The toy business isn’t exactly fun and games these days. Amazon and Walmart have compressed the retail picture. The direct-to-consumer (D2C) business is suffering through post-pandemic growing pains and the kids want to play video games on Xbox or PlayStation.
All of these present challenges and opportunities for the right product to be aimed at the right customer. It’s a situation ripe for a new approach, which is where Hasbro’s Dan Rawson comes in. Because although it makes up 100% of his product line, his new remit is more than fun and games. The new SVP of Hasbro Direct has everything from Star Wars to Monopoly to Play-Doh to Dungeons and Dragons to manage. Those are the opportunities. The challenges are the gamers and creators who play with them.
“When I look at the opportunity with my broader remit across Hasbro Direct, I see a bench of beloved brands,” Rawson told Karen Webster recently. “And each of those brands carries with it a specific customer segment that we need to deeply understand. We need to figure out the roadmap of services and capabilities and offerings that speak specifically to that customer segment and ensuring that the direct experience that we create is relevant to that customer segment, not a hodgepodge of all things under the sun.”
According to Rawson, formerly head of the Dungeons and Dragons product line, he will have fulfilled what Hasbro CEO Chris Cocks said is his digital-first mindset by leveraging insights into a community that the company will be deeply engaged with. So while the Dungeons and Dragons line may skew toward older males, it’s the 40% of its players that are female that will be the key to digital engagement. It’s one of the challenges and opportunities he faces in bringing D2C as well as digital sales to various consumer segments. For example, Magic: The Gathering attracts older adults. The Star Wars Lego package skews toward a more traditional youth audience.
Rawson brings a wealth of eCommerce experience from his previous roles at Microsoft, Amazon, Flipkart, and Coupang. Rawson’s new remit is clear: to unlock growth opportunities for Hasbro Pulse as a fan destination, especially as the company expands its presence in the adult collector market.
One of the key aspects of Rawson’s strategy is to deepen the engagement with Hasbro’s core audience, particularly through the Pulse platform, which serves as a critical tool for connecting with the brand’s most passionate fans. Rawson already manages D&D Beyond, Hasbro’s largest direct-to-consumer platform, boasting over 18 million lifetime registered users. This experience will be pivotal as he seeks to expand the Pulse platform’s reach.
Rawson emphasized the importance of understanding Hasbro’s diverse customer base. “Our fans are incredibly engaged, incredibly excited. They know the brand. They’ve lived it for years and years and years,” he told Webster. Subscriptions are a key component of Hasbro’s direct-to-consumer strategy, particularly for digital platforms like D&D Beyond. Rawson reported “double-digit growth in our subscriptions this year” for the service, which provides digital tools for D&D players.
Rawson also discussed potential expansions of Hasbro’s D2C offerings beyond traditional eCommerce. One idea he mentioned was creating digital tools for collectors to manage their collections. “Giving that collector a digital representation, a digital twin of those products, I think is a kind of an obvious and immediate area that we can fulfill for collectors,” he said.
He also stressed the importance of creating value through direct channels. “If they’re looking for specific values that can only come through the intellectual property owner, that’s the portion that I want to build out, and that’s what we’re committed to doing,” Rawson said.
Regarding Hasbro’s digital play offerings, Rawson indicated plans to expand across the company’s brand portfolio. He mentioned the goal of creating experiences that complement physical products while maintaining appeal for younger audiences. “We have to do that while still providing relevant and wonderful experiences for kids. And I think we’re going to do that well,” he said.
Rawson also touched on the company’s eCommerce platform, Hasbro Pulse, which he described as “best known across the world as a site that serves adult collectors of toys and action figures.” He suggested that there is potential for growth in this area, stating, “I think we’re just kind of scratching the surface in terms of how we can offer value to that fan community.”
One of those growth areas may be at HasLabs, the company’s crowdfunding site that is part of Pulse. It takes adult toy and action figure collecting to a new level. Currently on the site for example, is a $324 G.I. Joe Classified Series Cobra Rattler Ground Attack Jet. “That’s something that really speaks to adult collectors of action figures: their settings and their vehicles. So what fans can do is they can back projects that we haven’t built quite yet, but we’ve done the tooling. We show them what it is and if they’re excited about it, they can tell us that and we’ll go out and build it.”
As Hasbro continues to develop its digital and D2C strategies, Rawson’s comments suggest a focus on leveraging fan engagement, subscription services, and unique digital offerings. The effectiveness of these strategies in driving growth for Hasbro remains to be seen as the company navigates the evolving toy and game market.
The challenges Rawson faces are significant, particularly in a post-pandemic environment where the D2C market has seen fluctuating results across the industry. According to industry data, digital gaming is up 20% year over year, while consumer product sales have declined by the same margin. Despite these headwinds, Rawson is tasked with navigating these challenges while capitalizing on the growing demand for direct engagement with consumers.
The adult collector market, often referred to as “kidults,” represents a significant growth opportunity for Hasbro, with adults spending $1.5 billion on toys in the first quarter of 2024 alone, making them the industry’s largest consumer group. Rawson’s focus will likely include strategies to capitalize on this trend, ensuring that Hasbro Pulse becomes the go-to destination for these consumers. Even though his remit is digital, Rawson takes a collaborative approach.
“The process of product development when it’s at its best is a conversation between us and the fan community,” he said. “When a subscription does a great job of facilitating the fun that communities and families and friends can have together, well, I think that falls into the category of essential.”
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