Risk of Losing Market Share May Not be Mattel's Alone

If you haven't heard about Mattel Inc.'s recall of millions of Chinese-made toys due to lead contamination, you probably live in a closet. In case you are trapped in said closet, this recent article from the Chicago Tribune should fill you in. Thus far, Mattel has been striving to save their brand image, however they may not be the only ones in danger. I recently read an article on eMediaWire that indicates other corporations whose name and characters have been licensed by Mattel are also at risk for negative publicity. Many companies, namely Walt Disney and Nickelodeon have issued statements regarding their intentions to require safety testing of all branded products in the future before release.

Additionally, the stores that sell the products also face possible turmoil, and Wal-Mart and Toys 'R' Us among others have stated that in the future they will perform testing themselves on toys that will be sold in their stores. It doesn't end there either. Any other toy manufacturing company (or really any company at all) may be scrutinized for outsourcing labor. Due to these recent events, the use of foreign labor has become much more than an economic issue, crossing over to a safety and health issue. They can blame the Chinese for not carrying out proper protocol until they are blue in the face, but the bottom line is that these companies are still responsible for what goes on under their watch and that is the risk you take by overseeing production from afar. Anyone interested in the continuing use of factories in alien territory would be wise to inform the public of their intentions to be more involved in and set stricter rules for overseas production.

Brian Dobson, an expert in crisis control, has stated, "Brand managers unprepared for crisis are preparing for failure. The elements of crisis preparedness are similar one industry to the next. Preparing for crisis can help prevent it in some cases and it always helps to manage a crisis more effectively." The companies that have already created a buffer for this incident are thinking ahead, as they should be in order to cover their ass, and anyone who hasn't would be wise to follow suit.