Domestic toy market has experienced rapid growth of over 30 years, but it is far from a stage with high development and great power. In fact, a competitive environment for brand toys has not been formed in real meaning and we have not found professional pattern in sales terminals. Especially in second-level and third-level cities, brand toys are not the main stream in shelves.
What’s the reason inside? How can companies dealing with domestic sales get better achievement? From this issue, TOY INDUSTRY will see a series of articles on these topics in extensive and intensive way.
Those who have not dealt with domestic sales might always get excited by some figure. China has 257 million kids under 14 years old and when it comes to 2010, Chinese toy consumption will record 100 billion RMB yuan. However, only when you go further into domestic toy market after some days of struggling, you will finally find that, we have overestimated the return that market can offer us. When sales fail to offset expense, some have to quit or appoint sale on commission. The hurt goes and the brave one storm in. the saga in toy market continues.
Is the domestic toy market too hard to handle?
Admiring Flowers in Mist
A number of famous home and overseas brands are entering domestic toy market during these years. However, only a very small number of them can survive and expand up to now.
In China, lots of industries appear to gestate great consumption capacity during these years. Good market would necessary give birth to brand companies, but toy industry might be an exception. Market consumption sees few changes and brand names are just next to nothing. If we leave aside export, domestic sales can hardly feed toy companies. When color TV, refrigerator, washer, and even house property and automobile become household items nowadays, parents still hesitate their decision on buying a 100-yuan toy for kids. What’s the problem with our toy market?
Toy-renting chain business stormed in market in 2003. But it vanished in short time. Over 400 toy renters emerged in Beijing within one year. At the very beginning, we optimistically believed that a right mode had been discovered for toy business. However, these chain stores close down, also within one year. One most critical reason lies in our judgment on consumers’ demand, which is wrong.
Two years ago, a famous international toy company fastened its attention upon China’s market, and planed to set up brand counter in 100 department stores during one year. However, concerning current status, the plan has not been fulfilled successfully.
The plan for “Blue Cat educational toy center” really refreshed our eyes in 2004. Its marketing strategy—integrating upper and lower stream of educational toy industries and fostering an empire for Blue Cat educational toy center within two years, which was considered as a new concept, really had attracted lots of investment. But after two years of market operation, it finally failed.
In my opinion, I impute its failure to the followings:
1. With no clear and substantial concept for toy culture and have not realized the notion;
2. Senior executives have no definite knowledge on pattern for successful toy sales and lower managers can only develop market in a conventional sales method;
3. Coming with not sharp concept for brand and consumers are not so loyal to products.
Toys can be sold like household appliance
In many brand counters in toy stores of first-level cities, we find that sales staff is not energetic or professional enough. It is totally different with the impression that household appliance stores give us. With highly-developed market, household appliance brands are thriving in keen competition. Sales guiders will give you introduction with expertise in trait, advantages and benefit on certain product. As long as you have enough patience to hear, he will talk forty to the dozen.
On the contrary, Seller pays more emphasize on the playing method of one toy, but he will never mention the benefit of playing. Or, he might simply say, “your kid will love it”, or “it is funny”.
Terminal selling place is of strategic importance. A brand toy will never develop its influence if it can not sell well in terminal market. As a result, it is a significant target to manage a good retailing market.
Once, I asked a sales manger for toy, whose brand is a famous brand name in household appliance name in domestic China. “Will you sell your toys in the same pattern with household appliance?” I asked.
“Why not?” He said, “Different products share a same sales principle.” It is the case. Why we do not sell toys with professional knowledge like household appliance?
A wide range of factors are affecting retailing terminal, such as store location, image, price point, commercial publicity materials, sellers, etc. As long as it is in a definite location, sellers play a critical role in the process of buying. A seller that offer professional introduction to toys would at least double the sales volume of those who lack such knowledge. So it is necessary to create a professional sales team for brand names.
In order to enable sellers to display toys in a more professional way, we must have a concrete and comprehensive orientation on the cultural concept of the toy. Trait, advantage and benefit of the toy should be extracted and demonstrated in a manual with both photos and words. Every seller must be acquainted with the cultural concept of the product, who is capable of actualizing it in real selling action.
Cultural marketing, a sharp weapon
“Why kids need toys?” When you can answer the question, you will find the core of cultural marketing for toy.
I hold that the reason for difficulties in expanding domestic toy market lie in parents’ insufficient recognition on toys. If we do not change their inherent misapprehension on toys, who believe “playing” will ruin “study”, we will neither develop toy market nor create a number of strong toy companies that stand shoulder to shoulder with global toy names. Therefore, such a core directs us to the solution. When parents finally come to the view that toy can make kids to learn more and benefit a lot more, it will be a law of nature when brands like Haier appear in toy market.
--Basic concept for toy cultural marketing
We are not simply selling toys. Instead, we are dealing with preschool education. Focusing ales on strategy for toy education, and making it as guidance, are the basic concept for cultural marketing for toys.
--Re-recognizing toys
Reconstruct parents’ recognition on toys sees its theoretic foundation on national policy and preschool education system. The following we are going to do is display benefit of playing with toys to parents, so as to update their knowledge on toys.
Fully implementing with strength and we will get market return
How to realize the cultural marketing concept? Firstly, I believe, we must deliver a manual with cultural concept for toys. Based in preschool education, we may discover the cultural content of toys with expertise and provide an opportunity for mums and dads to know more about toys in a concrete and detailed way. It is of highly importance for terminal sales.
I am convinced that, even though lots of consumers might not buy anything at once after they get such a manual in hand, they will back to stores for toys some days later.
Secondly, a professional sales team must be constructed, which will double your sales volume at least. Especially when consumers have no strong recognition on consumption, professional introduction of seller appear to be particularly significant.
More over, toy stores should have enough emphasize on cultural concept on toys. Image of the store is also key for purchasing impulse. Designing store image according to property of toys will greatly increase influence of brand toy.
To put it in a nutshell, whether the marketing mode of toy culture can be enforced extensively and effectively, highest executive of the company is the critical key. In significant measure, current embarrassment for some toy brands can be ascribed to executive officers’ lack in clear cultural marketing concept and way for full enforcement. They depend too much on sellers’ understanding on products and sales method. Changing inherent knowledge on toys first, and adopting effective action, we will surly develop toy market well.
Writer’s Bio:
Yang Shangjin, who is MBA, has dealt with toy marketing for years. He is a strong advocator and promoter for toy game and education. Currently, he is the general manager of Degree Toy Science and Technology Ltd.
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