A few days ago, the “Double Eleven” officially kicked off, e-commerce platforms have come up with different strategies, and merchants are also actively preparing for the big promotion.
In this year’s “Double Eleven”, the toy track performed well.
According to Tmall, Tmall Toys only took 24 minutes, and the pre-sale exceeded the first hour of last year. Sports outdoor children’s outdoor amusement products, children’s bicycles, children’s scooters, children’s bags, etc. have become hot-selling items; the stroller has become the first pre-sale of Tmall toys; the artist Chaowan, as a cutting-edge blue ocean track, has increased year-on-year. close to 600%.
As one of the few listed companies in the A-share market that is involved in the toy business, Starlight Entertainment has also made frequent moves recently, grabbing market share during the big promotion.
The peak sales season at home and abroad is approaching
According to the data, Starlight Entertainment’s toy business mainly focuses on the research and development, production and sales of dynamic and static car models, robots, baby toys, building block toys and outdoor cycling bicycles.
Previously, Starlight Entertainment stated on the Shenzhen Stock Exchange’s interactive platform that the company has opened rastar flagship stores on Tmall and JD.com, and has cooperated with top anchors for live broadcasts many times. And it is planned to launch 30 live broadcasts at the 132nd Canton Fair to promote toy products to global merchants and actively explore domestic and foreign markets.
It is reported that at the Canton Fair, Xinghui Toys displayed nearly 250 toy products according to the categories of toy vehicles, riding toys, toy robots, educational toys, outdoor sports toys, etc. Karen F1 remote control car, 1:12 Ferrari F1 remote control car, Ferrari 488PistaSpider electric stroller, Lamborghini HuracanSTO remote control car and other products.
While the domestic “Double Eleven” is in full swing, traditional shopping seasons such as overseas “Black Friday” are just around the corner, and the overseas demand for toys is also increasing.
According to the “2022 White Paper on the Development of China’s Toys and Baby Products Industry” issued by the China Toys and Baby Products Association, in 2021, the export value of China’s toys (excluding games) will be US$46.12 billion, an increase of 37.8% over the previous year. The highest in the past five years; in 2021, the total retail sales of toys in the domestic market will be 85.46 billion yuan, an increase of 9.6% over the previous year. my country’s toy and baby products industry has a complete industrial chain, the level of production management and intelligence is constantly improving, and the demand in overseas markets is increasing.
The products of Starlight Entertainment are sold in more than 120 countries and regions overseas, and have established long-term and stable cooperative relations with toy agents in many countries around the world, including MONDO in Italy, TESCO and Argos in the United Kingdom, etc. Toy agents have strong local market promotion and channel coverage capabilities.
As for how to schedule production when the peak season is approaching, the company said: “It will optimize inventory management based on actual demand, and guide distribution customers to make reasonable arrangements for procurement and inventory according to changes in demand.”
It is worth mentioning that while sales are expected to increase, the US dollar index has recently risen, and non-US dollar currencies have depreciated to a certain extent compared to the US dollar. On the premise that the export price remains unchanged, the depreciation of the RMB against the denominated currency will increase the RMB revenue of enterprises. At present, the toy export business of Starlight Entertainment is mainly denominated in US dollars, and the depreciation of the RMB will help to increase the sales revenue of the toy business.
IP Reserve Brings Competitive Advantage
As the market heats up, the competition will become more intense. Apart from marketing strategies, how can Starlight Entertainment’s toys stand out?
According to the “2021 China Trend Toy Market Development Report” released by the Chinese Academy of Social Sciences, brand personality and product innovation are the main concerns of trendy toy consumers. Based on IP, trendy toy products are well-designed, bringing joy and surprise to consumers, and are widely loved by the younger generation.
In terms of IP, Starlight Entertainment has been authorized by more than 35 world-renowned car companies, and is one of the toy derivatives manufacturers that have obtained the most authorization from car companies in China. The only licensee in the world and an important partner of Ferrari and Land Rover.
At the same time, the company actively expands IP authorized partners and cooperation categories, and continuously lays a solid foundation for the company’s product development and innovation. In 2022, the company will add new authorizations for Hummer EV pickup truck, McLaren F1 race car, Maserati MC20 sports car, etc.
In terms of categories, the company’s toy product line is diversified. In addition to the company’s traditional categories of dynamic and static car models, it also includes robots, baby toys, building blocks assembled toys, and outdoor cycling bicycles, with a total of more than 400 high-quality toy products.
In addition, Starlight Entertainment continued to carry out technological innovation based on market demand, and launched Pagani series of puzzle building blocks, BMW and Lamborghini creative building cars, Ferrari F1 building cars, Audi R8lmsgt3 building building blocks and other building blocks. Toy products. It will continue to promote the research and development of new toys such as Maserati building blocks.
Industry insiders said that in recent years, the market size of assembled and disassembled toys has grown faster than the broader market. Assembly toys have three attributes of play, education and interaction, which meet the needs of parents to develop children’s intelligence and enhance creativity. It is favored by consumers. In addition, many former supply chain manufacturers have also shifted from export to domestic sales. The industry also pays more attention to brand incubation and product development, which also brings a premium.
With its own advantages superimposed on the development of the industry, Starlight Entertainment’s toy business has developed rapidly.
According to the company’s semi-annual report, the company’s operating income in the first half of 2022 increased by 46.72% compared with the same period of the previous year, and the loss narrowed significantly year-on-year; the net cash flow from operating activities changed from negative to positive, which was -38.2950 million in the same period last year. -In June, it was 140 million yuan, a year-on-year increase of 178 million yuan.
Among them, the toy and derivatives business of Xinghui Entertainment achieved a main business income of 169 million yuan, an increase of 28.32% over the same period of the previous year, accounting for 21.72% of the total operating income; net profit was 13.9577 million yuan, an increase of 125.32% over the same period of the previous year.
In the third quarter financial report, the company achieved operating income of 1.300 billion yuan in the first three quarters of 2022, an increase of 36.54% over the same period of the previous year, and the loss was significantly narrowed year-on-year; the net cash flow from operating activities changed from negative to positive, and was -1.05 in the same period last year. 100 million yuan, compared with 123 million yuan from January to September this year, a year-on-year increase of 228 million yuan.
In the fourth quarter of the big promotion at home and abroad, Starlight Entertainment may hand over a more dazzling answer sheet.