The feedback we have had from both the Autumn Fair and Top Drawer was that sales had not been as bad as expected and most retailers had enjoyed a reasonably successful year

However Xmas has such a major impact on all our sales that this is not the time to relax!

Major retailers such as Tesco's are predicting a flat Xmas but online sales are expected to be +10% on last year

As the online market has matured so customers expectations of it have increased. In a recent survey 64% said that poor customer service was their biggest issue. This is an issue for major retailers as they have to have call centres with disenfranchised staff to answer their queries but it is a definite plus for independent retailers. Just a simple telephone number on the front page of the website and your customer can talk to a person not an animated icon.

As a soft toy wholesaler we still aim to respond to emails within 24 hours and its amazing how many people are surprised to receive a prompt reply

The other big irritant for online consumers is having to sign in to sites. Unless you have a sophisticated system which stores customers details and credit card info (such as Amazon) then the tip is just to ditch any sign in/password requirement

The final point is that 20% of UK consumers who shop online like to see peer reviews before they purchase

Xmas is on a Friday this year so last minute sales could be important. If you can cope with the stress then a guaranteed next day service could be a useful online sales tool

Other useful tips I have seen

• 35% of UK online retail spending is from work locations so plan for a rush on Monday when people have researched over the weekend but want to keep the purchase a secret
• Predictions are that Sales will start early to avoid the increase in VAT
• 94% of consumers said that free delivery would influence their purchase (whats wrong with the other 6%!)
• Online research for Xmas presents starts in August and really ramps up in Sept so stay visible

 

In terms of high street sales this year is going to be very different from previous years. We have no Woolworths but we do have a bunch of newcomers to the market place. Lets hope they don't indulge in the same price cutting tactics!

 

 

 

Xmas

The last quarter of the year accounts for 50% of total toy sales with December accounting for over £100m worth of sales alone

2009 is going to be a very interesting year. Many multiple retailers have their eyes on Woolworth's sales and are piling in to the market. So far Waitrose, Play.com, and HMV have thrown their hats in the ring and no doubt there will be more

However if you are not a toy specialist then the easiest way to join in the market is to sell licensed product. Works well for search engines and no big risks

This leads the rest of the market to specialists. There are plenty of adults who don't want solely licensed toys for their children so theres a huge opportunity for the rest of us to increase sales this Xmas

Come along and see us at Autumn Fair NEC or Top Drawer Olympia and have a look at our original and fairly priced ranges

 

Life after Woolworths

The world of retail has changed significantly in the last year and no more so than with soft toys and baby toys. Just 6 months ago Woolworths had 29% of UK toy sales, and companies such as Blooming Marvellous, Tridias and Urchin all enjoyed significant sales of baby toys
But whilst change can be painful it can also offer many opportunities. At Best Years we do not deal with large multiples such as Woolworths so their demise has left us with more of an opportunity than anything else as consumers slowly change their purchasing habits and hopefully go back to buying toys and baby toys from the independent sector
According to data from Price Waterhouse Cooper there is around £3.6 billion worth of retail sales available since the disappearance of a number of high street retail fascias such as Woolworths, MFI, Zavvi, Rosebys and the Pier.
The split of business is as follows £1,717m - Woolworths £660m - MFI £341m - Zavvi £60m - Principles £184m - Rosebys £231m - Land of Leather £43m - The Pier Although it is unlikely that Best Years, as a gift and toy wholesaler, or our customers will pick up any business from the sad demise of Zavvi and Land of Leather thats a lot of business for someone to pick up! So we are staying positive and thinking of all the additional business out there for the independent trade

 

A Few Facts and Figures!

The UK toy market has been valued at £2.1bn with soft toys making up just over 5% of sales (£114m) and infant and pre-school toys 20% (£432m)

Sales by store sector are as follows

Mixed retailers (Woolworths, Department stores) 29%

Toy stores 25%

Catalogues 22%

Online/mail order 8%

Others, including supermarkets 16%

 

Over 40% of the UK population buy a toy every year with the majority of sales being below £50

Pre-school toys are less seasonally focused than other toy sectors as their sales are more closely linked with progression through stages of development than with Xmas.

Toys are a major part of gift buying - sales of gifts are split as follows

Food and Drink 9%                   Electricals 6%

Clothing/shoes 18%                    Books + music 7%

Toys/Games including bikes 36%       Jewellery 6%

Perfume/toiletries 9%                   Others 9%

 

 

 

 

Toy Recalls and their repercussions to UK retailers

The recent toy recalls has forced a huge period of change on to China's toy industry

Factories must now qualify for the Certification and Accreditation Administration (CNCA) that was implemented in May 2007. According to this policy, six categories of China-made toys, including those for babies, must obtain the China Compulsory Certification or CCC mark. Beginning June 1, 2007 toys cannot be sold domestically or exported without the CCC logo.

Manufacturers that offer these types of toys must submit factory and product specifications, and pass testing and follow-up inspections in order to receive and retain the certification. The process takes one to three months, and during that time, suppliers under inspection cannot accept new orders.

According to the CNCA, by the end of November 2007, nearly 1,500 toy makers had acquired the CCC mark for more than 4,000 models, while approximately 1,000 companies were forced to stop exports because they failed to pass the certification process. For instance, of the more than 700 exporters based in Dongguan, one of Guangdong province's major production hubs, only 240 companies obtained the mark and were able to keep their export licenses.

Currently, only 15 percent of the approximately 10,000 toy exporters in China are estimated to have received the CCC mark. Of the remaining 85 percent, the majority are still awaiting approval or preparing their applications. Others are small companies that will likely drop out of this industry because they either cannot meet the requirements or afford to wait out the application process.

A second policy initiated by the China government in August 2007 subjects toy makers to a greater number of random on-site audits by local inspection bureaus. Moreover, it mandates that toys must undergo additional examination before these leave the port.

 

Many small companies, and even some midsize operations in China, are expected to stop the manufacture and export of toys, or cease operations altogether, due to the large investment and additional costs that compliance will necessitate. In fact, approximately 1,000 suppliers have already been forced to stop exporting because they were unable to meet the requirements of China's compulsory certification.

A new labour law protecting workers' conditions and salaries which takes effect from Jan this year will also impact on costs

Also this means that prices are going to go up. And thats Good News!

For too long manufacturers, wholesalers and retailers have been able to sell baby toys at artifically low prices setting unrealistic expectations in the consumers mind.

We have seen toys in major retailers which we would never have offered as a baby toy at prices cheaper than our manufacturers' costs.

More and more women are having babies in their 40s when they can afford quality and we are happy to sell our quality products in to this sector. Quality should be everything when it comes to products for babies and children. Best Years have always paid realistic prices for their products as we have always sourced from quality manufacturers with protected work forces making quality product

If increased prices forces some manufacturers and retailers to leave the industry then this will benefit everyone

NB Update Oct 08 - A total of 3,631 toy exporters which equates to a massive 52.7% of the industry's businesses shut down in the first seven months of 2008. They were mainly small-sized toy producers with an export value of less than $100,000. There are still over 3,500 toy exported in China but the rising costs of manufacture associated with the new quality regime and the strength of the yuan have led to significant closures