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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 just two years.
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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
sha
ng
ha
i
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 perception 1
store experience 2
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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