When the toy industry enters the year of 2008, it brings itself with festive colors: the Christmas day of 2007 really makes Chinese toys shine like fire. They are not only sold well in domestic but also win many praises all over the world. The “Voice of Germany” claims that “Chinese toys entertain the whole world”!  The following New Year’s Day makes the toy market become busy once again. The hot season of toys accompanies the festivals and holidays. I think, to enlarge the market share, the enterprises should pay more attention to the diversity of toy products and sale.

Realize problems from phenomenon

According to the statistics of relating departments, in the recent two years, toy companies who are within the top 10 toy sellers in the world like Hasbro, LEGO, and Bandai, have entered China market through distributors or setting up market department in China. And the trend is there are more and more foreigners to invest in China and produce toys. The sale of the overseas brands has entered a stage of rapid increase. But in domestic market, Chinese toy enterprises have not paid enough attention to independent innovation as while as research devotion and innovative awareness.

The overseas brands now dominate China’s market. In some big supermarket in Beijing, Mickey Mouse, Donald Duck, Transformers, Ultraman and so on are in full supply. They take up the most visible shelves, coming with great popularity. However, there are few domestic brands available. “The overseas cartoon toys are sold very well mainly because these characters are very popular among children. They may be influenced by the western culture,” a salesman said. Due to the popularity of overseas cartoon toys, now a lot of toy manufacturers fall over themselves for the production of them and in contrast, they are impassive for the domestic brands. According to some statistics of stocking and selling of the department stores, the stock of domestic toys only stand 1/5 of the whole and the sales of overseas toys is three times of the domestic toys.

In recent years, friction in toy trading becomes more and more and the export is becoming difficult. The quality demand of products is unceasingly improving. And if it is added the expense of property right, the profit of enterprises will thinner and thinner. Therefore, it is the problem to deal with to enhance independent innovation for the enterprises to improve competitiveness.

Diversity of toys

At present, the phenomenon is commonly existed that there are more similarities in toy products but less new products. I think, to enlarge the selling share in market, the enterprises must walk the road of diversified product structure and product selling. But in the process of seeking diversity, the enterprises should pay attention to the following three misunderstandings which are easily to get:

1. Narcissism

2. There is an old saying in China “Deep lanes can not block off the smell of good wine.” It is a typical phenomenon of narcissism of one’ own products. When talking about substantial products, it is to say that as long as the products are good, we are not afraid of few customers. However, that is long time ago at what time the product is simplex and the customer can judge the quality depending on experience. But it is wholly different. The types of product are becoming more and more and the functions are also more and more complex with higher and higher subdivision degree. Take Auldey Toys as an example. At only one price stage there are many types and on subdivision types there are 4WD, peg tops, yoyos and so on.

The reason for the toy manufacturers to get narcissism of one’ own products is mainly because the enterprises excessively focus on the advantages of their own products which are mostly seen from the enterprises own angel. But consumers can not realize before buying and possibly can not understand and accept.

There is a very simple example. When the children choose toys, it may be not because the toy is made by special technology but it is bigger and the pattern and color is more distinct. But the enterprises may pay more attention to the propaganda of technology but not whether the toy is interesting or not which the children care about. It will lead to result that enterprises cannot accord with consumers.

2. Inferiority complex

It is right the opposite side of narcissism. Inferiority complex means there is no enough confidence in one’s own products. And they think that their products cannot conquer the consumers and the diversity cannot bring positive influence.

One of my friends invents a making up and inserting toy bricks himself and I feel it can jump out of the common toy bricks and have market space. My friend also thinks it has prospect but he is afraid that it cannot compete with the common ones after longer time. Later, we re-orientate it and put breakthrough on the making techniques and materials with taste integrated with tradition. Then it jumped out of the common toys all at once. Though the cost is not high but with “surpassing” (of course there are other pivots like appearance and characteristic), the grade and price abruptly rise and the market reflection is very good.

Actually, the other phenomenon of inferiority complex of one’ own products is the worry that the consumers do not know how excellent and distinct their products are. So they excessively magnify the characteristics and functions and even mendacious propagandize the products at all costs. This method is a short-sighted behavior and in fact there is no confidence in their products.

The reason why a toy manufacturer can get selling share in market is that the consumers have had a distinct concept on the toy products and understood the characteristics of the toy and recognized the price and function of them. The promotion activities of so many enterprises are all to attract t he attention of consumers. In this way the buyers become the auditors of the products. The consumers always compare the diversity of the promoted products with the real performance of the products.

As a matter of fact, there is no the best in the world but the fittest. The products are the same. Any product can have its own selling point and through promotion realizes the communication on customer demand and then occupies position of “customer recognition” and at last conquers the destination groups that fit for consuming. Many products with good quality could be sold better. But because diversity is not clear and the publicity is not ideal, it does not get excellent result.

3.Excessively rely on region with strong consumption capacity

When the domestic toy manufactures want to exploit markets, the places they first think are the first-class cities like Beijing, Shanghai and Guangzhou. They think that these cities have the biggest consumption groups. In fact, the sale of every product cannot be possible to be accomplished only depending on first-class cities. China’s toy consuming quantum is more than 10 billion RMB and only depending on a dozen of metropolis, it is impossible to do well in marketing.

There are many potential markets around us. The growing up of Central Asia is worth our consideration. The area stands 3% of the China’s toy export. But the majority of toys in Central Asia is also made in China. Tajikistan for example, the economic power is in the middle among the 5 countries of Central Asia but the increasing speed is the second quickest which 20% every year. According to the world economists, the growing up of Central Asia will bring big opportunity to Chinese toys. After so many years OEM process, the domestic manufacturers have accumulated enough experience and ability to produce independent product brand. Although we now can not compete with the strong brand counties in Europe and America, but we can manage to put independent brand made in China in Central Asia market. Our brand may dominate the whole market there.

The diversity sale and thoughts of toys are still in elementary stage which has given us great room to develop. From thoughts to the absorbability of brand concept, from product to the integrity of culture, from channel to the establishment of terminals, form producing mode to the transfer of developing mode…. all these can make more enterprises have their own modes and find the fittest way of development from the establishment of diversity. █

Writer’s Bio:

Ma Zhenlin, general manager of Beijing Feichi Industrial Trading Co., Ltd