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Dragon hunting
meeting with Rachel Elnaugh
31 Jul 2008
I don’t know about you but I would never have the courage to go on Dragons Den (for a start off I’m not sure I could get up all those stairs!) but it looks like I won’t need to go on to get the advice they offer as having previously met Peter Jones this week I met Rachel Elnaugh, previously of Red Letter Day and Dragons Den
Rachel has just published a very successful book on business failures “Business Nightmares” but I was more interested in discussing how she thought businesses could survive and prosper in the current economic climate
She had the following advice for all of us
- Remember 70% of purchases in the high street are made by women. I would suspect that with Best Years’ products this % is probably higher but I think the point is well made that whereas the majority of people we employ to help us (eg web designers, leaflet and pos providers) are male our consumers are primarily female. Women have a different value set and are more likely to consider the so called soft attributes of ethics and integrity when making a purchase
- Pull marketing is more powerful than push, or as Rachel put it a honey pot attracts more bees than vinegar. Its more important to have an interesting and attractive shop pulling in customers as they walk past than an advert in the paper pushing customers towards you
- The Dragons Den and Alan Sugar version of business shown on TV is not reality. You do not need to treat people in this way to be successful.
- Follow your passion but remember to keep your work/life balance
At the heart of Rachel’s ethos was the concept that if you believe in something enough, and you keep your mind (and heart) open then it will happen. She recommended the book “Ask and it will be given” by Esther Hicks
Rachel’s advice to Best Years was centred on the push not pull marketing. She advised us to build up our brand so that we would become better known by consumers. When we asked for advice as to who to work with she referred us back to the concept of keeping ourselves open and something will turn up
Both
Rachel is now a motivational speaker and offers advice to the SME sector.
She can be contacted via her website, www.rachelelnaugh.co.uk
Mums Online
31 Jul 2008
Mums Online
The convenience of internet shopping has always appealed to mothers but in research carried out in April this year it appears that the internet is becoming a dominant factor in the choices mothers make
The research found that while one third of mothers actually buy on line over 60% used the internet to research purchases before they bought.
In terms of influences 47% of mothers used as search engine to find out information but 16% were influenced by email news letters. This is more than those who researched via branded websites (12%) and shopping comparison sites (11%)
Although this research was carried out in the
Nice to think that your newsletter might affect the purchasing behaviour of more people than the website of a multi national company!
Looking at UK research a Verdict report in May 2008 found that 59% of all internet users used the internet to research purchases before they bought
Interestingly almost 85% of consumers surveyed in the same report thought that the internet was better than the high street when it came to finding unusual products and this was the primary reason why people shopped online. It will be no surprise that the 2nd most popular reason sited was price comparison with 76% of consumers using the internet to get the best possible price. The 3rd most common reason for shopping on line was the width and depth of products available online compared to high street stores
In Mothercare's results which were published recently sales were up a fabulous 19.5% proving that the baby market is resilient even when times are tough but Mothercare's direct sales were up a huge 28.6% as their customers took advantage of the convenience of internet shopping and the wider ranges Mothercare make available online
The reasons why consumers chose not to buy online are also interesting
75% of people think that shopping on the high street is more enjoyable than online
86% think that customer service is better in shops than online
Almost 90% trust high street stores more than online stores and 91% think its easier to get a refund in a shop than online
A very quick question
30 Jun 2008
Primark's child labour scandal
31 May 2008
The recent Panorama programme showing Primark clothing being made by young children has once again high lighted the issue of working conditions in over seas factories
There is one straight forward reason why issues such as the use of child labour continue and that is money. If you are trying to sell an embroidered shirt for under £5 and make a profit on it then you are not going to be paying the supplier very much for it. The factory will therefore have to find a way of producing the garment as cheaply as possible and the consequences of this is obvious
As a consumer it is always tempting to buy at the cheapest price you can, and theres not many of us who can claim not to have been seduced by the incredible prices available in some shops. Similarly as a shop owner it is hard not to be tempted by the prices some wholesalers offer on their product.
