Page 30 - Toy & Hobby Dec-Jan 2020

ROUNDTABLE
THE INDUSTRY SPEAKS
accountants at a similar time so conversing with other business and our suppliers and helping each other out has always worked for us.
Claire and Steve: There is a continual shift in how consumers become aware of a product or brand, research that product/brand and then transact. Distributors and retailers who are up -to-date with these buying trends and who tap into a wider range of marketing initiatives and sales channels are ultimately the ones who the consumer will trust and transact with.
Imogen: What are some of the challenges in the industry on a local and global scale?
Claire and Steve: The [openness of the market] can be a double-edged sword as the Australian toy market becomes more accessible to overseas suppliers and retailers. Therefore, the threat of inferior, copied, or potentially unsafe products being introduced into the market needs to be closely monitored more now than ever before. We believe that distributors, retailers and industry associations need to work together to identify these potential risks.
Nick: The global market has made almost everything available for a price. Competing with overseas businesses as well as catering for overseas customers challenges your business priorities and where your focus should be. The other is the swing in direct purchasing. Whether that’s
a retailer being able to purchase stock without a wholesaler, or a wholesaler able to sell direct to the market without a retailer. If you can’t add value to the chain, it no longer needs you.
Kerrie: Competition is a massive challenge. It’s very difficult to offer a competitive price as a bricks-and- mortar store when it is essential for us to consider our overheads when setting our prices. On a local scale, our physical location was a very coveted spot several years ago as the shopping precinct was
well known for its unique retail opportunities and
independent stores. A few years ago unrealistic rent increases in the area started a massive diminishment of these types of businesses, with an increasing number of nationally recognised stores taking over the shopping precinct. Unfortunately, the ongoing struggle in retail in general has seen an increasing number of empty shops available for lease over the last few months. We definitely notice there are a lot less shoppers in the area based on the number of customers through our doors, but also the number of car parks available in a street that was once notoriously hard to find a park in.
Sue: Remaining competitive is probably one the biggest challenges in our industry. Consumers are easily able to compare products and pricing online, both locally and worldwide, which can lead to confusion about margins. Careful consideration needs to be given to the RRP of a product to ensure both for value for money for consumers and ROI for both retailers and wholesalers. Comparison to pricing in other countries is also important, as this information is readily available to consumers. Between the declining Australian dollar against the US dollar, the difference in shipping costs and in some cases the variance in the cost of goods, online comparisons can make Australian pricing appear less competitive than
it is. This is an important trend for suppliers and retailers to be aware of, so we can react positively and promote understanding in the market. Another key challenge is keeping up with ongoing changes to the way business is done, including everything from technology and changes to standards to new emerging trends. Technology
– both in product and for in-house processes (website upgrades etc.) – can be confronting for small to medium businesses that don’t have in- house experts.
Imogen: And what are the opportunities in the industry on a local and global scale?
Nick: That’s a really broad question. Amazon is an opportunity. Instagram stores are an opportunity. Really good retail spaces and trained staff are an opportunity. Whether you take them and whether you can make them work in your market is the tricky part.
Claire and Steve: With improved technology and transport, worldwide trade is quickly changing.
In years gone by a toy distributor’s main channel to source new products/brands was by travelling long hours by air and attending global trade
fairs. This is not necessarily the case now. Trade fairs are still very relevant and integral to the toy industry, however, it is becoming more compelling to conduct product research and source products from overseas suppliers without having to step foot onto an aeroplane. This makes for a much more dynamic and fast-moving Australian toy industry which is exciting.
Sue: The opportunity we see in the industry
is always being part of the next ‘big thing’ – whatever product or range is going to capture the attention of the market and make a big splash. This is where industry experience becomes so essential – working with toys and games for so long you develop a good instinct for spotting something customers will love.
Kerrie: The world has become a very small place because of the Internet. The opportunities are limitless depending on your personal ambition, an understanding of your own personal limitations and the ability to finance your dreams. ❉
30 TOY & HOBBY RETAILER NOVEMBER / DECEMBER / JANUARY 2020