Leading global toymaker Mattel (NYSE: MAT) and top retailer Walmart (NYSE: WMT) are quietly tinkering with their China approaches, as each tries to find success in a market that is so big they can’t afford to ignore it. Despite that allure, both global leaders have had difficulty making money in China to date, after relying too much on their global business practices that didn’t appeal to Chinese consumers. Now Walmart is making a second, quieter play at the market through its growing ties with e-commerce company Yihaodian. Mattel is also taking a longer term approach by trying to popularize its globally famous Barbie dolls and other toy brands among Chinese children and their parents. Read Full Post…
Just a year after leading global toy maker Mattel (NYSE: MAT) decided it didn’t want to play in China, the second largest US toy company Hasbro (Nasdaq: HAS) is taking a shot at the market with a new joint venture that could stand a better chance of success. Unlike Mattel, which shuttered its flashy House of Barbie in March last year, Hasbro is taking a more behind-the-scenes approach to the market by developing toys for the China market rather than making any major retail initiatives. While there’s certainly no guarantee of success in this tough market, this kind of back-end approach seems a bit more suitable for a less-developed market like China where consumer tastes and spending patterns are a bit different from those in more mature markets like the US and Europe.
They may be all the rage on video screens, but the globally popular Angry Birds franchise has sputtered into Shanghai as owner Rovio Entertainment kicks off an ambitious plan for the brand in China. The lackluster debut for China’s first Angry Birds store, while not completely unexpected, underscores the fact that even in an international city like Shanghai, big global entertainment brands face a tough uphill battle for recognition among Chinese who tend to flock to domestically developed brands with a more local flavor.
It’s Friday and almost the weekend, so I thought I’d take a break from all the e-commerce price wars and woes at solar panel maker Suntech (NYSE: STP) that have dominated headlines this week to take a look at something a little more fun, namely toys. Specifically, leading US toy store operator Toys R Us has announced its first big China expansion since buying out a majority stake from the partner in its Asia operations about a year ago. (
China’s thirst for luxury goods is a well established fact, with sales soaring for big brands like Louis Vuitton and Burberry in recent years as Chinese consumers eagerly spend thousands of dollars for the latest status symbol. But the taste for luxury for more everyday items is far less established — a reality that Disney (NYSE: DIS) will have to contend with as it embarks on an ambitious plan to open up to 40 of its recently developed Disney-brand stores in China over the next 3 years. (
