TACO BELL SCORES HIT WITH TALKING CHIHUAHUAS.

Byline: Deborah Adamson Daily News Staff Writer

He's ugly, he's skinny and he's got ears that rise straight up like two fat antennas.

But that doesn't matter to 9-year-old Shannon Bloom from Canyon Country, who is the proud owner of the talking stuffed toy Chihuahua, mascot of Taco Bell's ``Yo quiero Taco Bell'' commercials. She owns the one that says ``Feliz Navidad, amigos'' and is itching to collect the remaining three to complete her set.

``I thought it was Christmasy and I liked it,'' she said.

During this holiday season, Americans have gobbled up 13 million stuffed toy Chihuahuas. Taco Bell has an additional 10 million promotional toys arriving and expects to sell out of them quickly.

The stuffed animals are smaller, cheaper versions of a $15 Chihuahua toy available at retail stores.

The stuffed Chihuahua was the idea of Applause Inc., a Woodland Hills-based specialist in producing what the industry calls ``plush'' toys. Applause designed four different styles and manufactured 23 million toys in less than three months.

They sell for $2.99 to $3.99, and say four phrases: ``Yo quiero Taco Bell,'' ``Viva gorditas,'' ``Here, lizard, lizard,'' and ``Feliz Navidad, amigos.''

Bloom's Aunt Joyce has the complete set and her grandmother owns several. Her mother, Trasia Barnes, even knows men who collect them.

``Everybody I know wants them,'' said Barnes, with no small measure of wonder. ``As far as Chihuahuas go, I think they're ugly.''

A fad toy doesn't have to be pleasing to the eye to be successful. In fact, some are downright ugly, said Charles Bearchell, emeritus professor of marketing at California State University, Northridge.

``Take the Cabbage Patch doll,'' he said. ``Even if you've got an ugly kid, you'll have a doll that's even more ugly.''

But that didn't stop shoppers from fighting each other for a doll.

Furbys are the hot item this holiday season; Beanie Babies were the fad several months ago and Tickle Me Elmos were flying off the shelves last year.

Fads may command high prices while they're hot, but they don't have staying power. Bearchell estimates that trends fizzle out between six weeks to about a year or two. To make the odds worse, for every fad that hits it big, there are hundreds that languish on the shelves.

Take the follow-up to the hula hoop. While the hoop became a sensation, Bearchell said a follow-up toy called Nutty Knotter by the same manufacturer was a flop. It consisted of a fake head attached to a cord. By whirling the cord, the player would tie a knot. Not surprisingly, it didn't strike a chord with consumers.

However, Applause hopes to hit plush-toy gold again soon.

The company is collaborating with Taco Bell's parent, Tricon Global Restaurants, to make toys for the ``Star Wars'' prequel, ``The Phantom Menace.''

Applause and Taco Bell offices were closed Christmas Eve and officials could not be reached for comment. They may have been out buying toy Chihuahuas.

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PHOTO (Color) Taco Bell has sold 13 million of its toy versions of the Chihuahua in its restaurant commercials.

Tom Mendoza/Daily News