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Germany’s Playmobil wants to reinvent itself with Swift doll as it turns 50

As Playmobil turns 50, the German company behind the popular plastic figures is hoping that pop megastar Taylor Swift can help it shake off a slump in fortunes.

Playmobil
An birthday advertisement for Playmobil as it turns 50. Photo: picture alliance/dpa/Playmobil | PLAYMOBIL

Playmobil has in recent years lost ground to rivals, in particular Lego, the world’s number one toymaker whose sales are 10 times greater than those of its German competitor.

The Danish company has been way ahead in the licensing business, boasting Star Wars, Harry Potter and a more recent addition — Barbie — in its portfolio.

READ ALSO: It’s fantastic: Movie boosts world’s top Barbie collection in Düsseldorf

Over at Playmobil, the picture is distinctly less glamourous. Its greatest ever success is a 7.5 cm figure of German Protestant firebrand Martin Luther, 1.3 million of which have been sold.

Things are about to change, Playmobil hopes. Boss Bahri Kurter said contacts have been made with people close to Swift — one of pop music’s most dominant forces — and creative work has started.

“We will see how that develops,” he told AFP, adding that a figure of the US star “would be a huge dream”.

Kurter admitted that Playmobil “started late” in the licensing business.

Turbulent times

But this is far from the only reason the maker of plastic figures — whose headquarters are in Zirndorf, rural Bavaria — has been through a period of turbulence.

Rising energy prices and inflation exacted a heavy toll, as well as lingering supply chain woes in the wake of the coronavirus pandemic.

A cost-cutting drive is underway, with about 700 jobs worldwide — almost 20 percent of the workforce — to be axed. Half of the jobs to go are in Germany, as sales fall.

READ ALSO: Crisis-struck maker of Playmobil toys cuts hundreds of jobs

Playmobil’s parent company, the Geobra Brandstaetter Group, had to scramble to reorganise after the death of its founder, Horst Brandstaetter, in 2015. The changes caused tensions with unions, who accused the new management of “trampling” the group’s heritage.

Against this challenging backdrop, Kurter took charge of Playmobil in April last year.

The company traces its roots back to 1908, and in its early years manufactured products like toy telephones and money boxes.

The 1973 energy crisis hit the company hard as the price of oil, and plastic, soared.

Designer Hans Beck was ordered to come up with a new product that used less pricey plastic, and the result was Playmobil.

Crisis-struck German maker of Playmobil toys cut jobs (Photo by JOEL SAGET / AFP)

Three models were initially launched — a Native American, a knight and a worker — and proved a hit.

Numerous new characters and accessories have since been introduced, although the company traditionally sought to keep the toys simple, giving youngsters the chance to use their imaginations.

In half a century, more than 3.9 billion figures have been sold worldwide although they are less common in children’s bedrooms than they used to be.

‘Enormous competition’

“The toy market is subject to enormous competition,” particularly nowadays from games on computers or tablets, said Harald Lange, a specialist in educational games at the University of Wuerzburg.

The impact is clear at Playmobil, which has lost a third of its sales among four- to eight-year-olds in the past eight years, according to Kurter.

As well as tie-ups with popular figures like Swift, the company is targeting nostalgic adults and so-called “kidults” — grown-ups who still enjoy playing with toys.

Playmobil is increasing its range of celebrities, and sportsmen and -women to appeal to an older generation.

One such fan is Peter Bischofer, a 57-year-old who became an avid Playmobil collector in his 40s.

Playmobil brings back “childhood memories”, and evokes an era when toys “weren’t as elaborate”, he told AFP.

At his home in Merching, in southern Bavaria, he has collected hundreds of Playmobil models, with a preference for vintage ones. Playmobil prides itself on manufacturing its products in Europe — Germany, Spain, the Czech Republic and Malta.

It is also seeking to burnish its sustainability credentials at a time companies face mounting pressure to show they are green.

