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China Toy Expo: steady growth and important developments

Key4 — Mon, 31 Jan 2011 00:00:00 +0100

Written by Daniele Caroli


A constant growth characterizes the China Toy Expo event, organized by the China Toy Association in collaboration with Goalmark International Exhibition Co., in Shanghai. Held from October 12th to 14th, 2010, at the New International Expo Center, the 9th edition of the International Trade Fair for Toys, Hobby &; Baby Articles hosted, on an exhibition area of 43,500 square meters, about 800 exhibitors from 14 countries (one important fact is that, among the Chinese companies participating, 86 percent were producers), for a total of 2,100 stands, and has attracted more than 50,700 trade visitors from 104 countries and regions.
Regarding turnout, the organization reports a significant increase in visitors from Russia, Korea, Japan, Indonesia and Vietnam, and notes that Chinese players in the toy business, buyers and retailers, representing more than 200 major cities in the country, could be divided not only in importers and exporters, distributors and wholesalers, but also included regional managers of shopping malls and chain stores and specialty retailers.

A huge structure
The China Toy Expo is held in the enormous structure of the Shanghai New International Expo Center, Pudong area, which in the same days in October 2010 hosted a large show addressed to professionals in the music industry.
On the left of the vast central courtyard, on the edge of which stand dozens of buildings, the exhibition of toys and products for young children occupied three halls (W3, W4 and W5) and three smaller prefabricated structures (W6, W7 and W8).
If the vast majority of exhibitors were companies producing toys and baby articles, including the most popular brands from mainland China and Hong Kong, there were also importers, trade organizations controlling chains of stores and certification institutes. Many collective exhibitions - ten - involved companies grouped by region in mainland China: for example, Chenghai (Guangdong Province) with a specialization in modeling and electronic toys, Yongjia (Zhejiang Province), specialized in the outdoor segment, companies in Dongguan and Shenzhen (Guangdong cities) and, for the first time, the area of Fujian Jinjiang, where mainly mechanical and electronic toys are produced.

Foreign participation
Foreign companies represent a very small percentage of the exhibitors at the show; however, we noted the presence of a number of European brands, present through local distributors or agents. In some cases these activities are managed in partnership by Western and Chinese operators. Harm Beishuizen, director of the Dutch New Classic Toys, has created with partners from Beijing a company to import toys from Europe, Jollyland, whose stand at China Toy Expo showed the lines of brands such as Berg, Eitech, Lena, Reig, Teifoc. Historical German brands, such as Siku and Schleich or those of the Simba-Dickie-Group, were exhibited elsewhere.
The stand of Cute-Q included instead three Italian brands: Peg Perego, TT Toys Toys and Italtrike. «;In China there is a growing interest in “Made in Italy”, thanks to the prestige of its brands and high quality products»;, said May Wong, Cute-Q Trading (Shanghai). «;It is an offer segment positioned in the high end of the Chinese market, but in our country family incomes are increasing in parallel with the development of a strong middle class, and consumers travel more, get information through the Internet and look for new products and famous brands.»;

Growth of licensing
While Hall W3 housed the most successful companies in mainland China and Hong Kong, in W4 a large area was reserved for licensing, with the presence of many well known brands in the West: among them, those managed by Warner Bros Consumer Products, Disney (including Marvel brands) and Sanrio, as well as Miffy &; Friends, Teletubbies, In the Night Garden, etc. Once at pavilion W5, we were a bit annoyed by the proliferation of packages of models based on the classic LEGO-type brick and helicopters clearly derived from the intuitions of Silverlit.
In the smaller spaces of temporary structures W6, W7 and W8 were smaller companies, some able to present innovative products, and service providers.

An appointment with a strong appeal
The China Toy Expo has greatly expanded over the past five years: the largest toy fair in mainland China is well organized and full of high quality proposals (even in the field of childcare, with the presence of all major players in the Chinese market), but does not have an international flavour, addressing mainly the domestic market. Precisely what makes it very attractive to Western operators: those interested in acquiring products for import and those wishing to insert their range in the distribution channels of the great Asian country.

On October 11th, at the Wyndham Grand Plaza Royale Oriental was held the 5th China Toy Conference: there were speeches of Chinese managers and experts, but also of representatives of the sector worldwide, including Christian Ewert (ICTI Care Foundation), Carter Keithley (TIA), Charles Riotto (LIMA), Jane Zimmy (NPD Group). The day ended with a gala dinner, during which prizes were awarded to several companies, including the Western Yummy Dough in the educational games section. On the fair grounds, on October 12th and 13th, was then scheduled a number of seminars on topics such as licensing, regulations on product safety and marketing.

Great news are announced for October 2011: the 10th China Toy Expo will combine two separate exhibitions, one dedicated to licensing (with the collaboration of LIMA) and one focused on childcare articles, China Baby Carrier and Baby Articles Fair.
It was later announced that next year the event will be held on October 18th-20th and will move to a new location, World Expo Theme Pavilion, in Shanghai.

Advantages and evolution of the Shanghai fair
 At the end of the gala evening devoted to the 9th edition of the China Toy Expo, we asked May Liang, vice president of the China Toy Association, to tell us about the exhibition in Shanghai: «;We recorded a steady growth, between 20 and 30 percent year on year»;, she states. «;In 2009, the stands amounted to about 1,600; this year they are 2,100 and this represents an increase of 30 percent. In 2009 we had filled three halls, W3, W4 and W5; this year we had to add three temporary structures. Over time, exhibitors have become representative of all the production areas of China and that is why, a few years ago, we changed the name of the event from Shanghai Toy Expo to China Toy Expo. In the meantime, several international brands entering the Chinese market have joined the fair, presenting themselves directly or through their agents or distributors: exciting opportunities for their products are opening up. Important aspects of our event include the fact that the majority of the exhibitors are manufacturers, prepared to supply both the domestic and foreign market, and that the largest Chinese companies of the involved sectors attend the show. Moreover, there are not only companies associated with the China Toy Association, but also firms which are part of regional industrial organizations through group exhibitions supported by local governments, oriented to the toy industry as an healthy, environmentally and socially useful activity. This is one of the factors contributing to the success of the China Toy Expo. Finally, we introduced the Licensing Pavilion, that has now reached its fourth edition and has continued to expand year on year, presenting very strong licenses on domestic market, as Pleasant Goat and Big Big Wolf, but also world-renowned brands»;.

In view of the close synergy between toy and licensing and the strong growth of that sector within the exhibition, it is time to create an independent trade fair for licensing, according to May Liang: «;In 2011 we will launch the first China Licensing Show in conjunction with the China Toy Fair; having different exhibitors in the childcare sector participating with satisfaction to our show, we will collect them for the first time in a special event in itself, confident that this solution will be appreciated by both producers and visitors. Such project requires the availability of a pavilion or two more, and we are committed to get it. We offer international buyers the opportunity to meet many high quality exhibitors: at present, their presence is limited because our event is still relatively new compared to Canton and Hong Kong fairs; but we are rapidly reaching up to the same size of those exhibitions. On another front, the Chinese domestic market is growing fast and it is time for international brands to approach and seize the opportunity offered by our event»;.

China Toy Expo: steady growth and important developments

Key4 — Mon, 31 Jan 2011 00:00:00 +0100

Written by Daniele Caroli, Giochi &; Giocattoli, Italian Trade Magazine

A constant growth characterizes the China Toy Expo event, organized by the China Toy Association in collaboration with Goalmark International Exhibition Co., in Shanghai. Held from October 12th to 14th, 2010, at the New International Expo Center, the 9th edition of the International Trade Fair for Toys, Hobby &; Baby Articles hosted, on an exhibition area of 43,500 square meters, about 800 exhibitors from 14 countries (one important fact is that, among the Chinese companies participating, 86 percent were producers), for a total of 2,100 stands, and has attracted more than 50,700 trade visitors from 104 countries and regions.
Regarding turnout, the organization reports a significant increase in visitors from Russia, Korea, Japan, Indonesia and Vietnam, and notes that Chinese players in the toy business, buyers and retailers, representing more than 200 major cities in the country, could be divided not only in importers and exporters, distributors and wholesalers, but also included regional managers of shopping malls and chain stores and specialty retailers.

A huge structure
 The China Toy Expo is held in the enormous structure of the Shanghai New International Expo Center, Pudong area, which in the same days in October 2010 hosted a large show addressed to professionals in the music industry.
On the left of the vast central courtyard, on the edge of which stand dozens of buildings, the exhibition of toys and products for young children occupied three halls (W3, W4 and W5) and three smaller prefabricated structures (W6, W7 and W8).
If the vast majority of exhibitors were companies producing toys and baby articles, including the most popular brands from mainland China and Hong Kong, there were also importers, trade organizations controlling chains of stores and certification institutes. Many collective exhibitions - ten - involved companies grouped by region in mainland China: for example, Chenghai (Guangdong Province) with a specialization in modeling and electronic toys, Yongjia (Zhejiang Province), specialized in the outdoor segment, companies in Dongguan and Shenzhen (Guangdong cities) and, for the first time, the area of Fujian Jinjiang, where mainly mechanical and electronic toys are produced.

Foreign participation
 Foreign companies represent a very small percentage of the exhibitors at the show; however, we noted the presence of a number of European brands, present through local distributors or agents. In some cases these activities are managed in partnership by Western and Chinese operators. Harm Beishuizen, director of the Dutch New Classic Toys, has created with partners from Beijing a company to import toys from Europe, Jollyland, whose stand at China Toy Expo showed the lines of brands such as Berg, Eitech, Lena, Reig, Teifoc. Historical German brands, such as Siku and Schleich or those of the Simba-Dickie-Group, were exhibited elsewhere.
The stand of Cute-Q included instead three Italian brands: Peg Perego, TT Toys Toys and Italtrike. «;In China there is a growing interest in “Made in Italy”, thanks to the prestige of its brands and high quality products»;, said May Wong, Cute-Q Trading (Shanghai). «;It is an offer segment positioned in the high end of the Chinese market, but in our country family incomes are increasing in parallel with the development of a strong middle class, and consumers travel more, get information through the Internet and look for new products and famous brands.»;

Growth of licensing
While Hall W3 housed the most successful companies in mainland China and Hong Kong, in W4 a large area was reserved for licensing, with the presence of many well known brands in the West: among them, those managed by Warner Bros Consumer Products, Disney (including Marvel brands) and Sanrio, as well as Miffy &; Friends, Teletubbies, In the Night Garden, etc. Once at pavilion W5, we were a bit annoyed by the proliferation of packages of models based on the classic LEGO-type brick and helicopters clearly derived from the intuitions of Silverlit.
In the smaller spaces of temporary structures W6, W7 and W8 were smaller companies, some able to present innovative products, and service providers.

