Oh, the woes of Barbie - from 70s consciousness-raising, to the Bratz influence earlier in the decade, to the current consumer cutbacks. Now, Mattel's iconic doll must deal with new challenges - specifically, competition from Toronto-based Spin Master, with its popular Liv dolls (14 moveable joints), as well as its old nemesis, Van Nuys-based MGA Entertainment, which is replacing Bratz with a new line of dolls, Moxie Girlz. In the midst of this competition, El Segundo-based Mattel has been working on a Barbie makeover. From the WSJ:

Inside the high-security Mattel design center near its headquarters here in El Segundo, guards check visitors' laptops and briefcases on entrance and exit. Humans who bear an uncanny resemblance to Barbie -- high heels, pony tails, sparkly jewelry -- gathered there late last month in the Pink Room. That's where they're devising battle plans for their new Barbie, who wears runway-inspired outfits and has 12 movable joints that are supposed to allow girls to pose her like a supermodel.

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The battle for the hearts and minds of American girls comes at a crucial time for Mattel. The company's sales, one-fifth of which come from the $1.3 billion Barbie brand, have stagnated for several years, and in 2008 profits fell 37%, to $379.6 million. Last week, Mattel said third-quarter revenues slid 8% and net profit fell 3.5%. Sales of Barbies world-wide declined 8%