Thursday, October 23, 2008

Making a new Saturday routine

I got a phone call Saturday from my family in Pittsburgh saying that they were in Chicago to bring Sophie, my cousin's 4 year old girl to the American Doll store. I was planning on watching my beloved Michigan State Spartans take on the Buckeyes who I hate with the utmost passion. Unfortunately, I knew what the outcome of the game was going to be before it started even though most of the "experts" were counting on MSU to pull it off. Seriously, if these "experts" ever watched MSU play a game, they would have known they are still a long ways off from being a true competitive team... sure they can walk all over crap teams like Notre Dame, Iowa and Northwestern, but they don't have the defense to support their slow paced running game.

So, off I headed to the American Girl store to meet up with my aunt and cousins. I'd be lying to you if I said this was my first time in the American Doll store, I'd be lying if I said I wasn't just a little bit excited to see Sophie in action. In fact, my first time in the store was the previous Saturday. My girlfriend was visiting from Cincinnati and we were down on the Magnificent Mile and she dragged me in to show me the dolls she had when she was young. I've always heard lots about the store, but when I entered I was in disbelief.

The American Girl store recently moved to a larger location, two floors of dolls, clothing, different stores within the store, and stories. The place was a an absolute zoo. Girls of all ages were going crazy running from one display to another, grabbing dolls, trying on the life size clothes that matched their doll. I turned to say something to my girlfriend but realized she was 20 yards away from me darting to the Molly display.

Once I finally caught up to her, after I received the life story on Molly, after I received the life story on all of Molly's friends, after I was lucky enough to see all the outfits and accessories that my girlfriend once owned, we went for a walk around the store. Each doll had their own section of the store which included all their different outfits, their rollerblades, their snowboards, and their animals. Each had a movie with them acting out the story of their life.

Upstairs there's the personalization center, where you could make an American Doll that looked like yourself. There's a hair salon with miniature barber chairs for the dolls where professional doll beauticians would do the dolls hair any way imaginable (and believe me, little girls have quite the imagination). There's a shirt making shop where you could make a shirt of you and your doll. There's even a tea room where you and your doll can have a tea party (reservations are required). But the best was the doll hospital where the girls could drop off the dolls that were broke or had marks on them and they would be changed into a gown and wheeled off in a miniature wheel chair to be repaired.

I looked up how much money American Girl Doll was sold for to Mattel. This a doll that is sold for a huge margin (I'm assuming based on the $90 price tag) and a never ending number of accessories to keep the product alive. They've built an experience that people will base weekend plans and drive 500 miles to go to the store. They've built an unbelievable business model. Each doll comes with a book about the American Girl's adventures. So the girl picks a doll and already the doll has a history that the girl connects to and instantly is hooked to. All the company has to do is come up with two or three new outfits a year and keep getting the next generation of girls hooked (and I can't imagine dolls will EVER go out of fashion). They primarily sell the dolls from a magazine, so beyond the cost of printing and distribution of the magazines, they have the COGS and the salaries of what I'd imagine to be a small staff. On top of all that, they have a huge brand name that creates a huge barrier to entry for any competition. They sold the company for $700 million to Mattel in 1998. A lot of money, I can't find any financial information in my quick research, but Mattel did release their 3rd quarter earnings noting that American Girl segment was up 11%.

With that said, I'm disappointed that I'm going to be in Cincinnati this Saturday, officially putting an end to my new Saturday routine. I got twice the enjoyment this past weekend though seeing Sophie as excited as a little girl can be in and out of the store. The entire rest of the day Sophie was telling anyone that would listen that she visited the American Girl store and found a new best friend, Mia.

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