Toy distributor sees strong demand

MANILA, Philippines - The official distributor of Barbie products and a host of other imported toys in the country sees sustained strong demand for physical toys despite the competition posed by gadget-based entertainment for children.

Richprime Global Inc. (RGI), the newly created retail and operation arm of Richwell Trading Corporation, is now the sole entity handling the local distribution of high-end children’s lifestyle brands such as Barbie, Hot Wheels, Fisher-price, Chicco and many others.

Richwell Trading, in turn, will continue its 30-year old distribution business of Goodyear tires.

During the group’s launch of its new corporate brand late Thursday, RGI president and CEO Myrna Tang-Yao said the company’s toy distribution business remains strong – registering double-digit growth in sales – even if traditional toys are now competing for attention and allocation in the family budget with entertainment provided by electronic gadgets.

RGI currently operates 24 stand-alone retail stores including Chicco and acquired boutiques of Big & Small Company which belong to the Big & Small Retail Group.

Yao said the group’s toy business still register a 15 to 20 percent annual growth in sales, albeit lower than the annual sales growth of 20 to 25 percent registered some three years ago.

She said the sales growth is still competitive compared to the sales registered by toy distributors in other countries.

“Many children are now into gadgets so I always ask what will happen to the toy business. Families have gadgets, but they still look for traditional toys because by playing with toys, the creativity of children comes out,” she said.

The Barbie brand comprising toys, apparel and accessories remain at the forefront of the group’s toy distribution business, making up 20 percent of the total annual sales.

RGI now has more than 70 children’s brands, mostly imported. Its own children’s shoe brand Ollie is exported to Thailand from its manufacturing facilities in China.

RGI managing director Liza Yao-Bate said the group would continue to introduce new brands to its stores in anticipation of strong demand in the coming holiday season.

RGI obtained this year the Disney Frozen and the Teenage mutant Ninja Turtle toy brands, both of which are based on hit animated movies.

For the upcoming holiday season, RGI plans to bring in Boomco blaster toy guns by toy giant Mattel.

Yao-Bate said the group would also growing its Thomas and collectible railways toy line.

Next month, the group is bringing in the Tobots brand, a line of transforming robot toys based on a Korean animated series.

Next year, the group will bring in Bandai’s Masked Rider action figure line.

Yao-Bate said the rising purchasing power of parents is encouraging to the children’s lifestyle business as most are willing pay for good quality products.

“We also have products with education value. People in general are willing to pay for quality,” she said.

The group currently has 1,400 employees nationwide and has a distribution network of around 1,200 outlets nationwide including department store outlets and stand alone stores.