A To Z of The Toy Industry – E Is For Export


It’s very rare to come across a toy company, or any company for that matter which is satisfied with it’s level of sales. The home market rarely suffices, even if it’s the vast North American market. Export business is an important part of the strategy of most toy companies we have seen.

Here are some benefits of Export sales:

  1. Reduced reliance on the health of your home market/major domestic customers
  2. Protection against extreme currency fluctuations affecting your domestic currency
  3. Incremental sales opportunity
  4. Opportunity to justify overseas trips to source new products to sell at home by financing via Export sales business


However, it isn’t all plain sailing – we’ve seen plenty of companies go bust due to problems/disasters in their Export sales business. Here’s a few key pitfalls to look out for:

  1. Payment risk – it’s much harder to chase someone on the far side of the world for payment. LC/payment in advance etc should be considered/insisted upon to reduce risk of bad debt.
  2. Legal/regulatory risk – be aware that different countries have different laws & regulatory compliance frameworks, if you go waltzing in to a country in a cavalier fashion, expect to get the odd bloody nose!
  3. Trans border shipment – be aware that once you ship a container of product you lose control of it, and lose control of the ability to prevent it finding its way back across your border, so choose good partners/customers and monitor them closely.
  4. Lack of focus/opportunity cost – we’ve seen many companies chase the ‘shiny object’ of Export sales, when a few more phone calls to domestic customers would return equal return with less investment & distraction.

Via our Consultancy company – www.kidsbrandinsight.comwe regularly advise companies on how to grow Export business.