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WHY IT FAILED
House of Barbie Shanghai
Hunter Thomas
Jordan Liedholm
April 29, 2013
agenda
purpose + background
research methodology
about Mattel, Inc.
meet Barbie
understanding China + Shanghai
the new dream house
what went wrong + our thoughts
final take
In 2009, Mattel opened Barbie’s first flagship store,
House of Barbie, in Shanghai, China.
Known as the ultimate Barbie dream house, the store failed
to reach expectations and closed after two years.
research methodology
project plan,
strategy + goals
brand perception +
store experience
Chinese + Shanghaies
consumer market
Mattel’s annual reports, earnings call transcripts, press
releases and other public records
News articles, social media, blogs and online reviews
Market research, financial studies, and economic data
$5.92 billion
net sales
$3.2 billion
int’l net sales
“Creating the World’s Premiere Toy
Brands – Today and Tomorrow”
Mattel’s Corporate Vision, 2008
10,000+ SKUs
sell products in
150 countries
With U.S. sales down, Mattel looked
internationally for growth.
Nearly 90% of American girls have
called Barbie their friend.
Mattel looked to China for growth
and opportunity with Barbie.
top fashion doll
30% Mattel’s
revenue
“Barbie represents fashion,
aspiration, and cultural relevance.”
Description of Barbie, by Mattel
over 1 billion
sold worldwide
50th anniversary
celebration
Shanghai: China’s “test” market
As the “highly urbanized, driver of
the Chinese economy” many
brands look to Shanghai for entry.
Shanghai represents 11.3% of
China’s GDP and is viewed as the
“most innovative and cosmopolitan
[city], setting trends in
fashion and lifestyles.”
Mattel’s research showed classic
Barbie tested better than her
Chinese counterpart Ling.
Opened on March 6, 2009, House of Barbie
Shanghai served as the first flagship store.
Located on Huaihai Road, Shanghai’s
premiere luxury shopping street.
The store intended to launch Barbie as a
lifestyle brand for Chinese girls and women.
It was the first, and only, all-doll store in China.
36,000 sq. ft.six floors $43 million
dolls
house of barbie
spa
cafe runway
pink
fashion
shopping
dream luxury
shanghai
lifestyle
brand experience
china
photos girls
flagship
Description of House of Barbie, by Mattel.
“Unapologetically all Barbie”
After less than two years,
House of Barbie closed.
what went wrong
brand perception1
store experience2
brand perception
Barbie was not a cultural icon in
China—she couldn’t be a lifestyle.
‘Barbie pink’ is not an immediate
association of the Barbie brand.
Women felt clothing was
over-priced and poorly made,
they wanted “cute, not sexy.”
Hauihai Road includes the top
luxury fashion brands, Barbie
wasn’t one of them.
brand perception
Hello Kitty, the ultimate ‘cute’
lifestyle brand and Yue-Sai are
admired in China and the world.
Knock-offs and alternative brands
were abundant and cheap.
Educated, high-income
Shanghaies parents preferred
spending on tutoring or books
than buying dolls and clothes.
brand perception
Six floors of pink and Barbie
overwhelmed consumers.
No storefront signage made
the store easy to miss.
Location was difficult to access,
far from metro and core stores.
store experience
Chinese love face care, but the Spa
did not make guests feel relaxed.
Too many amenities confused and
overwhelmed consumers.
At night, the restaurant became a
karaoke bar and lounge called,
“The Pink Club.”
store experience
Activities were based in English,
not Mandarin; the language
spoken by young girls.
As a result, activities like the
Fashion Runway and Design Center
were unable to engage guests.
store experience
House of Barbie was the first, and only, doll store in China.
The store was modeled after American Girl in the U.S.
The Chinese were not ready for “all Barbie.”
Ultimately, they were overwhelmed and uninterested.
in review
final take
In China, Barbie was not a cultural icon:
she couldn’t be a lifestyle.
The store was overwhelming and
isolated Barbie’s reach to selective,
affluent consumers.
As global luxury consumers, Chinese expect a
localized shopping experience, and demand a
global brand identity.
Chinese consumers are online, social, and
aware of the global presence of brands.
…next time
Use multimedia and co-marketing to associate
Barbie with Chinese cultural icons.
Don’t neglect the merchandise; too many
activities distract the consumer.
Storefront signage is critical, make it big.
Base activities in Mandarin so girls can easily
participate and understand.
Pursue “shop-in-a-shop” mall entry to increase
brand equity and awareness.
Present Barbie as an aspirational brand
to inspire Chinese girls.
So, what would you have done?
