Last week, foreign media reported that the old British toy store Hamleys changed hands again after three years and five months, and the investor Chinese shoe retailer Qianbaidu transformed into an Indian faithful brand company with a transaction price of 6,800 pounds.
Hamleys has been in the Chinese market
As early as October 2015, Qianbaidu's acquisition of Hamleys was considered to be a rapid capture of market opportunities. The forward-looking concept of the second child concept made Qianbaidu decisive and chose such a high-risk cross-industry merger and acquisition. The transaction price was 100 million pounds, far more than the price of another shot now.
But as the world's largest toy chain, Hamleys deserves such attention. From 2015 to the end of 2017, Hamleys deployed a total of three physical stores in China, including the flagship store of Wangfujing Department Store.
In addition to the Chinese market, Hamleys has a total of 167 stores in 18 countries around the world, of which India accounts for nearly half of the stores. Hamleys has always adhered to the concept of "bringing toys into life". Although dreaminess and ornamentality are still a major melody of toy styles, Hamleys has also insisted on its additional attributes of practicality and education.
Advancing with the times seems to be a rule that every industry must abide by. In the early days of acquiring Hamleys, Qianbaidu believed that the current level of competition in China's toy market is low. It is not about design, function, and materials, but about price.
When we look back on 2015, we will find that such a strategic approach is also possible. The Chinese toy market at that time was indeed a mixed bag. Only the price war was the main theme of everyone, but with the rapid rise of the Chinese economy, consumers ’ Purchasing power has been greatly improved in recent years, and quality requirements have gradually occupied the first place. Fighting the price again will only lose more high-end consumers, which is inconsistent with the Hamleys brand concept.
Hard to escape the "retail curse"
With the opening of the second-child policy in China, the room for growth in the Chinese market has become more extensive. At such a time, Hamleys' change of ownership to Indian companies was a compelling choice. Judging from the current retail industry, no matter whether it is a global strategic layout or a strategic decision, China, the fastest-growing market in the world, cannot be avoided.
Of course, the change of ownership this time does not mean that Hamleys has given up the Chinese market, but how to break free of the "retail curse" is also a major problem for Hamleys. It is not just the Toys R Us, except for the toy industry. Poundworld, mother and baby The brand Mothercare and clothing brand New Look have been impacted to varying degrees.
Before Qianbaidu sold Hamleys, Sanpower Group had filed for bankruptcy of House Of Fraser and was bought by a British company. Sanpower Group and Qianbaidu were the closest partners. I wonder if the retail industry is really going to be abandoned.
With the rise of e-commerce and the weakness of the overall market, transformation has become an inevitable choice. After being started by an Indian company, can the British oldest traditional toy store escape the footsteps of Toys R Us or in " Whether the "main battlefield" India can open the gap and obtain more successful channel capability synergy is unknown.
The idea of not doing pure product retail also contributes to better diversified development. Theme parks and cooperative IP are things that Hamleys helmers have been trying. Product sales and joint product development have huge market demands and development opportunities. Hamleys, who has failed to succeed with thousands of Baidus, hopes that India's richest man will make a big deal.