Barbie in China.

When trying to look for market or consumer mistakes that big corporations have made in the past, I tried to look for one that was not just a marketing mistake. Most companies failed when entering a market because of a poor marketing decision or promotion campaigns failure.

However, I managed to find one example that caught my eye. Not only because of the size of the organization, but also because of the mistake itself. The company I chose to talk about is Mattel and the mistake it had when opening a six stories building dedicated to the iconic Barbie doll in 2009 in Shanghai, China. The building, in which Mattel had invested over thirty million dollars, was named as ‘the House of Barbie’ and was built “Barbie in celebration of the American iconic doll’s 50th anniversary” (Wang, 2012).

In 2008, the percentage of International Gross Sales or Mattel in Asia Pacific was 9% (286.1 million dollars), and they thought of this market as a great opportunity in which they should embark in. However, this percentage did not grow as quickly as they thought it would with the investment made, as in 2009 the percentage of International Gross sales was 10% (267.4 million dollars) and in 2010 it was 11% (333.3 million dollars).

The decrease of the previous concept from 2008 to 2009 was mainly because of a lack of study of the market. In previous Annual reports, Mattel stated that “Products marketed by the International segment are generally the same as those developed and marketed by the Domestic segment […] although some are developed or adapted for particular international markets” (Mattel Annual Report, 2008). However, in newer Annual reports, the focus of the corporation has slightly changed, stating that “If Mattel does not successfully identify or satisfy consumer preferences, its results of operations may be adversely affected” (Mattel Annual Report, 2018).

They have learned a lesson through their failure, which was not realizing that the consumer in America is different from the one in Asia, and their culture plays a major role in what they buy. For mattel, the concept of their product was that Barbie was not just a “fashion forward doll, she would also be a lifestyle symbol and cultural icon for girls and young women” (Wang, 2012). However, they did not make sure what the Asian public was asking for. And although many Chinese youngsters liked the looks of the American Barbie even more than the Chinese one, Helen Wang points out that “many analysts pointed to the fact that Barbie is a Western doll and is “too sexy” for Chinese girls” (Wang, 2012).

The main issue of Mattel was not making sure that the sales of Barbie doll in China were strong enough for such an investment, as well as not taking into account cultural differences. In America, Barbie was a lifestyle and cultural symbol, meanwhile in China it was none of that. The position of the brand in this market was not settled before opening the store, therefore leading it to a failure.

References:

• Wang, H., 2012. Why Barbie Stumbled In China And How She Could Re-Invent Herself. [online] Forbes. Available at: [Accessed 8 March 2020].

• Forbes. 2010. Where Barbie Went Wrong In China. [online] Available at: [Accessed 8 March 2020].

• Mattel.gcs-web.com. 2018. Mattel Annual Report. [online] Available at: [Accessed 8 March 2020].

• Mattel.gcs-web.com. 2008. Mattel Annual Report. [online] Available at: [Accessed 8 March 2020].

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