Zapf Creation AG
Company typeAG
IndustryToys
Founded1932
HeadquartersRödental, Bavaria, Germany
Area served
worldwide
Key people
  • Andreas Jansen
  • Thomas Eichhorn
ProductsToys
Brands
  • Baby Born
  • Baby Annabell
  • Chou Chou
RevenueDecrease 65.0 million[1] (2022)
Number of employees
123[1] (2022)
Websitewww.zapf-creation.com

Zapf Creation AG is a toy company based in Rödental, Germany, which specializes in the manufacture of multi-functional baby dolls. Its franchises have become popular around the world; among its successful creations are Maggie Raggies, Baby Born, Baby Annabell, and Chou Chou.

History

Foundation and growth before the turn of the millennium

Zapf Creation was founded in 1932 by Max and Rosa Zapf as Max Zapf Puppenfabrik.[2][3] During World War II, doll production faced significant disruptions due to material shortages.

In 1958, Willi Zapf, the son of the company founders, and his wife Brigitte Zapf took over the company. Subsequently, they started the expansion of operations throughout Europe. Two years later, Max Zapf Puppen- und Spielwarenfabrik GmbH (Max Zapf Doll and Toy Factory) was established.[2] With the opening of the factory, Zapf began plastic doll production to replace the use of cellulose.[4] Zapf also sold inflatable and swimming articles at this time.[5]

In 1980, production was moved abroad, later expanding into East Asia and commencing production in China in 1992.[6][7] In 1991, the Baby Born brand was introduced,[2][7] and Zapf Creation (H.K.) Ltd. was founded in Hong Kong as a subsidiary.[8]

In 1992, MM Industrie Beteiligungs GmbH Munich acquired a majority stake in Zapf through its parent company Triumph Adler Spiel- und Freizeit Holding GmbH.[2][9][10] The following year, a sales office was established in Spain, while Zapf dolls entered the US market in 1995.[11] Willi Zapf left the company in 1997.[2][12] In 1998, the electric functional doll Baby Annabell was introduced to the market.[13]

Initial public offering and delisting

In 1999, the GmbH was converted into the stock corporation Zapf Creation AG and subsequently listed on the SMAX on April 26, 1999.[14] Within the following year, subsidiaries were established in the United Kingdom (Zapf Creation (UK) Ltd.) and France (Zapf Creation (France) S.A.R.L.).[15] Further subsidiaries in Australia, Italy and the Czech Republic followed, leading to the company's promotion to the MDAX in December 2001.[16][17] The Spanish branch was also restructured into a subsidiary in 2002, and in 2003, a subsidiary was established in Poland.[17]

Due to financial losses, the sales branch in the United States was closed in 2006. Furthermore, in the wake of the emerging financial crisis, Zapf encountered difficulties in extending its loans.[18][19] Ultimately, shareholder loans from the main shareholder, MGA Entertainment, a US-based toy group, ensured the continuation. These loans were successively converted into equity in 2008.[20] At that time, 66 percent of the shares were owned by MGA, or by its CEO, Isaac Larian, through various foundations.[21]

Early in 2013, Larian reduced his shares in Zapf to between 25 and 50 percent. Following a loss of over half of the company's capital stock,[22] the company's annual general meeting on July 3, 2013, sanctioned a capital reduction, merging shares in a 3:1 ratio.[23] In October 2018, the company decided to delist from the Baden-Württemberg Stock Exchange. The share has been unlisted since then.[24][25]

Renewed growth

Starting in 2018, the company's business developed positively again, except for the UK. This development was mainly achieved by streamlining the product range. In addition, the company's major shareholder, Larian, promoted innovations within the company and focused business operations on the German and UK markets.[26] On October 9, 2023, it was announced that Zapf would merge with MGA in 2024.[27][28]

Company

Zapf Creation consists of the holding company Zapf Creation AG and its subsidiaries. These subsidiaries are responsible for the marketing and distribution of the dolls. For this purpose, Zapf Creation maintains subsidiaries in the UK, Hong Kong and Spain (2022). Additionally, since 2007, Zapf Creation has a strategic cooperation with the US toy manufacturer MGA Entertainment, Inc., based in Chatsworth, California.[1]

