No time for toying around

Playmobil CEO Helga Ellul speaks to DUNCAN BARRY about finding the right product mix, women in the workplace... and listening to children, who are the company’s ‘main customers’.

Ellul says that “both markets, i.e. Malta and Germany, are facing strong challenges, with some factors affecting one market more than the other. An example is the increase in online purchasing – a phenomenon which is making it difficult for toy shops and retail shops to compete”.
Ellul says that “both markets, i.e. Malta and Germany, are facing strong challenges, with some factors affecting one market more than the other. An example is the increase in online purchasing – a phenomenon which is making it difficult for toy shops and retail shops to compete”.

Success is measured in many ways, how do you measure personal success and the success of Playmobil?

"The success of Playmobil is obviously measured in global sales and the excellence of our product. I measure my personal success by the respect I get from business associates and friends but mainly by the warmth and love I find in my family, which I treasure."

Are Playmobil's range of products still highly sought after both in Malta, and abroad?

"Yes, thanks to the appeal which Playmobil products continue to hold for children all over the world, the company has managed, for the past 11 years, to achieve and sustain, a strong level of growth."

Which country has the strongest Playmobil sales?

"It might not come as a surprise, but the highest levels of sales are achieved in our home market - Germany."

Currently, how does the German market compare with Malta's? Are they both facing similar challenges in their retail environments?

"Both markets are facing strong challenges, with some factors affecting one market more than the other. An example of these challenges is the increase in online purchasing - a phenomenon which is making it difficult for toy shops and retail shops to compete.

"Some outlets try to sell via their own websites but competing with established websites such as Amazon.com, remains an uphill struggle. Though Playmobil is selling more quantities of toy products more than ever, the average price range of toy purchases is decreasing."

Are toys really able to survive the current financial crisis or is even the recession-proof toy industry likely to feel the pinch?

"So far the toy industry has not been affected significantly by the current financial crisis. In fact the toy industry has been doing quite well despite the difficult economic scenario. Irrespective of their situation, parents still tend to want to give their children good quality toys, especially toys like Playmobil's which provide a level of play value which is difficult to find in other toy products."

In a country with boardrooms run by men, do you think Malta offers the right opportunities for women to be encouraged to do the same as you? Does gender play a major role in Malta, compared to Germany?

"That boardrooms are run by men is not only a reality in Malta but rather a worldwide trend. I personally feel that opportunities for women to take on a leading role in business depend mostly on their capabilities and on their determination. It is, of course, still very difficult for women to strike an effective work-life balance, especially when they also want to have a family.

"In this case, it is important to have the support of the partner/husband when it comes to sharing responsibilities."

Success in the corporate business world is measured on the basis of outcomes and performances. Ultimately, women have to show that they can achieve it equally as men do. What obstacles do you face when it comes to operating a company in Malta?

"I am not fazed by obstacles but rather look on issues as challenges to be overcome. In operating a company in Malta, I find that the size of the island makes it easier to network and keep abreast with developments.

"What I see as a great opportunity in Malta is the attitude of its workforce. When appropriately motivated and trained, Maltese workers prove to be extremely keen to work and learn, very professional in their approach and proud of their contribution to the company's achievements."

How does Playmobil differ from other toy companies such as Mattel and Fischer-Price who offer products on the same lines?

"We design our products using the most state-of-the-art and cost-effective technologies and processes. Our engineers are constantly reviewing and improving the way we manufacture our products."

What products are being offered to customers to remain competitive in the market?

"We always lend an ear to children, who, at the end of the day, are our main customers. We listen to their ideas and requests and make sure that the toy ranges that we produce are what they actually want. We try to ensure that Playmobil figures reflect the world of the child, and this is what Playmobil is all about: 'Experiencing life through Play', our underlying philosophy. It is for this reason that we create Playmobil worlds as a miniature of real worlds, for children to use creatively to their full effect in role play."

Has the Chinese market affected European companies such as Playmobil, where inferior products are manufactured? Does this result in more production costs in big companies such as Playmobil?

"Playmobil has always been a 'Made in Europe' product, which amongst others means that all that we offer consumers comes with the appropriate safety and quality guarantees. Moreover, manufacturing in Europe reduces our lead time, thus sustaining our efficiency and effectiveness."

What is Playmobil's secret to success?

"Our secret to success is always finding the right product mix, keeping in mind what the children want and how they perceive it. Another contributing factor is the minute detail involved in making the products including keeping these up to date with current lifestyles which children can recognise and appreciate as it delves into their inner emotions, making them feel that the little world they are playing with is their real world.

"These emotions continue to develop even after childhood, and it is for this reason that Playmobil is loved by people of all ages and passed on from one generation to another. It is a trusted brand which also hinges on strong emotional attachment with people of all ages."

Is Playmobil generating a lot of jobs in Malta?

"Playmobil presently employs 900 persons but also works with several other companies in Malta, thus injecting multiple positive effects on the Maltese economy."

What are your main aims for 2012/2013?

"Looking at our world map we have a lot of red dots pinpointing markets where Playmobil has a strong presence. Our aim is to extend these over the coming years, while ensuring that the Playmobil brand continues to appeal to millions of children (and adults) around the globe."

What is being done to market the product effectively?

"We strongly believe that children should be encouraged to play and be active as they are increasingly suffering from lack of movement and creative development. In line with this we have developed the concept of the Playmobil FunPark. These fun parks, located in Malta as well as in other countries in Europe and beyond, give children the opportunity to experience the toy in an environment which is conducive to play and which caters fully to their needs. "Naturally, we also see the park as an effective marketing opportunity and just as importantly, as a testing ground for Playmobil'a products.

"Constant collaboration with child-friendly organisations helps us develop new ideas and foster avenues for utilising the product through education, thus creating further awareness about the versatility of the Playmobil toy."