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Extensive Terminal Network Adds Weight to Toy Vendor
Author: LI SHI  Post Date: 2007-08-30

 

Wang Ying, general manger of Childlike Toys, which is situated in Zibo, Shandong. With over 10 years of experience in toy realm Wang expends her business from Zibo to Linyi and Jinan, and even Eastern and Northern China. Her company now boasts annual sales turnover of 40 million RMB yuan, making it to be one of the very few toy merchants in Shandong province. Focusing on creating brand image and adopting various operation pattern flexibly—that’s where her success rises from.

Starting from plush

In 1991, Wang Ying began to be engaged in the business of toy when she was 20 years old.

Wang’s fortune was built up from plush toy, which she has special interest in. At that time, there were lots of small workshops in Yangzhou, Jiangsu, where Wang made her purchasing and shipped to Zibo. Zichuan Apparel Center situated there was one of the greatest apparel centers in China, where welcomed a great number of buyers. It was pregnant with opportunity for toy business, Wang was convinced. In those days, since no so many merchants dealt with the business of plush toys, Wang reaped great profit out of it. An investment of merely 2,000 RMB turned into over 100 thousand within two years.

Brand layout

Initial funds accumulated, Wang laid a solid foundation for her business and maintain a long view. In 1994, she opened a store with over 300 sqm, naming it “Childlike Toys”. Besides plush toys, the store sold all kinds of categories. Wang herself had also gotten reputed gradually in toy industry. Quite a few of toy makers sought cooperation with her, inviting her for brand agency. With more suppliers in wider areas, Wang’s store flourished.

Now, Childlike Toys has close relationship with exceeding 50 toy makers coming at home and abroad, covering more than 100 toy brands, or, over 3,000 kinds. Brands such as Muma, Starjet, Mega Bloks and Hasbro were available in the store. Only products of Starjet have gained over 1 million yuan for Childlike Toys’ annual sales.

Wang had great move in 2003, when she invested as large as 4 million to buy a store of 400 sqm in a new apparel center. Childlike Toys flagship store debuted. Plush toys, electrical R/C hobby, animation and comics-related products, adult toys, brain-training toys for kids, stationary, sports items, transformerable toys…totally 3,000 kinds of toys in 17 categories were available. Last year, sales value of Childlike Toys recorded over 4 million RMB yuan. Another store was then opened in Jinan, coming with an area of 300 sqm. Fitment for the third store in Linyi would soon be completed and open for business in July.

With store layout in Shandong, Childlike Toys covers both wholesales and retailing, with respective focus. Zibo store deals with extensive wholesales and retailing. Since local sees no special wholesales market for small commodities, lots of department stores and supermarkets consider flagship store of Childlike Toys as their vendor. With better economic development, Jinan, the capital of Shandong, features busy crowd and high consumption. Therefore, Jinan store is orientated to high-end toys. As to Linyi store, it is situated in the largest distribution center in Shandong, so its business scope is tuned up for wholesales of mid and low-end toys. Appropriate orientation does help to expand business, Wang excitedly indicates that, toy business run well in Jinan, and her turnover every day exceeds 3,000 yuan for each store.

Operation with variety

Only with progress can maintain long-term corporation value, Wang holds. Only when one can continuously tap into new market on solid foundation, and construct smooth distribution channel and extensive network for terminal sales, can he get success of long standing. In fact, an operation system with variety should be taken into through consideration.

From 1998, Wang has signed up a long-term cooperation contract with some large department stores and supermarkets. Zibo-based Tianbang Trading Co., Ltd. was founded in 2002, when Child Toys marched into department stores and supermarkets all sidely. After building up good relationship with Childlike Toys, over 100 stores see Wang’s toys inside. Childlike Toys is major vendor for them now.

Some products of Child Toys are exported to the USA, Korea, India, Russia and other countries and regions.

Toy chain store adds weight

Lots of projects are launched at the same time or by turns. It is grounded on strategy of the Tianbang, as well as market demand and clients’ feedback. Wang tells TOY INDUSTRY that, in 1997, Tianbang began its operation in electrical R/C toys, and at those days, the company depended on the toy stores of Childlike Toys. Wholesales was supported by retailing. When it came to 2002, the company retuned itself to different pattern of business.

Wang says, chain stores such as Suning and Gome have become bellwethers among household appliance retailers. Though toys are different industry with appliance, sometime they share same marketing ideas. “We can learn from them. Toy is small item, and it has not high value for single unit, so it’s impossible for department stores and supermarkets to put it to an important position or attractive place in store. Our cooperation with big stores is somewhat subordinate, after all. ”

As Childlike Toys raises its reputation, clients are expecting to do business with Tianbang, or directly with mode of franchising. They happen to have the same view with Wang. She reviews that, last year, this kind of business began, welcoming over 20 franchisees. Now Hunan, Fujian and Anhui all see Childlike Toys’ store. Franchising has effectively refreshed Childlike Toys.

Expanding brand realm

Success in operation impresses Wang with power of brand, which makes her in cement when expanding market for Childlike Toys. The year of 2006 was the beginning when she started the production of her own brand. Currently, Tianbang covers over 50 original brands, focusing on brain-training items for kids. Certificates of ISO9000 and national 3C have been gained. Widely spread in national wide, Childlike Toys is a brand of good repute in toy market.

Independent stores and chain stores of Tianbang involve brands of other makers as well as its own. Enriched product mix adapts with chain toy markets. At the same item, integrating original brands and other brands in one store has enable Tianbang to go across pure distributor to be producer. Larger brand application has advanced Childlike Toys’ brand equity and influence.

“Network is critical for success in terminal”--it is an operation notion for Tianbang in fact, the company has been replied on it in every pace during its progress. Tianbang now has its role to play in not only Shandong, but also the whole country.

About its future plan, Wang says in low profile, “we will continue to foster the brand of Childlike, and franchising would be important part.”

 
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