Almost all of us have grown up playing with toys till our childhood was over. As a kid toys were our best friends and we all have ended up fighting and crying over the ownership of our toys from our siblings and friends. We have also played emotional dramas to force our parents to get us the toys of our choices. With time the meaning of toys have changed and today we will be discussing about the toy industry and how it can provide business opportunities to people mulling to invest in the industry.
With the changing times the toys we grew up playing are no more in the market and have replaced with modern toys. The industry in between faced challenges as it stuck in the old traditional ways of making toys which is now dominated by modern toys which has found new market and interest among its users.
Till there are children we would continue to see the use of toys. The industry at present is very promising as it has something new to offer to the children. The billion dollar toy industry with time has continued to invest in modern toys that are somewhere more interesting and attractive than the old ones. The manual toy cars replaced the motor car that operated with remote and battery. Electronic toys with screens not only entertain children but also educate them.
The speaking Santa is also a new introduction to the limitless varieties of toys in the market. The present generation is relying on 3D toys, toys with virtual reality and many more. Such new introduction has created a new surge in the market.
Your Due Diligence Required before Investing:
It always important to read the market before you invest in the market. No matter how easy the market looks it is quite important to read and understand the market before you take a step further. Spend some time and research about the toy market both within your country and in the globe. Meet and connect with people who are already into this business.
After getting a basic idea about the toy industry you would be able to figure out whether there is point in going further or not. Hire a professional who can carry out due diligence which is also termed as feasibility analysis in order to read the toy market, your concerns and perspective with respect to the market. The report would be able to answer the queries you have and would also layout a future roadmap for your business.
Toy industry is not limited to a country only. Many of toys nowadays are exported and imported from the global market. China is one of the leading players in this industry and you can easily find a toy manufactured in China. What China does is very smart manufacturing of attractive toys that have something interesting to offer with a very reasonable or cheap pricing.
This makes its product very attractive and in demand in comparison to other branded toy industry. From your perspective of toy business who awaits a start, your pricing should be in competition with the Chinese toys that are quite cheap. Since you are not a brand, people would not be willing to purchase expensive toys.
There are certain toys that you can easily find out in the hands of every child. A doll, animal, car, gun, and other similar toys. On the other hand there are sophisticated toys that is basically used by teens like machine guns, video games, motor cars operated using remote control, etc. It depends on you in which niche you want to invest based on your budget, expertise and market requirements.
Make a choice based on your due diligence report as it will help you in deciding in which niche and till what level you should invest.
Manufacturing Toys or Assembling Toys?
The next question in front of you is whether you would be manufacturing toys on your own or you would only be assembling it. It depends on your choice along with capital investment or the budget you have, the expertise you have, the number of employees you have and many more.
Assembling is quite a common choice since you have to only assemble parts of toys using your engineering expertise adding value instead of labor thus reducing expenditure and increasing profit. The last or preferable option is to try both simultaneously where you would be manufacturing toys of certain types while assembling the rest which may not be feasible for you to manufacture.
Expertise and Capital Investment:
The present time is completely different in comparison to the times when we were children. Nearly in all toys there is introduction of software and electronics. Getting an expertise in manufacturing electronics isn’t an easy thing unless you are ready to invest heavily. Also, harboring experts is expensive since they will charge you at high rates.
You can decide the level of expertise you want to maintain in your toy industry based on the capital investment you want to make. Your feasibility analysis report and your research would be able to guide you that at what investment you would be able to manufacture certain types of toys. Thus you should maintain a balance between the two.
Accessing the Local Market and Competition:
Toy industry is very diverse and competitive in nature. In many countries toys or often sold on the basis of brands while in many countries people choose toys based on the choice of children which more or less depends on the type of toy and how it is attracting the child. Leaving aside the customer, your competition would be the market in which you would be selling your products.
Many countries import toys from other countries at cheap prices which is very attractive and cheap thus giving you a very tough competition. Being a nascent business it would be hard for you to compete thus your each step should be very calculated. Offer something unique that is different from the rest. Present it in a very intriguing way to attract the market.
Introducing Tech Advancement:
3D toys along with toys with virtual reality are the new realities within the toy industry. They are highly appreciated because the new tech they bring along with being very sophisticated. The question is whether you would be able to bring the same on desk to put a stiff competition in the market.
There are also many other tech advancements in the toy industry of whom children are big fan. As you tend towards tech advanced toys it is obvious that your budget will expand. Bringing a sophisticated tech advanced toy in the market is risky and expensive but it can offer you fortune if it hits the right spot. The choice is yours given you take the right steps with due diligence.
Targeting your Market and Making your own Space:
If you are able to target your market correctly it will be of much relief to you. It is not necessary that you invest heavily and bring very advanced toy to be successful. Common and simple toys with a good quality can also give you a good start if you are able to locate your correct market which can be within your local reach, at national level or even in another country.
Making your space requires dominating the market with a product that others do not have. A concept that is original and cannot be easily copied by others. Use your expert advice in this industry to build your roadmap to take a leap in the industry.
Evolving with Time:
It is important to move with time. What finds attraction from the market may become redundant within a short span therefore it is necessary to evolve with time and introduce something new with every passing time. Do not allow others to lead this field by introducing new things rather become the leader and bring new things within your business.
What we used in our childhood is no more relevant today. Young kids are investing time on screen in the form of smart tabs. With such a radical change if you do not bring something new to the table you would not be able to grow for long.
Building your own Brand:
All business start with humble background and went on to become giant businesses with turnovers in billions. Similarly you would also be starting with a little investment but with time you have to grow and bring values into your business. After spending a while in the business it is important to bring quality product in your business that do not compromise with the profit margin.
Once you become a brand your sales would rise giving you multifold profits. Focus on building your own brand slowly and gradually. Always focus on the customers in order ensure that they get satisfied. Parents often care about the toys with which their children play. It should surpass all the standards necessary to manufacture a toy.
In the last, since your business is dealing with products consumed by children it is necessary to bring values, ethics and standard in your products. Do not compromise with them as you would not only be building your own brand but also the future of the world.