Barbie shuts up shop in Shanghai

Barbie, the slender symbol of American consumerism, has shut up shop in Shanghai just two years after opening her biggest flagship store in China’s most populous city.

Mattel, owner of the iconic doll brand, said the bright pink, six-storey store had served its purpose of building brand awareness in the new market.

But analysts say the investment was a failure because it did not adjust to the local market.

The withdrawal comes on the heels of store closures in China by US retailers Home Depot and Best Buy, which have both struggled to crack the local market.

The failure of the US brands to prosper come despite efforts by the Chinese government to make boosting domestic consumption a top policy priority. Retail sales grew at more than 18 per cent in 2010 from a year earlier.

“None of the three companies – Best Buy, Home Depot or Barbie – have catered to local consumer preferences and habits enough,” said Shaun Rein, managing director of China Market Research Group.

“In Barbie’s case, they chose the wrong location [for the flagship store] and they offered sexy clothes designed by Patricia Fields of Sex and the City fame when young Chinese women tend to prefer cute designs like Hello Kitty.”

http://www.ft.com/cms/s/0/ae22d5c0-48b9-11e0-9739-00144feab49a.html#axzz1FwjwlrtM

by Pip G. & aniie