good kid toy importers case study

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Goodkid Toy Importers

Essay by huynh_l   •  July 31, 2018  •  Case Study  •  1,448 Words (6 Pages)  •  2,984 Views

Essay Preview: Goodkid Toy Importers

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Table of Contents

Assumptions         2

Problem(s)         2

1.          Goodkid considering using Halifax as a port to import goods from Singapore.         2

2.          Company was dependent on a single consolidator located in Hong Kong         2

3.          Toy stores in the United States having to use U.S Atlantic Ports instead of their usual West Coast Ports.         3

Cause(s)         3

1.          Recent labour unrests         3

2.          Toy importers are using alternative ports to import their toys         3

3.          For U.S importers to ship to U.S Atlantic Ports, consolidation must be done in Singapore         3

Analysis         3

1.          Stick with what works in the interim         3

2.          Conduct a total cost of ownership analysis to import toys to Halifax         4

Solution         5

Short Term:        5

Long Term:        5

Appendices         7

1.          Appendix I – Goodkid Toy Importers Supply Chain Ma         8

2.          Appendix II – Distance from Vancouver to Winnipeg         9

3.          Appendix III – Distance from Halifax to Winnipeg         10

Assumptions

• All toy companies use the same methodology of consolidating shipments in Hong Kong
• A container needs to be full before it is loaded onto the container ship
• Goodkid manages the entire Supply Chain from manufacturer to brick and mortar
• Labour unrest is not a strike – just lack of resources

Goodkid considering using Halifax as a port to import goods from Singapore.

The problem with trying to use Halifax as an import port that would receive goods from Singapore is controversial because:

• Goodkids has never exported out of Singapore
• They have no experience shipping to Halifax from Singapore
• There is no relationship built with consolidators in Singapore – if they choose to mirror the Hong Kong model
• Their manufacturers across Asia would have to ship to Singapore instead of Hong Kong – which could lead to additional costs (customs and logistics)
• No experience sending product via truck or rail from Halifax westward to their Winnipeg DC
• There is no representative of Goodkids in the market to ensure that shipments arrive and leave on time

Goodkid’s headquarter is based in Winnipeg, Manitoba. Most if not all their toys come from Asia which means that there had to be challenges with time zones, languages and culture differences.

Company was dependent on a single consolidator located in Hong Kong

The toys both containing electrical components and those without were all consolidated in Hong Kong. Containers were only loaded once or twice a week then loaded onto a containership for transport via Ocean to Vancouver.

Toy stores in the United States having to use U.S Atlantic Ports instead of their usual West Coast Ports.

Toy stores in the U.S have been imported their toys from Asia to West Coast Ports.

Recent labour unrests

Due to recent labour issues at the West Coast U.S ports, which caused considerable port congestions, a few toy importers had their shipments come through the U.S Atlantic Ports.

Toy importers are using alternative ports to import their toys

Since toy importers in the U.S. have been using the U.S Atlantic Port instead of the West Coast ports, this has opened conversations within Goodkid’s management team to start looking into alternative ports in the east coast which would support and fulfill demand in key markets where sales were growing.

For U.S importers to ship to U.S Atlantic Ports, consolidation must be done in Singapore

Since toy importers in the U.S. are keen on using the U.S Atlantic Port instead of the West Coast ports, this has shifted where they need to consolidate toys. Instead of consolidation in Hong Kong they need to now consolidate in Singapore.

Stick with what works in the interim

• Currently Goodkid imports most of their toys to Vancouver, Canada. Only about ten percent of their toys come through the United States. This has not impacted their supply chain and its revenue streams; the main issue is how the labour unrests impacts the ten percent of revenue. As most U.S toys are using Atlantic ports instead. Goodkid should keep using the West Coast ports knowing that traffic and congestion would divert and increase at the U.S Atlantic ports.

Conduct a total cost of ownership analysis to import toys to Halifax

The supply chain team would need to determine how much it would cost to ship all the toys to Singapore and then mirror the same process as the consolidator in Hong Kong. The team then would have to assess how they would arrange for the containers to travel from Halifax to their DC in Winnipeg.

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Goodkid Toy Importers

Autor: abahgat88   •  April 6, 2018  •  Essay  •  434 Words (2 Pages)  •  1,161 Views

The main problem facing Goodkid Toy Importers today is a saturated market in Western Canada due to large stores and e-merchants making some inroads. Furthermore, there has been recent labor unrest as well as considerable port congestion taking place at West Coast U.S. ports.

