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Jakks Pacific Inc  (JAKK)
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    Sector  Consumer Discretionary    Industry Recreational Products
 


 

Jakks Pacific Inc

Business Description


We are a leading multi-line, multi-brand toy company that designs, produces, markets and distributes toys and related products, pet toys, consumables and related products, electronics and related products, kids indoor and outdoor furniture, and other consumer products. We focus our business on acquiring or licensing well-recognized trademarks and brand names, most with long product histories (“evergreen brands”). We seek to acquire these evergreen brands because we believe they are less subject to market fads or trends. We also develop proprietary products marketed under our own trademarks and brand names, and have historically acquired complementary businesses to further grow our portfolio. For accounting purposes, our products can be divided into two segments: (i) traditional toys and electronics and (ii) role play, novelty and seasonal toys.

Traditional Toys and Electronics


Action figures and accessories, including licensed characters, principally based on Batman, Star Wars, and Nintendo ® franchises;


Toy vehicles, including Max Tow, Road Champs®, Fly Wheels® and MXS® toy vehicles and accessories;


Electronics products, including Spy Net® spy products, Plug It In & Play TV Games™ video games based on popular brands;


Dolls and accessories, including small dolls, large dolls, fashion dolls and baby dolls based on licenses, including Disney Frozen , Disney Princess®, Disney Fairies®, infant and pre-school toys based on PBS’s Daniel Tiger’s Neighborhood;


Private label products as “exclusives” for a myriad of retail customers in many product categories;


Foot-to-floor ride-on toys based on Fisher Price®, Kawasaki®, and DC Comics®, inflatable environments, tents and wagons; and


Pet products, including toys, consumables, and accessories, branded JAKKS Pets® and American Classics™ , among others.

Role Play, Novelty and Seasonal Toys


Role play, dress-up, pretend play and novelty products for boys and girls based on well-known brands and entertainment properties such as Disney Frozen, Black & Decker ®, McDonald’s ®, Dirt Devil ®, Disney Princess ®, Disney Fairies® and Dora the Explorer ®, as well as those based on our own proprietary brands;


Indoor and outdoor kids’ furniture, activity trays and tables and room décor; kiddie pools, seasonal and outdoor products, including those based on Crayola®, Disney® characters and more, and Funnoodle ® pool floats;


Halloween and everyday costumes for all ages based on licensed and proprietary non-licensed brands, including Spiderman®, Toy Story®, Sesame Street®, Power Rangers®¸Hasbro® brands and Disney’s Frozen, Disney Princess®, and related Halloween accessories; and


Junior sports and outdoor activity toys including Skyball® hyper-charged balls and sport sets and Wave Hoops® toy hoops marketed under our Maui Toys brand.


We continually review the marketplace to identify and evaluate popular and evergreen brands and product categories that we believe have the potential for growth. We endeavor to generate growth within these lines by:


creating innovative products under our established licenses and brand names;


adding new items to the branded product lines that we expect will enjoy greater popularity;


infusing innovation and technology when appropriate to make them more appealing to today’s kids; and


focusing our marketing efforts to enhance consumer recognition and retailer interest.

In addition to developing our own proprietary brands and marks, licensing popular trademarks enables us to use these high-profile marks at a lower cost than we would incur if we purchased these marks or developed comparable marks on our own. By licensing trademarks, we have access to a far greater range of marks than would be available for purchase. We also license technology developed by unaffiliated inventors and product developers to enhance the design and functionality of our products.

   

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