Best Years do not demand absolute rock bottom prices from our factory. To be frank we are not big enough to muscle our way round the Far East demanding cheap prices. However we are happy to work with our suppliers to get the best quality products at the fairest prices. We also visit factories before we start working with them to ensure that the working conditions and the accommodation are above the required levels.
We will never be the cheapest wholesaler you can find but we pride ourselves on the quality of both the design and manufacturing of our toys. When you are selling to children we think this is more important that just price
Some interesting facts and figures
31 May 2008
The 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 retailrs (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 which is 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%
Peter Jones - More St George than a Dragon
Interview with Peter Jones of Dragon's Den fame
01 May 2008
Last week I had the priviledge of meeting Peter Jones of Dragon's Den fame.
There are 2 things that struck me immediately when I met Peter, the first is how tall he is but more importantly how deeply held his principals and beliefs are.
Peter was keen to talk about his entrepreneurial history and his passionate belief that small businesses are the back bone of Britain's economy. Given his history (he set his first company up while still a teenager, had a successful £1m company in his early 20s, bust by 30 and multi-millionaire and TV personality by 40!) he is in an ideal position to comment on the difficulties and opportunities of starting your own business.
One of the keys to his own success was a complete belief in himself and in his own ability to succeed. When his first company went bust and he had to look for employment the first job he applied for was the MD of Lotus Cars! When something he is involved in does not work out as planned he always looks for the learning rather than considering it a failure. In fact failure was a word he refused to use.
I asked him what one piece of advice he would give people who are just setting up in business and those with small companies. Unsurprisingly he had not 1 but 2 to offer:
1. Do your research. There is no point just asking a few friends and neighbours what they think, you need to do thorough research in to your idea. This needs to include local, face to face research such as selling at craft fairs and school fetes, and also internet research. Make sure you look at what the USA are doing in terms of your shop or product as they are still ahead of us in terms of consumer trends
2. Be creative! Peter was out spoken on the subject of creativity in business. Without creativity you will be just a "me too" which inevitably leads to competiting on price. As a small example he said that he gets hundreds of companies approaching him with new ideas and most of them send in a type written letter. If he gets something even a bit more original such as a CD or a model of the product he is immediately more interested then wading through a letter. So if you are aproaching journalists or retail buyers remember to find ways to make your product or idea stand out from the crowd. Similarly when you are setting up a shop, whether it is on the internet or the high street, think what it is that will stop customers in their tracks and make them buy from your shop.
And a small bit of gossip - he really does not like Duncan Ballantyne!
Quality issues force factory closures and increased prices
29 Apr 2008
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
Currently, only 15 percent of the approximately 10,000 toy exporters in
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
A new labour law protecting workers' conditions and salaries which takes effect from Jan this year will also impact on costs
How did they do it? How successful businesses started up
26 Mar 2008
If you are just starting out you can look at successful retailers and other business and think “how did they do it?”
Well we’ve asked them for you!
We asked a variety of businesses why they started up and to what they owe their success
In our first article we give you the interviews from bricks and mortar retailers and wholesalers, and next internet businesses answer our questions
The First question is why? What made you want to go in to business for yourself? For some like Buddy from the wholesaler Bird on a Wire (www.buddybird.co.uk ) it was a natural evolution.. As an artist I have always worked for myself she said but for many years I sold small quantities of my own product directly in to museums and art galleries. However the popularity of my product meant that in the end I could not make it all myself and so Bird on a Wire was born
For others it was the familiar story of long hours on the tread mill with a dream of something different. Darren, who now owns Pad at Chorlton used to be a National Account Mgr for a well known brand but gave it all up in June 2006 to set up his shop Pad (www.pad-chorlton.co.uk )
It was obviously the right decision because at Xmas Pad was named in The Guardian’s finest UK Independent Stores. So how did he do it? A combination of sourcing products and suppliers which are not available in other stores in the area and a friendly and welcoming atmosphere in the shop. Darren is convinced that their policy of stocking unusual ranges gets his customers excited and ensures that they keep popping back to see whats new. The theme of customer service is echoed by Priscilla from Unique creations (www.uniquecreation.co.uk) and Alyson from The Cherry Tree who was also in the Guardians's list of Top Independent stores. they both try to ensure that their shops are welcoming and that they have a good product knowledge of their products. if you have ever asked a customer adviser in a large high street chain for help then you will appreciate how valuable this service is!