Hunter Thomas
Jordan Liedholm
April 29, 2013
appendix
House of Barbie Floor Plan
Ground/First Floor
Second Floor
Third Floor
Fourth Floor
House of Barbie Floor Plan
Fifth Floor
Sixth Floor
House of Barbie Floor Plan

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Why It Failed: House of Barbie Shanghai - GWU Spring 2013

  • 1. WHY IT FAILED House of Barbie Shanghai Hunter Thomas Jordan Liedholm April 29, 2013
  • 2. agenda purpose + background research methodology about Mattel, Inc. meet Barbie understanding China + Shanghai the new dream house what went wrong + our thoughts final take
  • 3. In 2009, Mattel opened Barbie’s first flagship store, House of Barbie, in Shanghai, China. Known as the ultimate Barbie dream house, the store failed to reach expectations and closed after two years.
  • 4. research methodology project plan, strategy + goals brand perception + store experience Chinese + Shanghaies consumer market Mattel’s annual reports, earnings call transcripts, press releases and other public records News articles, social media, blogs and online reviews Market research, financial studies, and economic data
  • 5. $5.92 billion net sales $3.2 billion int’l net sales “Creating the World’s Premiere Toy Brands – Today and Tomorrow” Mattel’s Corporate Vision, 2008 10,000+ SKUs sell products in 150 countries With U.S. sales down, Mattel looked internationally for growth.
  • 6. Nearly 90% of American girls have called Barbie their friend. Mattel looked to China for growth and opportunity with Barbie. top fashion doll 30% Mattel’s revenue “Barbie represents fashion, aspiration, and cultural relevance.” Description of Barbie, by Mattel over 1 billion sold worldwide 50th anniversary celebration
  • 7. Shanghai: China’s “test” market As the “highly urbanized, driver of the Chinese economy” many brands look to Shanghai for entry. Shanghai represents 11.3% of China’s GDP and is viewed as the “most innovative and cosmopolitan [city], setting trends in fashion and lifestyles.” Mattel’s research showed classic Barbie tested better than her Chinese counterpart Ling.
  • 8. Opened on March 6, 2009, House of Barbie Shanghai served as the first flagship store. Located on Huaihai Road, Shanghai’s premiere luxury shopping street. The store intended to launch Barbie as a lifestyle brand for Chinese girls and women. It was the first, and only, all-doll store in China. 36,000 sq. ft.six floors $43 million
  • 9. dolls house of barbie spa cafe runway pink fashion shopping dream luxury shanghai lifestyle brand experience china photos girls flagship Description of House of Barbie, by Mattel. “Unapologetically all Barbie”
  • 10. After less than two years, House of Barbie closed.
  • 11. what went wrong brand perception1 store experience2
  • 12. brand perception Barbie was not a cultural icon in China—she couldn’t be a lifestyle. ‘Barbie pink’ is not an immediate association of the Barbie brand.
  • 13. Women felt clothing was over-priced and poorly made, they wanted “cute, not sexy.” Hauihai Road includes the top luxury fashion brands, Barbie wasn’t one of them. brand perception
  • 14. Hello Kitty, the ultimate ‘cute’ lifestyle brand and Yue-Sai are admired in China and the world. Knock-offs and alternative brands were abundant and cheap. Educated, high-income Shanghaies parents preferred spending on tutoring or books than buying dolls and clothes. brand perception
  • 15. Six floors of pink and Barbie overwhelmed consumers. No storefront signage made the store easy to miss. Location was difficult to access, far from metro and core stores. store experience
  • 16. Chinese love face care, but the Spa did not make guests feel relaxed. Too many amenities confused and overwhelmed consumers. At night, the restaurant became a karaoke bar and lounge called, “The Pink Club.” store experience
  • 17. Activities were based in English, not Mandarin; the language spoken by young girls. As a result, activities like the Fashion Runway and Design Center were unable to engage guests. store experience
  • 18. House of Barbie was the first, and only, doll store in China. The store was modeled after American Girl in the U.S. The Chinese were not ready for “all Barbie.” Ultimately, they were overwhelmed and uninterested. in review
  • 19. final take In China, Barbie was not a cultural icon: she couldn’t be a lifestyle. The store was overwhelming and isolated Barbie’s reach to selective, affluent consumers. As global luxury consumers, Chinese expect a localized shopping experience, and demand a global brand identity. Chinese consumers are online, social, and aware of the global presence of brands.
  • 20. …next time Use multimedia and co-marketing to associate Barbie with Chinese cultural icons. Don’t neglect the merchandise; too many activities distract the consumer. Storefront signage is critical, make it big. Base activities in Mandarin so girls can easily participate and understand. Pursue “shop-in-a-shop” mall entry to increase brand equity and awareness. Present Barbie as an aspirational brand to inspire Chinese girls.
  • 21. So, what would you have done? Hunter Thomas Jordan Liedholm April 29, 2013
  • 23. House of Barbie Floor Plan Ground/First Floor Second Floor
  • 24. Third Floor Fourth Floor House of Barbie Floor Plan
  • 25. Fifth Floor Sixth Floor House of Barbie Floor Plan