What Is the Secret to Barbie's Timeless Success?

What is the secret to Barbie's timeless success? Ruth Handler, Barbie's creator, believed that all children need to play with mature dolls to effectively project their fantasies of growing up. Ironically, Barbie was modeled on a doll for men, Lill, who was a cartoon character in a men's sporting newspaper. Though Mattel's executives initially believed that a doll with breasts was improper and would never sell, Barbie became an instant with American children.

Over time, Barbie's look has changed to reflect changing fashion and cultural trends. In 1968, for example, the first black Barbie was introduced to cater to the growing African-American market. Hispanic and Asian-American Barbies have also been created in response to the growth of America's other ethnic markets. Despite these successes, Barbie is reaching maturity in the US. In 1999, U.S.Barbie sales were down 14 percent. Consequently, Mattel executives are searching for new avenues for profit.

Not surprisingly, the company is targeting untapped groups of children in other parts of the world. A strategy dubbed "Mattel 2000" focused on the company's direction during the decade of the 1990s. As John Amerman, former CEO of Mattel, noted, "There are twice as many children in Europe as in the U.S… three times as many in South America and fifteen times as many in Asia… the potential market for products like Barbie … is mind boggling." However, although the US, the international challenge will be more formidable- and yet, according to current CEO RE, Mattel is "dedicated to becoming a truly global company."

Mattel adopted a pan-European, regiocentric approach to the Western European market. Barbie is a huge success in Europe; children in Italy, France, and Germany average five Barbie dolls in this toy collections. In the early 1990s. Mattel developed a new "Friendship Barbie" to sell in Central and Eastern Europe. The new doll was less elaborate than its Western European counterpart, which sports designer clothes and accessories. By contrast, Friendship Barbie reflects the more basic lifestyle children had experienced under communism. However, although Mattel has experimented with multicultural dolls, the company discovered that little girls in Europe prefer the well-known American Barbie to the local versions.

In other areas of the world Barbie has encountered barriers of a different kind. Since being introduced in the Middle East, Barbie has faced opposition on political, religious, and social grounds. Parents and religious leader alike are at odds with the cultural values that Barbie and Ken portray. Writing in the C journal, D noted, "To put it plainly, the plastic icon of Western girlhood is seen in the Middle East, where modesty matters, as something of a tramp."

In Egypt and Iran, Barbie faces competition from two new products aimed at providing an Islamic alternative to Barbie. However, the dolls have not originated from commercial competitors but from government agencies set on reducing the impact of Barbie in their nations. As one Arab toy seller noted, "I think that Barbie is more harmful than an American missile." Barbie's challengers include demure looking dolls such as Laila, who was designed according to recommendations of participants and the Arab League children's celebrations in 1998. Laila wears simple contemporary clothes such as short-sleeve blouse and skirt and traditional Arab costumes. Abala Ibrahim, director of the Arab League's Department of Childhood, believes "there is a cultural gap when an Arab girl plays with a doll like Barbie… the average Arab girl's reality is different from Barbie's with her swimming pool, Cadillac, blond hair, and boyfriend Ken."

Despite the cultural differences and a price equal to seven times the average monthly salary, Barbie has been highly successful in Iran. It remains to be seen whether Barbie, who is "forbidden by Islam," will struggle against new local competitors Sara and Dara which have been created expressly to compete against Barbie. The dolls feature traditional clothing and headscarves and are available with family members, thus reinforcing the importance of family for Iranian children. The dolls were launched in 2002 at prices about one-third of Barbie's.

In Brazil, Barbie faces stiff competition from a cheaper local rival. Latin America was one of the first non-U.S. markets entered. Brazil is an important market for Mattel because dolls account for 37 percent of the country's annual $430 million in toy sales. However, Barbie has been losing market share to the Susi doll manufactured by Estrela, the company once licensed to distribute Barbie in Brazil. According to SBD, five Susi dolls were sold for every two Barbie during the 1999 Christmas season. In fact, due to Susi's overwhelming