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Trouble in Toyland: New Challenges for Mattel -- and 'Made in China'

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Asked whether one of the most famous dolls on earth is going to be hurt by Mattel’s recalls of more than 10 million toys in the U.S. over the past three weeks, Wharton marketing professor Stephen Hoch offers this reassuring response: “Barbie is bulletproof.” It’s not clear that the same can be said for Mattel. Although many observers give the company credit for responding to the crisis quickly — with an apology from the CEO and pledges to institute more rigorous product safety checks — Mattel faces a number of problems, including significant costs associated with the recalls and new monitoring systems, potential lawsuits and a hit to its reputation just as the holiday shopping season gets ready to launch. At the same time, news of Mattel’s two recalls has done more than send thousands of parents rummaging through toy chests looking for potentially dangerous toys.…

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