Cao Fan, general manager of Nantong Chaofan Industrial and Trading Co., Ltd, which is situated in Jiangsu. At present, he is expanding the business of his Wanzhongwang Toy City throughout the province. Just like its name, Chaofan (means “extraordinary” in Chinese) has made outstanding achievement after 10 years of development. An extensive sales network and large vendor center for toys have been constructed to cover the whole Jiangsu. Furthermore, Chaofan is sales agent for Auldey, Barbie, Bandai and Tomy in Nantong, Jiangsu.

   Summarizing his experience during the past decade in toy realm, Cao Fan tells TOY INDUSTRY in frank and honest way that, it is significant for a dealer or agent to develop firm sales channel.

  “With 10 years of effort, I am gratified that my company has constructed a solid sales network, and it is a solid Great Wall for our sustained development,” Cao says. The open sesame for the “solid Great Wall” can be translated into his belief—“devotional, so professional”.

Choicely select constructional materials

   Cao agrees no more upon the idea of “who gains the channel who will win the market”. That’s why he always considers highly of channel construction. In fact, he holds that it is important to be good at discovering and using “good materials”

   How to choose most suitable items for both consumers and trader himself from numerous toy products in market is based on operation strategy adjusted according different development status.

   In 1997, when Chaofan was founded, mid- and low-end toys are rather popular in Nantong’s toy market. No matter was prevailing, merchants would rush to that. It was just like a crowd share a same cake--the quicker the better.

   Cao has once worked as purchasing manager in a chain supermarket in Shenzhen, Guangdong, who adopted unique operation pattern to tap into market. Familiar with operation in department stores and super markets, he considers brand agent as key for his business and select department stores as main thread for his toy business.

   As the development of living standard, consumers will be more attentive to quality and brand of products, and will trend to shop in department stores and supermarkets. Therefore, these two can be said as the largest channel for toys in the future. Brand products with high quality and good repute are preferred high-end choice for consumers; at the same item, they are good materials for constructing sales network.

   Cao makes a choice among abundance, and become the agent of some brands he believes to have market potential. He makes supply to department stores and supermarket in full power, adding more product categories increasingly.

   Cao’s thought is proved to be right. With 10 years’ high-speed progress, Chaofan evolves into a vendor for over 50 department stores and supermarkets, business of which is spread far away from central Jiangsu to the rest of the province. Wanzhongwang Toy City, a unit run the Chaofan, has already sees 4 wholesales rooms in Nantong, Taizhou and Yangzhou, which lays a solid foundation for future development.

Devotional, so professional

   When talking with journalist with TOY INDUSTRY, Cao owes success of the company to the belief of “devotional, so professional”. “When you are focusing on one business, you will find and learn lots of thing,” says Cao. After Cao’s company begins to distribute Auldey’s products, he learns the knowledge of expanding market and improving management.

However, “being the agent of brand toys, we see not only pressure, but also motivation,” Cao admits.

   So-called “pressure” comes out when you determine to be regional agent, you must do a good job. In the year of 2006, Chaofan sets up its wholesales branch in Yangzhou and remarkable achievement of Chaofan aroused craft brothers’ vigilantness.

   In view of this, Cao eases them, “I am here to share your profit. Instead, I am trying to make the whole thing greater. What I finally gain would be the part we produce. ”

   His confidence comes from experience and know-how of Chaofan that it gains in Nantong. With cooperation of educational, sport and science institutes in Nantong, Cao has sponsored the first session of Auldey 4WD car competition, which is now one of major hobby events for teenagers in Nantong. The competition has aroused great attention of the young, boosting the product sales in market.

   The first thing to do in Yangzhou is promoting yoyos. At those days, other merchants in Yangzhou thought such a common item would not have extraordinary sales. Instead, Cao believes that market for yoyos is ready for expansion. In fact, with three months of promotion, yoyos really bring such a sensation that Yangzhou News invites Chaofan for road show. During these three months, Cao’s yoyo records a sales of 800,000 RMB. Certainly, sales of other companies in the same trade is also improved.

   Motivation is brought along with updated and standardized management of noted companies. In order to maintain better cooperation with these companies, Cao benefits from advance administrative pattern of big names, and successfully enhance his own business in both facilities and management method.

   Chaofan has currently set up 4 wholesales showrooms and supplying centers, as well as toy counters in exceeding 50 department stores and supermarkets. Wholesales, logistics and after-sales service has highly integrated in his network, which is complemented by online sales and mother-and-baby stores. A “solid Great Wall” is then constructed well.

Suggestion to markers

   When China’s toys are recalled in large quantity by the U.S., and recall system on toy is actualized in domestic China, quality of toys become social focus right off. As the rapid growth of domestic economy and consumption level, toy makers that were engaged in export merely now turn to domestic market.

   Cao holds that, some products have problem in quality indeed. The 3C system, which has become effective from this June will make the market sees shortage for some categories, or even overstock supply in short time. It is inevasible process.

   As to recall system, Cao notes it would benefit China’s improvement of toy quality, for makers will pay more attention to their products. Though it might be a restriction, from a long term, it will propel development as a whole.

   Finally, when asked about his suggestion on tapping toy market in Jiangsu, Cao has his idea. “When entering department stores, it would be best if your products are top brands in domestic China or overseas countries. But if it is developing brand, it should have the power to fill up the blank of market, otherwise, it should come with brand new concept. Both should get full support from makers on image promotion. ”

   If you plan to supply to supermarkets, Cao believes low-cost products have more developing room. But in these years, supermarkets trend to be more attentive to brand items.

   Furthermore, fashionable items must be supported by makers in promotion, otherwise it would be a tough game.