Answer:
Mattel recently failed in China. The company only opened its operation in China in 2009, so things turned badly quite quickly.
Ben Cavender, an analyst with China Market Research explains that Mattel are not the only foreign company to struggle in the Chinese market. He attributed this to either not adapting quickly enough to the external environment or not being patient enough to establish a foothold. See link below:
It is difficult to tell which reason applies to Mattel - perhaps a little of both.
Reportedly, Chinese customers could not identify with the Barbie doll's "sexiness" and "pinkness". Allied to a perceived lack of "cuteness", the doll was doomed to failure. This cultural gap in what Chinese customers and Western customers perceive as being an appropriate children's toy is fascinating.