Strategy December 11, 2019
Disney’s $2.7M Baby Yoda Miscalculation
The breakout star of The Mandalorian won’t be making it under the tree this holiday season.
The cutest addition to the Star Wars universe, The Child (aka “Baby Yoda”), is also the most elusive – at least on store shelves. With the launch of the new Disney+ streaming service this fall, the Star Wars sci-fi Western The Mandalorian became an instant hit. But judging by the endless flood of memes, the breakout star of the show wasn’t the bounty hunter title character, but rather one particularly cuddly green alien.
Those same Jedi devotees have been clamoring for Baby Yoda merch, just in time for a huge holiday windfall for Disney. But that won’t be the case – an officially licensed plush won’t be available from Mattel until April, and the first Funko vinyl figure doesn’t come out until the middle of May (though it’s already ranked number one on Amazon’s list of best-selling action figures, thanks to robust pre-orders). Hasbro has also released a line of Baby Yoda toys for preorder. Hasbro’s offerings, which will come out this spring, include a series of collectible figures with Baby Yoda in a variety of poses, and a talking plush that can be squeezed to make several cooing sounds.
Jungle Scout, a site that does product research for Amazon sellers, estimated that Disney could be missing out on $2.7 million in holiday sales, thanks to its lack of foresight. So why did it take the brand, usually a dab hand at merchandising synergy, so long to jump on this trend? Spoiler alert: It was probably about spoilers. Mandalorian creator Jon Favreau has said that the initial lack of merchandise for the show was a creative decision and personal request, so the big Baby Yoda reveal wouldn’t be spoiled by leaked photos or ill-timed toy ads.
“This is about maintaining the integrity of The Mandalorian for the most fickle fan base on this planet,” Stephen Kent told Counselor. Kent is a public relations professional and Star Wars podcaster who frequently talks about entertainment, business and politics on Fox Business. “Disney+ subscribers are the name of the game for Disney till 2021, and 2019 toy sales can always be made up. If their big new show didn’t pay off, Baby Yoda sales weren’t going to be their saving grace. It was strategic and a calculated high risk for high reward.”
I love the question of 'who dropped the ball' when it comes to the #BabyYoda toy scandal of 2019 (that being, there will be none for Christmas this year) - the real answer here is, nobody! Demand level may have been higher than expected, but they chose Disney+ over holiday toys pic.twitter.com/mSh97q9mGu
— Stephen Kent (@Stephen_Kent89) December 5, 2019
Though six months seems like a long wait to get toys for a show that debuted in November, the estimated April release date likely represents a fairly aggressive manufacturing timeline, as promotional products professionals who deal with overseas factories and global supply chains know well. “If they had planned this out ahead of time, they would have licensed this product around a year ago and orders should’ve been placed to hit shelves by Christmas,” Emily Ting, a filmmaker whose family owns plush toy producer Cuddle Barn, told news site IndieWire.
In the meantime, apparel featuring Baby Yoda’s likeness is available through both official (and less than official) channels.
It’s clear that demand for Baby Yoda merch is strong right now. Whether it will remain so in the new year is an open question. Considering that Star Wars has been a cultural phenomenon for more than four decades, however, it’s a safe bet to assume Baby Yoda will be just as iconic and still sought after in 2020 and beyond.