hong kong toy fair · 2017-08-21 · in summary, toys“r”us is building our brand equity day by...

Presented By: Mark Murphy, Managing Director China January 7th 2014

Hong Kong Toy Fair

Building A Retail Brand in the China market

Definition of A Brand

2 Source: sethgodin.typepad.com

Definition of A Brand

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“Brand Equity is the totality of the

brand’s perception, including the relative quality of the products and services, financial performance, customer loyalty, satisfaction and overall esteem towards the brand. Brand Equity relates to how the customers, consumers, employees and all the stake holders feel about the brand”

………………………..Konapp (2000)

Source: http://www.scribd.com/doc/127990172/Brand-Equity

How Brand Equity Provides Value

Provides value to customer:

Assists in customer information processing Increases confidence in purchase

Increases satisfaction in product use

Provides value to the business:

Increases effectiveness of marketing programs. Increases customer loyalty and trade leverage. Is a source of competitive advantage

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High Brand

Loyalty

High Perceived

Quality

High Brand Awareness

Other Brand Assets

Source: Aaker (1991) “Managing Brand Equity”

The Beginning: In 1948, Charles Lazarus turned his dream of creating a child-oriented business into a reality. Lazarus opened his 1st retail store in Washington, D.C.1

Background – Toys“R”Us Story

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The Toys“R”Us brand has a rich heritage across the world; including Asia for many years.

Charles Lazarus opens first store

1957

1948

Chain renamed Toys“R”Us

Toys“R”Us goes public

1978

First international store opens

(Canada)

1984

First Asia store opens in Hong Kong

2006

First China store opens in Shanghai

2013

Background – Toys“R”Us Story

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1986

Geoffrey is the Toys“R”Us Mascot for nearly 50 years

“R” Geographical Footprint

More than 1700 Stores

in worldwide

Ecommerce webstores in 13 countries

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Toys“R”Us is the largest child-related product specialty chain store in the world

“R” Geographical Footprint

Toys“R”Us is ranked #48 of the world top 100 beloved brands in 2013

Source: http://www.adweek.com/news/advertising-branding/check-out-top-100-beloved-brands-last-decade-153026 8

Background – Toys“R”Us story in Asia

Singapore

Malaysia

Thailand Hong Kong

Taiwan

Mainland

China

Brunei

South Korea

Japan

Philippines

Macau

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No. of store operating in Asia as of 30.8.2013

China 54

Hong Kong 15

Macau 1

Taiwan 20

Singapore 7

Brunei 1

Malaysia 24

Thailand 12

Philippines 52

Japan 162

South Korea 86

Total 434

Vision & Mission

VISION To be recognized by our

customers as the leading toys, babies and educational retailer for

children across Asia.

MISSION To create a unique

and differentiated shopping experience for the benefit of our

customers.

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Building the

Brand in

0

2

4

6

8

10

12

30 35 40 45 50 55 60 65 70 75 80

China

Singapore

U.S. UK Japan

India

Malaysia

Thailand Indonesia

South Korea Taiwan

Vietnam

Philippines

Personal consumption (% of GDP)

Size of bubbles reflects private consumption in US$ bn, 2010.

Let’s Go Shopping

Source: Economist Intelligence Unit

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Shaanxi

Hunan

Heilongjiang

Jilin

Liaoning

Hebei

Shandong

Jiangsu Henan

Anhui

Zhejiang Hubei

Fujian

Guangdong Yunan

Sichuan

Gansu

Jiangxi

Sha’xi

Guangxi

Hainan

Inner Mongolia

Guizhou

Qinghai

Tibet

Taiwan

Ningxia

Xingjiang

Chongqing

First store opened on Nov 17th 2006 at SuperBrand Mall, Pudong, Shanghai Store penetration

Year No. of new store

2006 1

2007 1

2008 12

2009 2

2010 7

2011 8

2012 6

2013 23 (est)

