The toy manufacturer wants to compete internationally with the big players.
(Photo: Schleich)
Munich New logo, new packaging, new slogan: Schleich presents itself in a modernized guise. The owner of the toy manufacturer, the Swiss financial investor Partners Group, has high hopes for this. “We want to turn Schleich into a global brand,” Luisa Delgado told Handelsblatt. She heads the Schleich Board of Directors on behalf of the Partners Group, is also Chairwoman of the Supervisory Board at Swarovski and was once Head of Human Resources at SAP.
The aim is to join the ranks of the big, global toy brands, i.e. Lego, Mattel, Hasbro, MGA Entertainment and Bandai, added Schleich boss Dirk Engehausen.
The medium-sized company from Schwäbisch Gmünd is known for its detailed animal figures, especially horses. In recent years, Engehausen has managed to sell more and more complete sets, i.e. not only the figures but also accessories such as stables or farms. An obviously successful concept: Schleich has grown by an average of 15 percent in each of the past eight years, according to Engehausen.
Nevertheless, the stated goal of soon becoming one of the world’s top toy manufacturers is very ambitious. According to its own statements, Schleich was able to generate a fifth more sales in 2021 than in the previous year with 255 million euros. Even if Engehausen can keep up this pace, it will take until the end of the decade for the company to achieve sales of one billion euros.
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Market leader Lego, on the other hand, generates more sales in two weeks than Schleich does in the whole year. In 2021, the Klötzchen Group made sales of around 7.4 billion euros, an increase of 27 percent compared to the previous year. The Danes made a profit of almost 1.8 billion euros.
Schleich’s boss is realigning the brand.
(Photo: Schleich)
The leading German toy manufacturers are also well ahead of Schleich. Simba-Dickie with brands such as Bobby-Car, Noris or Schuco posted sales of 754 million euros in 2021. The game publisher Ravensburger had a turnover of 636 million euros in 2021.
Global brand “Schleich” is more of a long-term goal
Even in Germany, Schleich is still a long way from the top group of toy manufacturers. Nevertheless, it could make sense for the Partners Group to name the medium-sized company in the same breath as the industry giants. After all, the Confederates want to sell their stake again at a profit one day.
The eventful history of Schleich shows that this is not a sure-fire success. The company was founded in 1935 by Friedrich Schleich in Schwäbisch Gmünd and became known in the 1970s for the blue and white Smurfs figures.
Since the beginning of the century, the Partners Group is now the third financial investor who wants to make money with the company. Hg Capital first bought Schleich in 2006. At that time, sales were 61 million euros. When the company sold its shares to the French investment company Ardian eight years later, the proceeds had risen to 106 million euros.
In the summer of 2019, the Partners Group finally got involved, with sales at the time amounting to 180 million euros. A purchase price was not mentioned. At the beginning of the sales process, the Reuters news agency speculated about a sum of 400 million euros.
Financial investor rules out sale in the current year
“Where stories begin” is Schleich’s new brand message – worldwide in English. So far, the company has advertised with the slogan “The world in your hands”. From now on, the name Schleich can be seen in white lettering on a red background. Black lettering and a red “S” next to it were customary up to now.
“We present ourselves in a softer and more childlike manner,” said Managing Director Engehausen, describing the realignment. The manager worked for Lego for many years and was most recently responsible for the Scandinavian business in Central Europe.
Schleich wants to appear softer and more childlike.
(Photo: Schleich)
In Engehausen’s opinion, the lifelike animal figures are a great advantage of his company compared to other brands: Schleich does not have to adapt its products regionally. “The lion looks the same on the boy in Tokyo as it does on the girl in Los Angeles,” he said.
Engehausen currently sees the greatest growth opportunities in the USA, Great Britain and France. The upward trend is unbroken: “We are right on course and are aiming for double-digit growth this year as well.” The order situation for the important Christmas business is “very good”.
Meanwhile, chief supervisor Delgado has ruled out a quick exit for the Partners Group: “Do we intend to sell this year? Absolutely not.” Rather, the financial investor has “very staying power” to further develop the company with its 500 employees.
More: “Up to 20 percent more”: Simba Dickie boss warns against expensive toys