An appointment with a strong appeal
The China Toy Expo has greatly expanded over the past five years: the largest toy fair in mainland China is well organized and full of high quality proposals (even in the field of childcare, with the presence of all major players in the Chinese market), but does not have an international flavour, addressing mainly the domestic market. Precisely what makes it very attractive to Western operators: those interested in acquiring products for import and those wishing to insert their range in the distribution channels of the great Asian country.

On October 11th, at the Wyndham Grand Plaza Royale Oriental was held the 5th China Toy Conference: there were speeches of Chinese managers and experts, but also of representatives of the sector worldwide, including Christian Ewert (ICTI Care Foundation), Carter Keithley (TIA), Charles Riotto (LIMA), Jane Zimmy (NPD Group). The day ended with a gala dinner, during which prizes were awarded to several companies, including the Western Yummy Dough in the educational games section. On the fair grounds, on October 12th and 13th, was then scheduled a number of seminars on topics such as licensing, regulations on product safety and marketing.

Great news are announced for October 2011: the 10th China Toy Expo will combine two separate exhibitions, one dedicated to licensing (with the collaboration of LIMA) and one focused on childcare articles, China Baby Carrier and Baby Articles Fair.
It was later announced that next year the event will be held on October 18th-20th and will move to a new location, World Expo Theme Pavilion, in Shanghai.

Advantages and evolution of the Shanghai fair
At the end of the gala evening devoted to the 9th edition of the China Toy Expo, we asked May Liang, vice president of the China Toy Association, to tell us about the exhibition in Shanghai: «;We recorded a steady growth, between 20 and 30 percent year on year»;, she states. «;In 2009, the stands amounted to about 1,600; this year they are 2,100 and this represents an increase of 30 percent. In 2009 we had filled three halls, W3, W4 and W5; this year we had to add three temporary structures. Over time, exhibitors have become representative of all the production areas of China and that is why, a few years ago, we changed the name of the event from Shanghai Toy Expo to China Toy Expo. In the meantime, several international brands entering the Chinese market have joined the fair, presenting themselves directly or through their agents or distributors: exciting opportunities for their products are opening up. Important aspects of our event include the fact that the majority of the exhibitors are manufacturers, prepared to supply both the domestic and foreign market, and that the largest Chinese companies of the involved sectors attend the show. Moreover, there are not only companies associated with the China Toy Association, but also firms which are part of regional industrial organizations through group exhibitions supported by local governments, oriented to the toy industry as an healthy, environmentally and socially useful activity. This is one of the factors contributing to the success of the China Toy Expo. Finally, we introduced the Licensing Pavilion, that has now reached its fourth edition and has continued to expand year on year, presenting very strong licenses on domestic market, as Pleasant Goat and Big Big Wolf, but also world-renowned brands»;.

In view of the close synergy between toy and licensing and the strong growth of that sector within the exhibition, it is time to create an independent trade fair for licensing, according to May Liang: «;In 2011 we will launch the first China Licensing Show in conjunction with the China Toy Fair; having different exhibitors in the childcare sector participating with satisfaction to our show, we will collect them for the first time in a special event in itself, confident that this solution will be appreciated by both producers and visitors. Such project requires the availability of a pavilion or two more, and we are committed to get it. We offer international buyers the opportunity to meet many high quality exhibitors: at present, their presence is limited because our event is still relatively new compared to Canton and Hong Kong fairs; but we are rapidly reaching up to the same size of those exhibitions. On another front, the Chinese domestic market is growing fast and it is time for international brands to approach and seize the opportunity offered by our event»;.


How to sell worldwide and at all times

Key4 — Thu, 18 Aug 2011 09:30:00 +0200
Some considerations before selling online
Most experts agree that the future of commerce is to combine physical store sales with online sales. Until recently, having an online store was something that mostly online retailers (as Amazon</a> or Ebay</a>) or large companies were interested in. In fact, many independent retailers still hesitate about whether or not to enter a field that seems complicated and even strange.

There are quite a few advantages:

-Online sales increase exponentially the number of potential customers: the store no longer has only customers in the neighbourhood or in the city; it can sell all over the country or even the entire world, depending on shipping solutions and payment currency. In addition, the customer will never find the store closed.

-Stores can offer a wider catalogue. Moreover, if the store already has a web page and shows its catalogue, it’s missing the opportunity of selling to users who were searching the web for information, and decide to buy elsewhere.

-The investment is lower than that of opening another store: no rent and less personnel costs, if any; also, the risks are also lower.

This does not mean that opening an online store does not involve hard work. In fact, one must consider many things:

-The site. There are many solutions: designers can be hired to prepare them, for example, but there are also applications that enable users to customize and launch an online store relatively easily (like Magento</a>, OpenCart</a>, PrestaShop</a>, Oscommerce</a>, DigiStore</a> ). Many of these platforms offer free services, and all allow customizing the look and of course integrating it with most payment platforms. Another option is to sell through Amazon</a>, which offers the advantage that products appear in the searches done on this online retailer.

-Method of payment. Most stores offer at least the possibility of paying by credit card or bank transfer, which offers the security of these banks. Anyway, it is also a good idea to work with platforms as PayPal</a> and Authorize</a>. Many users still prefer cash on delivery, but not many shops offer it. In any case, it is essential to allow several payment options.

-Legal issues. It is important to meet all requirements about data protection and identification of the company, while also taking into account the rights of clients, including cancellations and refunds.

-Storage can seem an impossible task, especially if the store wants to offer a wide catalogue and also respond quickly to customer demands. Anyway, there are options such as drop-shipping, which allows selling products directly to consumers without buying them first.

-Shipping and return. It is desirable to offer a fast and safe delivery, as well as adequate for the volume of articles, the number of transactions, and the market where the store sells. Many courier companies offer the possibility to follow the shipment, and stores must also consider the option of providing this information directly. The shop should also offer options for refunds at least within what the law establishes.

-Marketing. It is not enough to publish the site and wait. One must carry out communication activities: publishing offers and promotions via social networks, as well as optimising search engine strategies. Concerning social networks, it is not a bad idea to consider opening a store on Facebook.

Besides these basics, we must also bear in mind that the same items are not sold in the physical store and in the online store. Usually, customers are just looking for product information or comparing ranges or brands. If we offer the option of buying online with favourable conditions, we encourage impulse buying. Consumers also tend to buy large products online, as anyway the store would have to send them home through a messenger, and therefore waiting time is not an issue. As another example, some also buy products they already know or do not need to have on hand to value, such as books, collectibles, affordable products and accessories that accompany a major purchase, in order to take advantage of shipping costs (batteries, for example).

It is also important to differentiate the store. For example, the shop can offer free shipping to increase confidence, or niche products. This also helps to retain buyers.

It is also essential to watch the market, which is relatively new (Ebay and Amazon were born in 1995) and changes every day. Social networks are increasing their presence and importance, geolocation can also become a consumer trend, and above all, more than likely consumers will increasingly use mobile phones and tablets to buy. It is important to make the site accessible to navigation from these systems. Also, is a good idea to take into account that mobile phones could be used as a payment method: even Google is developing a mobile payment system</a>.

Online commerce is not just a fad or an emerging trend: 80% of the world has purchased online at least once, and 50% have done it twice or more. Turnover is also increasingly important: the consultant firm Forrester expects online retail sales to grow ten percent annually through 2015. In 2010, e-commerce turnover was of $176 billion in the US and $92 billion in Western Europe.

Also and for example, Toys 'R' Us expects online sales to double in 2016, and Inditex has already announced that it will take its brands to the Internet from September, after the success of the Zara virtual store.

There is no need to loose a business chance and to close the door to more potential clients every day.


China Toy Expo 2011 welcomes international attendees

Key4 — Mon, 11 Jul 2011 11:13:24 +0200
By Toy & Hobby (China), member of International Toy Magazines Association (ITMA)
The 10th International Trade Fair for Toys &; Hobby Article, arranged by China Toy Association</a>, is held in Shanghai New International Expo Center on October 12-14, 2011. As one of the most important industry event, China Toy Expo 2011 (CTE)</a> remains the largest event of its kind in the Chinese mainland. It is no doubt to have been the China’s preeminent trade event for the different types of buyers who are willing to source direct from new, quality and the greatest number of toy factories in China and Asia.

In addition, China Toy Expo 2011, is held concurrently with the China International Baby Carrier &; Baby Articles Fair</a>, and China International Licensing Show</a>, capitalizing on the synergy of the three industries and offering visitors a wide range of sourcing opportunities in toys, hobby, baby products and licensing.

The largest toy fair in Chinese mainland
Under great concern by the global toy industry, CTE 2010 surpassed the toy section at Canton Fair by growing 23% with 2,108 booths and 43,500 square meters exhibition space. In 2011, CTE will achieve 3,000 booths, 60,000 square meters with other two fairs and hit the new records. CTE with its existing figures for industry participation is the outstanding professional autumn fair in the Asian region.

The greatest number of factories
Comparing with other trade fair, China Toy Expo is a great event and unique channel for buyers to meet the Chinese factories directly. In 2011, buyers can find out that over 86% of Chinese exhibitors represent factories from more than 20 centralized production regions and they can feasible to make quality products as requested.

Buyers can not only communicate with the majority of leading toy manufacturers on each product category participating at the expo, also can find many medium-sized manufactures. So no matter where the buyer from, they will directly contact with the suitable suppliers according to their needs. Especially, they will also get to know many new exhibitors they did not see before participating at the expo with various designs.

The verified Star Suppliers
With growing awareness on toy safety, buyers are generally looking for exhibitors with recognized quality standards. The Star Supplier is a unique striking highlight of CTE. To assist international buyers to find the right suppliers for right products, China Toy Association (CTA), the organizer of CTE, launched Toy Supplier Assessment Service. The star ranking export-ready suppliers are evaluated closely related to the real business performances.

Buyers could identify reliable Chinese suppliers easier via the Star Supplier logo at CTE, and find more information at the association web site</a>.

