Mattel is a major toy company that owns popular brands like Fisher-Price, Barbie, Hot Wheels, and Matchbox. In 2009, Mattel opened its first House of Barbie store in Shanghai, investing over $30 million. However, the store closed just two years later in 2011 due to losses. The failure was likely because Barbie was not well-localized for the Chinese market and seen as too Western. To succeed in China, Mattel needs to better understand Chinese culture and introduce Barbie through an educational campaign rather than a standalone store.

2. ● Multinational toy manufacturing company
founded in 1945
● Fortune 500 company
● Products and brands it produces include
Fisher-Price,
Barbie, Hot Wheels, and Matchbox
● Company has presence in
40 countries and territories

3. ● Opened their first of three stores in March of
2009
● Shanghai's Huaihai Road, one of the most
expensive shopping streets in the country
● The store intended to launch Barbie as a
lifestyle brand
● Over $30 million was invested in the House of
Barbie
● Mattel shut its doors on March 2011
● https://www.youtube.com/watch?
v=GcL3ULK8Jm0

4. ● Inability to localize the Barbie brand led to the
downfall of American doll brand
○ Store closed 2 years after opening
○ Continual loses
● Mattel chose to open a single super store on a very
expensive shopping street
○ Perhaps many smaller cross-country, mall-
located outlets would have worked better
○ Experience based store format was not
successful
● Mattel still faced many unknowns in
the Chinese market

5. ● Many analyst observed that the western doll Barbie
was “too sexy” for Chinese girls
● Localized Barbie did not do as well as the original
blonde Barbie doll
● Standalone store was established before
establishing Barbie as a strong brand
● In China, Barbie is simply a doll
● The variety of products and services in the store
made it difficult for Mattel to know what
would work

6. ● Many companies assume that, because urban Chinese customers
appear quite Westernized in their outward appearance, they will
easily accept Western concepts, products, & services.
● China feminine:
○ sweet
○ soft
○ gentle
○ loving
● Mattel Barbie:
○ smart
○ strong
○ dazzling
○ fashion-forward

7. ● Must introduce
Barbie brand
● Understand that the
Barbie doll is not a
cultural icon
● An educational
campaign can boost
sales revenue

9. http://www.forbes.com/sites/helenwa
ng/2012/10/24/why-barbie-stumbled-in-
china-and-how-she-could-re-invent-herself/
http://www.businessweek.
com/globalbiz/content/apr2011/gb2011042
1_445230.htm#p1