Every time I do business presentations or speaking in a training forum, I always want to open discussions with a basic understanding or insight of the industry where we're in. I loved to start the session with "why" question. For this subject - Why toy business? To answer this question there are three insights I want to share with you today. In toy industry, I call it Three Basic Rules of Toy Business which cover the following ideas:
1. The beauty of toys is that they sell all year long.
It has long been among the most controversial and debatable issues in toy business. Some say toys can only sell twice a year, when there is a birthday, and when X-mas or Lebaran day. Most people believed that. Everybody agrees that, including the senior commissioner and a well-known business consultant in my current company. Employees acknowledged it. Mr. Sastro, how can you say that toys can sell all year long? Do you forget that toy product is very seasonal-related? Yes, I don't deny that there are seasonal passages in toy business, but as an opposed to those people and those questions I have data that during a year, there is no month with no sales. And furthermore if you take a look into monthly sales, even there is no single day with no sales. It proven that we can sell toy everyday! I believed, as far as people still go to the mall or toy shops or you still have an access to present your product to your prospective customers there is always an opportunity to sell toys. Particularly for Indonesian market, data tells us that during q1 total sales turnover is about 23%, in q2 is decreased to 21% which is the weakest sale in the year, but soon to increase become 24% in q3, and end up to 32% in last quarter. It's agreeable that the q4 is the strongest quarter during the year in selling toys. From those data we can see the average sales from quarter to quarter is fairly flat. Yes there is a little spike in q4, but who said that 24% in q2 is not a descent contribution of sales?
2. There is always reason for customer to buy toys.
Everything in this world starts with a reason. And there are many reasons why customers (everybody, parents, you!) buy toys. Let's begin with babies. People buy toys because of newborn babies. Parents nowadays are aware on how important to have a good head start in baby's life. One of the important things to have it is by picking the right toys at the right moment in baby's mental and physical developments. Relatives, colleagues, friends, neighbor, every so often they like to present toys during baby shower. Everyday there is newborn baby. There is always opportunity to sell baby's product everyday. There is 4 million babies in Indonesia a year. High birth rate, good for business. The second reason to buy toys is birthday. Toys are always in the list when it comes to give a birthday present for babies, toddler, preschooler, teens and young ages. There is a birthday on everyday, so there is always reason to sell toys for birthday gifts. The next reason to buy toys is holiday. School holiday is one of the most anticipated moments for children and family. In traveling, outdoors living, or just spend the day at home, playing toys is one of have-to-do list items. It's time to refresh your family's life, fend off boredom, and rejoice the closeness among your family members. The other reason why customer encouraged to buy toys is celebration. Your kid got medal in a competition, passed an exam with excellence, school or other vocational graduation, or just recovered from an illness, are some of examples that deserve to be celebrated. I have two children (boy and daughter), it really did for me! Toys actually are good reward for those impressionable moments. Last but not least, why people buy toys is because of collection. It's all about hobby. Many leading toy brands may have benefited from collector communities. And yet collectibles toy items will always find a sweet home in collector's mind.
3. The most important things is to know which toys are selling.
Toy industry is pretty much related with trends. Don't think you know it all when it comes to trends and seasons. It's always hard to predict what type of toys that will be boomed and succeed in market. Your wisdom and expertise in this business will guide you in knowing and managing the trends and help to naturally reduce mistakes. So, the most important things is to understand which toys are selling to fulfill that particular customer's reason in toy-buying (see point no.2). You need to manage the trends and product selections. Trends are more to what will happen in the foreseeable future and product selections are more to how you decide your range of toy products to anticipate and cope not just the trends but also basic customer's reasons mentioned above. In addition to help you get better understanding to choose the right toy product is by listening your customer. I remembered Charles Lazarus (founder of Toys "R" Us) once quoted "Give the customer what they want". But I'd rather go to add it into my own quote: "Give the customer what they want. Give it in different ways". On the implementation in a specialty store, you need to have complete range of right and unique product for babies, education, games, boys, girls, hobby, outdoors, youth electronics, etc. You need to be remembered by your customers because of your uniqueness in your brands/products and services. This is how you should see the meaning of different ways in your business.
