What's Zuru's next step after selling millions of cheap toys? Take Procter & Gamble, of course

Zuru, which makes toys like Bunch O Balloons, had sales of $1.1 billion last year. But its fastest-growing division is consumer products, where it launched new diaper and hair-care brands. byAmy Feldman

In May, a new diaper brand called Rascal and Friends launched a licensed version with popular kids streaming show CoComelon. It flew off the shelves of Walmart and other major retailers in the United States, Canada and elsewhere.

"It was a huge hit because Huggies is with Disney and P&G [Pampers] is with Warner Brothers, and CoComelon blew them away in preschool," says Nick Mowbray, co-founder and co-CEO of Zuru, the toy company that launched the new diaper brand.

Nick Mowbray, co-owner and co-CEO of Zuru, estimates that the push for new consumer products could generate $400 million in revenue by 2023, double the its sales last year.

Easton Schirra

A toy company selling diapers? It's highly unusual, but Zuru, which is owned by New Zealand siblings Nick and Mat Mowbray and is based in Hong Kong, has big plans in consumer products including diapers, hair care, baby food pets, collagen and a host of other items. Similar to toys, its strategy with consumer products is to manufacture cheaply through automation at its factories in China and market like crazy on TikTok, Instagram, YouTube and elsewhere online. There's a big risk, but potentially a big reward, if Zuru can convince customers to switch to their new brands.

Founded in 2003, Zuru has become a toy juggernaut, selling it in more than 120 countries. It specializes in inexpensive toys, like Bunch O Balloons, a gadget that fills 100 water balloons in 60 seconds, and Mini Brands, a capsule that holds tiny figures of well-known brands inside.

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The company nearly tripled its sales from $400 million to $1.1 billion in 2021 when Forbes last featured Zuru three years ago. Nick Mowbray, a talkative 37-year-old with blue eyes and red hair who leads consumer products efforts, now says he hopes to hit $2 billion in revenue by 2023.

“It takes a lot of self-belief to set aside money and develop massive crafting abilities...That's Nick. He's a force of nature.”

That's still a fraction of the size of toy giants Hasbro ($6.4 billion in sales) or Mattel ($5.5 billion), not to mention consumer products giants Procter & Gamble ($80 billion). .2 billion). But the push for consumer products is growing rapidly as Zuru launches new brands at a rapid pace. It accounted for some $200 million in sales last year, and Mowbray believes it will top $400 million in revenue in 2023. With no outside investors, no bank loans, and a highly profitable cash-generating business, Zuru can even invest in these new brands. knowing that some will fail with little risk to its core business.

Its collagen efforts slowed in the US, for example, as infant formula was...