'Our Ambition Is More Than One Brand': Playboy's 2021 Playbook

Playboy has a new parent company, PLBY Group, and a new plan for growth driven by scooping up companies in the sexual wellness product space, thanks to its success in licensing and selling merch. Last month, Playboy went public again after a merger with special purpose acquisition group Mountain Crest Acquisition Corp. The deal put Playboy at an enterprise value of over $400 million. Now, under the PLBY Group moniker, the company has a new monogram that may eventually appear on direct-to-consumer merchandise, featuring a block-type "P" with a rabbit head inside. Another logo features the letters PLBY Group spaced out in boxy typeface. The new parent company, PLBY Group, has an aggressive strategy. “Our ambition is [to acquire] more than one brand,” Rachel Webber, CMO of PLBY said, noting the goal is “to offer new brands and businesses that may not be branded Playboy.” She added, “some of those may be completely new brands that we either incubate ourselves or acquire.” Growth is being driven by its direct-to-consumer business. To maintain this trajectory, PLBY is one among several media companies going public through special purpose acquisition companies (SPACs), which are gaining popularity thanks to their efficient way of raising money outside of the traditional route of initial public offerings. First licensing, now direct selling Playboy monetizes in three core ways: direct sales of Playboy products and services, licensing partnerships and sales of Playboy products in third-party retail stores. Playboy sexual wellness products are available in 10,000 U.S. storefronts, the company said. According to Barron’s, Playboy merchandise, licensed and brand-owned, generated over $3 billion in sales last year. Licensing has historically been the main source of Playboy’s revenue, but the brand is increasingly looking toward selling its own direct-to-consumer products. This has driven the bulk of Playboy’s recent growth, increasing by $40 million over one year, according to a statement released by the company. Year-to-date revenue is up 78% year over year, driven by the growth of its direct-to-consumer business line. “We're working on building out products, services and experiences for consumers around the world,” Webber told Adweek, noting four main areas for growth: sexual wellness, style and apparel, beauty and grooming and gaming and hospitality. Playboy’s product offerings are vast. Among many other products, the brand sells bluetooth headphones, sequin pillows, chain necklaces and cornhole sets. Playboy also has an offshoot, a brand named Pleasure for All, that sells cannabis accessories, lingerie and sex toys. Also, the brand offers multiple online adult subscription video and picture platforms. There's one thing that's noticeably absent: The eponymous magazine that once drew the company fame has been out of production since March 2020. Stage set for acquisitions In February, PLBY Group announced the acquisition of Lovers, a sexual wellness chain, for $25 million. Lovers has 41 retail locations in five states. In 2019, Playboy acquired Yandy, an online lingerie retailer. “Our ambition is to continue expanding on Playboy's existing, massive reach,” Webber said, adding the objective is to “bring new Playboy customers across all genders and many demographics into Playboy brand products and experiences, as well as to offer new brands and businesses.” The new corporate identity gives it that flexibility while still harkening to its heritage. In creating the new logo, Playboy hopes to "build on the power and the iconography of our heritage and of the Playboy brand itself while creating something that is separate and looking to the future as well," said Anna Ondaatje, vp of global brand and franchise strategy, explaining the motivation behind the new logo. The logo was designed in partnership with Andreas Neophytou and Playboy’s in-house brand strategy team. “If you know any of the history of the original Playboy covers, every single cover since the 1960s has a shape of a rabbit hidden somewhere in the cover,” Ondaatje added.