A wide range of product selections from all major production regions
The group pavilions from production regions are the most distinctive spotlights of CTE. In 2011, ten group pavilions present the major production regions in all China including wooden toys, plush toys, playground equipments, plastic &; electronic toys, and hobby models. They are showing the achievements of ‘made in China’, to ensure buyers can find everything in one place.

China Kids Expo -- More rewarding opportunities
A spin-off from the China Toy Expo, China Baby Carrier &; Baby Articles Fair (China Kids Expo) responds to growing worldwide demand for quality baby products. With being rooted in China Toy Expo and 10 years development, China Kids Expo possesses rich resources of baby products’ manufacturers and becomes the only international trade fair in Chinese mainland which exhibitors are really factories.

This year, China Kids Expo will present buyers with a wide product selection from baby stroller, car seat to toys, clothing, feeding products, furniture and home accessories, etc. There are more export-ready suppliers who produce quality and reliable products at reasonable price points to meet all buying professionals with diversified sourcing needs.

New challenges for Japan’s toy market

Key4 — Tue, 31 May 2011 12:13:39 +0200
By Atsuko Tatsumi, publisher, Weekly Toy News (Japan), member of International Toy Magazines Association (ITMA)
More than two months have passed since Japan was struck by an earthquake and tsunami of unprecedented strength. The country is still in trouble because of the damage the tsunami brought to the nuclear power reactor at Fukushima. The supply of electric power to Tokyo and a large area around the capital has been reduced and this is causing frequent black-outs; everyone is invited to contribute to energy savings and the urban lighting is off in the night. Due to radiation leaking from the power plant, there are restrictions imposed by the government on the food coming from the area near to the reactor, an important one for fisheries and agriculture, affecting vegetables, fish and even rice. The population is scared, feeling unsafe in the selection of food.

The area hit by the March earthquake is the North-eastern part of the Honshū island: it comprises 12% of the country’s total population and 90% of it was badly damaged. 20,000 people died and more than 20,000 are still missing. About 100,000 people are now homeless: they live in city halls, schools, hotels or relatives’ or friends’ houses. The conditions are very hard especially for kids and old people, although the government plans to build small houses to host most of the survivors, by summer’s end.

Problems ahead for the Japanese toy industry
The Japanese toy industry, soon after the disaster, has engaged itself in offering great quantities of its products and carrying them to the eartquake area, hoping this way to give some relief to the children.

As concerns the toy business, one consequence of the earthquake and tsunami is the damage to specialist retailers. At least 60 toy shops have been destroyed in the affected area and although some of them are being rebuilt and returning to operativity, for most retailers survival is still difficult. A great amount of money has been donated by the owner of a big toy company in order to assist them; it will certainly be used to go back to work but for people who have lost their houses and stores it will take time – months, a year – to set up their activity again.

As a whole, the Japanese people is badly suffering for what happened and living tough times. Since March 11, the consumer market has generally contracted. The toy business in April registered a 12% decrease compared with the same month of the previous year. Many other industry branches have been affected as well, however, because of damages to their production sites. This is a serious problem for the future of the Japanese economy.

Tokio Toy Show will be held as scheduled
Notwithstanding such difficulties, the Japan Toy Association</a> has decided that Tokyo Toy Show will be held as already scheduled in June 2011, from 16 to 19. It is difficult to forecast the attendance for this edition of our Toy Fair, which is open to the general public on the last two days, usually attracting kids and families in the order of more than 100,000 units.

Due to the situation, the Japanese toy producers have reduced the announcements of new items and no one expects the toy business will do good this year. For instance, it is at the moment very difficult to sell battery-operated toys and the retailers are promoting toys and games that do not require batteries, such as trading card games, jigsaw puzzles, board games, categories which are all performing well. The toy industry is engaged in a promotion campaign about the importance of toys as tools for the kids’ healthy growth. We are sure the Japanese consumers will in any case continue buying toys, probably looking for cheaper ones with good play value, because parents will feel happy if their children spend some of their time joyfully.

The summer holiday period is coming soon but in Japan this year it cannot be enjoyed as before. We all hope we can get back to normal life soon.

MIPTV 2011 gathers 11.500 audiovisual contents professionals

Key4 — Mon, 11 Apr 2011 09:08:39 +0200
The Cannes fair registers similar figures compared to last year
The event focused on audiovisual content</a> gathered 1.500 exhibitors and 11.500 participants in representation ;of 3.957 TV, cinema and internet companies. The fair took place in Cannes between 4th ant 7th April and ;registered similar figures compared to 2010, when 13.000 professionals from 100 countries visited the event. ;The fair organizers were also satisfied with MIPDoc success. This documentaries market celebrated the ;weekend before MIPTV registered 767 visitors. ;</div>

State of the Toy Industry: 2011

Key4 — Thu, 24 Mar 2011 12:45:28 +0100
Sean McGowan, contributor to The Toy Book (USA), ITMA member magazineContent not available free

Reflections for 2011

Key4 — Thu, 03 Feb 2011 00:00:00 +0100

Social networks have not only become a channel for communication, but also our ally. According to our sales management expert, Victor Valencia, “Manufacturers are managers of networks, opinion groups and promotion, but they could facilitate their sales if they used a similar tag to that in advertisements for medications: ; “Consult with your retailer or obtain the advice of your sales point”. ; Taking advantage of the possibilities offered by social networks, manufacturers could obtain even better results. ; The return on their investments would improve as the costs associated with production, launches and amortization would become much more profitable.”

It has been a while since fair winds have blown in terms of family spending (although in reality, only the last two years have been truly difficult, even though it seems as though it has been an eternity!). ; The worldwide economy grows steadily closer to the American model where private consumption has replaced the consumption of services and industry as the driving force. ; Many families are not in a situation to spend beyond their current means or on credit, something which requires two conditions: ; job security and stability coupled with a solid economic outlook. ;

Caught in the middle of this maelstrom, retailers, manufacturers and distributors find themselves all in the same boat, although marked by varying degrees of desperation. Everyone watches falling sales, which in turn, slowly and inevitably provoke a reduction in distribution channels, those businesses which previously acquired our products in order to fill their shelves and storefronts, storefronts which now are only displaying ‘For Sale’ or ‘For Rent’ signs. ;

The market is shrinking in spite of voices from some politicians self-congratulating themselves for obtaining 0% economic growth. ; Short of taking drastic measures and practicing some sort of fiscal disobedience (history has given us many examples of effective rebellion through refusal to pay taxes or tributes), our only consolation is to sit it out and hope that things improve soon as political winds change and evolve.

Adapting to Reality
 To survive in this reality, we have to be clever and always learning. ; Those of you in the business world are probably familiar with SWOT analyses which involve looking at Strengths, Weaknesses, Opportunities and Threats and then following up by correcting the weaknesses, adapting to the threats, maintaining the strengths and exploring the opportunities. ; The pieces which are especially relevant to our needs are looking at the potential threats and opportunities and adapting and exploring accordingly.

Creativity in terms of what is on offer is the primary line of defense in the face of shrinking consumption on the part of the consumer. ; The majority of consumers treat their purchases as a type of investment in which added value and the return become deciding factors. ; In terms of babycare items, purchases are additionally justified based on the following principles:
• ; ; ; The ability to share or pass on the item: if something can be shared the unit price is reduced. ; If something can be passed along to various members of the family, the overall expense is diluted if everyone uses the item or it receives a lot of use in general and the overall unit price is reduced in contrast to a situation where only one user enjoys the item. ; We can see this reflected in the example of family who buys a SUV and explains, “well, if we use it to bring the kids to school, they’ll be safer because they are riding higher in the vehicle. ; Since it’s a SUV, in theory we have improved visibility thanks to the height, which also makes it easier to anticipate the moves of the other cars, and to top it off, they yield to us because we’re so big!” ; This elaborate justification is created because if the family simply states, “I really like the idea of an SUV” they’ll end up without the SUV. ; So, as you can see, shared advantages are fundamental for sales.

• ; ; ; Left-brained practicality or right-brained dreaminess: ; the message must be clearly defined. ; If the purpose of the purchase is motivated by desire or a wish, the right brain is in charge, meaning that all messages, the presentation and the overall mood of the product need to be set and created with these needs in mind. ; On the other hand, if we are hoping that the price is going to be the prime motivator leading the consumer from the initial proposition to the actual sale, technical characteristics and the real cost will be the keys to success. ; Contradictory messages are counterproductive and will end up driving the client mad. ; If the client doesn’t clearly understand the messages being sent, then they will stop listening to what we are trying to tell them. ;

• ; ; ;Flexible pricing: ; “from” and “up to”, in addition to being prepositions, are also part of the so-called “complementary budget”. ; If an article can be purchased in two or more parts, it ceases to be just one product, but becomes various products. ; In this respect, the final price may be deemed adequate, once, twice, three or even more times. ; If the product is composed of various components which can be opened separately, the excitement can be multiplied and shared among the group. ; It’s not the same to present something as “a present from the six of us” as it is to enable each member of the group to give their individual gift leading to a total of six lovely packages to open. ; It makes no difference that they are components of the same gift, either as individual components or accessories. ; For example, in the case of a gift of diving equipment (let’s say a mask, fins, snorkel, net and an underwater camera), opening one present is not the same as opening five, which represents five times as much excitement (although the order in which the gifts are opened it is important). ; Toys and licensed products with accessories serve to raise the total sticker price and leave room for the possibility of “…and for just a bit more” or “if anyone else in the family wants to join in…” as well as leaving room for all budgets. ; It’s like the joke about asking for “divorced Barbie” since she would come with more than your average Barbie- with Ken’s house, Ken’s car, Ken’s horse, etc.

• ; ; ;Additional use providing added value: ; For example, a children’s video could be the perfect present for the youngest member of a household. ; However, if that movie can be watched in other languages or has subtitles, it can also be an educational tool for an older sibling since children’s films are usually easy to follow and it gives the older sibling the chance to watch the movie as well while saving themselves from the embarrassment of watching something “for little kids”. ; A videogame can become a tool to help with family life for parents and children while also being educational and awaking an urge for further investigation of a topic. ; This is a prime example of where both parents and manufacturers play an essential role. ; A video game based on car racing can serve as a vehicle for project-based learning. ; For example, it could launch an investigation into what the various rules are around the world in order to make the races the most sporting and fairest possible, which could even turn out to be fun for everyone. ; The key point is that it be designed to provoke a curiosity which goes beyond the actual video game. ; I’m not referring to creating a long-winded lecture about automotive racing rules, but rather something which could lead to a child developing their knowledge beyond that of their playmates and noticing real life rules which could then transfer into knowledge about other sports or social relationships and allow them to further their life skills. ; Looking to provide additional uses is essential in order to increase sales.

