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The full display shelves filled with bicycles, board games, or video games... There is no denying it: the toy market is timeless, and it still has just as much charm as it always was.
And This is why we have concocted this guide for you when opening this type of store. Once you've read this article, you'll know how to start a toy store and open a toy kiosk in the mall, from the initial idea to finding funding. With, in addition, some advice and useful links. So, forward!
It must say: the business is dynamic. Even in times of crisis, the market sees its sales increase. In 2014, the French federation of toy and childcare industries (FJP) reported, via 20 minutes, a 2% increase in sales. According to the FJP, this shows that even in difficult times, households keep a budget devoted to children's entertainment.
This good health of the sector does not exempt you from carrying out a market study before opening your toy store. To do this, in addition to industry trends and consumer expectations, you will need to analyze the state of competition in your city carefully and think of a way to be competitive with your match.
For an entrepreneur who launches into this sector, it will be necessary to pay particular attention to the growing competition from supermarkets and e-commerce.
Competition in the toy market is fierce. To make your place, you will have to differentiate yourself from your competitors.
One way to do this is to set up a specialized toy store. Retailers thus decide to focus exclusively on wooden toys, board games, "Made in France" toys, or "first age" toys.
With this type of commercial positioning, you will target a much more targeted clientele. Your specialist positioning should allow you to stand out more easily from generalist brands and supermarkets.
Another possibility to be competitive against big brands is to join a franchise. In France, names are coming back like La Grande Récré, Autour de Bébé, or King Jouet.
By joining this type of network, you will lose your independence and benefit from the reputation of the network's brand, support, and prices negotiated with suppliers.
Once you have defined the contours of your project, you can start looking for a suitable commercial space.
Such a building is not necessarily difficult to find. You will need a space large enough for your shop, and your back room which will contain your stock. Note that this reserve will probably be larger at certain times. With the approach of the holidays, in particular.
Besides the size, you will also need to think about the location of your room. A small store will be more beneficial to be located in the city center: a small space is relatively easy to find, and you will benefit from a high level of traffic to promote your store.
For a store requiring more space, you may need to consider setting up on the outskirts.
Either way, don't stay isolated. A single store always attracts fewer customers than a shopping center. By bringing you closer to other businesses, you will accentuate your attractiveness.
The opening of your toy store is approaching, but some crucial steps are remaining. The next will be to choose the legal status of your business.
Do not make the mistake of choosing your status lightly because it will have an impact in particular:
Beyond the premises of your business, which may need to be renovated and above all fitted out, your business will need equipment and personnel to operate.
When setting up a toy store, one of the most important initial investments is often acquiring the stock. You will have to search for suppliers to negotiate prices, frequency of supplies, and payment terms.
You will have to manage your stock meticulously to have sufficient supply but not too much at the risk of ending up with unsold items, and therefore cash tied up for nothing. Still, at the stock level, the acquisition will be more substantial at critical periods, during the holidays in particular. But in addition to that, toys are more and more fashionable. You will therefore need to pay attention to the seasonality and obsolescence of your range.
In addition to the stock and the equipment of the room (departments, cash registers, security gates, etc.), you will also need to provide:
You should not a priori have any particular difficulty in hiring at the staff level, as the toy retail trade is not subject to compulsory certification. That said, it may be worth recruiting salespeople who have undergone specialized training in children's products.
Also, remember to anticipate the workload at the administrative level (payroll, schedule management, supply management, accounting, VAT, etc.). If necessary, get help from a chartered accountant.
Your project comes to fruition. You feel ready to open your toy store. But don't rush.
First, you will need to design an end-to-end marketing plan. In other words, you will need to develop a strategy to promote your brand and retain your customers.
For this, the choice of the location of your store is essential. A passing area will promote word of mouth and will make you more visible.
But there are other ways to make yourself known, and you can include:
And There you go! You have carried out all the previous steps with the greatest care. Now all you have to do is put together all the information you have collected into the business plan for your toy store.
The business plan is a detailed, argued, and costed presentation of your project to open a toy store. It includes a written part and a financial forecast.
Perhaps the most important document for starting your business is the business plan. It allows you:
You are all set! You will now be able to present your project to investors.
For this, you can count on three sources of funding:
Whether starting a toy kiosk in the shopping center or open a toy shop on the business street, you will need the modern design and functional kiosk stands and store fixtures. Ant Display is just the right commercial furniture manufacturer that can help you with it. Contact our team today and buy the best toy shopfitting.