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Recalls aside, U.S. parents will buy toys: analysts
CHICAGO |
CHICAGO (Reuters) - Most U.S. parents will keep buying Barbie, her friends and most of the other toys their kids want despite several high-profile recalls, analysts said on Wednesday, even as a consumer safety agency said more recalls were likely.
In a survey this past weekend, Britt Beemer of America's Research Group found that more than 75 percent of parents could not name any company that had been the subject of a recall.
"The vast majority of (parents) said they were going to get the toy their children asked for, because if they bought them something else, their children wouldn't play with it," Beemer said.
On Tuesday, Mattel Inc said it would recall more than 800,000 toys globally that contain intolerably high levels of lead. This was the latest in a spate of Chinese-made toy recalls -- including three by industry leader Mattel -- and included three Fisher-Price toy models and eight Barbie playsets.
No Barbie dolls were included, which could be a good sign for some of the parents Beemer surveyed.
"I'm not going to worry about the recall until they tell me my Barbie is not healthy," Beemer said, referring to one response.
One reason Mattel has now had three high-profile recalls is because the company is one of the best in the industry when it comes to quality control, said Gerrick Johnson, analyst at BMO Capital Markets.
"The stuff is coming to light because they are finding this," he said. "I think there is more to come from other companies."
Julie Vallese, spokeswoman for the U.S. Consumer Product Safety Commission, said manufacturers, retailers, distributors and the agency are all checking on products to see that they meet U.S. safety standards.
"It is fair to say that we have not seen the last of the product recalls that may be tied to a violation in the lead paint standard," Vallese said during a conference call with reporters.
Mattel is not the only toymaker to be hit with recalls of Chinese toys tainted with lead paint, which include a June recall of toy trains by RC2 Corp.
Since more than 80 percent of the toys on U.S. store shelves are made in China, it could be hard for parents to steer clear of toys made in that country during the holidays.
"On the margins, some concerned parents will shy away from the Mattel or Fisher-Price brands or things made in China," BMO Capital's Johnson said. "I don't think it will be the entire mass market, but some parents will."
Meanwhile, Mattel is readying advertising and public relations campaigns for the holiday season to address the recalls, spokeswoman Michele Sturdivant said.
"We are a marketing driven company, so it would be safe to assume that we absolutely need to address this during the holiday season," she said.
Toy retailer FAO Schwarz is also trying to assuage parents' concerns. Schwarz on Wednesday said it has created a toy purchasing guide for parents.
Among the advice: "If you are worried about the safety, quality, or appropriateness of certain toys, then by all means get rid of them. Toys should relax you and your children, not cause stress."
(Additional reporting by Paul Eckert in Washington)
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