Majoring in philosophy, having been a university teacher, Qiu Hai is a typical scholar-merchant. Having been engaged in toy business for 8 years, the general manager of Chongqing-based Haifeng Toy Co., Ltd has become an important figure in amusement play-sets market in the city of Sichuan.

     Qiu has particular preference for the words “blue sea”. With a mind perceives future, he has explored a wide blue sea out of a market segment.

Settling on amusement

     Near 40 years old now, Qiu worked as a teacher in his Alma Mater after his graduation, assuming the responsibility to establish a psychological counseling center. By this chance, he made good friends with lots of teachers in this subject.

     After Shanghai Fundazzle Leisure Equipment Manufacturing Co., Ltd introduced the brand, Fundazzle, from United States, lots of psychological counseling teachers have moved to the business of amusement play-sets, some of whom are now senior executive in companies. Afterwards, Qiu’s teacher becomes their member.

     Inland market vastly differs with coastal one, both in company size and product sales, Qiu tells TOY INDUSTRY. Chongqing is extremely a small market. Before global retailers like Wal-Mart and Carrefour open stores in the city, toys had not been available in local supermarkets.

    “In those days, competition in Chongqing market appeared in an inferior grade. Price war burst out frequently and all dealers tried with all might to get into sales terminal such as department stores and supermarkets. Actually, it is same case now. ” Qiu says, “but after all, amount of department stores and supermarkets will see a limit. Finally, they dish out stricter requirement for dealers, setting threshold for vendors like ‘entrance fee’. It’s unfavorable for dealers’ development.” Therefore, Qiu considers regular terminals for toys a “red sea”, where all dealers fight together, but resulting in no necessary achievement.

     In virtue of his teacher, Qiu got in touch with “amusement play-set”, an emerging category for toy industry in Chongqing at that time. With through market survey, Qiu finally made decision to pursue the segment, giving away his teaching career.

    “Chongqing saw no business of amusement play-set at that time,” Qiu reviews. The market blank urged him to cooperate with department stores. After several years of operation, his Golden Childhood Fundazzle Paradise nearly monopolizes the amusement play-set market in Chongqing. “Now department stores come to me for business now,” Qiu glories in his business.

Effective marketing system assure shares

    “Shanghai, Guangdong and overseas makers of amusement play-sets are striking into Chongqing. Would your market shares be reduced for this sake? ” TOY INDSUTRY raises question about future development of Haifeng.

    “Not at all,” Qiu answers firmly, “Haifeng has established a solid marketing system and outcomers would find difficulty to compete with it.”

    “Only on amusement ground, we have made a great effort,” Qiu indicates. “Cost for a common kids’ park with 200sqm has declined to ￥100,000 to￥200,000, comparably it was around ￥600,000 to ￥700,000 previously. It can be said as a low requirement. But how can we dominate the market? We maintain regular cooperationship with education units, media and real estate companies in a series of interactive events.”

     Qiu adds, “Previously when real estate companies start to sell houses in public, they would seek for a PR company. But generally they need kids playing ground, for instance a temporary slot track for 4-wheel-drive cars. This is not available for PR companies. So, they can only turn to us. ”

    “Currently, most of temporary tracks of Auldey’s 4WD cars is in my company.” Qiu is pound of it.

     In fact, besides amusement play-sets, regular toys from Daseng, Auldey, Barbie and Kurhn are also available in Haifeng, which are distributed in 40 sales terminals in Chongqing, including exclusive sales rights in three Parkson stores. Qiu attributes the exclusive sales in Parkson to Haifeng’s support. “What retailing store needs most is support of vendor. Now when Parkson need temporary kids’ playing house for promotion event, we can assure them that, the play-set would be constructed the night before and removed the night after event.  ”

    Qiu tells TOY INDUSTRY that, among all upstream makers, Hangzhou-based Daseng Toys Co., Ltd. has maintained longest compressive cooperation with them. “We distribute all products of Daseng in Chongqing as well as its neighbor provinces and cities.”

   “Every week, we make stock with stable volume, that’s the point Daseng appreciates. Furthermore, we guarantee good price balance in wholesales and retailing,” Qiu indicates. As the general agent for Daseng in Chongqing, Haifeng has more than 200 distributors. However, each country or city houses only 1 or 2 of them, so profit of downstream distributors are protected.

Brand strategy

     Looking back to his eight years of business struggle, Qiu has a great of emotion. “I starts my toy business in 1999 and run it in good operation in 2002. Now annual sales amounts to around 20 million yuan. The whole process of my business is a road of resource integration. ”

     The following plan for Qiu is constructing a toy wholesales distribution center and fostering a direct online sales system. By this way, with brick-and-mortar terminals, distribution, wholesales and online sales, Qiu’s blue print is described clearly. Five years later, Haifeng sees its toy specialty store, which widely spread its name in Chongqing.

    “If there is any problem with a toy, it is hard for consumer to contact with maker. Meanwhile, it is almost impossible for maker to deal with individual consumer. In this occasion, brand agent is need. ” Qiu says.

    “When it comes to making purchasing decision, repairing or rejecting, people would have great recognition of Haifeng. That’s our aim.” In fact, it is not a phantasy.

Responsibility to assume