So has all this success been plain sailing? All the businesses we talked to spoke of the very long hours they had had to put in. The other negative part of starting up on your own is the financial risk involved both in terms of the loss of earnings and in the money you have to spend
But despite this there was a unanimous opinion that working for yourself was much better than having a boss. At least all the money you earn is yours!
Given how gloomy the media are about the economy I expected the businesses to be worried or at least cautious about their prospects for 2008 but its quite the opposite. Pad are looking to set up another shop within the year and everybody I spoke to was actually very excited about how their business was going.
Internet retailers are not seen as a threat either. When you have an exciting and welcoming atmosphere in your shop customers want to come in and see what you have. The internet has its niche ( and Best Years do a lot of their business from their website) but it doesn’t stop people wanting to shop!
So do they have any advice for people just starting up
· Make sure you keep your ranges fresh and exciting. Visit trade fairs, search the internet, set up links with local crafts people but don’t just buy from large companies as their ranges will be in lots of retailers
· Your shop needs to be welcoming and friendly and your staff as well as yourself must have good product knowledge
· Never underestimate the amount of hours you will work
· Understand the risk you are taking
· Stay creative!
Bouyant Easter sales
25 Mar 2008
Just before Easter the media were full of their normal doom and gloom and they predicted sales would be down by 5% over the Easter period
As the large retailers annonce their results it looks as if once again the reality is much better than predicted. John Lewis reported sales of +6.4% - sales on Good Friday were +29% and Easter Monday +33%
As we finish the first quarter of 2008 Clinton Cards are +2% on sales but +18% profit, Laura Ashley's profits are +62% and HMV's profits +28%
What is interesting is that profits are up more than sales. Could it be that the retail chains are learning that volume is vanity and it is only profit that really sustains a business?
If consumers are tightening their belts then perhaps they are buying one quality item for £10 than 2 cheaper items which is good news for quality independent retailers
So our view? Try not to let the media get you down, make sure that your ranges contain different and unusual products and your product knowledge is good and we are sure that you can sail through 2008 what ever the chattering classes would like to tell you! Our 1st quarter was fabulous and we hope that yours was too
Birth Rate Booming!
29 Feb 2008
The Office of National Statistics has just released the latest figures on the
The birth rate has increased again with 2006 having the highest birth rate since 1980 with 669,000 live births
Given that it is estimated that parents spend approx £3500 on a baby in its first year then the market for baby products is blooming
The biggest increase has been in the over 40s with birth rate up again by 6% and this trend is set to continue
One company benefiting from parents' desire to spend is Mamas & Papas, the designer nursery store.
Its commercial director, Tim Maule, has noticed parents have more money to spend because there has been a shift to starting families later in life.
"There is more disposable income and people are prepared to spend more, particularly on the first child, than they have in the past," he says.
Older mothers are also more likely to look for and buy products on line
Blooming Marvellous, a £12m-odd turnover company based in Hammersmith, which sells maternity wear in stores and via catalogues. In 2001, it was doing five per cent of its turnover online. This has
now increased to 32 per cent, following back-to-back years of 100 per cent growth in online sales. More than half its new customers come through the internet
Sneak preview of new ranges
Win free stock by taking our survey
31 Jan 2008
Do you want to have a sneak preview of what our new ranges will look like?
Take our survey, give us your opinions on what you think of our new products and be entered in to the draw for free stock
survey.constantcontact.com/survey/a07e28ryd4mfcol0br1/start
Thanks!