Total 54 stores in 28 cities

China History and Facts

SuperBrand Mall Store – 1st in China

Event at SuperBrand Mall

Store at SuperBrand Mall

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Adapting the Business Model

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Think global, act local

Adapting the Business Model

Think global, act local Flexible business model tailored to each

market’s needs

Each market’s management team implements best fit business model for their market

Stores in China are MALL BASED rather than standalone

Toys“R”Us is the anchor tenant and destination shop on the kids floor 16

Adapting the Business Model

Think global, act local Store format and set up is

adapted for Asian market place:

− “WOW” experience in store

− Size / Format

− Zone Concept

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The customer is the core focus !

Toys R Us format “fits” most Malls:

Store Formats - Operating Model Tailor Made for Asia

Flagship Store Area: 2,500 – 3,000 sq. m.

Community Store

Area: 1,200 – 1,900 sq. m.

Toy Box & Toy Express Area: 500 – 1,000 sq. m.

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Store Formats - Flagship Store

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Store Formats - Community Store

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Store Formats - Toy Box & Toy Express Store

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Store Setup - Unique Store Appearance

Easy Shopping by Zone and Category! 22

International Brands

Offer widest range of international brands, many unique to Toys“R”Us 23

Store Setup - Creating a Unique & Differentiated Shopping Experience

“WOW” environment Great environment for kids in store

(and their parents.) – continuously delight

Hassle-free shopping

Breadth and depth of range; offer unique and exclusive products

Good, better, best pricing

We don’t just put up products

We put up a SHOW 24

Store Setup - Unique Store Experience: Instore Demos

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Products are set up for kids to play within store.

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Building Customer Trust & Confidence

Local call centre (in house) to deal with customer enquiries and issues

Safety and quality of products and services

Best return policy in market

Matching price policy

Marketing Communication and CRM Initiatives

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• Building Trust and Confidence of mum & dad

• 360o Customer Contact

• Social Media / Loyalty Program

How do we stay relevant to our core customer?

Customer Focus - Touch Points: 360o Contact

Customer

Instore

eCom-merce

Social Media

Customer Hotline

Star Card CRM

TVC; Advtg &

PR

Events & Offsites

Toys”R”Us Websites

Catalogs *(Started May 2012)

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Customer Focus

Social media

Loyalty / membership program

Meet & exceed the needs and expectations of our customers

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Where Does Social Media Fit in China

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Customer Focus - Social media in China

Geoffrey Video Site @ Tudou Over 400 videos

Total Site Page view：20.3M Total Spots：34.9M

TRU Mainland China launched WeChat as official account since Jun. 2013

Upgrade to service account since Oct. 2013

123k fans on Sina Weibo in Mainland China

Valued Relationship with Vendors, suppliers, landlords

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• Build trust and confidence with retail partners for the long term

• Grow Toys“R”Us brand awareness with joint investments from suppliers into activities and promotions;

• Develop win-win programs to retain and recruit existing and new customers

• Strategic alliances with Asian and local landlords – brand status and awareness is key; anchor tenant status; in mall events and activities; other foot fall drivers etc

In Summary, Toys“R”Us is building our brand equity day by day

Toys“R”Us brand awareness, relationships and geographic footprint makes TRU China’s no.1 toy specialty retailer

Toys“R”Us is primarily MALL BASED, anchors the kids and family zone in these malls

Toys“R”Us has unique store set up appearance geared for a WOW shopping experience

Customer is at the centre of all we do; 360o marketing and trusted 2 way relationship

We know our marketplace very well; use local team to drive the business

Management team is experienced, capable and equipped to manage growth and market change

Toys“R”Us in China is a good corporate citizen (CSR)

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New Vendor Requirements

Tax license

Enterprise code license

Product liability insurance

Test report

3C certificate if 3C product

Chinese labeling

Barcode license

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FUN!!

Safety

No. 1 brand for children Quality

WOW!!