Analysis Of Mattel's Strategy To Bring Popularity To Barbie Doll In Chinese Market

Introduction of the Company

In the age of digitalization, new technology has replaced toys completely, however, Lego still has found a way out and successfully launched a film breaking the Chinese market and making significant profits and growth. Barbie, in the interim, in a market best described by assorted variety is wearing the equivalent unmoving articulation she generally has and a conventional plastic doll with a swelling closet is lacking of what's required.

Mattel, Inc. is an American multinational toy manufacturing business enterprise based in 1945 with headquarters in El Segundo, California. The products and manufacturers produce consist of Fisher-Price, Barbie, Monster High, Ever After High, Polly Pocket, Hot Wheels and Matchbox, Masters of the Universe, American Girl, board games, and WWE. In the early 1980s, Mattel produced video recreation systems, beneath its own brands and beneath license from Nintendo. The organization has presence in forty international locations and territories and sells products in greater than a hundred and fifty countries. The company operates through three business segments: North America, international, and American Girl. It is the world's second largest toy maker in terms of revenue, after The Lego Group. In 2014, it ranked #403 on the Fortune 500 list.

For over 70 years, Mattel Inc. has been an international powerhouse in the toy industry. With a portfolio that consists of numerous of America’s most iconic manufacturers and spreads across 150 countries, Mattel has controls 57% and 28% of the North American and global toy markets respectively.

Made in 1959, Barbie is today sold in more than 150 nations and has won hearts of young women and flourished all over the world. In the beginning, Barbie faced a lot of criticism from the industry and women activist. In spite of this Barbie inspires a legacy of 180 ground-breaking careers from being a registered nurse in 1961 to being a president in 2016. Barbie has always offered girls choices and endless storytelling possibilities. However, Mattel's downfall began, when it opened the world's biggest 'House of Barbie' in a prime Shanghai area in 2009, wasting $30 million making the six-storeys store for all Barbie lovers.

In the Global Economy Barbie makes her own corporate monoculture. The hidden message behind Barbie's plastic is one of consumerism, looking to mix the innocence of play with the wants of worldwide corporate greed. Rather than drinking a regular soft drink, Barbie drinks Coca-Cola Classic. Rather than eating an anonymous pizza, Barbie goes to Pizza Hut, sending a message to potential buyers that brands matter. With the Barbie brand continually flourishing, Mattel uses Barbie's status to get more female clients worldwide.

Why Companies Do Business in China

Since early 80s hundreds of overseas companies invested trillions of greenbacks in China, in the begin few agencies stepped in China however after the twenty first century investing cash in China grew to become trend for foreign companies. These corporations include many sorts of industries but mainly, Software, Mining and Cosmetics industry, many large names such as Google, Microsoft and Apple also have their offices in China.

• Change in World’s Economy Balance

The most important purpose of the interest of the foreign companies in China is due to the alternate in world’s economy. Europe which “was” the strongest financial system place of the world, but now after some crises in the most important international locations in the European countries like Italy, Spain and Greece, the entire Europe begins to decline.

But when we take a deep look on the Asian Countries like Malaysia, China and India they are creating day by day, organizations from round the world are investing in Asia due to the fact they are getting excessive advantages from these countries. The important aspect is that now Europe is declining however on the other hand Asia is developing.

• Big Market Great Man Power

The other most important thing which is forcing foreign companies to move their businesses to China, massive market is the biggest advantage which foreign companies are getting from China. If these organizations do not export these products from China to international locations like European nations then to, they can make massive income by promoting their products to only Chinese people with a populace of about 1.4 Billion.

• Low labor Cost

China incorporates massive populace that’s why there are very low labor charges which foreign corporations have to undergo in China.

• Low Import Duties and Land Costs

If businesses favor to import something from any county then they will get large concessions from Chinese government, this is also a plus point. But there is every other tremendous factor, if any corporation desires to extent its working region then the land cost is reduced.

• Government and Stable Politics

China have steady and stable politics So; the Stock rate will rarely fluctuate.

What Went Wrong

After a time of fifty years, Barbie became a known image of 'femininity' for young women in America. The brand has gone up against its very own real existence as Barbie performed various duties of women. In China, Barbie is essentially a doll. She isn't related to any cultural significance for Chinese young ladies. Mattel didn't exactly comprehend what Chinese women need. The Chinese and American idea of 'femininity' is altogether different. In China, 'female' is more about sweet and delicate as opposed to savvy and solid, style forward. Chinese shoppers couldn't think less about Barbie-marked products, since Barbie is not a cultural symbol in China as she is in America. Despite the Chinese Barbie Ling with dark hair, wearing traditional clothing, Chinese young women couldn’t unfortunately relate themselves to Ling.

