Children enjoy playing with motorized vehicles as their parents shop at Toys "R" Us in Alexandria, Virginia. The toy retailer is expanding its presence in China. FOR CHINA DAILY
International toy retailer Toys "R" Us Inc is expected to open at least 30 to 40 stores annually in China, mostly in major cities while reaching more customers with its online stores.
Roy Sammartino, managing director of Toys "R" Us China, said: "China is our fastest-growing market with more store openings than anywhere else in the world."
Toys "R" Us had two online stores and 134 physical stores in 55 cities in China by the end of April. The retailer has 883 stores in the United States, Puerto Rico and Guam, and 795 international stores and 254 licensed stores in 37 countries and regions.
Sammartino said due to the special nature of its business, where consumers want to touch the products, there has to be a mix of online and offline business to provide customers with the easiest way to shop.
The managing director launched the limited toy Redeco Optimus Prime from the Transformers 5: The Last Knight movie in Beijing and Guangzhou last week, with live streaming on its store on Tmall, the leading online shopping platform in China.
"Internet retailing continues to gain a strong share, as the pricing of products in online stores helps it capture sales from other channels," according to Euromonitor International Senior Associate Carol Lu.
"For toy and game firms, internet retailing is an important tool for marketing their products in regions where they have a limited presence," said Lu.
Sammartino said popular global and domestic movies drive the sales of toys and the impact lasts a long time.
Zhang Yuchen, general manager of Hasbro China, agreed that toys and movies are complementary. Hasbro gained success with its well-known brands including Marvel, Transformers, Star Wars and Play-Doh.
In addition to toys related to movies and TV programs, experience toys and educational toys are becoming favorites among younger Chinese parents.
"How to learn a better character and values through playing with toys is what Chinese parents care about," said Zhang.
In China, the total toy and game market was worth 218 billion yuan ($31.6 billion) in 2016. Traditional toys and games accounted for around 70 billion yuan, according to Euromonitor.
