Success Story: A twinkle in the eyes, an innocent smile on the lips, and a doll in the hands that changed the world. A girl who had only paper dolls, but she dreamed of changing the entire market. This is the success story of Ruth Handler and her husband Elliot Handler, who established Mattel, the world’s largest toy company, from a garage, and gave children two such toys, which are still found in every home – Barbie and Hot Wheels. According to data available on Yahoo Finance, today the valuation of the company is $6.28 billion.
Ruth Moscow (by marriage Ruth Handler) was born in 1916 in Colorado, USA, to Polish Jewish refugee parents. Ruth, the youngest in a large family, had a different kind of understanding since childhood. His parents were very busy, so he was brought up by his elder sister and brother-in-law, who had their own medicine shop. From a young age, Ruth used to help in the work of the shop and only then she understood what business is, how goods are sold and how to talk to customers. He felt that work was not only necessary but also a fun thing.
How did Ruth and Elliot meet?
Elliot Handler was Ruth’s favorite since high school. Elliot was an artist who was passionate about designing and making things. They met in school and both got married in 1938. After marriage, both of them went to California. Elliot enjoyed making furniture from the then new plastic materials, ‘Lucite’ and ‘Plexiglas’. Eliot was just fond of art, but Ruth saw a business in it.
Ruth explained to Elliot that they could start a business by selling this designer furniture. Elliot’s job was to make things and Ruth took charge of sales and marketing. Ruth had tremendous influence in sales. He obtained contracts with big companies and started work.
Second World War changed the game!
Then when the Second World War happened, it became difficult to get plastic. Furniture work slowed down. But, the real story had to begin now.
In 1945, Ruth and Elliot, along with their friend Harold “Mat” Matson, started a new company in a small garage in Los Angeles. Named ‘Matel Creations’. This name was formed by combining the names ‘Mat’ (Matson) and Elliot. Initially, he used to make photo frames and then small furniture for dolls from the leftover wooden pieces from furniture making.
Harold Matson soon sold his stake and stepped aside, and Mattel now became wholly owned by Ruth and Elliott. The combination of Ruth’s business thinking and Elliot’s creativity was amazing. He soon started focusing on making toys instead of just furniture.
Their first big hit toy came in 1947. It was a small plastic guitar, called ‘Yook-a-Doodle’. Its success proved that Mattel could become a big name in the world of toys. Everything was going well, but Ruth was missing something. He felt this lack after seeing his daughter Barbara.
Doll named Barbie after daughter Barbara
Ruth often watched her daughter Barbara and her friends play with paper dolls. She would cut those dolls, dress them in different clothes, and give them roles like doctor, teacher or fashion model.
Ruth noticed one thing. All the dolls that were in the market at that time looked like infants, like a little girl or a newborn baby. But girls used to dream about their future while looking at their dolls, and used to think about what they would become when they grow up. They wanted a doll that looked life-size like a woman, whose clothes and accessories could be changed, so that girls could cast themselves in that role.
When Ruth told this idea to Elliot and the Mattel team, everyone refused.
Everyone asked the same question, “Why would any parent buy their little daughter a ‘busty’ adult doll?” This was the 1950s and this idea was very new to people. But Ruth was sure that she was thinking right.
In 1956, Ruth went on a trip to Europe with her children Barbara and Kenneth. His eyes fell on a German toy in a store in Switzerland. It was a small adult doll named ‘Bild Lily’. This doll was originally based on a comic strip character and was initially sold as a humorous gift for adults.
As soon as Ruth saw Lily, a bell rang in her mind. “That’s it! This is the doll I was thinking about.”
He immediately bought three Lily dolls. She gave one to her daughter Barbara and came back to America with the other two. Now he had a basis to turn his vision into reality.
Upon returning, Ruth gave the German doll a new look with the help of designer Jack Ryan. They made it more innocent, more fashionable and suitable for children. And when it came to naming the doll, without thinking, she named the doll after her daughter – “Barbie”.
Ad spend equal to valuation
Ruth took a very big and courageous step. In 1955, the Mattel company became the sole sponsor of the biggest children’s TV show of the time, “The Mickey Mouse Club.” For this marketing, Mattel spent money equal to the valuation of its company. This was a huge risk. Till that time, advertising of toys was not directly targeted at children, but was done for parents. Ruth broke this rule.
When Barbie’s advertisement ran on TV, children started asking for it from their parents. In the very first year, about 3 lakh Barbie dolls were sold. Barbie became a sensation. The success of Barbie took Mattel to the sky. Now Ruth and Elliot had become experts in the toy business.
In 1961, the need for Barbie’s friend was felt. This time, Elliot took the initiative and along with Ruth created a doll after their son Kenneth, named “Ken”. In this way, the names of both his children became the names of two of the most famous toys in the world.
But the story does not end here. Mattel was not just about toys for girls.
How were Hot Wheels cars made?
In 1968, Elliott saw his son Kenneth playing with small toy cars, but felt that the cars on the market were too simple.
Hot Wheels Car.
Elliot Handler thought that boys also needed a toy that was as ‘cool’ as Barbie for girls. He dreamed of creating a car line that would go fast, look great, and not look like a real car, but like a high performance, modified car.
He asked his team to design cars that were ‘customised’, had amazing wheels, and would run fast on the racing track. When the team saw those cars for the first time, one designer said, Those are some hot wheels! That means, these are fast wheels! And thus another legendary brand was born – Hot Wheels.
While Barbie was inspiring girls to dream big, Hot Wheels took boys into a world of speed, design and adventure. Hot Wheels took the market by storm as soon as it came and it also became a big hit product of Mattel.
When breast cancer occurs, bad times begin
In 1970, Ruth was diagnosed with breast cancer. She had to undergo mastectomy (surgery). During these difficult times, his focus started shifting away from the company. During this time, some things went wrong at Mattel. Some senior officials of the company manipulated the sales and earnings figures.
Although Ruth was not directly involved in these frauds, as the president of the company she had to take responsibility for it. In 1975, both Ruth and Elliot were forced to resign from the company they had built with their own hands. He was thrown out of the company he had built in the name of his passion and his children.
In the data manipulation case, Ruth was later convicted of fraud, in which she had to pay a fine and do social service. It was a sad end to his illustrious career, but the magic of his toys continues to this day.
Cancer also gave a new idea
But Ruth was not one to accept defeat. While battling cancer, she was not able to find a good breast prosthesis in the market, which caused her a lot of trouble. Once again, the businesswoman within her awakened. She thought that if she was having this problem, then thousands of other women must be having it too.
He started a new company, named ‘Nearly Me’. In this company, he made comfortable and real-looking breast prostheses for women. This second business of hers was also successful, and she not only earned money but also gave a new confident life to many women recovering from cancer.
Ruth Handler died in 2002 at the age of 85, and Elliot Handler in 2011 at the age of 95. He may have left this world, but the things he gave to millions of children around the world to dream and play with will live on forever. Today, Mattel is one of the largest toy companies in the world. Barbie and Hot Wheels are still its biggest brands. Millions of Barbie dolls are sold every year, and Hot Wheels is one of the best-selling toys in the world. Mattel’s market is now worth several billion dollars.
