The American toy industry is dominated by two giants: Mattel with $4.8 billion in 2001 revenue and Hasbro with $2.9 billion.  The fight for the number three spot occurs at a much less stratospheric level of sales, but few observers outside of the toy industry would have picked Jakks Pacific as the number three player.  But Jakks, which as recently as 1995 was a tiny company with just one major product line (dolls) and $8 million in sales, has grown to a multi-faceted mini-toy conglomerate with sales that have swollen to an estimated $284 million for 2002.  Jakks has made eight major acquisitions in the past seven years acquiring brands such as Trendmasters, Remco, Child Guidance, Flying Colors, Pound Puppies and 21st Century Toys (see 'Jakks To Acquire 21st Century Toys'). 


Jakks scored its first major hit with World Wrestling Federation (formerly the WWF, now the WWE) action figures and added lots of kites, water toys, stationery items, and back-to-school supplies.  Unlike most toy companies, Jakks doesn't do 50% of its business during the fourth quarter holiday season; its biggest quarter is July-to-September, which accounted for 32% of the company's sales versus 21% for Q4.


The recent drop in ratings for the WWE's TV wrestling extravaganzas may signal some trouble for Jakks, but the company's product line is extremely well diversified, which should help it ride out any temporary drops in the popularity of professional wrestling. Some would also question where Bandai America ranks.  With powerful brands such as Power Rangers, Gundam, Digimon, and Hello Kitty, Bandai's U.S. sales are certainly growing rapidly and set to challenge Jakks'.