World toys look at China, Chinese toys look at Guangdong, and Guangdong toys look at Chenghai.
Editor’s note: This article is from “Billion State Power Network”, the author Pan Qingqing, the original title “He wants to do toy e-commerce version of the vibrato social distribution The factory direct supply is arranged on .
China is the second largest consumer of toys in the world after the United States. According to the White Paper on the Development of China’s Toys and Baby Products Industry in 2019, the national toy market reached 70.48 billion yuan in 2018, a year-on-year increase of 9%. It is estimated that toy sales in 2012 will reach 92 billion yuan. The huge potential of the market makes a lot of players rush to get a piece of it.
The toy e-commerce rookie to play Doosan CEO Chen Yao is also optimistic about the domestic toy market, and plans to create an online and offline integration of e-commerce ecology in this vertical field.
“All business lines of the company will develop in the direction of creating vertical ecology, including supply chain, platform operation, offline experience center, franchise chain stores, MCN institutions, ODM production, etc.” Chen Yao told Yibang Power .
In the domestic toy market where opportunities and challenges coexist, what kind of innovative measures will be used in the industry as a start-up company?
01
Online and offline channel integration
According to Chen Yao, players in the toy e-commerce field generally have three modes of operation:
One is to choose to open a flagship store or a franchise store in Taobao, Tmall, Jingdong, and sell brand-name merchants of single or multi-category toys online;
Second is a toy rental platform that does not involve sales of a pure online rental like Toy Superman;
The third is a comprehensive retail platform that includes online sales, toy rental and offline experience stores like Toys R Us, and its target consumers are often concentrated in first- and second-tier cities, and the customer price is relatively high.
Play Star has chosen a differentiated competitive approach to enter the market:
The first is to target the main consumer groups to children in 2-4 cities, ages 0-14 years old, with 3-8 years old as the main body;
Second is the main price advantage, through the factory direct selection of cost-effective toys, the customer unit price is controlled in the hot sale range of 70-100 yuan;
The third is to build a toy demo short video platform online, and enhance the user’s immersion by watching the toy demo process;
The fourth is to create a playable, rentable, and buyable offline experience store that provides a toy experience space for parent-child interaction.
It is reported that Play Star has recently launched the small program mall and APP application. Chen Yao’s idea is to make the APP into a toy e-commerce version of the vibrato. “80% of the toys on the platform have short video presentations.This form can show the characteristics and use of the toy. At present, the short video content is mainly based on platform output. After accumulating the user volume, the content of UGC will be introduced and KOL will be invited to enter the platform. He said.
Although playing the main advantage of Doosan at this stage, Chen Yao also said that the price war will not be the best way out. “We mainly have to do services, whether it is to build a short video scene shopping experience online, or to open a toy experience store offline,” he said.
At present, Play Star has opened two offline experience stores in Guangzhou, forming a business model of “rental, buyable, and playable”. Chen Yao told Yibang Power that the business philosophy of offline stores has borrowed to some extent the British old toy store Hamleys.
Hamleys has a history of more than 250 years in the UK. Although it only has an offline toy store, it still maintains a compound annual growth rate of around 3%. The secret of its business lies in providing services and experiences that are lacking in competitive products. One of the principles is to allow customers to “feel and touch” (feel and touch).
The main goal of the offline store is not to sell toys, but to rent the toys offline, to build a consumer scene around the large community. After the children come in, they can open the box and play it casually. The store will also be equipped with a toy display. Give the children how to play the toy.” Chen Yao said.
This year, Dorostar plans to open 10 offline stores and continue to expand to 100 next year. For the selection of offline stores, Chen Yao also has his own plan. “First of all, we chose to open a large community within 1.5 km of the walk, and the number of settled households reached 6000. Secondly, the storefront is 100-150 square meters, and the monthly rent is 2 Within ten thousand.”
02
Membership + Social E-Commerce
At present, the membership system is the main profitable way to play Doosan, followed by toy sales, franchise stores, and B2B supply.
“Our monthly membership fee is 299 yuan, in addition to the quarter card, half-year card, annual card, calculated through the financial model, as long as there are 100 online members per month can recover the cost.” Chen Yao Say.
Membership can be used online and offline. Members who go through the small program mall can enjoy the corresponding membership treatments online and offline, such as free trial and rental of offline store toys, discounts for online shopping.
“In this way, offline members can be directed to online shopping malls, resulting in more consumer opportunities. After all, experience store SKUs are limited, and there are more comprehensive presentations on e-commerce platforms.” Chen Yao said.
