Majoring in export, Hong Kong-based Welly Die Casting Product Co., Ltd is affected by the financial tsunami. However, in controllable range, the company has rolled out new strategy in new economic environment. Recently, TOY INDUSTRY had an interview with the general manger in mainland China, Chan Chi Hung. He shared with us the company’s experience in product development, market orientation, marketing, etc. It might be a good reference for the industry when suffering a severe winter.

 

     “Europe and US markets are now in recession as international environment has changed. It is not the thing we change alter so it is a significant trial upon us.” Chan Chi Hung expressed his view, coming straight to the point. However, it might not be just a “trial” to a lot of others. Instead, it would be even a battle between life-and-death. For due to stricter requirement of Europe and US for import products as well as the impact of global financial storm, some toy makers in China had to be closed down or change to other business. In fact, home and overseas media have made their coverage concerning such phenomena. Chan smiled and answered TOY INDUSTRY, “some toy makers in China closed down or changed to other business-- it is the truth. But I don’t think it necessary to believe it is some kinda tendency. It is a temporary difficulty and could be conquered. So far is our company is concerned, actually it is hard to avoid influence on daily operation. But we are in close relationship with our clients in Europe and US so influence is within controllable range. ”

 

     With gentle psychology, Welly does not get panic in stagnation of global economy and heighten export threshold, which shows great confidence on getting over this hard time.

 

     Chan believed that, it is the right time to gain strength. “we have no power to alter international situation so in reverse, we must alter ourselves. We must gear ourselves to market demand and join in competition.” In this meaning, how can Welly successfully enhance its competitive edge? Chan illustrated Welly’s strategy in three aspects.

 

1.Enhancing the competiveness of product

     It includes improving quality of product, attending to product innovation, lowering production cost and polishing up package, etc. For instance, Welly invests large money in upgrading its production facilities and technique, so as to strengthen technical elements on products.

 

2.Adjusting promotion campaign strategy

     Great changes in global economy market can be observed recently and China has slow down its growth in export and import. In view of this, competition in retailing area now is of white heat. Corresponding adjustment on brand promotion and marketing strategy must be made to keep them effective. Welly enlarged its campaign in hard time to impress people and would focus on detail region with customized promotion according to different market demands.

 

3.Spreading regional investment’

     American subprime lending crisis and global financial tsunami directly force consumption down. A majority of China’s export goes to Europe and US so the above phenomena have imposed obvious attack upon China’s toy companies. When we exert over weight on consumer group in a certain region, we will suffer a lot when this region sees any economic turbulence. What Welly practices is to expand various markets and set up extensive client data base. It disperses its investment and would no restrict itself in Europe and US.

 

By all theses approaches, Welly is winning market shares step by step.

 

     When some domestic and overseas media play up the difficulties and “severe winter” toy industry is facing now, people would get confused and uneasy. In fact, it is not necessary, Chan believed.

 

     Economic phenomena should be treated in two aspects. Though “severe winter” is unfavorable for us, some favorable things exist. People’s consumption pattern will take changes for a while, like reducing travelling time and having dinner in luxury restaurant. Their psychology and behavior would change as well. They might tend to stay home for entertainment and satisfy themselves mentally. This kind of pattern exactly inspires toy industry.

 

     Such as Welly’s die-cast cars. When people have more time to pay attention to their mental life, collectible hobby would see expanded development room correspondingly.

 

     Additionally, “severe winter” provides toy industry a time to adjust its structure. We might consider increase price for products.

 

     When TOY IDNSUTRY asked Chan about the tendency of “from export to domestic sales”, he said “it is natural”. With a 1.3-billion population, China is the largest economic system in the world. Domestic sales is worthwhile of attention indeed. Moreover, as toy industry is growing up in product development and production technique, mere export or processing only make use a small part of all the productive capacity of factory. In this view, a domestic sale is absolutely right evolution.

 

     Would Welly be the temporizer to change “inward”? Chan pointed out that Welly extremely thinks highly of domestic market and would make it a development direction. Increasing living standard and consumption power in mainland propel Welly to do it. Additionally, more and more youths now high on collectible toys, intriguing large market room for die-cast miniature. It is exactly what Welly’s advantage lies in.

 

     “Welly is now making adjustment to cater for this market. We will start with development, market information, price adjustment and sales network and establish a new marketing strategy program to promote this category. At the same time, Welly will not give up the overseas market, which is the fruit of our years of effort. A strategy combining export and domestic sales would be developed. ” Chan added.

 

About Welly:

     Welly Die Casting Product Co., Ltd has years of experience in R&D, production and export of toy cars. It has close business relationship with Benz, BMW, Porsche and Volkswagen. Its products are distributed all around the world. Its business scope includes production and sales of die-cast models, R&D of electronic part of R/C cars, etc. At present, it owns exceeding 40 different brands with patent.