Hi, welcome back to this blog. How’s your toy business anyway? Still make a good growth over the past 2008? I spoke to many friends from various retailers such as Kidz Station, Toys City, Petra Toys, Matahari, Indomaret, Carrefour, Hypermart, Metro, Sogo, and other individual Babyshops that they’re very happy with their last year turnover. The figure is ranging from 20 – 50% of incremental YoY basis, and I have to tell you that I have a friend who got four times monthly salary bonus! Unbelievable? Yes, against all odds in Indonesian toy business there is always an opportunity to grow because there is still much room to do so.
That’s the story of the last year. What is Indonesia toy business 2009 going to be? In my personal opinion, at the top pictures retail business as an umbrella of toy business this year seem to be forced to become a fund-rising of their respective owners particularly for immediate term in political involvement. Media industry in other side also enjoy season in the sun as they received more advertising order from more of legislator and president hopeful or incumbent. This year is more to political year, the Asia most festive democratic buzz of general election is ready to come, and hot money is in the air. More people enjoy easy money. And in the other hand hopefully government economic incentive program in public projects also doing well as one of the solutions against unemployment due to the global bad economy. And somewhat easy come, will easy goes. Then where is that huge money goes? Little part goes to banks as saving (and due to more transparency environment this is really traceable), and the bigger part will likely trickling-up goes to retail over time as spending.
In narrower pictures we can go through Indonesia toy business 2009 at retail level, there will be more intense in space issues. Importers, distributors, and retailers all part will rationalize space over productivity. More price increase, more brands, more SKUs, more unmoving items, more death stock, more target sales per square meter, all end up with more impossible space to grow and decreasing average basket per spending of customers. This year is likely going to be “discounting” year. You will see more and more offering of price discount everyday. But still there is one rule in this stage - survival of the fittest; productivity by means of product mix, retail execution, retail solution, and retail communication. And yet more is less, and less is more. Your offering products along with right price, and right initiative retail solution such PDQ, check-out counter display, special racks, special nets, unique basket/containers , clip-strip, that may fit to optimize space in store will be very much welcome.
What other insight? How hard the Indonesia toy business situation in 2009 is, it doesn’t wise not to stay in touch with your customers. Keep communicate with them what happen in your brands such as new launch, promo programs, or may by it’s perfect time for charity program with all those slow moving or death items. Remember, sometime business is also about to give. Please always bare with your customer even during hard times, at the end of time you will benefited from your moves. You will find yourself in front row of competition when the bad situation is recovered.
Reinventing your product portfolio. There should both ways. First, keep nurturing, maintaining, and growing you existing core brands. For instance, if you are very focused in Baby Products, Girls, and Boys, better to stick with those core category brands. Those brands are already have their own market-share and their loyal customers and delivers 80 percent of your business turnover. Second, as an anticipation and response to a slower market, try to develop (yes it is again more investment) your own brand, OEM, or private label tailored with targeted specific channel along with it’s marketing program and retail solution. Novelties such as; mini themed-blocks, games, crafts, education toys, bubbles, dough, sand art, play balls, squeeze balls, jump ropes, spinning tops, paddle balls, etc. are some of good examples for you to start with. Lower price, good playing value, high return, and easy to sell. In this year of 2009, if you can focus with this category, you can make it as your strength as well in offering product to your customers. And at the end you'll find your toy business as a survivor among other players in the industry.
That’s the story of the last year. What is Indonesia toy business 2009 going to be? In my personal opinion, at the top pictures retail business as an umbrella of toy business this year seem to be forced to become a fund-rising of their respective owners particularly for immediate term in political involvement. Media industry in other side also enjoy season in the sun as they received more advertising order from more of legislator and president hopeful or incumbent. This year is more to political year, the Asia most festive democratic buzz of general election is ready to come, and hot money is in the air. More people enjoy easy money. And in the other hand hopefully government economic incentive program in public projects also doing well as one of the solutions against unemployment due to the global bad economy. And somewhat easy come, will easy goes. Then where is that huge money goes? Little part goes to banks as saving (and due to more transparency environment this is really traceable), and the bigger part will likely trickling-up goes to retail over time as spending.
In narrower pictures we can go through Indonesia toy business 2009 at retail level, there will be more intense in space issues. Importers, distributors, and retailers all part will rationalize space over productivity. More price increase, more brands, more SKUs, more unmoving items, more death stock, more target sales per square meter, all end up with more impossible space to grow and decreasing average basket per spending of customers. This year is likely going to be “discounting” year. You will see more and more offering of price discount everyday. But still there is one rule in this stage - survival of the fittest; productivity by means of product mix, retail execution, retail solution, and retail communication. And yet more is less, and less is more. Your offering products along with right price, and right initiative retail solution such PDQ, check-out counter display, special racks, special nets, unique basket/containers , clip-strip, that may fit to optimize space in store will be very much welcome.
What other insight? How hard the Indonesia toy business situation in 2009 is, it doesn’t wise not to stay in touch with your customers. Keep communicate with them what happen in your brands such as new launch, promo programs, or may by it’s perfect time for charity program with all those slow moving or death items. Remember, sometime business is also about to give. Please always bare with your customer even during hard times, at the end of time you will benefited from your moves. You will find yourself in front row of competition when the bad situation is recovered.
Reinventing your product portfolio. There should both ways. First, keep nurturing, maintaining, and growing you existing core brands. For instance, if you are very focused in Baby Products, Girls, and Boys, better to stick with those core category brands. Those brands are already have their own market-share and their loyal customers and delivers 80 percent of your business turnover. Second, as an anticipation and response to a slower market, try to develop (yes it is again more investment) your own brand, OEM, or private label tailored with targeted specific channel along with it’s marketing program and retail solution. Novelties such as; mini themed-blocks, games, crafts, education toys, bubbles, dough, sand art, play balls, squeeze balls, jump ropes, spinning tops, paddle balls, etc. are some of good examples for you to start with. Lower price, good playing value, high return, and easy to sell. In this year of 2009, if you can focus with this category, you can make it as your strength as well in offering product to your customers. And at the end you'll find your toy business as a survivor among other players in the industry.
