6 New Considerations When Toying with a New Business Model in China -
Chinese manufacturers faced some serious scares last year in the face of several toy recalls leading up to the Christmas season.
Still, in the first 10 months of 2007, China exported $7.07 billion worth of toys, UP!, 20% over the previous year.
Customs sources called it a 14% growth.
In short – the toy industry grew… up 13% in the US and up 30% in the EU.
These two markets alone accounted for two-thirds of Chinese total toy exports.
Toy exports to Latin America were up 42%!
The last two months of last year – "An influx of orders before Christmas came as a big relief," said a general manager of Bright Spring Trading Ltd.
China can toy with a new business model.
1. Inspire loyalty. Good quality, consistent performance results in loyal buyers.
2. Fair prices. Customers will pay higher prices for a better product. Not only do buyers get what they pay for, they want what they pay for.
3. More inventive. Chinese toy makers need to make more creative products, more value-added products. Change "Made in China" to "Created in China."
4. Protecting IPR – China has original and exclusive products. If they want respect, they must show it.
5. Quality. Good products will beat bad products, lower prices every time.
6. Domestic Market, too. China need no longer focus only on the overseas market. The guy living next store can buy and is interested in buying the same toys.
An MBA is not necessary sometimes when doing a business. It's simple – find a need and fill it, with a good product.
What's your business strategy?
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