As for reference I hope this Three Basic Rules of Toy Business helps you staying true with your current businesses and activities. Enjoy your weekend with your beloved ones. Have a nice day..
1. The beauty of toys is that they sell all year long.
It has long been among the most controversial and debatable issues in toy business. Some say toys can only sell twice a year, when there is a birthday, and when X-mas or Lebaran day. Most people believed that. Everybody agrees that, including the senior commissioner and a well-known business consultant in my current company. Employees acknowledged it. Mr. Sastro, how can you say that toys can sell all year long? Do you forget that toy product is very seasonal-related? Yes, I don't deny that there are seasonal passages in toy business, but as an opposed to those people and those questions I have data that during a year, there is no month with no sales. And furthermore if you take a look into monthly sales, even there is no single day with no sales. It proven that we can sell toy everyday! I believed, as far as people still go to the mall or toy shops or you still have an access to present your product to your prospective customers there is always an opportunity to sell toys. Particularly for Indonesian market, data tells us that during q1 total sales turnover is about 23%, in q2 is decreased to 21% which is the weakest sale in the year, but soon to increase become 24% in q3, and end up to 32% in last quarter. It's agreeable that the q4 is the strongest quarter during the year in selling toys. From those data we can see the average sales from quarter to quarter is fairly flat. Yes there is a little spike in q4, but who said that 24% in q2 is not a descent contribution of sales?
2. There is always reason for customer to buy toys.
Everything in this world starts with a reason. And there are many reasons why customers (everybody, parents, you!) buy toys. Let's begin with babies. People buy toys because of newborn babies. Parents nowadays are aware on how important to have a good head start in baby's life. One of the important things to have it is by picking the right toys at the right moment in baby's mental and physical developments. Relatives, colleagues, friends, neighbor, every so often they like to present toys during baby shower. Everyday there is newborn baby. There is always opportunity to sell baby's product everyday. There is 4 million babies in Indonesia a year. High birth rate, good for business. The second reason to buy toys is birthday. Toys are always in the list when it comes to give a birthday present for babies, toddler, preschooler, teens and young ages. There is a birthday on everyday, so there is always reason to sell toys for birthday gifts. The next reason to buy toys is holiday. School holiday is one of the most anticipated moments for children and family. In traveling, outdoors living, or just spend the day at home, playing toys is one of have-to-do list items. It's time to refresh your family's life, fend off boredom, and rejoice the closeness among your family members. The other reason why customer encouraged to buy toys is celebration. Your kid got medal in a competition, passed an exam with excellence, school or other vocational graduation, or just recovered from an illness, are some of examples that deserve to be celebrated. I have two children (boy and daughter), it really did for me! Toys actually are good reward for those impressionable moments. Last but not least, why people buy toys is because of collection. It's all about hobby. Many leading toy brands may have benefited from collector communities. And yet collectibles toy items will always find a sweet home in collector's mind.
3. The most important things is to know which toys are selling.
Toy industry is pretty much related with trends. Don't think you know it all when it comes to trends and seasons. It's always hard to predict what type of toys that will be boomed and succeed in market. Your wisdom and expertise in this business will guide you in knowing and managing the trends and help to naturally reduce mistakes. So, the most important things is to understand which toys are selling to fulfill that particular customer's reason in toy-buying (see point no.2). You need to manage the trends and product selections. Trends are more to what will happen in the foreseeable future and product selections are more to how you decide your range of toy products to anticipate and cope not just the trends but also basic customer's reasons mentioned above. In addition to help you get better understanding to choose the right toy product is by listening your customer. I remembered Charles Lazarus (founder of Toys "R" Us) once quoted "Give the customer what they want". But I'd rather go to add it into my own quote: "Give the customer what they want. Give it in different ways". On the implementation in a specialty store, you need to have complete range of right and unique product for babies, education, games, boys, girls, hobby, outdoors, youth electronics, etc. You need to be remembered by your customers because of your uniqueness in your brands/products and services. This is how you should see the meaning of different ways in your business.
As for reference I hope this Three Basic Rules of Toy Business helps you staying true with your current businesses and activities. Enjoy your weekend with your beloved ones. Have a nice day..