Zapf Creation AG is based in Rödental, near Coburg, Germany.[2] It develops, manufactures and sells multi-functional dolls in 65 countries worldwide.[29] The products are primarily aimed at girls between the ages of two and eight. The company's two most known product lines are Baby Born and Baby Annabell; these doll models generate 90 percent of sales.[26] In 2022, Zapf Creation AG generated revenues of €58.52 million and employed 123 people.[1]

The Zapf Creation, Rödental, Germany

Products

Most of the Zapf Creation products are baby and toddler dolls, occasionally used as instructional toys to teach necessary skills to future parents. The most prominent lines include Baby Born, Baby Annabell, and Chou Chou.

In addition, there is a "Baby Born App" developed by Zapf and Blue Ocean Entertainment, in which users can play mini-games in a dollhouse.[30] Since 2023, Zapf has also been broadcasting an animated series titled "Baby Born: The Animated Series" on the video platform YouTube and the channel Kidoodle.TV. The series was developed in collaboration with MGA Entertainment and was first broadcast in August 2023.[31]

Baby Born

1991 Baby Born doll

Baby Born (introduced in 1991) is often considered to be the most lifelike of the series due to the numerous functions that the doll can perform. These include crying, urinating and being quietened by a pacifier which makes the doll's eyes shut in later versions.[19][24] All these actions can be performed without the use of batteries, which makes it possible to bathe the doll.[7] The most recent version includes nine functions and eleven accessories.

Varieties of this model include boy and girl as well as two different skin tones, while each doll is anatomically correct and has its own color and style of hair and skin.

Other Variants

My Little Baby Born

My Little Baby Born are smaller versions of the regular Baby Born doll with similar functionality, aimed at younger children:

Baby Annabell

Baby Annabell (introduced in 1998) is perhaps the most famous of Zapf's products.[7] Baby Annabell is a battery-operated doll that comes with a variety of accessories and an additional product line including supplementary articles, outfits, and pieces of furniture. Unlike Baby Born, Baby Annabell's body is made out of soft, plush-like material that contains the doll's battery box. The main function performed by the newer dolls (Version 3 or newer) is to drink water, which can be released in the form of tears or urination.[7][34] This doll could be classed as a "modern autonomous doll". Older versions of the doll were also able to recognize sounds (e.g., a rattle or the owner's voice) and will cry in response to noise when sleeping.[35][36]

Alike Baby Born, Baby Annabell is available as a girl or boy as well as in two different skin tones:[34]

My First Baby Annabell and other variants

This range of dolls are smaller versions of the Baby Annabell doll made for younger children:

Chou Chou

Chou Chou is designed to be very realistic and includes accessories to support role playing for children. Chou Chou is sometimes used to teach young girls, in particular, about various stages of a baby's life including the first tooth and minor ailments, though most dolls are just for playing.[19][37] This doll comes in a variety of types and has many lifelike functions:

Other dolls

Sustainability

Zapf is a co-founder of the Fair Toys organization, which promotes the responsible and sustainable production of toys. The organization also conducts examinations to ensure that toys are manufactured under equitable and health-conscious working conditions. When this can be substantiated, Fair Toys awards the "Fair Toys Seal" as a recognition of compliance with these standards.[45][46][47]

Since spring 2021, Zapf Creation has been gradually converting its product range to plastic-free packaging. All new products are launched in closed boxes which do not include plastic blisters, fasteners, or windows anymore.[7][45][48]

References

  1. ^ a b c d "Zapf Creation AG, Jahresabschluss zum Geschäftsjahr vom 01.01.2022 zum 31.12.2022" [Zapf Creation AG, Annual financial statements for the fiscal year from 01/01/2022 to 12/31/2022]. Unternehemensregister (in German). August 25, 2023.
  2. ^ a b c d e f "Vom Mönchrödener Puppenhersteller zum internationalen Unternehmer" [From Mönchröden doll manufacturer to international entrepreneur]. Coburger Tageblatt (in German). July 6, 2021. p. 5.
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  4. ^ Dötschel, Cindy (April 7, 2021). "Vom Vorbild zum Spielzeug" [From role model to toy]. Fränkischer Tag Obermain (in German). p. 18.
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