"I have gone on a tour of China!" a cartoon Barbie says on the store's website, explaining the brand is on a "Barbie Pink Bus Tour." Mattel is not the only foreign retailer with an extravagant investment in this huge but challenging market to change strategy.

The closing of Barbie's citadel of all things pink on Shanghai's Huaihai Rd. shopping belt follows the closure last month of all of electronics retailer Best Buy's brandname stores in Shanghai. Best Buy is instead focusing on expanding outlets with its locally acquired chain Jiangsu Five Star Appliance Co. Mattel, based in El Segundo, California, inaugurated the store on the 50th birthday of the Barbie brand, bringing together 45 product lines, including trampolines, jewelry and stationery.