
Today, Mattel (NYSE: MAT) announced that is recalling 9 million more Chinese-manufactured toys because of lead paint and magnet that can be fatal if swallowed. That bring my grand total up to five toys that I've had to take away from my kids this month.
I should point out that the process to return Mattel's recalled toys isn't simple. You have to complete an online questionairre and form. Next, Mattel will email a mailing label to you. You then need to box up the toys, and take them to the post office to have the package "round-stamped." When Mattel receives the package they will determine the value of the toys, and 6-8 weeks later, they'll send a voucher for the value, which can be used at many stores to purchase something else.
But I digress, this most recent toy recall makes 4 mass recalls by Mattel since the beginning of August for a total of over 10 million toys. The primary cause of the recalls is lead paint used in the manufacturing of these toys in China.
When is this going to stop? Many speculators think the answer is, "no time soon." In the meantime, what are parents and customers to do? Mattel, a brand once trusted, is being tarnished. No one can be blamed but the corporate machine that chooses to manufacture products offshore, particularly in countries where regulation is not as well-scrutinized as customers would hope.
80% of Mattel's toys are manufactured in China. Looks like it's time to make some changes in Mattel's business plan if they want to avoid any additional negative publicity. They've said themselves that they can't guarantee today's announcement will be the end of similar recalls. How can they save their reputation?
First, I'd suggest they make it easier to return recalled toys, but far more importantly, I think they need to step up their quality controls and product safety testing for offshore manufacturers. It's shocking to me that toys with lead paint on them could make it to the U.S. marketplace. That might just be the angry parent in me speaking, but clearly, there is a pattern of negligience going on here and no one is to blame but Mattel. They are ultimately responsible for any items that are sold with their brand name on them. That's a key component of building a successful brand -- taking responsibility for it in every way.
What do you think about the torrent of recalls of products made in China this year? What can Mattel do to regain customers' trust?
Read more about recent recalls of products made in China here.







Mattel should bite the bullet and be the first to return manufacturing to the United States. Offshore may be cheaper but quality is lacking; and, we are the citizens of the United States are the losers!
Posted by: Carol | August 15, 2007 9:45 AM | Permalink to Comment