“The toddler range is moving to 90 percent plant-based raw materials,” said Kurter. “That’s a start.”

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ECONOMY

‘Turning point’: Is Germany’s ailing economy on the road to recovery?

The German government slightly increased its 2024 growth forecast Wednesday, saying there were signs Europe's beleaguered top economy was at a "turning point" after battling through a period of weakness.

'Turning point': Is Germany's ailing economy on the road to recovery?

Output is expected to expand 0.3 percent this year, the economy ministry said, up from a prediction of 0.2 percent in February.

The slightly rosier picture comes after improvements in key indicators — from factory output to business activity — boosted hopes a recovery may be getting under way.

The German economy shrank slightly last year, hit by soaring inflation, a manufacturing slowdown and weakness in trading partners, and has acted as a major drag on the 20-nation eurozone.

But releasing its latest projections, the economy ministry said in a statement there were growing indications of a “turning point”.

“Signs of an economic upturn have increased significantly, especially in recent weeks,” Economy Minister Robert Habeck said at a press conference.

The ministry also cut its forecast for inflation this year to 2.4 percent, from a previous prediction of 2.8 percent, and sees the figure falling below two percent next year.

READ ALSO: Can Germany revive its struggling economy?

“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said Habeck.

“So purchasing power is increasing, real wages are rising and this will contribute to a domestic economic recovery.”

Energy prices — which surged after Russia’s 2022 invasion of Ukraine — had also fallen and supply chain woes had eased, he added.

Several months ago there had been expectations of a strong rebound in 2024, with forecasts of growth above one percent, but these were dialled back at the start of the year as the economy continued to languish.

‘Germany has fallen behind’

But improving signs have fuelled hopes the lumbering economy — while not about to break into a sprint — may at least be getting back on its feet.

On Wednesday a closely-watched survey from the Ifo institute showed business sentiment rising for a third consecutive month in April, and more strongly than expected.

A key purchasing managers’ index survey this week showed that business activity in Germany had picked up.

And last week the central bank, the Bundesbank, forecast the economy would expand slightly in the first quarter, dodging a recession, after earlier predicting a contraction.

German Economics Minister Robert Habeck

Economics Minister Robert Habeck (Greens) presents the latest economic forecasts at a press conference in Berlin on Wednesday, April 24th. Photo: picture alliance/dpa | Michael Kappeler

Despite the economy’s improving prospects, growth of 0.3 percent is still slower than other developed economies and below past rates, and officials fret it is unlikely to pick up fast in the years ahead.

Habeck has repeatedly stressed solutions are needed for deep-rooted problems facing Germany, from an ageing population to labour shortages and a transition towards greener industries that is moving too slowly.

“Germany has fallen behind other countries in terms of competitiveness,” he said. “We still have a lot to do — we have to roll up our sleeves.”

READ ALSO: Which German companies are planning to cut jobs?

Already facing turbulence from pandemic-related supply chain woes, the German economy’s problems deepened dramatically when Russia invaded Ukraine and slashed supplies of gas, hitting the country’s crucial manufacturers hard.

While the energy shock has faded, continued weakness in trading partners such as China, widespread strikes in recent months and higher eurozone interest rates have all prolonged the pain.

The European Central Bank has signalled it could start cutting borrowing costs in June, which would boost the eurozone.

But Habeck stressed that care was still needed as, despite the expectations of imminent easing, “tight monetary policy has not yet been lifted.”

In addition, disagreements in Chancellor Olaf Scholz’s three-party ruling coalition are hindering efforts to reignite growth, critics say.

This week the pro-business FDP party, a coalition partner, faced an angry backlash from Scholz’s SPD when it presented a 12-point plan for an “economic turnaround”, including deep cuts to state benefits.

Christian Lindner, the fiscally hawkish FDP finance minister, welcomed signs of “stabilisation” in the economic forecasts but stressed that projected medium-term growth was “too low to sustainably finance our state”.

“There are no arguments for postponing the economic turnaround,” he added.

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