Madame Alexander, Charisma Make Acquisitions; is the specialty doll industry shrinking?

I received an interesting email from Peter and Addie Laudin of the Pattycake Doll Co. who wanted to let me know that they were beginning to be concerned by the consolidation going on in the doll business. As Peter and Addie put it:

Last year Enesco bought GUND (my source for Sesame Street Dolls) and the courts basically shut down Bratz. 

This year already, Linda Rick (The Dollmaker and Friends) bought Precious Moments - dolls only, not figurines - and Charisma (Marie Osmond, Kewpie etc) bought Adora Doll. Just heard that Madame Alexander bought Lee Middleton last Friday. 

From nine to four… in less than a year.  As we’re in the doll business we noticed. Thought if you hadn’t you might find it interesting.

It is interesting. Here is a product category, dolls, which went from stagnant a couple of years ago to vibrant. Yes, doll companies are consolidating but we are also seeing new growth. In the mass market, Mattel’s Barbie had a big year while Liv from Spin Master and Moxie Girlz from MGA entered the picture.   In the specialty doll market, Ty introduced Ty Girlz while Karito Kids has continued its growth. 

Not only that; the companies that are acquiring these brands have deeper pockets and may be able to grow these lines and their brand equity. That could mean stronger sales at retail. In addition, other specialty doll manufacturers are bringing diversity in race and gender to the children of the increasingly diverse Millennial Generation.

I can understand Peter and Addie’s concerns but as the economy continues to improve (keep your fingers crossed) we should see new doll companies entering the specialty market place. There will always be a desire for the new and different. A limited number of companies cannot feed that hunger. Hold on! Help will be on the way.

There are lots of speicalty doll companies out there and I only had room to name a couple.  Are you a  doll company that is  looking for recognition? Let us know who you are?