Steiff boss in an interview
“You can’t cuddle with a cell phone”
December 22, 2023, 5:45 p.m
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Steiff is one of the best-known German brands and has made the teddy bear a cultural asset. The company boss Frank Rheinboldt talks in the podcast “Zero Hour” about the Christmas business, James Bond bears and the question of how his company wants to become modern.
How is the Christmas business going? Are you already counting the number of teddy bears sold?
Frank Rheinboldt: We’ve actually been counting them since November. From then on the Christmas business can be felt significantly. My impression is that campaigns like Cyber Monday or Black Friday anticipate the Christmas business to a certain extent. December is gradually becoming a little less important, especially when it comes to toys. Some customers simply stock up in advance because some products are available at a slightly reduced price.
You took over Steiff nine months ago; it is a brand with a recognition level of over 90 percent in German-speaking countries and a long tradition. Can’t you do a lot of things wrong?
It is important that we do not question the special features that Steiff stands for – i.e. quality, tradition and longevity. This is a major obligation, and the employees at Steiff are aware of it. “Fast food plush toys” at Steiff wouldn’t be good. And that’s not what we’re striving for strategically. But we have to make sure that we remain current to a certain extent and not just traditional.
How do you stay with such a traditional brand today?
You have to realize one thing: the teddy bear for children is our core business. But we have always had Steiff collectors for whom limited editions were developed. The share of total sales is around 15 percent. But a few decades ago it was already at 50 percent.
How do you want to increase this share again?
Collaborations are central. We did a bear with Elton John, we did one with the Beatles, there’s a James Bond bear. Partners are corporations like Disney or Universal. It’s about creating things that not only work with children, but also with adults – who then remember their childhood. To Snoopy, Mickey Mouse or other Disney characters. Kidults – i.e. adults between 25 and 30 – are an important target group.
Does that mean Steiff wants to become faster?
We have to be prepared to move more quickly in product development and product cycles. It’s also about picking up trends more quickly. For example, when a special film is announced, we have to be faster than in the past. In addition, dates such as Halloween or Mother’s Day are becoming increasingly important in Germany. Maybe we should make a teddy bear with a pumpkin then. Or a slightly more feminine teddy bear for International Women’s Day.
Steiff makes 70 percent of its sales in Germany, Austria and Switzerland. The brand is actually known globally. What are you doing to become more international?
Steiff has actually always been international; we have been selling at Harrod’s in London since 1894. America is also a good market for us. However, we do not play the role in these countries that we play in Germany. And of course we are doing something: We believe that there is a market for premium toys in China, which is why we have founded our own joint venture there. So we now have our own organization, our own logistics warehouse and our own on-site quality control. There are also department store chains there that are looking towards Europe. I also believe strongly in digitalization.
What do you mean by that?
We are still quite weak in the USA with our own online shop. That’s why we have new management there now. The USA and China – for me these are the two big growth markets.
How digital can Steiff’s products themselves become? Will there soon be a teddy bear with an RFDI chip in its ear?
Of course you can think about RFDI. And of course we also try to make radio plays or audio books. But Steiff is something special. You can’t cuddle with a cell phone. And that remains the focus. Nevertheless, the question remains as to whether the teddy bear will eventually be able to talk to you; artificial intelligence offers many new possibilities. But that is a thing of the future.
Listen in the new episode of “Zero Hour“
· Which is the second most popular Steiff animal after the teddy bear
· Why the Barbie film could be a guide for Steiff
· Which is why Steiff doesn’t want to appear on some online platforms
You can find all episodes directly here RTL+, Apple or Spotify or via Google.