While we can’t truly imagine the current economic cycle changing based on our individualized actions, and the idea of altering our own country’s economy based on our lone actions is utopian, we do have the option of making a concerted effort to ensure that a consumer chooses a determined product over another by adapting our language and positioning to the consumer’s needs in the moment regarding their “investment”. ;

Going back to our SWOT analysis, we can see that it is clear how to approach the perceived threats by adapting. ; Now it is time to examine the opportunities and how to explore them.

Little by little we are realizing that there are some things which are simply better than others, that not everything traditional is worse than the modern equivalent, and that the traditional options are often the fruit of years of trial and error. This is what often leads us back to the tried and true. ; The pendulum is swinging back and the values of saving, austerity, sensibleness, hard work, constancy and training are a reflection of the reality of what is truly worthwhile.

Social Networks
 Social networks are our ally as well as being a channel of communication. ; At the moment, the buzz is all around social networks as if they had never existed before (that’s marketing for you- they give it a new name and introduce a few minor changes and sell it as revolutionary!). ; If Zara was able to create a following among young people in a world without cell phones (looking at their early success in Spain, back in the 1990s), using just word-of-mouth, it’s abundantly clear that social networks already existed although they were previously called fashions or trends.

The generation of cell phones and Facebook is nothing new, they are representative of improvements to our ability to spread the word about something among young people thanks to the use of advanced communication technologies. ; Previously there were other technologies which allowed for speedy and widespread communication. ; The so-called “opinion leaders” of today are the evolution of earlier decades’ teen idols.

Today’s reality is different and more difficult. ; The overall collective mass of youth has been reduced (the baby boom is long over). ; This fact coupled with the increasingly shortened lifespan of a product (they are introduced and die off so quickly due to our market being based on supply, where more is produced than consumed) brings us to the necessity of being able to reach the greatest number of consumers in the shortest time possible and ensuring that every launch is a success. There are no second chances and the days of long-lived products with ample time within which to produce a profit are over. ;
Social networks are a type of communication system with a significantly lower cost per impact than any other type of media. ; This is the root of their importance and the motivation behind trying to bestow them with the appearance of being able to bring us closer to the gurus who manage public opinion.

The consumer is actually much more savvy than that, but it would be ridiculous to minimize the importance of social media. ; We need to accurately recognize its importance and place. ; It is one more mode of communication which has a certain capacity for influence when used in the context of a well thought out idea. ; And this is exactly where opportunity arises.
When a parent decides to purchase a product for their child based on more than pure trendiness, they take many additional things into consideration if it helps them to see the situation more clearly and justifiably. ; The phrase “Well, if you want I can sell you this one, but if it were for my child, I would take this one because… and also… and furthermore…” can have a devastating effect causing the buyer to begin to question all of their previous notions. ; If the rational behind the sale is coherent and it is clear how to pass this information along to the child, everything becomes easier and a responsible sale can be made. ; This is how businesses last; it is the type of message that predisposes the client favorably toward the establishment and allows for the possibility of offering advice and guidance, which in turn creates a loyal network of clients who are willing to recommend the business to their friends. ; And here is exactly where and how the business has developed its own social network. ; Make no mistake, this is nothing new, but we seem to have stopped communicating this advice and applying it in the course of the day-to-day. ; Among all the research, knowledge, information and education, we have lost site of what is truly important, that responsible, well-directed sales are what best allow us to guide our clients in the majority of cases.

If the purchase is being made based on something being considered fashionable, and the client is capable of reasoning (something that isn’t always guaranteed), we can talk to them about adding an additional touch of distinction or, on the contrary, steer them toward a carbon copy. ; Being included in and belonging to a certain group doesn’t mean copying 100% but rather that within that group you can take advantage of chances to choose what suits and what you like without renouncing your own personality, because, after all, you are unique.

Social networks are key, but they are not a panacea. ; Each and every one of us can create our own social network. “In this establishment, we not only sell toys, but help teach how to get along, developing young imaginations, minds and bodies through play.”

Manufacturers are managers of networks, opinion groups and promotion, but they could facilitate their sales if they used a similar tag as in advertisements for medications: ; “Consult with your retailer or obtain the advice of your sales point”. ; ; Taking advantage of the possibilities offered by social networks and really pushing them even further, the life cycle of products could be longer and manufacturers could obtain even better results while increasing their options for diversification. ; The return on their investments would improve as the costs associated with production, launches and amortization would become much more profitable. ; In the end, a business which only acts thinking in the moment will ultimately pay a high price.

As the pendulum swings back, new opportunities present themselves; society as a whole is reflecting on values and past mistakes. ; Those who first realize that we are headed toward an age of reason and logic will already have gained ground. ; The pat phrase “who can say no to a child?” may work for sales in the here and now, but by casting a shadow of doubt and asking a parent to reflect on whether they are making short or long term choices for their child, what do you think they will decide?
This is the moment where you must decide whether you are a manufacturer or business of the here and now, a shooting star so to speak, surviving only a few tenths of a second, or if you will choose a guaranteed future, shining like our own sun, lasting for thousands of years.

Reflections for 2011

Key4 — Thu, 03 Feb 2011 00:00:00 +0100

Reflections for 2011

Social networks have not only become a channel for communication, but also our ally. According to our sales management expert, Victor Valencia, “Manufacturers are managers of networks, opinion groups and promotion, but they could facilitate their sales if they used a similar tag to that in advertisements for medications: ; “Consult with your retailer or obtain the advice of your sales point”. ; Taking advantage of the possibilities offered by social networks, manufacturers could obtain even better results. ; The return on their investments would improve as the costs associated with production, launches and amortization would become much more profitable.”

It has been a while since fair winds have blown in terms of family spending (although in reality, only the last two years have been truly difficult, even though it seems as though it has been an eternity!). ; The worldwide economy grows steadily closer to the American model where private consumption has replaced the consumption of services and industry as the driving force. ; Many families are not in a situation to spend beyond their current means or on credit, something which requires two conditions: ; job security and stability coupled with a solid economic outlook. ;

Caught in the middle of this maelstrom, retailers, manufacturers and distributors find themselves all in the same boat, although marked by varying degrees of desperation. Everyone watches falling sales, which in turn, slowly and inevitably provoke a reduction in distribution channels, those businesses which previously acquired our products in order to fill their shelves and storefronts, storefronts which now are only displaying ‘For Sale’ or ‘For Rent’ signs. ;

The market is shrinking in spite of voices from some politicians self-congratulating themselves for obtaining 0% economic growth. ; Short of taking drastic measures and practicing some sort of fiscal disobedience (history has given us many examples of effective rebellion through refusal to pay taxes or tributes), our only consolation is to sit it out and hope that things improve soon as political winds change and evolve.

Adapting to Reality
 To survive in this reality, we have to be clever and always learning. ; Those of you in the business world are probably familiar with SWOT analyses which involve looking at Strengths, Weaknesses, Opportunities and Threats and then following up by correcting the weaknesses, adapting to the threats, maintaining the strengths and exploring the opportunities. ; The pieces which are especially relevant to our needs are looking at the potential threats and opportunities and adapting and exploring accordingly.

Creativity in terms of what is on offer is the primary line of defense in the face of shrinking consumption on the part of the consumer. ; The majority of consumers treat their purchases as a type of investment in which added value and the return become deciding factors. ; In terms of babycare items, purchases are additionally justified based on the following principles:

• ; ; ; The ability to share or pass on the item: if something can be shared the unit price is reduced. ; If something can be passed along to various members of the family, the overall expense is diluted if everyone uses the item or it receives a lot of use in general and the overall unit price is reduced in contrast to a situation where only one user enjoys the item. ; We can see this reflected in the example of family who buys a SUV and explains, “well, if we use it to bring the kids to school, they’ll be safer because they are riding higher in the vehicle. ; Since it’s a SUV, in theory we have improved visibility thanks to the height, which also makes it easier to anticipate the moves of the other cars, and to top it off, they yield to us because we’re so big!” ; This elaborate justification is created because if the family simply states, “I really like the idea of an SUV” they’ll end up without the SUV. ; So, as you can see, shared advantages are fundamental for sales.

• ; ; ;Left-brained practicality or right-brained dreaminess: ; the message must be clearly defined. ; If the purpose of the purchase is motivated by desire or a wish, the right brain is in charge, meaning that all messages, the presentation and the overall mood of the product need to be set and created with these needs in mind. ; On the other hand, if we are hoping that the price is going to be the prime motivator leading the consumer from the initial proposition to the actual sale, technical characteristics and the real cost will be the keys to success. ; Contradictory messages are counterproductive and will end up driving the client mad. ; If the client doesn’t clearly understand the messages being sent, then they will stop listening to what we are trying to tell them. ;

• ; ; ;Flexible pricing: ; “from” and “up to”, in addition to being prepositions, are also part of the so-called “complementary budget”. ; If an article can be purchased in two or more parts, it ceases to be just one product, but becomes various products. ; In this respect, the final price may be deemed adequate, once, twice, three or even more times. ; If the product is composed of various components which can be opened separately, the excitement can be multiplied and shared among the group. ; It’s not the same to present something as “a present from the six of us” as it is to enable each member of the group to give their individual gift leading to a total of six lovely packages to open. ; It makes no difference that they are components of the same gift, either as individual components or accessories. ; For example, in the case of a gift of diving equipment (let’s say a mask, fins, snorkel, net and an underwater camera), opening one present is not the same as opening five, which represents five times as much excitement (although the order in which the gifts are opened it is important). ; Toys and licensed products with accessories serve to raise the total sticker price and leave room for the possibility of “…and for just a bit more” or “if anyone else in the family wants to join in…” as well as leaving room for all budgets. ; It’s like the joke about asking for “divorced Barbie” since she would come with more than your average Barbie- with Ken’s house, Ken’s car, Ken’s horse, etc.

