Toys R Us recently reached an agreement with Hobby Warehouse, Australia's largest toy mall, and decided to return to the Australian market on June 12 local time.
In May 2018, after Toys R Us failed to reorganize, it failed to resist its wave of bankruptcy in Australia. At the time, this was the third major bankruptcy and delisting after the United States and Britain.
But after a year, Toys R Us is ready to enter the Australian market again, of which Australia and New Zealand will become the main "battlefields" of Toys R Us. In the agreement, Hobby Warehouse is allowed to list multi-brand toys on the online platforms of Toys R Us and Babies R Us, including Disney, Lego, Mattel, etc. In addition, it is worth noting that the online platform will also sell Tru Kids Brands toys.
The reorganization of the brand sounded the counterattack
Toys R Us retained few intellectual property rights during the bankruptcy and liquidation period, and Tru Kids Brands, as a strategic new brand created by Toys R Us, has the task of regenerating with these intellectual property rights.
In terms of staffing, we can feel the importance of Toys R Us to Tru Kids Brands. Richard Barry, the former president of the retail unit of Toys R Us, took the position of president of Tru Kids. The vice president was authorized by Toy R Us The president of the subsidiary, Yehuda Shmidman, served as its original goal. Toy R Us could use this to turn around in the country, but it was a good start to return to Australia.
On the other hand, this also means that Toys R Us has begun to attach importance to the development of independent brands. In this way, it can increase its own competitiveness without being stuck with the authorization of major toy companies. Second, independent brands can leave more Users, relying on enough stickiness, Toys R Us can have the opportunity to reach other related fields in the future.
Focus on online stores and reduce offline experience stores
Tru Kids Brands is very different from Toys 'R' Us, both in terms of business strategy, store category and store size. They have made very big changes, especially in making Toys R Us. In terms of digital content and retail channels.
The reorganization in Australia also proves this. On June 12, only the online store of Toys R Us was opened. It is expected that it will take almost a year for the offline experience store to launch. The change this time means that Toys R Us is moving towards a transformation in overseas markets, with the Internet as the center of marketing and the number of experience stores. This will reduce operating costs, warm up at the fastest speed, and make a comeback.
On the contrary, the layout of Toys R Us in the Chinese market is expected to expand to 400 offline stores in 2021. This completely different strategy benefits from their judgment on the market. The increase in the Chinese market and the population base are sufficient to support the survival and even profitability of offline stores; in overseas markets, the impact of Amazon and Wal-Mart on retail has been evident.
Establish a new category of stores, align with "new retail"
In addition to the number, the types of overseas experience stores have also changed a lot. The new company is also trying to pop up stores and pop-up stores with Internet characteristics to break the traditional stores to consumers. Alas, at the same time increase the focus on both the in-store experience and customer service, move closer to the "new retail" approach, and try to use services to drive consumption.
This comeback in Australia this time can be regarded as an attempt by Toys R Us. In addition to the huge Asian market, the United States is the position they want to recapture. As the world ’s largest toy retailer, you must not give up the market of the largest toy consumer. However, even if Toys R Us is on the battlefield, it is best to work on toys that have not been completely replaced by Amazon. Jefferies analyst Stephanie Wissink said that retailers such as Toys "R" Us may grab a 35% market share in the future. But such data is actually not optimistic and the later the time when Toys R Us "reborn" in the United States, the proportion will be smaller.
Toys R Us has the opportunity to continue its life in the U.S. market through the reorganization of new brands and new strategies. Blessing the preferences of local consumer groups and consumption habits, whether it is Amazon or Wal-Mart, e-commerce cannot completely replace Toys R Us However, the future operation status is currently unpredictable and can only be left to the market.