Universidad Autónoma del Noreste - Postgrado
Mercados Internacionales - Lic. Alex E. Gómez Conyers
Case No. 10 :TOY’S ‘R Us In JAPAN
With more than $6 billion annual sales, Japan is the world’s number two toy market after the United States. Japanese toys are sold in small traditional toy stores. The relationship between these small stores and toy markers has been traditionally strong. This factor makes it difficult for toys R Us to buy some of its products domestically in Japan since Japanese toy manufacturers and wholesalers are loyal to their existing clientele. Furthermore , in addition to its size, the Japanese toy market is attractive because Toys R Us can easily introduce 10 to 15 percent discounts.
MITI (Japan’s Ministry of International Trade and Industry) has had a practice of delaying the development of large retailers so that strong traditional small retailers can be protected. In addition, Japanese consumers do prefer buying Japanese-made toys. Toys R Us, therefore , will have to relay on local supplies for 50 to 60 percent of its inventories. Among the products Toys R Us is planning to import are Huffy bikes, Mattel’s Barbie dolls, and Tonka trucks. Since that typical small Japanese toy store stocks between 10000 and 2000 different items, Toys R Us is planning on attracting consumers by a staring stock level of 8000 which will rise to about 15000 products.
Questions
If you were in charge of Toys R Us Japan:
1. How would you enter this market?
2. How would you overcome the market’s problems?
Mercados Internacionales - Lic. Alex E. Gómez Conyers
Case No. 10 :TOY’S ‘R Us In JAPAN
With more than $6 billion annual sales, Japan is the world’s number two toy market after the United States. Japanese toys are sold in small traditional toy stores. The relationship between these small stores and toy markers has been traditionally strong. This factor makes it difficult for toys R Us to buy some of its products domestically in Japan since Japanese toy manufacturers and wholesalers are loyal to their existing clientele. Furthermore , in addition to its size, the Japanese toy market is attractive because Toys R Us can easily introduce 10 to 15 percent discounts.
MITI (Japan’s Ministry of International Trade and Industry) has had a practice of delaying the development of large retailers so that strong traditional small retailers can be protected. In addition, Japanese consumers do prefer buying Japanese-made toys. Toys R Us, therefore , will have to relay on local supplies for 50 to 60 percent of its inventories. Among the products Toys R Us is planning to import are Huffy bikes, Mattel’s Barbie dolls, and Tonka trucks. Since that typical small Japanese toy store stocks between 10000 and 2000 different items, Toys R Us is planning on attracting consumers by a staring stock level of 8000 which will rise to about 15000 products.
Questions
If you were in charge of Toys R Us Japan:
1. How would you enter this market?
2. How would you overcome the market’s problems?
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