• ; ; ;Additional use providing added value: ; For example, a children’s video could be the perfect present for the youngest member of a household. ; However, if that movie can be watched in other languages or has subtitles, it can also be an educational tool for an older sibling since children’s films are usually easy to follow and it gives the older sibling the chance to watch the movie as well while saving themselves from the embarrassment of watching something “for little kids”. ; A videogame can become a tool to help with family life for parents and children while also being educational and awaking an urge for further investigation of a topic. ; This is a prime example of where both parents and manufacturers play an essential role. ; A video game based on car racing can serve as a vehicle for project-based learning. ; For example, it could launch an investigation into what the various rules are around the world in order to make the races the most sporting and fairest possible, which could even turn out to be fun for everyone. ; The key point is that it be designed to provoke a curiosity which goes beyond the actual video game. ; I’m not referring to creating a long-winded lecture about automotive racing rules, but rather something which could lead to a child developing their knowledge beyond that of their playmates and noticing real life rules which could then transfer into knowledge about other sports or social relationships and allow them to further their life skills. ; Looking to provide additional uses is essential in order to increase sales.

While we can’t truly imagine the current economic cycle changing based on our individualized actions, and the idea of altering our own country’s economy based on our lone actions is utopian, we do have the option of making a concerted effort to ensure that a consumer chooses a determined product over another by adapting our language and positioning to the consumer’s needs in the moment regarding their “investment”. ;

Going back to our SWOT analysis, we can see that it is clear how to approach the perceived threats by adapting. ; Now it is time to examine the opportunities and how to explore them.

Little by little we are realizing that there are some things which are simply better than others, that not everything traditional is worse than the modern equivalent, and that the traditional options are often the fruit of years of trial and error. This is what often leads us back to the tried and true. ; The pendulum is swinging back and the values of saving, austerity, sensibleness, hard work, constancy and training are a reflection of the reality of what is truly worthwhile.

Social Networks
 Social networks are our ally as well as being a channel of communication. ; At the moment, the buzz is all around social networks as if they had never existed before (that’s marketing for you- they give it a new name and introduce a few minor changes and sell it as revolutionary!). ; If Zara was able to create a following among young people in a world without cell phones (looking at their early success in Spain, back in the 1990s), using just word-of-mouth, it’s abundantly clear that social networks already existed although they were previously called fashions or trends.

The generation of cell phones and Facebook is nothing new, they are representative of improvements to our ability to spread the word about something among young people thanks to the use of advanced communication technologies. ; Previously there were other technologies which allowed for speedy and widespread communication. ; The so-called “opinion leaders” of today are the evolution of earlier decades’ teen idols.

Today’s reality is different and more difficult. ; The overall collective mass of youth has been reduced (the baby boom is long over). ; This fact coupled with the increasingly shortened lifespan of a product (they are introduced and die off so quickly due to our market being based on supply, where more is produced than consumed) brings us to the necessity of being able to reach the greatest number of consumers in the shortest time possible and ensuring that every launch is a success. There are no second chances and the days of long-lived products with ample time within which to produce a profit are over. ;

Social networks are a type of communication system with a significantly lower cost per impact than any other type of media. ; This is the root of their importance and the motivation behind trying to bestow them with the appearance of being able to bring us closer to the gurus who manage public opinion.

The consumer is actually much more savvy than that, but it would be ridiculous to minimize the importance of social media. ; We need to accurately recognize its importance and place. ; It is one more mode of communication which has a certain capacity for influence when used in the context of a well thought out idea. ; And this is exactly where opportunity arises.
When a parent decides to purchase a product for their child based on more than pure trendiness, they take many additional things into consideration if it helps them to see the situation more clearly and justifiably. ; The phrase “Well, if you want I can sell you this one, but if it were for my child, I would take this one because… and also… and furthermore…” can have a devastating effect causing the buyer to begin to question all of their previous notions. ; If the rational behind the sale is coherent and it is clear how to pass this information along to the child, everything becomes easier and a responsible sale can be made. ; This is how businesses last; it is the type of message that predisposes the client favorably toward the establishment and allows for the possibility of offering advice and guidance, which in turn creates a loyal network of clients who are willing to recommend the business to their friends. ; And here is exactly where and how the business has developed its own social network. ; Make no mistake, this is nothing new, but we seem to have stopped communicating this advice and applying it in the course of the day-to-day. ; Among all the research, knowledge, information and education, we have lost site of what is truly important, that responsible, well-directed sales are what best allow us to guide our clients in the majority of cases.

If the purchase is being made based on something being considered fashionable, and the client is capable of reasoning (something that isn’t always guaranteed), we can talk to them about adding an additional touch of distinction or, on the contrary, steer them toward a carbon copy. ; Being included in and belonging to a certain group doesn’t mean copying 100% but rather that within that group you can take advantage of chances to choose what suits and what you like without renouncing your own personality, because, after all, you are unique.

Social networks are key, but they are not a panacea. ; Each and every one of us can create our own social network. “In this establishment, we not only sell toys, but help teach how to get along, developing young imaginations, minds and bodies through play.”

Manufacturers are managers of networks, opinion groups and promotion, but they could facilitate their sales if they used a similar tag as in advertisements for medications: ; “Consult with your retailer or obtain the advice of your sales point”. ; ; Taking advantage of the possibilities offered by social networks and really pushing them even further, the life cycle of products could be longer and manufacturers could obtain even better results while increasing their options for diversification. ; The return on their investments would improve as the costs associated with production, launches and amortization would become much more profitable. ; In the end, a business which only acts thinking in the moment will ultimately pay a high price.

As the pendulum swings back, new opportunities present themselves; society as a whole is reflecting on values and past mistakes. ; Those who first realize that we are headed toward an age of reason and logic will already have gained ground. ; The pat phrase “who can say no to a child?” may work for sales in the here and now, but by casting a shadow of doubt and asking a parent to reflect on whether they are making short or long term choices for their child, what do you think they will decide?

This is the moment where you must decide whether you are a manufacturer or business of the here and now, a shooting star so to speak, surviving only a few tenths of a second, or if you will choose a guaranteed future, shining like our own sun, lasting for thousands of years.

Reflections for 2011

Key4 — Thu, 03 Feb 2011 00:00:00 +0100

Social networks have not only become a channel for communication, but also our ally. According to our sales management expert, Victor Valencia, “Manufacturers are managers of networks, opinion groups and promotion, but they could facilitate their sales if they used a similar tag to that in advertisements for medications: ; “Consult with your retailer or obtain the advice of your sales point”. ; Taking advantage of the possibilities offered by social networks, manufacturers could obtain even better results. ; The return on their investments would improve as the costs associated with production, launches and amortization would become much more profitable.”

It has been a while since fair winds have blown in terms of family spending (although in reality, only the last two years have been truly difficult, even though it seems as though it has been an eternity!). ; The worldwide economy grows steadily closer to the American model where private consumption has replaced the consumption of services and industry as the driving force. ; Many families are not in a situation to spend beyond their current means or on credit, something which requires two conditions: ; job security and stability coupled with a solid economic outlook. ;

Caught in the middle of this maelstrom, retailers, manufacturers and distributors find themselves all in the same boat, although marked by varying degrees of desperation. Everyone watches falling sales, which in turn, slowly and inevitably provoke a reduction in distribution channels, those businesses which previously acquired our products in order to fill their shelves and storefronts, storefronts which now are only displaying ‘For Sale’ or ‘For Rent’ signs. ;

The market is shrinking in spite of voices from some politicians self-congratulating themselves for obtaining 0% economic growth. ; Short of taking drastic measures and practicing some sort of fiscal disobedience (history has given us many examples of effective rebellion through refusal to pay taxes or tributes), our only consolation is to sit it out and hope that things improve soon as political winds change and evolve.

Adapting to Reality
 To survive in this reality, we have to be clever and always learning. ; Those of you in the business world are probably familiar with SWOT analyses which involve looking at Strengths, Weaknesses, Opportunities and Threats and then following up by correcting the weaknesses, adapting to the threats, maintaining the strengths and exploring the opportunities. ; The pieces which are especially relevant to our needs are looking at the potential threats and opportunities and adapting and exploring accordingly.

Creativity in terms of what is on offer is the primary line of defense in the face of shrinking consumption on the part of the consumer. ; The majority of consumers treat their purchases as a type of investment in which added value and the return become deciding factors. ; In terms of babycare items, purchases are additionally justified based on the following principles:

• ; ; ; The ability to share or pass on the item: if something can be shared the unit price is reduced. ; If something can be passed along to various members of the family, the overall expense is diluted if everyone uses the item or it receives a lot of use in general and the overall unit price is reduced in contrast to a situation where only one user enjoys the item. ; We can see this reflected in the example of family who buys a SUV and explains, “well, if we use it to bring the kids to school, they’ll be safer because they are riding higher in the vehicle. ; Since it’s a SUV, in theory we have improved visibility thanks to the height, which also makes it easier to anticipate the moves of the other cars, and to top it off, they yield to us because we’re so big!” ; This elaborate justification is created because if the family simply states, “I really like the idea of an SUV” they’ll end up without the SUV. ; So, as you can see, shared advantages are fundamental for sales.

• ; ; ; Left-brained practicality or right-brained dreaminess: ; the message must be clearly defined. ; If the purpose of the purchase is motivated by desire or a wish, the right brain is in charge, meaning that all messages, the presentation and the overall mood of the product need to be set and created with these needs in mind. ; On the other hand, if we are hoping that the price is going to be the prime motivator leading the consumer from the initial proposition to the actual sale, technical characteristics and the real cost will be the keys to success. ; Contradictory messages are counterproductive and will end up driving the client mad. ; If the client doesn’t clearly understand the messages being sent, then they will stop listening to what we are trying to tell them. ;

• ; ; ; Flexible pricing: ; “from” and “up to”, in addition to being prepositions, are also part of the so-called “complementary budget”. ; If an article can be purchased in two or more parts, it ceases to be just one product, but becomes various products. ; In this respect, the final price may be deemed adequate, once, twice, three or even more times. ; If the product is composed of various components which can be opened separately, the excitement can be multiplied and shared among the group. ; It’s not the same to present something as “a present from the six of us” as it is to enable each member of the group to give their individual gift leading to a total of six lovely packages to open. ; It makes no difference that they are components of the same gift, either as individual components or accessories. ; For example, in the case of a gift of diving equipment (let’s say a mask, fins, snorkel, net and an underwater camera), opening one present is not the same as opening five, which represents five times as much excitement (although the order in which the gifts are opened it is important). ; Toys and licensed products with accessories serve to raise the total sticker price and leave room for the possibility of “…and for just a bit more” or “if anyone else in the family wants to join in…” as well as leaving room for all budgets. ; It’s like the joke about asking for “divorced Barbie” since she would come with more than your average Barbie- with Ken’s house, Ken’s car, Ken’s horse, etc.

