top of page
Search

How To Approach Export / International Business In The Toy Industry

  • steve3586
  • Jun 10
  • 4 min read

How To Approach Export / International Business In The Toy Industry


One of the most enticing areas of opportunity for toy companies is that of export sales i.e. selling products outside your home market/s.  The media so often tells us we are living in a ‘truly global market’ nowadays, that the big bright opportunity outside our homeland often seems like something that should be ours by right.


If only things were that simple! There are a number of complexities/factors which make export business trickier than it might at first glance appear to be, the two most striking factors are:


1.       Cultural and language barriers – even neighbouring companies can have a very different culture, compare Germany and France for example, are so close geographically speaking but miles apart in terms of culture. It’s not that German companies can’t do well in France or vice versa, just that the consumer, retailer and manufacturers are likely to have a very different outlook. It goes even deeper than that though – prevalent design styles, fonts, colour palettes etc. tend to vary from country to country. Packaging that works in one country is not necessarily going to work in another country therefore. Even in product terms we can see that a hit in one country doesn’t necessarily translate – for instance toys which parents perceive to encourage violent or overly aggressive play are not so popular in the  German market as they are in other markets.

 

2.       Retail chains/distribution channels differ – for instance the two largest toy retailers in North America (Target and Walmart) do not have a strong presence (at least under those brand names) in Europe. Equally, Smyths and Carrefour two of the largest toy retailers in Europe do not have a strong presence in North America. Each retailer has its own culture, systems, merchandising and marketing approach. In my experience retail buyers are not always as influenced as perhaps they should be by the explosive sales figures of a product in a different market from their own.

 

The other key difference is in terms of distribution channels. If we compare the German market for example with the French market we can see a French market dominated by several strong hypermarché and a toy specialist channel dominated by several chains. In the German market we see much greater market share from independent toy shops and department stores. Because each of these retail channels has its own characteristics i.e. margin/pricing structures, shelf space logistics set up etc. this can significantly affect the export opportunity.

 

So how do we exploit the opportunity and overcome these complexities/barriers?

Here are some suggested methods for increasing your chances of successfully achieving export sales:

 

1.       Build over time – I’ve set up distribution directly for numerous toy companies, and unless you happen to have the hottest license/product in the market place, it’s going to take you time to build. For each selling cycle you can expect to make another little step of progress, but as each selling cycle is a year, you can count on this taking you years. Even the established global toy companies who have been in business for decades are still usually in the process of expanding internationally. Start with the mindset of ‘Rome wasn’t built in a day!

 

2.       Export toy business (as with most sales) depends firmly on strong relationships – often before a company is willing to let you into their distribution chain and put their hard earnt customer relationships at risk, they will need to get to know you and to feel comfortable that you are going to deliver safe, functioning products on time and on spec consistently. Most people in the toy business will tell you about people they have met year after year but are yet to do any business with – this is all part of the process of planting seeds that can grow. Not every seed grows into a fully grown tree, but if you don’t plant any seeds you certainly won’t grow a forest!

 

3.       Trade shows are essential - you can lay the foundations for a year’s worth of business in just a few days. At events like the Spielwarenmesse in Nuremberg there is literally more opportunity to meet potential customers than any one person has time to fully exploit! There are people I’ve met at Spielwarenmesse or other trade shows who are now top customers for my business.

 

4.       Take a flexible approach – things don’t work the same way in other countries as they do in your home market. Be willing and able to adapt if you want to make the most of the opportunity.

 

5.       Piggy back on other people’s relationships – if you can’t build a lifelong friendship overnight, you can at least find a way to access other people’s contacts in one way or another. There is a plethora of reps, consultants and professional middle men operating in the toy industry who will help you out on a professional basis, as well as many people who will offer you good advice for free. Presenting a product is always the best way to learn what the weaknesses of your products/selling story may be, as people in general – whether distributors or retailers are never slow to inform you of shortcomings to address/fix.


Do you need help to find the right mid to senior level people? We can help…we have been helping people from across the world of Toys, Games & Licensing to find new roles since 2011. Our client list reads like a ‘Who’s Who’ in the industry, think of a Toy company and we have worked with them in some way. Along the way we have met thousands of really talented people who could be your next hire.  Get in touch for more information via the ‘CONTACT’ page if you need help to hire new people, or check out www.ToyRecruitment.com 



international Toy export sales

 

 
 
 

Recent Posts

See All

Commentaires


Post: Blog2_Post
  • LinkedIn

©2022 RG Marketing Ltd. All rights reserved. All content on this site is the property of RG Marketing Ltd, all Blog articles and other content herein were provided to RG Marketing Ltd on a work for hire basis. RG Marketing Ltd is the publisher and owner of this site.

bottom of page