Right now our global sourcing strategy is risky because we have all our “eggs in one basket” as we only import toys from Asia using the port of Vancouver. The tsunami in Japan has taught us that in order to mitigate risk companies need to be prepared with back-up solutions in case of afailure point in their supply chain. If the earthquake in Vancouver known as the “Big One” is to take place in the next few years it could cause a Tsunami that would end up disrupting the port of Vancouver.

Goodkid has floated the idea of receiving goods from the east using Halifax port as a potential solution. Nevertheless, this idea is not very pragmatic because Halifax port is quite a distance away from most of our eastern markets. In order to save on shipping costs (by reducing expensive land shipping) as well as to be closer to our eastern markets it is best to consider an alternative solution.

I recommend that Goodkid Toy import its products using the Port of Montreal. Indeed, the reason for this suggested alternative is because in recent years the Port of Halifax has been plagued by the same labor unrest issues affecting the west coast ports. Furthermore, the port is at its capacity and is becoming highly congested which risks delays in delivery. In contrast, the federal government recently announced that it would be investing up to $15.1 million towards two projects that will increase the port’s container handling capacity.

In conclusion, in the next year Goodkid Toy should focus on establishing new relationships with freight forwarders that can assist us in moving our goods door-to-door from their originating point in Asia to their designated retail store in Eastern Canada. At the same time we should use our connections with U.S. Toy companies to get in touch with consolidators in Singapore or the Mediterranean region that can assist us in loading our product onto container ships bound for the Port of Montreal.

The future of our growing markets is in the provinces of Quebec, Ontario, and the Maritime provinces. The Port of Montreal is perfectly positioned to assist us in reducing our shipping costs as well as bringing us closer to our expanding markets. I am confident that this is the best strategy that can move our company forward into the future.

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Industry Reports

Our industry reports are packed with actionable content to help you move your business forward.

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Toy buyer behavior and industry overview 2024 (new).

This report is based on a custom study commissioned by the Toy Association that is paired with Circana’s longitudinal consumer insights. The report provides an understanding into what factors have the most influence on toy shoppers. This study includes retail preferences; differences between casual versus heavy toy buyers; and drivers of purchase decisions, such as recommendations, reviews, and social media. Among other topics, the report also covers how sustainability and diversity, equity, and inclusion play a role in toy purchases.

The report is available upon request exclusively to members by contacting Anne McConnell .

The American Kid Consumer and Media Lives 2023 (New)

This research from BrandTrends explores kids’ daily routines and play habits, use of screens and digital media, kids and apps, reading behavior, pocket money spend, collections, entertainment brands and characters, favorite super- heroes, consumer behavior and holiday 2023 shopping trends.

BrandTrends Report 2024

This research offers insights into relative awareness, popularity and merchandise appeal of the leading entertainment brands and characters among kids 0-14 years old.

The 2023 Toy Industry Marketing & Advertising Study

The Toy Association™ commissioned Industry Insights to conduct an analysis of toy companies’ advertising, marketing, and social media practices. The executive summary of the survey is based on confidential feedback from 53 member companies across various sizes, categories, and distribution channels. The report provides data on dollars spent on consumer versus retailer/trade promotions, in-house versus outsourced functions, media usage trends, methods for measuring social media analytics, the effectiveness of social media in the marketing mix, and more.

The Executive Summary to the report is available upon request exclusively to member manufacturers, distributors, and importers by contacting Anne McConnell .

Only participants are getting the full report.

Consumer Attitudes of The Toy Industry

The Toy Association commissioned The NPD Group to conduct custom research to benchmark consumer attitudes and perceptions of the toy industry over time. Conducted annually from 2016-2018 and after a hiatus again in 2021, this report tracks: Attitudes and beliefs about toys’ and games’ impact on children, communities and society; attitudes and beliefs about toy manufacturers; perceived value of play; toy industry descriptors; and sentiments toward toy industry philanthropy. The expanded 2021 wave included an added segment of consumers buying toys and games for ages 15+, and addresses behavior related to COVID-19 and expectations for play habits in the next year.

Children & Influencer Platforms Study

The Toy Association commissioned The NPD Group to conduct custom research that takes an in-depth look at how children are engaging with key influencer platforms (YouTube/YouTube Kids, Facebook, and Instagram). This report provides detailed information on how kids are using these platforms, case studies of top performing influencer channels, demographics of users, and how these habits influence toy purchases.