• ; ; ; Additional use providing added value: ; For example, a children’s video could be the perfect present for the youngest member of a household. ; However, if that movie can be watched in other languages or has subtitles, it can also be an educational tool for an older sibling since children’s films are usually easy to follow and it gives the older sibling the chance to watch the movie as well while saving themselves from the embarrassment of watching something “for little kids”. ; A videogame can become a tool to help with family life for parents and children while also being educational and awaking an urge for further investigation of a topic. ; This is a prime example of where both parents and manufacturers play an essential role. ; A video game based on car racing can serve as a vehicle for project-based learning. ; For example, it could launch an investigation into what the various rules are around the world in order to make the races the most sporting and fairest possible, which could even turn out to be fun for everyone. ; The key point is that it be designed to provoke a curiosity which goes beyond the actual video game. ; I’m not referring to creating a long-winded lecture about automotive racing rules, but rather something which could lead to a child developing their knowledge beyond that of their playmates and noticing real life rules which could then transfer into knowledge about other sports or social relationships and allow them to further their life skills. ; Looking to provide additional uses is essential in order to increase sales.
While we can’t truly imagine the current economic cycle changing based on our individualized actions, and the idea of altering our own country’s economy based on our lone actions is utopian, we do have the option of making a concerted effort to ensure that a consumer chooses a determined product over another by adapting our language and positioning to the consumer’s needs in the moment regarding their “investment”. ;

Going back to our SWOT analysis, we can see that it is clear how to approach the perceived threats by adapting. ; Now it is time to examine the opportunities and how to explore them.

Little by little we are realizing that there are some things which are simply better than others, that not everything traditional is worse than the modern equivalent, and that the traditional options are often the fruit of years of trial and error. This is what often leads us back to the tried and true. ; The pendulum is swinging back and the values of saving, austerity, sensibleness, hard work, constancy and training are a reflection of the reality of what is truly worthwhile.

Social Networks
 Social networks are our ally as well as being a channel of communication. ; At the moment, the buzz is all around social networks as if they had never existed before (that’s marketing for you- they give it a new name and introduce a few minor changes and sell it as revolutionary!). ; If Zara was able to create a following among young people in a world without cell phones (looking at their early success in Spain, back in the 1990s), using just word-of-mouth, it’s abundantly clear that social networks already existed although they were previously called fashions or trends.

The generation of cell phones and Facebook is nothing new, they are representative of improvements to our ability to spread the word about something among young people thanks to the use of advanced communication technologies. ; Previously there were other technologies which allowed for speedy and widespread communication. ; The so-called “opinion leaders” of today are the evolution of earlier decades’ teen idols.

Today’s reality is different and more difficult. ; The overall collective mass of youth has been reduced (the baby boom is long over). ; This fact coupled with the increasingly shortened lifespan of a product (they are introduced and die off so quickly due to our market being based on supply, where more is produced than consumed) brings us to the necessity of being able to reach the greatest number of consumers in the shortest time possible and ensuring that every launch is a success. There are no second chances and the days of long-lived products with ample time within which to produce a profit are over. ;
Social networks are a type of communication system with a significantly lower cost per impact than any other type of media. ; This is the root of their importance and the motivation behind trying to bestow them with the appearance of being able to bring us closer to the gurus who manage public opinion.

The consumer is actually much more savvy than that, but it would be ridiculous to minimize the importance of social media. ; We need to accurately recognize its importance and place. ; It is one more mode of communication which has a certain capacity for influence when used in the context of a well thought out idea. ; And this is exactly where opportunity arises.

When a parent decides to purchase a product for their child based on more than pure trendiness, they take many additional things into consideration if it helps them to see the situation more clearly and justifiably. ; The phrase “Well, if you want I can sell you this one, but if it were for my child, I would take this one because… and also… and furthermore…” can have a devastating effect causing the buyer to begin to question all of their previous notions. ; If the rational behind the sale is coherent and it is clear how to pass this information along to the child, everything becomes easier and a responsible sale can be made. ; This is how businesses last; it is the type of message that predisposes the client favorably toward the establishment and allows for the possibility of offering advice and guidance, which in turn creates a loyal network of clients who are willing to recommend the business to their friends. ; And here is exactly where and how the business has developed its own social network. ; Make no mistake, this is nothing new, but we seem to have stopped communicating this advice and applying it in the course of the day-to-day. ; Among all the research, knowledge, information and education, we have lost site of what is truly important, that responsible, well-directed sales are what best allow us to guide our clients in the majority of cases.

If the purchase is being made based on something being considered fashionable, and the client is capable of reasoning (something that isn’t always guaranteed), we can talk to them about adding an additional touch of distinction or, on the contrary, steer them toward a carbon copy. ; Being included in and belonging to a certain group doesn’t mean copying 100% but rather that within that group you can take advantage of chances to choose what suits and what you like without renouncing your own personality, because, after all, you are unique.

Social networks are key, but they are not a panacea. ; Each and every one of us can create our own social network. “In this establishment, we not only sell toys, but help teach how to get along, developing young imaginations, minds and bodies through play.”

Manufacturers are managers of networks, opinion groups and promotion, but they could facilitate their sales if they used a similar tag as in advertisements for medications: ; “Consult with your retailer or obtain the advice of your sales point”. ; ; Taking advantage of the possibilities offered by social networks and really pushing them even further, the life cycle of products could be longer and manufacturers could obtain even better results while increasing their options for diversification. ; The return on their investments would improve as the costs associated with production, launches and amortization would become much more profitable. ; In the end, a business which only acts thinking in the moment will ultimately pay a high price.

As the pendulum swings back, new opportunities present themselves; society as a whole is reflecting on values and past mistakes. ; Those who first realize that we are headed toward an age of reason and logic will already have gained ground. ; The pat phrase “who can say no to a child?” may work for sales in the here and now, but by casting a shadow of doubt and asking a parent to reflect on whether they are making short or long term choices for their child, what do you think they will decide?
This is the moment where you must decide whether you are a manufacturer or business of the here and now, a shooting star so to speak, surviving only a few tenths of a second, or if you will choose a guaranteed future, shining like our own sun, lasting for thousands of years.

Acquistitions - Path to glory or perdition?

Key4 — Thu, 03 Feb 2011 00:00:00 +0100

One of the many reasons I regret not taking a place I was once offered on the Harvard MBA course was that I would love to know how business schools teach what happens during mergers and acquisitions. In my three decades within the toy industry , the characteristics which stand out in my memory as the driving forces behind most acquisitions are not the rational calculations and objective analysis of synergies , risks and behaviour of employees, but rather the unbridled passion, self-serving egotism and yes – sometimes stupidity of the protagonists. A review of the historical record shows that more toy industry acquisitions have been disasters than triumphs.

The mother of all disasters must surely be the acquisition of The Learning Company by Mattel. To pay $3 billion for a company which was turning over $300 million and declining seems odd at best, but to pay that sum of money without completing sufficient due diligence to know it was haemorrhaging money at $100million per month strikes me as being ………(please insert here the word of your choice because I don’t seek a lawsuit for libel!) ; Admittedly it was in the middle of the dotcom boom when many people were seized with such open-mindedness that their brains dropped out. When the dust settled and the chief architect of the disaster was fired with a $50 million payoff to bind her wounds. I remember asking the leading Wall Street analyst for the toy industry how he could explain this absurd reward for failure. His response was a bemused jest ‘ She must have got hold of a compromising photograph of a board director with a goat!’

Charles Lazarus , the founder of Toys ‘R’ Us, once informed the delegates of a conference, that he was buying from Hasbro a number of brands which he had once purchased from 34 separate suppliers. The acquisition of Tonka/Kenner/Parker by Hasbro was one of the great transformational acquisitions in the history of the toy industry. This is illustrated by the fact that in 1980 the global sales of Hasbro and Mattel were $80 million and $400 million respectively, so since then the relative growth of Hasbro has been much faster. The path by which Hasbro came to achieve the acquisition is intriguing. Ron Pearlman of NewLine made a failed attempt to buy Kenner/Parker, which opened up the opportunity for Tonka to make a successful bid for the business which was larger than itself , because the owner General Mills had realized that the toy division did not make sense in its portfolio. Tonka had however bitten off more than it could chew and Hasbro was able to snap up the company. It was a great purchase because Hasbro was able to leverage the brand assets much more efficiently both in the US and through its international network of subsidiaries, than had the previous owners. Another outstandingly successful acquisition was Mattel’s purchase of Fisher Price. Against the expectations of many, Mattel’s management managed to retain the strong brand values and ethos of the company and greatly build on them. However in the long history of acquisitions in the toy industry many acquired brands withered and perished along the way. For example Meccano at one stage ended up as no more than a dog-eared label on a forgotten filing cabinet. It had to be released to flourish once more on its own two feet. What remains of those former stars Galoob and OddzOn? ; Brands are born and grow to success through the outstanding enterprise, genius and dogged persistence of the founders. After acquisition and deprived of this driving force within a corporate structure where salespeople gravitate to the easiest sell, many of these brands just cannot survive , because to do so in a highly competitive environment they need energy and dedication at the highest management level. Someone whose survival and income is wholly dependent on the success of a brand will battle relentlessly in a way which does not happen in a corporate structure with salaried employees.

An acquisition which has still to realize its dé;nouement (and to my business friends in Montré;al hopefully not their dé;nuement) is the purchase of RoseArt. Had it not been for the unforeseeable tragedies and recalls of Magnetix, it would possibly have ended up on the positive side of the scales of historical evaluation of acquisitions.