“From the current conversion rate of offline stores, 30 users will be converted to our members for every 100 paid users.”
In addition to membership,Play Star in the small program store also laid out the “sharing people” business. Members of online and offline stores can apply for free, and non-VIP members can also apply by purchasing the “Share Shareer’s Rights Card” of RMB 199.
It is understood that the play star “sharing people” uses a secondary distribution model. Through A to invite to enter the order generated by B of the Dou Xing small program, A can obtain a sharing commission of not less than 18% of the order amount; B invites to enter the order generated by the playing star C, B can get no less than the order amount 18% share commission, and A can also get a share commission of no less than 5% of the order amount.
Chen Yao said that as long as the sharing person invites friends to enter the Dou Xing small program, you can permanently bind and share the association. The friend can place an order at any time in Douxing Mall, and the sharing person can get the corresponding commission.
At present, the distribution of the Douxing community is only about 100 people. The main offline stores recruit children’s parents to participate, and the entire distribution system is still in the trial operation stage.
03
The minimum order quantity for factory direct mining is as low as one
In the toy industry, it is said that “the world toys look at China, Chinese toys look at Guangdong, and Guangdong toys look at Chenghai”. In 2018, the output value of toys in Chenghai District of Shantou reached 54.6 billion yuan, accounting for half of the total industrial output value of the region.
Chen Yao said that most of the better quality toy manufacturers in China are concentrated in Shantou Chenghai, such as Starlight Entertainment, Audi Double Diamond, Aofei Entertainment and other toy listed companies, as well as 60%-70% of toy factories. OEM for Lego, Hasbro and other foreign brands.
Playing Stars spent more than half a year in the early days of the venture to build its own supply chain system in Chenghai, Shantou.
“The scale of toy factories registered with the Trade and Industry Bureau is about 12,000. We basically have contact with all toy factories, and some of them are talking about new products. There are three or four hundred companies that have already reached cooperation. The inventory can reach 250,000 pieces, 90% of which are directly docked to the factory, and others are completed by brand agents and distributors.” Chen Yao said.
Chen Yao told Yibang Power that the company’s main partners are concentrated in the waist factory, which can be divided into four echelons. The first is the global top10 brand foundry, including Hasbro, Lego, Yinhui, Bandai, etc.; the second is the imported brand foundries with good quality but low domestic popularity, such as Fisher, Baines; the third is quality Excellent domestic toy manufacturers; the fourth is self-built brand, and cooperation with OEM foundries.
In addition to the quality of toys to comply with the national CCC certification, playability and interactivity are also important criteria for the selection of toy products.
“From the perspective of the development trend of the toy industry, if it is a pure doll, or there is no functional toy, the market share is gradually reduced and functional.Sexual and interactive toys will be the development trend of the industry. Chen Yao thinks.
After the previous communication with the factory, the MOQ (minimum order quantity) of Douxing purchasing toys can be as low as one. “General factory orders are a full container, a whole container. Usually ten boxes, one hundred boxes, one thousand boxes or one container is not the same price, but we can now buy one box and buy one container. A price.” Chen Yao said.
The toy e-commerce can be directly imported from the factory at a lower price and reflects the urgency of the factory seeking transformation.
The Guangdong Toy Industry Association disclosed the operation of China’s toy industry in 2018. The bankruptcy of the US Toys R Us has caused the world toy market to turmoil to some extent. The export-oriented Chinese toy companies’ product inventory has risen significantly and profits have fallen. Some enterprises have the situation of “increasing production and not increasing revenue”.
The value of playing Stars is to expand sales channels for these waist factories. Chen Yao believes that in many cases, consumers do not care too much about the brand when buying toys. Instead, they care more about quality and cost performance. Therefore, Chen Yao hopes to play the brand as a brand trusted by consumers, ensuring strict selection of products and high cost performance.
On the other hand, Play Star also provides a marketing platform for these factories. Chen Yao said that before these toy manufacturers made exports or domestic sales, they often “see the sky to eat”, can not grasp the market demand well, can not judge whether a product can fire. Play Star Star will help the factory to do toy evaluations on short video platforms such as vibrato, fast hands and so on through its own MCN organization, to create explosions through new product preheating, and promote sales conversion.
Chen Yao said that at present, Dou Xing has registered 28 commodity trademarks in the Trade and Industry Bureau, and will build its own brand of toy products in the middle stage of the enterprise, and gradually expand the mother and baby products SKU; in the future, there are plans to make the brand go to sea. It will copy the online sales and offline experience, grouping and distribution models of Douxing Star to overseas markets such as Southeast Asia.