in No New Things before it was a book, so imagine the community doing the Challenge alongside you. Imagine the broader, powerful impact it can make. Getting closer to a more peaceful, prosperous, satisfying life while also upending epidemic overconsumption? Thats a win-win. This article originally appeared in Next Big Idea Club magazine and is reprinted with permission.
Category:
E-Commerce
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