2021 Financial & Operating Benchmark Survey

This confidential survey collected financial and operations data from 35 member companies that are engaged in toy manufacturing, importing, and distribution.

Member manufacturers that did not participate in the survey may purchase the aggregated results for $1,500 by contacting Bernadette Boyle .

Goodbye Old Friend Navigating Growth Without the Old Toys ‘R’ Us Model

Three large retailers remain as the dominant players and continue to expand their presence while others struggle to find their place in the market. In response to these changes, manufacturers must look to alter their strategies while taking advantage of new opportunities to reach customers.

Toy Association Completes Second Phase of the Future of Play: Executive Summary

The Toy Association has commissioned a series of studies by ProdigyWorks to explore the future of the toy industry. Complementing a first phase completed in early 2018, “Toy Manufacturing and Retail Solutions – the Future: Executive Summary,” shares an overview of the critical need for toy manufacturers and retailers to innovate and presents key pathways to attracting new and existing consumers for success in the future marketplace.

Toy Association Completes Second Phase of the Future of Play: 12 Opportunities

The Toy Association has commissioned a series of studies by ProdigyWorks to explore the future of the toy industry. Complementing a first phase completed in early 2018, “Toy Manufacturing and Retail Solutions - the Future: 12 Opportunities,” identifies key opportunities for toy manufacturers and retailers, centered around five themes: “A Toy Diaspora,” “Everybody Plays,” “Experiences,” “Speaking to Consumer Values,” and “Looking Beyond the Thing: Service Opportunities.”

Diversity and Inclusion Committee Summary

This inaugural report from The Toy Association’s Diversity & Inclusion Committee highlights the plans, practices, programming, and metrics committee member companies currently utilize to prioritize diversity and inclusion within their businesses.

The U.S. Toy Collector

The Toy Association commissioned The NPD Group to conduct custom research that takes an in-depth look at the U.S. toy collector. This comprehensive report profiles toy collectors of all ages across multiple toy categories including: Action figures, mini-figures and figurines; dolls and accessories; plush; sticker and cards; toy vehicles; and other toys. This report provides detailed information on the size and value of their collections, motivations for collecting, shopping habits and retailer preferences, cross category collecting and segments collectors by unifying characteristics.

The Future Toy Consumer and Toy Retail Ecosystem, Part I: Critical Findings

The Toy Association has commissioned a series of studies by ProdigyWorks to explore the future of the toy industry. Part I provides a comprehensive overview of the project, including: what the future toy consumer may look like; tackling the new retail environment; and harnessing technological advancements to enhance toys.

The Future Toy Consumer and Toy Retail Ecosystem, Part II: The Details

The Toy Association has commissioned a series of studies by ProdigyWorks to explore the future of the toy industry. Part II shares detailed findings and insights from the project, addressing topics such as forces and trends transforming the toy industry, the emerging toy consumer, and the evolving definitions of toys and play.

2018 Toy Industry Compensation & Benefits Survey

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Member manufacturers that did not participate in the survey may purchase the report for $595; non-members may purchase the report for $1,995 by contacting Bernadette Boyle .

Strategies for Growth in the Toy Industry

Developed with Vanderbilt University’s Owen Graduate School of Management, this report examines shifting trends in toy distribution channels and identifies potential new pathways to success.

The Toy Specialty Shopper

Perceptions and Behaviors of Toy Specialty Shoppers: The Toy Association and The NPD Group provide information on the toy specialty shopper, toy purchase planning and spending, consumer behavior in stores, what brings shoppers into certain stores and not others, and what makes them shop once inside.

Everything you need to know about importing toys into the USA

• by Unicargo_admin
• General , Tutorials

Importing and reselling toys made abroad for sale in America can be very profitable, but your products have to be tested, approved and certified before they can be sold legally in the USA.

If you want to start importing toys or children’s products into the USA and make sure that your goods are safe and legal, you’ve come to the right place-read on to learn everything that you need to know.

In this article, we will look at the safety and certification rules for toys and children’s goods sold in the USA, and what you need to do to comply with them so to avoid a big fine or even, G_d forbid, jail time!

Who regulates toys imported into the USA?

CPSIA (the Consumer Product Safety Improvement Act) regulates toys and children’s products sold in the USA, as part of the Consumer Product Safety Commission (CPSC). This body requires toys and children’s products to carry a Children’s Product Certificate or CPC to be imported and sold legally in America.

