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Barbie's been in big trouble lately, in fact, someone's even saying she's dead. Erin Burnett tonight On The Money behind an American icon.
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She's almost 50, desperately in need of a makeover. No, not her, her.
Barbie, Mattel's sweetheart seen red in 17 of the last 20 quarters. In fact, the last 5 years have been the weakest years of her almost 50-year lifespan, far from a glamorous past. During her heyday in the 90s, analysts estimating the busty blonde would add 2 billion to Mattel's bottom line. But Barbie may have bottomed out.
Barbie's always been about, for, you know, playing and fashion. And I think in the last couple of years there has been a little bit too much emphasis on just having it look trendy and appealing to the fashion aspect of what kids want.
The Barbie is still a-billion-dollar brand. Mattel's competitors like MGA Entertainment and its Bratz dolls have been creeping into Barbie's territory.
Mattel's biggest problem was, they forgot to put some of the fun within some of the Barbie toys. And they forgot some of the basic elements. Toys need to be magical. A child needs to open a toy and immediately wants to play, would they be creatively on their own through electronics and Mattel was not doing that.
And today, a radical idea---kill her, dead, end of brand. LA Times columnist Patt Morrison writing this, Barbie's Obit. Let's all have a go with Barbie. Give up on the re-re-re-invention. Take out Barbie at the top of her game. With a big, dramatic exit, Mattel could actually make a killing out of killing Barbie. Not everyone is ready to bury her. Mattel, now under the control of industry veteran Neil Freemen, may be headed in the right direction.
Kids aren't just playing with toys, they are watching movies, they are going to shows, they are wearing clothes. So the Barbie brand is not just dolls anymore, it's 3 billion dollars worth of merchandise and entertainment around the world every year.
But as Mattel's biggest seller, slumping sales could mean its time for a farewell Barbie.
On The Money, Erin Burnett CNBC.
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