“Surrounding cities with countries force.” It is a well-known military strategy in China’s history. When it is applied to business, it would work sometimes. Yang Wanqing, general manager of Tianjin-based Moli Toy Sales Co., Ltd has successful experience in his marketing network.

From wholesales to retailing

  Yang has good reputation in toy industry of Tianjin, not only for his decade of experience in toy business, but also for his outstanding management strategy.

  To regional agent, a prevailing saying goes like this “who has the market, who will have capital and then survive and develop much better”. Years ago, Yang had profound understanding on this saying. Yang started his business from wholesale, being the agent for toy products in Tianjin. With good faith work, he had good relationship with retailers, and so his business ran smoothly.

  “At those days, Dahutong wholesales market here was thriving. You need not worry about it at all. ” Yang recalls the flourishing days in Tianjin.

  However, since toy industry has grown rapidly, increasingly more people have been attracted to toy sales, making the world of supply and demand totally different. Some carry out price war so as to launch their products quickly. “Raiding goods” also happens often.

  Normally, sales agent in area A has common understanding with toy makers in unified price point before the former make supply to distributors in area A. But in order to plunder business and market shares, agent in area B might secretly provide the same supply to distributors in area A , with lower price. It’s called “raiding goods”. It not only affects normal operation of agent of area A but also its reputation.

  Having nothing to do with consequence of “raiding goods”, Yang tells TOY INDUSTRY， “I suffer a lot from it, and so do makers. Perfect goods may lose their market in short time. ”

  How to make a change? It is proved to be outdated if you just wait in your office. Yang thinks he should expand effective and stable sales network. Only by this way can he win more initiative in fighting against disordered competition.

  Though Tianjin is municipality directly under the central government, unlike other big cities, Tianjin has not strong consumption demand. In fact, instead of large stores, a great number of small stores in curbside sell toys. If you are able to integrate all these scattered business together, it would undoubtedly be a huge distribution network.

Strategy of incorporating

  “Integration Program of Street System” is the first footstone for Yang’s constructing project.

  Since toys are not necessities for people’s life, Yang notices that, unless people have special needs, they would not go to stores for toys. So as to small items, turnover of department stores is far less than that of terminal markets.

  However in high streets and back lanes, or near schools, countless small stores have large quantity of little consumers, who will frequently visit these stores. If toys could be available in these stores, it would be the best and most direct way to make consumers known and buy products.

  Yang reflects on his own business, which characterizes tens of toy brands. He believes, when he finds out the equilibrium point for the both sides, he will probably include all these small stores into his sales channels.

  With advantageous toy brands and trendy toys in hands, Yang introduces his toys to owners of small stores by the means of presentation meeting. Moreover, with corresponding promotion goods and standardized display, owners are learnt to boost up sales with well-utilized promotion resources.

  The “Integration Program of Street System” is proved to be a success, which has covered over 200 small stores in Yang’s terminal network. No need for owners of small stores to give lots of care, they would supported by large bulk of supply from Yang. Business scale is then expanded and transaction volume is increased as well. It can be considered mutual benefit.

  With one year’s effort, Yang has successfully constructed a grand sales network, receiving 2 wholesales stores, several department stores, 30 terminal markets as well as 200 small stores. Downtown and outskirt of the city are covered by the network.

  Rapid growth of Yang’s sales network attracts many makers’ attention, which will make supply to Yang when they have new items. On the other hand, with strong support of Yang, retailers have reaped great profit from increasing sales. All aspects are in virtuous circles.

Marching towards high-end market

  Second step for Yang is to expand mid- and high-end retailing market, especially super markets and department stores. Yang says, “I owe this idea to Auldey’s marketing strategy.”

  In a dealers’ conference of Auldey, a small game based on “Nash Equilibrium” has impressed Yang greatly. He thinks, to certain meaning, low-price war prevailing in market would make oneself relapse into a dilemma. “I can not stop it, but I can try to avoid it,” Yang says.

  Yang’s own experience tells him, generally speaking, most of toys sold in department stores are brand items, which would not drive sellers to the price war. On the other hand, as people’s living standard keeps improving, purchasing power of Tianjinese becomes increasingly stronger. Currently, a consumption niche of pursuing brand products has been developed. Yang decided to make a second step—doing his business to mid- or high-end retailing stores.

  With only half a year, Yang brings home the bacon. Over 30 super markets and 6 high-end department stores seek cooperation with Yang. Yang’s sales network is then upgraded to include high, mid and low end, which is comparatively perfect one that cover the whole Tianjin.

Give the right toys to kids

  When Yang talks with TOY INDUSTYR, he always emphasizes his management concept: in right time, giving kids the right toys. Then what is the “right time” and “right toys”?

  “As soon as possible, try to provide kids entertaining and intellectual toys according to their age,” Yang explains. “These toys may be in low price, but if they are suitable, they are good toys.”