Kids still play with toys, and it’s good for business

 

MANILA, Philippines – Richprime Global Inc (RGI), the newly-created arm of Richwell Trading Corporation, said the country still enjoys a sustained, strong demand for physical toys, even if gadget-based entertainment for children now abound.

Richprime president and CEO Myrna Tang-Yao said the company’s toy distribution business registered 15% to 20% annual growth in sales, even if a family’s budget is now also significantly spent for electronic gadgets.

Three years ago, the company enjoyed an annual sales growth of 20% to 25%.

“Many children are now into gadgets so I always ask what will happen to the toy business. Families have gadgets but they still look for traditional toys because by playing with toys, the creativity of children comes out,” Yao said.

Richprime is now the sole entity handling the local distribution of high-end children’s lifestyle brands such as Barbie, Chicco, Fisher-Price, Hot Wheels, and many others.

RGI currently operates 24 stand-alone retail stores, including Chicco and acquired boutiques of Big & Small Company of the Big & Small Retail Group.

The Barbie brand comprising toys, apparel, and accessories still leads the group’s toy distribution business, making up 20% of total annual sales.

RGI now has more than 70 children’s brands, mostly imported. Its own children’s shoe brand Ollie, is exported to Thailand from its manufacturing facilities in China.

More toys to enjoy

The rising purchasing power of parents is encouraging to the children’s lifestyle business as most are willing pay for good quality products, RGI Managing Director Liza Yao-Bate said.

“We also have products with educational value. People in general are willing to pay for quality,” Yao-Bate added.

As such, the group will continue to introduce new brands, like the Boomco blaster toy guns by Mattel, especially since the holiday season is starting to kick in, Yao-Bate said.

This year, RGI obtained the hugely popular “Frozen” by Disney and the Teenage mutant Ninja Turtle toy brands, both of which are based on hit animated movies.

The Thomas the Tank Engine collectible railways toy line will also be expanded, Yao-Bate said.

In November, the group is bringing in the Tobots, a line of transforming robots based on a Korean animated series.

For 2015, Bandai’s Masked Rider action figure line will also be coming to the Philippines.

The group employs 1,400 employees nationwide and has a distribution network of about 1,200 outlets in the country, including department store outlets and standalone stores.

On October 16, it inaugurated its new 9-story corporate headquarters in Quezon City.

Richwell Trading, meanwhile, will continue its 30-year-old distribution business of Good Year tires. – Rappler.com

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