There's Always Hope for Toy Industry

The legendary doomsday didn't come and rising sun marks a fresh new day. The 2012 Mayan prophecy, which has been proved wrong, gave us both horror and fun in the past year. Even the U.N.'s official micro blog said "No!" to the fake ticket for the ark. From those "doomsday" incidents, a fact is found that the weaker economy is ,the more and more eager people are for fun to release pressure. As a consequence, cheap, novel and interesting products are getting more popular.

          In the past bumpy 2012, people showed their high spirits, which was reflected in the global sensation of "Gangnam Style", national phenomenon of "aircraft carrier style" and the success of Lost in Thailand the movie at the end of 2012. All mentioned above can be regarded as examples of "lipstick effect". Toys can inspire people and bring lots of fun to them, not only kids but also adults. But as for toy enterprises, how to display their advantages and let toys become the magic "lipstick" that satisfies consumers in depression period?

          According to marketing masters, "lipstick effect" works on sales under a few conditions. First of all, products must feature high added value except for practical use. In case of toy industry, toy is more than a piece of plaything but presents happiness, parents' love for children and leisure time within family. Those messages need to be clearly delivered. Secondly, absolutely low price with high playing value. Low price doesn't always equal poor quality. Giving up profits to consumers can gain popularity on the market within a short time, make the brand well-known and lay foundation for sales afterwards. The "11.11" shopping blast in 2012 played the "quality goods at bargain price" card and create resonant scenes to lure consumers. Take the shopping blast for instance again, major online retailers grouped together and shouted out such exiting slogans as "zero profit", "this day only" and "now or one year later". Influenced by those imposing signals, it is no wonder why consumers couldn't resist and the astonishing sales record is no surprise.

          Looking back on 2012, we found toy industry under intense pressure: weak overseas market, increasing exchange rate of RMB against U.S. dollar, domestic market that failed high expectation, rising cost of labor and materials and so on. It is widely agreed that 2012 is a difficult year but most never lose heart and keep working. 2012 has gone but the world still lives.

          And 2013 has come & opened a new era with full of hope!