It's been a few weeks since Mattel, Inc. (NYSE: MAT) announced a million-toy recall, and the dust is far from settled. The Chinese supplier that supplied paint for a huge collection of children's toys has seen its CEO commit suicide and parents are still under the gun on which exact toys to trust their kids with. The problem is lead-based paint, which can lead to health complications. Outside of the normal "small parts" recall fiascos that seem to happen every year, the lead paint issue is a big one. Young kids put everything in their mouths.
This week, Mattel has -- once again -- urged parents to withhold many of its toys from all those curious kids. When a toy manufacturer directly tells customers to not use its products, something is amiss, of course. With more than 19 million toys worldwide under scrutiny, how did this problem become so large before being detected?
Quality control in China -- with raw materials and product manufacturers -- has slid far, far downhill. Retailers carrying items from multiple Chinese-based recalls may be feeling the backlash, and the American consumer is probably going to demand better in the near future. In other words, if "low prices" means "horrible quality," where does that leave discounters like Wal-Mart Stores, Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT)? With plummeting toy sales, most likely. Is that priced into the stock of either retailer? Probably not.
With parents the world over wondering if any toy is safe, and with legions of attorneys waiting in the wings, this could get even nastier and may sink Mattel for at least a little while. From paint supplier to manufacturer to shipper to warehouse to store shelf, the quality control at all points in the process must be under strict, watchful eyes. It's pretty obvious this was not the case with this toy recall.
Are there not tests to determine chemical content and other issues before these things get into toddler's hands? Are retailers who carry the products to blame, if even a little? Those retailers will be the ones to see most of the short-term financial fallout from abandoned sales. I won't even touch the "small parts" angle here, like tiny magnets that end up being swallowed by kids after becoming dislodged from toys. There must be many people in the toy industry who are asleep at the wheel these days.
Click here for Mattel toy recall news
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Reader Comments (Page 1 of 1)
8-16-2007 @ 1:55AM
cliff corson said...
it isn't the retailers who should be taking the blame, nor is it just the manufacturers that should take the blame.
to see who should take the blame simply look into a mirror.
most Americans out there want items at the lowest prices possible and constantly complain when stores have to raise a price on anything. they always blame the store and not see how or why the item's price was raised.
if you asked 100 people if they would be willing to spend an extra $1 to $4 per item to insure the item is safe less than 50% of those would say yes. they would say that they already pay enough for the item.
the same thing is being seen in other fields regarding safety. most states have less than 20 people to inspect bridges yet when a survey on if people would be willing to pay higher taxes on gas over 90% said no -- even if that money was to be used to insure safe roads.
cliff
9-21-2007 @ 11:25PM
monica said...
Alternative to Junk Toys
Kids these days have tons of toys. The ads are endless and enticing for children. They want it all!
When my daughter was young, we made stuff, created messes,and just had fun, without all the toys. I even went on to write and publish the ideas and activities in several books. Experiment and creating are are better for young brains, than TV and unsafe toys, and they're even educational in disguise. The books are even printed in the USA. Check them out at www.monjeupress.net.