Question: Why are toy businesses such bad businesses? Inventory?
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I've run a toy business for over 10 years, profitable for over 7. They're not bad businesses if you're in the right one. Is Lego a bad business? Mattel and Hasbro are going through tough times as they transition from brick-and-mortar to e-commerce, but their core is strong.pic.twitter.com/pT4buc1heS
If you own own evergreen IP, it's a wonderful business. It looks bad because: - inventory is tough - seasonality is tough - competition from Asia is brutal - there are strict regs, which Chinese don't follow - market demand is flippant - tech is eating demand for toys