The situation was worse as there are fake Barbie dolls available around the corner. Today, Chinese customers probably won't purchase a fake Luis Vuitton, but a 6-year-old would not think about whether her Barbie dolls are original or not. Nobody would spend a fortune for a brand that doesn't have huge acknowledgment. Barbie dolls sold in other retail establishments were substantially less costly. “We ended up competing with ourselves. The overhead of a single store is huge. We couldn’t generate enough revenue to justify that.” Crispell said. It was not a surprise that the House of Barbie had to lock their doors.

Problem With the Store

Since China opened up to foreign investment in the late 1970s, some of America's most dominant companies have entered into the People's Republic with full confidence, just to find itself out of the market within a couple of years.

The primary mix-up Mattel made is to have an independent store before setting up Barbie as a strong image in China. “The concept of the store is wrong,” general manager of Barbie Shanghai, Gar Crispell pointed out. (Courtesy of forbes.com, Helen H. Wang – Why Barbie stumbled in China and how she could re-invent herself) The Barbie style garments for young ladies would possibly bode well if Barbie is a social symbol and a way of a lifestyle brand. The Shanghai, massive store was not just aimed at children, but Mattel was marketing the Barbie lifestyle to women in their 20s. “It was confusing, no-one knew what the brand stood for and so instead of going for cute they went towards grown and sexy.

The bottom line of the concept was it was just too much, it wasn't like in other countries where generations of women had grown up with Barbie. They created this massive experience, but not enough people came to find out about it as the concept of Barbie wasn't a pre-existing draw in China states Benjamin Cavender China Market Research Group (Courtesy of BBC.com 'Can Barbie conquer China?' by Ian Rose, November, 2014).

The huge store was situated on Huaihai Road, a standout amongst the most renowned shopping boulevards in Shanghai. Be that as it may, on the ground floor it was uncertain to anybody passing precisely what was inside - people needed to enter the store, take a lift to feel the effect of the plan. Additionally, a pink light shone outside the store is associated with pink light district with a much more adult style of trade than selling toys and clothes. Furthermore, regardless of the area being popular, it wasn't easily accessible for customers. 'There was nowhere to park your car and it was not near a subway station. If you can't get to it and you don't already know about Barbie, you're just not going to go,' says Mr Cavender.

The store offered people to create their own doll, to eat exotic cuisines by Australian culinary specialist David Laris, a retail shop where you could get $150 pants or a $10,000 Vera Wang wedding dress or getting a spa on a lazy afternoon. If that was not fun enough, people could drink a pink Barbietini, take a look at the diverse collection of Barbies’ and their frill, get some Barbie chocolates, sing to their most loved music in the karaoke bar.

What Next

Mattel is targeting education-minded parents such as Luo Chongzong, who watched her 9-year-old daughter, Yang Siqi, gaze at a 369 yuan (about $61) 'Fashion Design' Barbie playset during a recent visit to a Beijing Wal-Mart. 'She loves those dolls, but I had to stop buying them because they distract her from her studies,' said Ms. Luo, 33 years old. 'She'll spend hours braiding her hair, dressing and undressing her,' she said.

According to a report in the Wall Street Journal, Mattel is showcasing a series of dolls explicitly for Chinese customers, which implies focusing on China's alleged Tiger parents, they are more concentrated on educational achievement and extracurricular activities that will benefit them in future. Mattel is trying to recreate dolls that copies what their parents demand from their kids. Mattel's new contribution includes the 'Violin Soloist' Barbie, still with blonde hair, blue eyes and a tiny waist, However the set comes completely decorated with a violin, bow and sheet music.

Recommendation

New and unknown brands entering China in the most recent decade, need to go where the clients are to get individuals who have no experience with them. When entering the market again, Mattel could build a store in a shopping mall. Due to growing traffic and pollution, most Chinese like to go to a shopping mall instead of strolling down the roads. They hope to shop, eat and hit salons all in one place. They don't prefer to make a special effort to a single store except if that store is extremely unique. Mattel can use multimedia and co-marketing to associate Barbie with Chinese cultural icons. They should avoid too many products and activities that can distract the consumer base activities in Mandarin so girls can easily understand.

Conclusion

Can Mattel re-enter in China? All things considered; Barbie is becoming part of Chinese families. Regardless of whether she will take on numerous roles in China as she did in the U.S. will stay to be seen. The Violin Soloist is maybe a test in unknown water to see whether Barbie does to be sure have made a place in China. Eventually, Chinese shoppers will choose what sort of social symbols they need, or what sort of toys they are eager to purchase. Organizations who can't adjust to this environment will have to pay a heavy price.