How to Lead and Decide in an Ever-Evolving Industry | Gabriel Galván (Mattel)
Episode 5 | Gabriel Galván & Ernesto Weissmann
You’ve probably held a Hot Wheels car or a Barbie doll in your hands and remember it as one of your most cherished possessions. Mattel toys cross generations and are an inseparable part of childhood: ours, today’s, and future generations’. Yet, behind each of these toys, strategic decisions position Mattel as a leader in an industry worth more than $100 billion annually. These decisions enable Mattel to keep innovating, even as it celebrates its 80th anniversary, adapting to evolving consumer habits and facing an increasingly strong competitor: screens. In this edition of Decision Leaders, we spoke with Gabriel Galván, Managing Director of Mattel LATAM, about how to lead and decide with innovation amid cultural shifts and significant digital and strategic transformations.
Gabriel Galván, Managing Director at Mattel LATAM
Gabriel Galván knows the toy industry inside out. He has worked for over 25 years at Mattel, having served in Sales and Trade Marketing roles, as VP for Mexico and Central America, and currently as Managing Director for Latin America. Few people have witnessed, as he has, the transformations and challenges of this iconic brand from within.
Mattel exemplifies smart decision-making, capable of altering the direction of the business and anticipating trends. These decisions are not based on chance or mere intuition but result from deep analysis, accurate market understanding, strategic use of tools like artificial intelligence, precise timing, and a robust decision-making structure. This approach has allowed Mattel to embrace and adapt to the digital revolution.
Screens, phones, and tablets became strategic allies and the perfect solution to boost sales. In an era defined by mainstream content, mobile apps, social networks, and notably, the Barbie movie phenomenon, Mattel found the ideal formula to counteract market seasonality. Ernesto Weissmann, Partner at Tandem, discussed these topics and more with Gabriel Galván.
The Three Guiding Principles of Decision-Making
EW: What lessons or advice would you give to other leaders facing strategic decisions?
GG: First, always prioritize the business. “Business First” must guide every decision. It’s not about favoring one area or person, but clearly understanding what we want to achieve as a company and where we want to go. Everything should align with this principle.
Second, surround yourself with a diverse and powerful team. I’ve been fortunate to build a solid team with varied perspectives, which makes all the difference. You need people who offer opinions, debate, and complement each other. Decision quality improves significantly when built collaboratively.
Third, think long-term. Sometimes decisions might not seem optimal in the short term but strengthen future profitability. A strong business with solid finances allows you to take risks and grow; exploring new markets, channels, and formats.
Insights into Decision-Making
EW: How has your decision-making approach evolved since you started in the industry?
GG: When I joined Mattel more than 25 years ago, my role involved creating databases. Retailers were just beginning to share sales data, and my job was to help utilize this information for better decision-making. Ever since, my challenge has remained consistent: incorporating real-world changes into our operations and business strategy.
As I grew in my career, I realized it’s not just about managing yourself, but about learning to lead and decide with your team in order to embrace these changes. Organizations evolve when teams incorporate innovations, translate them into actions, and integrate them into everyday practices.
Screens, Barbie, Movies, and Consumers: How the Industry is Evolving
EW: How do you see the toy industry evolving in the coming years?
GG: Tandem has been a crucial partner in this transformation process, accompanying us through recognition and integration across Latin America. Their participation was essential in helping us understand how to manage our business more effectively. Two points stand out: first, managing and stabilizing the business from an internal process perspective; and second, better understanding the business from the consumer’s point of view.
Physical toys remain highly relevant. The global toy industry has grown 6% annually over the past decade, even though many believed tablets and screens would replace traditional toys. That didn’t happen. Instead, we complemented our offerings, leveraging digital platforms to connect with consumers and expand the universe around each of our brands.
Today, we allocate less than 15% of our marketing budget to television. The remainder goes to platforms like TikTok and Instagram, digital channels that have transformed content distribution and redefined how we capture consumer attention.
How Mattel Tackles Seasonality
EW: How do you handle the seasonality of the toy business?
GG: It’s crucial for us to understand how to continue developing the toy industry, which grew by double digits last year in Latin America. Previously, toys were primarily purchased for birthdays or holidays, but now we have increased consumption frequency, mainly through entertainment and content.
We currently have over 400 registered brands, the second-largest IP portfolio after Disney. This allows us to relaunch properties, create new content, and sustain sales beyond key dates. Although seasonality remains significant, we have managed to reduce its impact.
A clear example was the Barbie movie, released a couple of years ago. This film demonstrated our brands’ ability to generate additional business, earning over a billion dollars at the box office. Now we’re focused on the next step in this evolution, with two upcoming films next year: Matchbox and Masters of the Universe.
Making Decisions with Data, Intuition, and Artificial Intelligence
GG: With artificial intelligence, we will have greater control and deeper opportunities to analyze data and extract insights that enable us to be more effective. AI will help teams focus not only on analysis or reporting but on understanding the essential business decisions.
Ultimately, intelligence will be complementary. AI won’t replace humans but will enhance our agility, allowing us to lead and decide with higher-quality and faster.
What’s Next on Decision Leaders
Mattel is a company that blends emotions with data, rigorous planning, and globally impactful strategic decisions. This conversation with Gabriel Galván offers valuable insights on balancing tradition with disruption, building collaborative teams, and making long-term decisions without losing agility—lessons applicable across any industry.
At Tandem, we are passionate about working alongside companies and leaders willing to challenge established ideas, transform longstanding processes, and make decisions that propel them forward.
Soon, we will speak with a leader from one of the largest consumer goods companies in the world. In the meantime, we invite you to read our interview with Fausto Caretta, Upstream Managing Director at Pan American Energy, discussing how to lead and decide in the energy industry.