American Girl, the Mattel Inc. doll that has dominated the big (18 inches tall) and expensive ($95) part of the market for 24 years, may have to watch her back this holiday season.
Toys R Us Inc., Walt Disney Co. and MGA Entertainment Inc. are out to get her. Toys R Us, the world’s biggest toy retailer, has introduced a line of ethnic dolls called Journey Girls for $29.99. Disney’s $49.99 Princess & Me doll has made “most wanted” lists from Toy Insider and TimetoPlay . MGA’s Best Friends Club features a $32.99 doll that promotes friendship through a storytelling website.
The trio of new big dolls may be the biggest threat to American Girl sales since a Wisconsin educator created the history-themed characters in 1986. With U.S. unemployment hovering at 9.6 percent, the cheaper entrants may be appealing to gift buyers seeking to economize. “The angle most people seem to be pursuing is to price well below American Girl,” said Edward Woo, an analyst at Wedbush Securities Inc. in Los Angeles. “That’s an opportunity to break into this market.”
Each Journey Girl doll comes with a back story describing its travel experiences and hobbies — Taryn is a musician who dreams of playing at the New Orleans Jazz Festival; Meredith is a skier who hopes to visit the Alps. Bloomberg News
