Mattel 's Lack Of Success

1342 WordsMar 11, 20176 Pages
Introduction In 2009, the renowned toy giant Mattel attempted to globalize of one of America’s most popular toys, Barbie, to China. Chinese consumers had been purchasing Barbie dolls from local department and toys stores throughout China. With this, Mattel saw potential, and they decided to open a six-story, 35,000 square feet, 30-million-dollar facility in Shanghai, entirely dedicated to Barbie named House of Barbie. Not only did they sell Barbie dolls, but they also sold Barbie clothes, furniture, and accessories. The store even housed a coffee shop and a Barbie-themed restaurant. Undoubtedly the vision was to establish Barbie as a prestigious brand in the Chinese market (Medina 2009). However, in 2011, only two short years…show more content…
• Product familiarity may best determine how a company or brand enters the new market. The company must decide if this product is new to the area or is already an established need or brand (Wang 2012). • Lifestyle is essential to making globalization a success. Companies should consider what the society values and how they identify (Wang 2012). Addressing these issues before attempting to globalize is key to overseas success. Mattel erred in each of these issues, which ultimately led to their failure. Mattel Performance on Six Issues Mattel failed in China because they missed key components in each of the six identified issues. Localization is primarily the most important cultural characteristics to address when considering overseas expansion. Mattel attempted to address localization; however, they may have localized too much. The company introduced a doll with Chinese physical characteristics and name, Ling. However, the original, blond, fair-skinned Barbie was more popular in China than Ling (Wang 2012). Thus, the disconnection was not with the doll herself, but rather with the concept of the store. Gupta proposes that expansion to China requires the precise combination of no localization and complete localization (2011). Starting with such a large store and grand concept did not allow for Mattel to experiment

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