The famous doll Barbie was received with many cheers as its groundbreaking store opened in Shanghai earlier this year. But Barbie has been missing its target as it seems to appeal more to the Americans than to the Shanghainese, a problem that sounds very familiar for more foreign brands that try to enter the China market.
Retail guru Paul French tells toy giant Mattel might be on the wrong track: in Bloomberg:
“Every retail store operates at a loss when it opens, but they’ve been open long enough that it should be working by now,” said Paul French, founder of Shanghai-based market research company Access Asia. “They overestimated their brand recognition in China. I just think the concept is wrong.”
Sales targets are down 30 percent.
Paul French is a speaker at the China Speakers Bureau. If you need his input at your conference or meeting, do get in touch.