Insights on Near-Shoring from Barbie’s Business Turnaround Story
Schumpeter is eagerly anticipating the release of the first live-action “Barbie” film in July, directed by Greta Gerwig, known for her movies with strong characters. The trailer, a parody of “2001: A Space Odyssey”, hints that Barbie will be portrayed with a knowing wink. But the film is not just a source of entertainment; it could also mark a comeback for Mattel, one of the world’s largest toymakers, with brands like Barbie, Hot Wheels, and Fisher-Price in its toy box. Five years ago, Mattel was struggling, having lost three CEOs in four years and a decades-old license to produce Disney dolls to its competitor, Hasbro. However, under the leadership of Ynon Kreiz, its CEO since 2018, Mattel has improved its cost base, balance sheet, manufacturing footprint, and morale. Last year, it won back the Disney contract, and a Barbie red-carpet blockbuster would be the icing on the cake.
Recently, your columnist visited Monterrey, Mexico, where Mattel has consolidated its North American manufacturing operations into a single factory, its largest in the world. The hope was that Barbie, in addition to becoming a movie star, could also symbolize a new trend in trade: near-shoring. However, there were no Barbies on the assembly line, only a prop in the Barbie Dreamhouse, one of the plant’s flagship products. In reality, Barbie is not made in Mexico at all; she is still manufactured in Indonesia and China (the first blonde doll was made in Japan in 1959).
2023-03-23 10:17:05
Source from www.economist.com