Sometimes large toy companies have wasted money on acquisitions because the existing sales structure was already overloaded, and the top management who take the decisions have lost contact with the sales force who lack spare capacity to add lines to their portfolio without undermining sales effort on the main profit spinners. The acquisitions of Tiger Electronics and Radica spring to mind. Occasionally I talk to buyers and store owners throughout Europe to keep my finger on the pulse of the market. On more than one occasion over the years I have been stunned to be told by buyers that a salesperson has quite openly lamented having to launch a particular product because they thought it was useless. The problem can be acute when buyer and salesman have known each other for years and the salesman feels closer to the buyer than to his own employer. This problem is even more marked in the case of subsidiaries of multinational companies, not only because the salespeople are far removed from the head office by geography, language and culture, but because on occasion they are instructed to launch a new brand or range over the heads of their argument that for local market reasons it is likely to flop in their country. Even if the management of a subsidiary conscientiously overcomes their doubts and assiduously executes the instruction from the head office, they may have to put so much effort into trying to succeed that the company is damaged by the salesmen’s resource being redeployed away from the core ranges towards supporting the new brand which can only survive with an uneconomic level of support. I would strongly recommend even to the chief executives of large corporations that they occasionally spend a few hours visiting the smallest customers. Their belief that the information they receive from their direct reports, having been filtered through the personal career agendas of six layers of management, is still valid and objective, is likely to be severely undermined by the experience.

Sometimes a chief executive has an ‘idé;e fixe’ and gets so carried away by the self perception of strategic brilliance and infallibility that he or she rejects the carefully considered insights of those whom they have paid to undertake due diligence. Paradoxically they may reject the advice of their people because of the issue I mentioned in the last sentence of the previous paragraph. ; When Tyco acquired Matchbox the chairman was clearly told by the UK subsidiary’s managing director that most of the profit was in the local brands not the international ones. The chairman’s strategic vision caused him to lose interest in the profit generators because they could not be internationally leveraged. The decision not only damaged Tyco but gave the UK managing director an opportunity to set up his own company taking with him some of the cast offs from Tyco, and he enriched himself and his colleagues by building a $200 million company. The weakened Tyco fell into the hands of Mattel, and now there is only a vestigial remnant of a former $700 million company.

Returning to my opening question of how business schools teach the process of acquisitions and mergers. Do they take a theoretical standpoint of how acquisition targets should be rigorously evaluated, synergies calculated, and risks assessed? Or do they prepare their graduates for the real world in which these rational processes are frequently subordinated to human failings of personal greed and egotism?

Andrew Dobbie is the founder and managing director of the consultancy Gameplan Europe Ltd. www.gameplaneurope.com ; ; Andrew@gameplaneurope.com

The importance of trademark

Key4 — Fri, 28 Jan 2011 00:00:00 +0100

Opting for licenses is opting for the future. ; According to our sales management expert Victor Valencia, “the line between adulthood and an eternal childhood is the brand. ; If an object is adapted to an adult consumer, we can cross that line easily. ; There are things available now that weren’t available when we were children and we aren’t ready to pass up the chance to enjoy them in spite of being ‘all grown up’ now.”.
First things first- let’s call a spade a spade, define things as it were. ; Trademark (in the company of its romance language equivalents; marca in Spanish, Italian and Portuguese), marque in French, and marcă in Romanian) is derived from the German, Marke, defined as a distinguishing characteristic or feature firmly associated with a person or thing, something which marks the territory or defines the boundries of something. ; You can continue to extrapolate on and interpret this in a variety of ways. ; For example, the definition of a commercial territory is defined as “market” and a trademark serves to clearly define a market product with accuracy.

Years ago, the singer Bob Dylan wrote a song called “Man Gave Names To All The Animals which talks about humans’ implicit need to name and thereby mark, all living things. ; The truth is that even this isn’t enough and humankind has a long-established tradition of naming everything, including inanimate and stationary objects. ; One could conclude that the act of naming is a human necessity.
Clearly, all things which are known to exist have names. ; That which is new or unnamed must be given some sort of identifying mark or name, something our friends the Germans have shown an aptitude for solving quickly and logically (For example, airplane in German is literally “flying thing”. ; If that’s not precision, then I’m not sure what is!).

For time immemorial, going back as far as the Romans and beyond, we have recognized that an object without a shape or clear, delimiting border cannot be identified. ; A thing without a name cannot be talked about and therefore, cannot be defined. ; A trademark license is nothing more than a way to begin to define something on the market with a precision which both identifies and clarifies.

The Peter Pan Generation
 Those of us who braved Adam Sandler’s Grown Ups, about five “big boys”, (not that it was either good or bad, simply exactly what you would expect to see based on the title and cast, although I suppose we all have our own expectations) can observe the society I have written about both actively and passively in so many articles, the so-called Peter Pan generation, the generation that never wants to grow up. ; It wouldn’t amount to much if this was one of those things where we could say “Only in the USA…”, because as we all know, there are certain things that really do happen only in America. ; The “only in American…” phenomena is something we follow closely in my home country of Spain, but perhaps that is another article unto itself because there are things that happen here that don’t reach America in spite of the fact that the continent is huge and full of people of all sorts of political and social stripes.
Returning to the idea of grown ups caught up in a seemingly eternal childhood as a worldwide trend that isn’t exclusive to the United States, this year I’ve found myself multiple times in the same chain of rapid repair shops, where I’ve been surprised by a whole range of products ranging from steering wheel and seat belt covers to floor protectors, sun shades and air fresheners all emblazoned with images of The Simpsons and Hello Kitty among others. ; Basically, it’s the trademark that marks the style and differentiates the object and there are more Peter Pans out there than we realize.

The world of these Peter Pans is full of “cool” and “entertaining” brands; it’s a world with its own names. ; So who are the Peter Pans of the moment? ; Well, we are around 55 years old ; (not 5+5, but 55 years, one after the other). ; The same parents who saw Bedknobs and Broomsticks in the movie theater (well, I should say we saw it-- I have to include myself although my daughters don’t really believe that I was ever a kid) also saw Monsters, Inc. and enjoyed it (being completely honest). ; We saw Karate Kid as teens and will most likely see Karate Kid 2010 and will probably enjoy it as well. ; We don’t ever really grow up, nor do we want to… Peter Pan knew what he was talking about!

Betting on the future
 There are things available now that weren’t available when we were children and we aren’t ready to pass up the chance to enjoy them in spite of being all grown up. ; We want things made to measure (XL, not to mention some of us need a XXL!) so we have the chance to try them. ; Reality TV programs, where adults jump at the chance to “play” and overcome series of often ridiculous tests are just another reflection of how we continue to want to play and enjoy ourselves like kids.

Licensed brands are, as their name indicates, licenses. ; Licenses that we as grownups can give to ourselves. ; A Sponge Bob towel for example, isn’t something we would use (or, at least without recognizing that if it comes off as foolish for a twenty-something, that for us it’s completely embarrassing), but if we have little ones, we certainly wouldn’t deny them the possibility. ; In fact, if we saw one, we might even encourage them to buy it because it’s fun and amusing to see it stretched along the beach or hung out to dry. ; In my house, before we (parents and two daughters 50, 50, 22 and 21 years old respectively) know it, we find ourselves in front of the TV watching Sponge Bob, firstly because it’s entertaining and secondly, it’s better than the other options available and finally, because my daughters are the ones who ultimately control the remote control. ; Next thing you know, suddenly before you know it you’ve
become a Sponge Bob fan.

Opting for licenses is a means of opting for the future, but not all segments of the market have access to licenses. ; There are many distribution channels willing to sell them but unable to buy them directly from the distributor or to find products that have been adequately adapted for their consumers and markets. ; We can’t talk about what hasn’t been named, and this is something that a trademark allows us to overcome.

The licensing market should expand its target audience. ; To be successful, prices need to be lowered in order to allow the generalized expansion of licensed products. ; This would give us, the members of the Peter Pan generation, the chance to continue living out our extended childhood without having to rely on the excuse of our kids in order to treat ourselves. ; Furthermore, our children, the 15 to 20-somethings, are another market who buys things for our birthdays and holidays. ; In fact, we might even begin to buy some of these products for ourselves. ; The line between being adulthood and an eternal childhood is the brand. ; If an object is adapted to an adult consumer, we can cross that line easily. ;

So here, I’m saying it clearly: Go out and get the “big kids”! ; And don’t forget the littlest ones either, where outside of the domination of Mickey Mouse, there’s not much originality. ; There are distribution channels out there waiting for the chance to sell licensed products to both the infant and adult markets. And where there’s a will, there’s a way, you can bet on it!

Maison Serneels, 50 Years of Wonder, for Young and Old Alike

Key4 — Fri, 28 Jan 2011 00:00:00 +0100

By Jeroen Coteur , Toys &; Games , Toy Trade Magazine (Belgium)

 Every large city or metropolis in the world has its own exclusive toy store. But according to countless international stars and personalities, the most wonderful one of them all is located in Brussels. And this year, it celebrates its fiftieth anniversary. 50 years of pure joy and wonderment for the little ones -- and also for their parents and other adults who are truly young at heart. ; ;

Today, Maison Serneels, which is what this story is about, has grown into a real institution, unquestionably an advertisement for Brussels, on the same level as sights such as the Atomium, the Grand Place, or Manneken Pis. In order to celebrate its anniversary, a book is being published with an overview of the shop's history and an introduction of 25 timeless toy pieces which have also come along for the ride in this grand journey through time.

The Family Creed
In order to satisfy his deep fascination with toys, Edmond Serneels opened a toy store on the ; Guldenvlies Street in 1959, after the Fischer-Price line of toys had crossed the Atlantic Ocean. At that time, the few specialised toy stores stocked their shelves mainly with electric trains and educational toys, while other products were sold in bazaars, hardware stores and print shops.

However, Edmond Serneels had something else in mind - a virtual Ali Baba's cave that was set aside for quality toys. For him, toys had a significant function in the development of children, and that is why he wanted to offer only the best toys possible. Serneels implemented an ethic that became the trademark of his business: no short-lived toy fads, gadgets or other trendy trivialities, no replicas of weapons... but toys that were designed to be durable and that had a story to tell - just the right experience in the hands of a child. This credo is continued on today by his children Alain and Brigitte Serneels. After moving to the Wiltcher's location adjacent to the Conrad Hotel on Avenue Louise, they continued the following in their father's footsteps as a matter of honour - only offering toys of quality that emphasise genuine knowhow on the part of the toymakers, the overwhelming majority of which are skilled craftsmen.

