Welcome to the China Dollhouse: Barbie Packs Up Shanghai Camper

Just two weeks after US electronics powerhouse Best Buy (NYSE: BBY) pulled the plug on its namesake stores in China, toy giant Mattel (NYSE: MAT) is doing the same for its flagship House of Barbie store in Shanghai, leaving its leading doll as the latest casualty in the China retail market. (English article; Chinese article) While these two cases do reflect the cutthroat nature of China retail, Mattel’s pullback also shines a spotlight on what the Chinese are and aren’t willing to spend their hard-earned money on when it comes to big brands. While they’re willing to fork over hundreds or even thousands of dollars for that latest Gucci or Louis Vuitton bag or Longines watch, toys for the youngsters are quite a different matter. In fact, to my limited knowledge there are no “designer” toy brands in China yet, which shows where many parents’ minds are when it comes to their kids: they would rather spoil them with little emperor designer clothes or tutoring lessons at a nearby cram school than the latest designer doll or model car. If those trends continue, it could be a while still before Barbie or any other premium toy makes significant headway in China.