Barbie Film's Market Success: How's the Doll Business Doing?

The film *Barbie* (2023), starring Margot Robbie, has been a box office hit worldwide.

According to *The Numbers*, the film grossed USD 155 million in its opening week. This figure surpasses its production cost, which was "only" around USD 100 million.

Loo Wee Teck, a toy industry analyst from Euromonitor International, predicts that the film's popularity could boost Barbie doll sales for several years to come.

"After a dismal 2022, where doll sales were depressed due to high prices amid economic uncertainty, Mattel (the owner and producer of the Barbie brand) is now poised for a strong 2023 performance as a result of the Barbie film launch," said Loo Wee Teck in a press release on Thursday (July 13, 2023).

"The Barbie movie is expected to increase sales of dolls and accessories, with 16% growth in 2026 compared to 2022 sales," he continued.

According to Mattel's financial report, Barbie's gross billings had declined in the last few quarters before the film's release.

Gross billings are the value of product transactions billed by the company to customers, excluding discounts or other trade incentives. Mattel uses this indicator to measure its business performance, including Barbie doll sales.

In Q1 2023, global gross billings for Barbie products reached only USD 176.9 million. In Q1 2022, this figure reached USD 298 million.

This was the worst Q1 performance in the last two years, as shown in the graph.

"For the first quarter of this year, gross billings for all types of Mattel dolls were USD 306 million, down 23% year-on-year, mainly due to the decline in Barbie and Enchantimals," said Mattel management in its Q1 2023 financial report.

"The company is operating in a challenging macroeconomic environment with higher volatility, including inflation, which can affect consumer demand," it continued.