Tapping into the children’s market
Although Thailand’s declining birth rate poses a challenge, the Toys “R” Us Asia CEO also stressed the importance of expanding into the growing children’s market, with 40 percent of Thailand’s population aged under 35 years old.
Currently, about an eighth of our business comes from the children’s market, but we see significant growth potential and expect this segment to eventually represent about a third of our total business, Tsoi explained.
To cater to this demographic, the company noted that fashionable, collectible and usable products are key to engaging this audience group.
Toys and collectibles, as well as special promotions on these items, are offered on the store’s social media and e-commerce platforms to meet the trend of children searching for items online at reasonable prices.
Artificial intelligence has also been adopted to optimize store layouts, personalize customer experiences and streamline marketing efforts.
“Kids are looking for something unique to express themselves,” Tsoi said, adding that the company has collaborated with several intellectual properties to develop products that meet children’s needs, such as Sanrio and Roblox.
Thailand, a strategic growth market
Tsoi described Thailand as the cornerstone of the brand’s regional strategy. With a burgeoning young population and increasing urbanization, the country offers fertile ground for growth.
He noted that Thailand’s toy and game industry is expected to grow at a compound annual growth rate of 7.5% over the next five years.
“Thailand’s vibrant business scene and enthusiastic embrace of trends make it a perfect market for innovation,” he said.
To capitalize on this potential, the company plans to expand its presence in high-traffic locations and revamp existing stores, such as the upcoming IconSiam branch remodel, which is hosting a grand reopening on January 9, 2025.
Looking to the future
Toys”R”Us Asia CEO expressed confidence in achieving single-digit growth, driven by strategic initiatives to increase children’s contribution, while maintaining strong growth in traditional toy categories .
The main factors are:
- New store openings: Expand the footprint in strategic locations.
- Improved customer experiences: Leverage technology to create fluid and engaging interactions.
- Exclusive product launches: Continuously update the product range to meet various customer expectations.
“The essence of Toys “R” Us is joy,” Tsoi concluded. “Our mission is to bring this joy to as many people as possible, in new and unexpected ways. »