The Barbie shop in downtown Shanghai is closed. [Photo / China Daily]
SHANGHAI - Counters selling Barbie dolls in Shanghai are still in operation, but Mattel closed its Barbie concept flagship store in Shanghai on Monday after almost two years of poor performance.Mattel Inc, the world's largest toy manufacturer by revenue and owner of the Barbie brand, said in an announcement on Monday that the closure is part of its strategy for 2011 and that it will continue to develop the Barbie brand in China.
A Mattel representative, who declined to be named, said that the 35 retail counters selling Barbie dolls in Shanghai remain open and customers can go to them for after-sales service.
An announcement circulated by Mattel said: "This concept store was an important step in Barbie's brand-promotion strategy in China. Over the past two years, it accomplished its mission to promote the overall Barbie brand and build a strong foundation for Barbie's future progress in China".
The Mattel representative said that the store served "mainly to showcase the brand, while the sales in China depend on local retail partners and wholesale distributors".
Officials in Luwan district, where the store is located, told the Shanghai Morning Post that they were notified of the store's closure over the weekend.
The six-story, 3,500 square meter flagship store sold Barbie dolls and accessories and had Barbie-themed amenities, such as a photo studio, spa and coffee shop.
Many customers complained that the store's products were too expensive and said they visited the store only to see the different Barbie collections. Barbie dolls usually cost between 100 and 200 yuan at the store, while similar types of dolls cost only around 30 yuan.
"I'm a Barbie fan, and I've been to the store seven or eight times. But I only bought clothing for adults there when it was on sale, because the non-sale prices were too high - often close to 1,000 yuan per item," said Kenshin Kong, a marketing website employee and custiomer of the store who received an e-mail from "Barbie" about the closure.
"Compared with traditional forms of advertisement, the flagship store is more effective in promoting the brand and developing brand followers, though the cost was too high because of the prime location," said Qi Xiaozhai, director of Shanghai Commercial Economic Research Center.
"But a business model that was successful in overseas markets doesn't necessarily work in China," he said.
Qi said that nowadays, when children have plenty of toy options, they won't stick to a single brand like Barbie, which is relatively expensive.
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