International Recognition
"Today, we work with approximately 200 suppliers, some of whom who have been with us since the founding of Maison Serneels. This has been a long-term cooperation with partners, many of whom have become our close friends," explains Alain Serneels. "It's a real pity that these craftsmen are disappearing from the market. It's a development that also affects shops like us. Shops like ours, you don't find in the world very much anymore. By the joy and fun of the children and their parents that come here is certainly not on the decline. Just like with all the praise we get, whether it comes from your average Joe who wants to let his kids play with the same toys he once played with, or if it comes from international stars and personalities. You know, when you have an authority like former US Secretary of State Madeleine Albright who shuts down nearly the entire neighbourhood so she can come by, or when Celine Dion, after a three-hour visit to the store, tells you that she has never seen anything like it on any of her world tours -- this is when you can say nothing but that your father was a visionary and that the choice for high-quality and traditional toys surely has a future," adds Serneels.

For Kids, Large and Small
So what lies inside the Ali Baba's cave that is Maison Serneels? Simply put, the toy is elevated to an art form here... you can find truly magnificent toys for babies in shiny fabric, beautiful, solid wooden toy pieces, or plush animals that look even more real than natural ones. If the child is a little bigger, he or she can go on a legendary adventure dressed in handsome fairy tale costumes, handmade by real artisans. As far as the classics go, little girls will be astonished at the selection of dolls. Beds, children's beds, buggies, cooking ovens, tea sets, cookware and other accessories give them opportunities to develop homemaking skills. Maison Serneels also dedicates space to the exclusive creations of skilled craftsmen. You can find, for example, magnificent toy chests and hand-painted and ornamented marionette theatres, a large selection of artisan-made music boxes, a truly nice series of Provencal santon figurines, hand-spun wooden tops, and even authentic English croquet sets. Serneels features a broad range of educational games that can be played alone or with friends. Painting, lacing beads, learning how to make stamp art, or mosaics... a whole lot of enjoyment that you can take with you for your whole life. But it's not just the kids who enjoy themselves! That is certainly illustrated by the ladies who take a great interest in the fabulous dollhouses here. All the while, dads and granddads will be captivated by the intricate steam engines, old replicas of metal toys, miniature cars, or well-organised armies of little tin soldiers. And let's not forget the wide selection of classic parlour games: chess, checkers, backgammon, and more... and you could even make space for a roulette wheel or blackjack table, just like in a real casino.

50 Years, and Longer?
A great deal of these toys make an appearance in the tremendous book that is being printed to commemorate the 50th anniversary of Maison Serneels. This work covers the history of Maison Serneels as well as 25 legendary toy pieces that have been over the course of these 50 years. These timeless toys can inspire the dreams of one child while sharing secrets with another. In any case, they always spread joy and happiness among our children and grandchildren. As much as the future is to some extent unclear, one could never imagine for a second that a showpiece of that nature would ever disappear from our collective memory. But the issue of family succession has not been settled. Alain's son has chosen a career in the communications industry and Brigitte's small children are still young and have yet to make their choices for the future. For the happiness of our youngest little angels, we wish that your editor's successor has the pleasure of being able to visit Maison Serneels on its 100th birthday...

China Toy Expo: steady growth and important developments

Key4 — Mon, 24 Jan 2011 00:00:00 +0100
The Shanghai event is becoming one of the most relevant to the toy industry worldwide. We visited the exhibition held from October 12th to 14th, 2010, which next year will be divided into three events focused on toys, licensing and childcare
by Daniele Caroli

A constant growth characterizes the China Toy Expo event, organized by the China Toy Association in collaboration with Goalmark International Exhibition Co., in Shanghai. Held from October 12th to 14th, 2010, at the New International Expo Center, the 9th edition of the International Trade Fair for Toys, Hobby &; Baby Articles hosted, on an exhibition area of 43,500 square meters, about 800 exhibitors from 14 countries (one important fact is that, among the Chinese companies participating, 86 percent were producers), for a total of 2,100 stands, and has attracted more than 50,700 trade visitors from 104 countries and regions.

Regarding turnout, the organization reports a significant increase in visitors from Russia, Korea, Japan, Indonesia and Vietnam, and notes that Chinese players in the toy business, buyers and retailers, representing more than 200 major cities in the country, could be divided not only in importers and exporters, distributors and wholesalers, but also included regional managers of shopping malls and chain stores and specialty retailers.

A huge structure
The China Toy Expo is held in the enormous structure of the Shanghai New International Expo Center, Pudong area, which in the same days in October 2010 hosted a large show addressed to professionals in the music industry.
On the left of the vast central courtyard, on the edge of which stand dozens of buildings, the exhibition of toys and products for young children occupied three halls (W3, W4 and W5) and three smaller prefabricated structures (W6, W7 and W8).
If the vast majority of exhibitors were companies producing toys and baby articles, including the most popular brands from mainland China and Hong Kong, there were also importers, trade organizations controlling chains of stores and certification institutes. Many collective exhibitions - ten - involved companies grouped by region in mainland China: for example, Chenghai (Guangdong Province) with a specialization in modeling and electronic toys, Yongjia (Zhejiang Province), specialized in the outdoor segment, companies in Dongguan and Shenzhen (Guangdong cities) and, for the first time, the area of Fujian Jinjiang, where mainly mechanical and electronic toys are produced.

Foreign participation
 Foreign companies represent a very small percentage of the exhibitors at the show; however, we noted the presence of a number of European brands, present through local distributors or agents. In some cases these activities are managed in partnership by Western and Chinese operators. Harm Beishuizen, director of the Dutch New Classic Toys, has created with partners from Beijing a company to import toys from Europe, Jollyland, whose stand at China Toy Expo showed the lines of brands such as Berg, Eitech, Lena, Reig, Teifoc. Historical German brands, such as Siku and Schleich or those of the Simba-Dickie-Group, were exhibited elsewhere.
The stand of Cute-Q included instead three Italian brands: Peg Perego, TT Toys Toys and Italtrike. «;In China there is a growing interest in “Made in Italy”, thanks to the prestige of its brands and high quality products»;, said May Wong, Cute-Q Trading (Shanghai). «;It is an offer segment positioned in the high end of the Chinese market, but in our country family incomes are increasing in parallel with the development of a strong middle class, and consumers travel more, get information through the Internet and look for new products and famous brands.»;

Growth of licensing
While Hall W3 housed the most successful companies in mainland China and Hong Kong, in W4 a large area was reserved for licensing, with the presence of many well known brands in the West: among them, those managed by Warner Bros Consumer Products, Disney (including Marvel brands) and Sanrio, as well as Miffy &; Friends, Teletubbies, In the Night Garden, etc. Once at pavilion W5, we were a bit annoyed by the proliferation of packages of models based on the classic LEGO-type brick and helicopters clearly derived from the intuitions of Silverlit.

In the smaller spaces of temporary structures W6, W7 and W8 were smaller companies, some able to present innovative products, and service providers.

An appointment with a strong appeal
 The China Toy Expo has greatly expanded over the past five years: the largest toy fair in mainland China is well organized and full of high quality proposals (even in the field of childcare, with the presence of all major players in the Chinese market), but does not have an international flavour, addressing mainly the domestic market. Precisely what makes it very attractive to Western operators: those interested in acquiring products for import and those wishing to insert their range in the distribution channels of the great Asian country.

On October 11th, at the Wyndham Grand Plaza Royale Oriental was held the 5th China Toy Conference: there were speeches of Chinese managers and experts, but also of representatives of the sector worldwide, including Christian Ewert (ICTI Care Foundation), Carter Keithley (TIA), Charles Riotto (LIMA), Jane Zimmy (NPD Group). The day ended with a gala dinner, during which prizes were awarded to several companies, including the Western Yummy Dough in the educational games section. On the fair grounds, on October 12th and 13th, was then scheduled a number of seminars on topics such as licensing, regulations on product safety and marketing.

Great news are announced for October 2011: the 10th China Toy Expo will combine two separate exhibitions, one dedicated to licensing (with the collaboration of LIMA) and one focused on childcare articles, China Baby Carrier and Baby Articles Fair.
It was later announced that next year the event will be held on October 18th-20th and will move to a new location, World Expo Theme Pavilion, in Shanghai.

Advantages and evolution of the Shanghai fair
 At the end of the gala evening devoted to the 9th edition of the China Toy Expo, we asked May Liang, vice president of the China Toy Association, to tell us about the exhibition in Shanghai: «;We recorded a steady growth, between 20 and 30 percent year on year»;, she states. «;In 2009, the stands amounted to about 1,600; this year they are 2,100 and this represents an increase of 30 percent. In 2009 we had filled three halls, W3, W4 and W5; this year we had to add three temporary structures. Over time, exhibitors have become representative of all the production areas of China and that is why, a few years ago, we changed the name of the event from Shanghai Toy Expo to China Toy Expo. In the meantime, several international brands entering the Chinese market have joined the fair, presenting themselves directly or through their agents or distributors: exciting opportunities for their products are opening up. Important aspects of our event include the fact that the majority of the exhibitors are manufacturers, prepared to supply both the domestic and foreign market, and that the largest Chinese companies of the involved sectors attend the show. Moreover, there are not only companies associated with the China Toy Association, but also firms which are part of regional industrial organizations through group exhibitions supported by local governments, oriented to the toy industry as an healthy, environmentally and socially useful activity. This is one of the factors contributing to the success of the China Toy Expo. Finally, we introduced the Licensing Pavilion, that has now reached its fourth edition and has continued to expand year on year, presenting very strong licenses on domestic market, as Pleasant Goat and Big Big Wolf, but also world-renowned brands»;.

In view of the close synergy between toy and licensing and the strong growth of that sector within the exhibition, it is time to create an independent trade fair for licensing, according to May Liang: «;In 2011 we will launch the first China Licensing Show in conjunction with the China Toy Fair; having different exhibitors in the childcare sector participating with satisfaction to our show, we will collect them for the first time in a special event in itself, confident that this solution will be appreciated by both producers and visitors. Such project requires the availability of a pavilion or two more, and we are committed to get it. We offer international buyers the opportunity to meet many high quality exhibitors: at present, their presence is limited because our event is still relatively new compared to Canton and Hong Kong fairs; but we are rapidly reaching up to the same size of those exhibitions. On another front, the Chinese domestic market is growing fast and it is time for international brands to approach and seize the opportunity offered by our event»;.

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