Mattel's stellar reputation tainted
— -- On Tuesday, the toy giant recalled 18.2 million Chinese-made toys worldwide — 9.5 million in the USA — and more recalls may be on tap.
"There is no guarantee that we will not be here again and have more recalls," beleaguered CEO Bob Eckert told reporters in a conference call. "We are testing at a very high level here."
Most of the toys in the latest recall — from Barbie to Polly Pocket play sets — contain small magnets that children can swallow, and others contain lead paint.
It's beginning to sound a lot like … trouble. The recalls come within eyeshot of the crucial Christmas season and fewer than two weeks after Mattel's Fisher-Price unit recalled 1.5 million Chinese-made preschool toys for lead paint.
The back-to-back recalls represent a one-two punch for the largest U.S. toymaker, famous for its Barbie, American Girl and Hot Wheels brands. They threaten Mattel's holiday sales and its sterling reputation with parents, grandparents and, yes, kids.
"I'm going to be wary of what I purchase" from Mattel, says Tami Toon, a working mother from Chico, Calif., who has an 8-year-old and a 2-year-old. From now on, she says, no more toys made in China in her household.
It's that kind of reaction that Mattel executives fear most. About 65% of the company's toy products are made in China. Of those, half are made in Mattel-owned plants, the other half by Chinese vendors.
"In just a matter of weeks, Mattel's gone from a company with the best reputation in the business to one with a gaping wound," says Howard Rubenstein, a New York City publicist who specializes in representing major celebrities and companies in trouble.
"Mattel's in an extreme moment of corporate pain," says Rubenstein. "How do you tell a kid not to put a toy in his mouth?"
Mattel caught in bigger problem
The toymaker finds itself ensnarled in a burgeoning, global problem that's far bigger than Mattel — or even the toy industry. A rash of recalls is feeding a growing consumer fear of all products — particularly seafood, pet-food ingredients and now, toys — that carry the stamp "Made in China"
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