Our Safety Promise
How Best Years keep their products safe
13 Nov 2007
Following hard on the heels of Fisher Price's recall of some Seseme Street and Dora the Explorer toys Mattel today announced the biggest product recall in UK history. Despite there being no recorded incidents of harm caused to children Mattel has voluntarily recalled lines with small magnets (including Polly Pockets and other well known brands) as new stringent checking proceedures have high lighted that there may be issues with children swallowing the magnets
The problem springs from success. When you need to bring in hundreds of thousands of toys to meet retailer demand then no one factory can cope with the demand. This means that manufacturing is sub contracted to smaller factories who in turn sub contract to smaller companies and so on. Very soon, despite the best efforts of reputable companies such as Mattel the process becomes hard to control
This is probably the same issue which caused TopShop embarassment when The Sunday Times revealed that some of its workers were earning a pittance
Best Years manufacture in runs of just 2,500 units at a time and this means we never ever have to sub contract. It also means that we sometimes run out of stock! (The knitted elephant rattle should be back in stock October) but this is something we would rather face than increase our run sizes. You can see images of our factory by visiting www.danu.com
Also we design our toys to exceed safety standards. For instance our baby toys have embroidered eyes rather beads for extra safety
This year our sales have grown at over 100% a month and it is getting increasingly complicated to manage our stock. But we still believe that small is beautiful and thats why our production runs will stay small.
Uk population growth and what it means to us
What does it mean to you?
30 Sep 2007
Today the Office of National Statistics released its projections of population growth. It predicts that the Population of the UK will grow to 65 million by 2016
But what does this mean to us in the Toy market?
Beneath the headlines about increased immigration there is positive news on how many babies are being born.
In 2006 the number of children born to every woman was 1.84 children. This was a massive increase from the low of 1.63 at the end of 1990.
All four UK countries have experienced rising fertility over the past four years. Northern Ireland continued to have the highest birth rate in 2006 (1.94 children per woman), while Scotland remained lower (1.67 children per woman). Births in England and in Wales was close to the UK average (1.86 children per woman in each country).
Babies born to women in their thirties and forties has been increasing steadily for the past two decades. In 1986 just under 8% of births were to women aged 30-34. this has increased to almost 11% in 2006.
The average age for giving birth in the UK has increased from 28.6 years in 2001 to 29.2 years in 2006.
This means more babies born to more affluent families. A good time to be in the Baby Gift market!
Free market information
Where to find invaluable facts and figures
19 Sep 2007
If its true that you need to do thorough research before you start up your business then its equally true that however well established your business you can always use more information
But whether you are new at this or an old hand where do you find the information you need at a price you can afford?
The first place to start is always your local library which will have dozens of industry reports and information on your local area
However if you are looking for more then the first place to start is the British Library in London www.bl.uk/bipc/ which holds more information than you can shake at stick at!
And if London is not accessible do you know that they have a search facility you can use?
This is an exceptional service which could provide you with the very specific information you need quickly and efficiently, and at very little cost! for instance they can search their extensive databases to tell you all the names and addresses of specific business in your local area. Its definitely worth a look and their website is www.bl.uk/services/information/rsabout.html
Just remember if a fact has been published in the UK the British Library will have it on file - thats an impressive database!
As ever the internet is an invaluable source of information. One useful website address is adlab.msn.com/DPUI/DPUI.aspx which gives you a break down of the age and gender of people searching for any particular word or search phrase. So unusual gifts, for instance, is mostly typed in by women aged 35-49 years old,
And if you want to know the seasonality of your market try google.co.uk/trends for the peak times when people are searching for a particular item on the internet
Finally Business Link are always a friendly and accessible source of information
How to register a design
17 Sep 2007
Registering your design in the UK is reasonably straight forward and has minimal cost
The DTI website has all the information you need on its website www.ipo.gov.uk or you can call them on 08459 22 250.
However if you feel that you need your design to be protected across Europe you are adviced to use a patent attorney and the cost will be in the region of £1500
The Institiute of Patent Attornies holds free clinics in many major cities where you can get one to one advice on how to protect your product. See their website for more info
www.cipa.org.uk/pages/advice-clinics
Be aware that you need to register your design before the product goes on sale
Do you sell to Babies?
10 Sep 2007
Selling to New Mothers or Babies?
We consider many things when putting together our Baby range, and one of these things is demographics
Here are a few of the facts and figures we found useful
There are approx 650,000 babies born every year and this is growing very slightly.