What is classed as a toy or children’s product?

The CPSIA regulations don’t just apply to toys-they apply to all products that are designed for use by children aged 12 or under. This means that as well as toys, a wide range of other goods including children’s clothes, furniture, fashion accessories, ride-on vehicles, and hobby and sports equipment like children’s fishing rods and footballs all fall under CPSIA too.

If a product is meant for a child to play with or use in any context, it is classed as a toy or children’s product. If you’re not sure if the products you want to import are classed as toys/children’s products, the CPSC guides to make it easier for importers and resellers to understand.

• Are the goods marketed as being suitable or appropriate for children aged 12 or under?
• Does the packaging present the goods as suitable or appropriate for children of 12 or under to use or play with?
• Will the retail display (or online retailer) for the goods present them as being appropriate or suitable for children of 12 or under?
• Is the product generally recognized as a toy or something designed and targeting mainly children of 12 or under?

If the answer to any of these four questions is “yes,” then your products are considered to be toys or children’s products and have to meet the CPSIA regulations.

What are the different categories of toys?

Toys or children’s products sold in the USA are subjected to different levels of safety regulation, depending on the age of the children that they are aimed at or designed for. The younger the child, the stricter the rules.

Toys or children’s products for children aged 3 or under (infants) have the strictest rules, followed by those for children aged 3-5 (toddlers). Toys or products designed for children aged 6-12 is the final category, with slightly less strict regulations, because older children are better able to keep themselves safe and are less likely to swallow or chew their toys.

Toys and children’s products are divided into age groups in this way to make sure that very small children are protected from extra risks like potential choking hazards or the toxic effects of putting toys and other products into their mouths.

The CPSIA regulations

To legally import toys or children’s products for sale in the USA, the products have to meet the CPSIA regulations, and when it comes to toys imported from abroad instead of made in the USA, this is up to the importer. To meet the CPSIA regulations, there are several steps that you have to take before you can sell your products in the USA.

Your products have to comply with all relevant safety regulations, have undergone laboratory testing to prove it, and have a tracking label attached to the packaging and potentially, the product itself. Your goods also have to have a Children’s Product Certificate accompany them for import, showing that they are approved for sale in the USA.

Labeling requirements for different types of toys

All toys and children’s products sold in the USA have to have a Children’s Product Certificate to be legal (more on this further down), and there are also rules for labeling children’s products and toys too.

The tracking label

A tracking label has to be attached to the packaging of the products, and if possible, to the actual toy or product itself too. The tracking label is an important part of compliance for legal import and sale of toys, and CPSIA outlines what needs to go on the tracking label.

To be compliant, the tracking label has to show:

• The date and place that the product was made.
• The batch number or another identifier that displays the batch or run line, and any other marks that the manufacturer might need to be able to trace the product back to its source, later on, such which of their factories made it, or the batch that a certain order’s products came from. This is so that any product faults or recalls can be traced quickly and accurately.
• Imported products need to have a tracking label showing the importer’s details too, including their business address and contact details, and information on the materials used in the product.
• If you intend to sell stuffed toys in Ohio , Massachusetts or Pennsylvania , or if you sell online and ship to these states, there are also local licensing and labeling regulations to follow too. You can click the individual state links to find out more or check with the relevant Chamber of Commerce .

Additional labeling rules for infant and toddler products

As well as the tracking label, toys and products designed for infants and toddlers (children aged 5 and under) have to be sold with a product registration card.

The product registration card must be fixed to the product itself, and display:

• The manufacturer’s name and contact details.
• The date the item was made.
• The model name and batch number for the product, and any other relevant identifiers.
• It must include a prepaid shipping label to be used by the buyer for optional product registration and in case of recalls.
• Buyers must have the option to enter their contact details on the card and register their purchase, and the card should also give buyers the option to register their details online instead of mailing back the card.
• Records of registered buyers should be retained by the importer in case of future product recalls.

Choking hazard labels

If your toys or children’s products are very small or contain small parts-like marbles, ball bearings, balloons, beads and so on-they also need to be clearly marked with a warning label to show that they can pose a choking hazard and noting the child age range that they are safe for.