The average age of mothers is now just under 30 years old and even the average age of first time mothers is over 27 years old. The trend towards older mothers is gathering pace with the number of babies born to women aged 30-34 now more than those born to women in the 25-29 age bracket for the first time. This has meant that the average mother is becoming more affluent
The number of multiple births is also growing, especially in the over 40s where more than 2% of births are multiple
The number of children living in families where both parents work has now risen to 66%
Regionally Cornwall, Devon and East Anglia have the lowest % of children and London, the Home Counties and Greater Manchester have the highest with the exception of Northern Ireland where a wopping 30% of the population is under 20 years old
So what does this all mean to Best Year's Nursery range?
When we develop product it is designed to appeal to Mothers and to be safe and appealing to babies.
A mother in her 30s will have been a child herself in the 1970s and therefore nostalgic knitted product will have an inherent appeal
Affluent parents will be prepared to spend more on toys but they will expect quality
Our ranges have a diverse selection of designs to appeal to all mothers and their babies
Who ever you are selling to we have a product to appeal to your customer
Are Toy companies an Evil Empire?
23 Apr 2007
Is the Toy Industry really an Evil Empire?
Eric Clark’s book “The real Toy Story” has had widespread publicity from organisations such as the BBC and The Sunday Times
His book is an in depth look at the toy industry. It is no surprise to find that it is run by number crunchers and dominated by Movie and TV tie-ins; where the majority of toys are manufactured in
But Eric there is hope!
The toy industry may be dominated by large international companies catering for an audience judged to have ever decreasing attention spans and a shrinking childhood, but we are not all like that. There are numerous small family companies still in the toy industry and we are one of them
Best Years design and manufacture soft toys and teddies for independent and high street retailers. Our toys are made in
Teddies are one toy which stand the test of time and imagination. They can be different characters to different children and this can change constantly. One day they are lined up in school being taught their ABCs and the next they are dangerous wild animals marauding the bedroom forest. Whilst a Bratz doll comes with its character pre-defined a soft toy or teddy comes just with potential for hours of play
And Joanna, next time your children play surf the wild seas on your sofa, or go to the moon in a cardboard box, I’ll bet that with them is their ever constant friend, their Teddy!
knitted toys
new additions to the range
31 Jan 2007
Knitted toys are a huge hit
Following the huge success of their knitted rattle range in 2006 Best Years are launching a range of new knitted products at the Spring Fair this February. The toys have been designed to appeal to children both in a visual and a tactile way giving them fantastic play value
The colourfully striped elephant and monkey are available both as rattles or toys.
Knitted toys are very much on trend in 2007 as the rise of the celebrity knitters such as Gwyneth Paltrow and Sarah Jessica Parker has made knitting very fashionable.
The material also suits baby toys as its tactile feel appeals to young children and its ability to go in to the washing machine is a definite plus for their mothers!
Jamyla the Elephant is in vibrant pink, red and white stripes while Mortimer the Monkey has blue stripes with a sweet pink face. Both are 12cm high retail at less than £12.99.
Wizard of Oz Dolls Will Be A Big Hit - Just Like The Musical
30 Jun 2006
Best Years, a leading supplier of soft toys to many of the UK's large high street stores and independent retailers has successfully secured the only UK licence for the Wizard of Oz beanies. And with the musical 'Wicked' hitting the West End this September, the beanies are going to prove an extremely popular product for retailers this Autumn and Christmas.
The musical, which opens at the Apollo Victoria on 27th September, tells the untold story of the legendary witches from L.Frank Baum's 'The Wonderful Wizard of Oz'. The show is hyped as 'Broadway's biggest blockbuster' and the West End production looks set to follow suit. With advance ticket sales already reaching a record £1.7 million, the London show is going to prove to be a merchandisers delight.
The six most memorable characters from the show are available from Best Years - including Dorothy, The Wicked Witch, Glinda the Good Witch, the Tin man, the Scarecrow, the Lion and of course, Toto the dog. Each doll stands at 8 inches tall (with the exception of Toto who is 6 inches) and are available at the trade price of £3.50 each.
The company has the capacity to handle extremely large volumes, but there are no restrictions on order sizes for this range and there is free delivery for orders over £250.
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