The choking hazard label requirements are as follows:

• If the product or toy is meant for children aged 3-6 years old and contains small parts , it must be labeled as a choking hazard due to small parts, and not suitable for children under 3.
• If the product consists of a ball smaller than 1.75 inches in diameter and is meant for children of 3 or older, it must be labeled as a choking hazard due to a small ball, and not suitable for children under 3.
• If the product contains a small ball and is meant for children between the ages of 3-8, it must be labeled as a choking hazard containing a small ball, and not suitable for children under 3.
• If the product is a balloon or contains a balloon and is meant for children of 12 or under, it must be labeled as a choking hazard, and include the text: “Children under 8 yrs can choke or suffocate on uninflated or broken balloons. Adult supervision required. Keep uninflated balloons from children. Discard broken balloons at once.”
• If the product is a marble and is meant for children of 3 or older, it must be labeled as a choking hazard and state “This toy is a marble. Not for children under 3 yrs.”
• If the product contains marble and is meant for children aged 3-8, it must be labeled as a choking hazard and state “Toy contains a marble. Not for children under 3 yrs.”

Product testing rules for toys imported to the USA

All toys and children’s products sold in the USA-wherever they were manufactured-have to go through third-party testing before they can be sold, and before the product can be issued with the Children’s Product Certificate that they need to be legal for sale.

The importer or manufacturer doesn’t get to choose just any laboratory to test the product either-you have to use one of the CPSC’s accredited laboratories .

Product tests make sure that the toy is safe for the child age range it is intended for, doesn’t contain small parts or choking hazards for children of that age group, and that the product doesn’t contain any potentially toxic or dangerous substances.

Make sure to choose a manufacturer or supplier that provides toys and children’s products that are compliant with the CPSC rules-otherwise you might find yourself in business with a company that cannot produce goods to the American standard. When you are visiting or contacting manufacturers, only consider those that produce goods to CPSIA standard, and that can show evidence of this.

This can be more complicated if you are getting a supplier to make something for you from scratch rather than buying goods already made for the American market-but by following a couple of simple guidelines, you can avoid being caught out and making a costly mistake.

• Get your manufacturer to provide you with a replica of the toy or product before going into production-made using the exact same materials, finishes and production methods as the finished products will be. Has this sample tested and approved before giving the go-ahead for production? Your full production run will also need to undergo batch testing later, but testing a sample first will help to ensure that you do not commission a full batch that will not pass testing.
• When it comes to batch testing-testing a sampling of the exact products you will be selling-choose your samples, and don’t let your supplier pick them for you. The samples that you have tested have to be exactly the same as the products you are going to sell, and so, should be picked at random-not specially designed or made for testing.

What are toys and children’s products tested for?

Toys and children’s products will be tested to ensure that they don’t contain banned substances, are not highly flammable, are durable, and do not pose a choking hazard or other potential risks.

CPSIA sets rules to limit the amounts of certain types of heavy metals and chemicals used in the manufacture of toys and children’s products, which may be dangerous or harmful to children. Different types of phthalates, a common type of plasticizer used in toys, are limited to the following quantities in toys of all types:

While for toys that a child could put in their mouths, limits are set for the following types of phthalates too:

Another limited substance is lead, which is commonly used in paint and coatings. The surface or outer part of any toy or part of a toy that a child may handle can’t contain higher than 0.009% lead.

When your products are tested, they will be rejected if they are found to contain any of these substances at higher levels than those permitted.

If your toys or children’s products are meant for infants (children aged under 3) then they have to comply with the Small Parts Regulations standards before they can be issued with a Children’s Product Certificate. This applies to things like pacifiers, rattles, cribs, and anything else designed for use by infants and babies.

The Small Parts Regulations are intended to prevent the risk of choking, and products for children aged under 3 are tested using a tube chamber of around the diameter of a very small child’s throat. If the product or one of its parts fits fully into the chamber, it is considered to be a choking hazard and will be banned for sale for use by children under 3.

CPC certification for toys and children’s products

After your products have passed laboratory testing, they have to be accompanied by a Children’s Product Certificate (CPC) which is drawn up by the importer, in order to be legal to import for sale in the USA. This, accompanied by the product labeling rules we outlined earlier on, makes up the rules that cover the legal sale of children’s products and toys in America.

The importer of the goods is responsible for supplying the Children’s Product Certificate for their goods, and this certificate has to accompany all toys and children’s products entering the USA.

The certificate must show all of the following things:

• Identifying details of the product the certificate is for.
• The exact rules and regulations that apply to the product, such as the need for testing, and for small parts or young children’s toys and products, the Small Parts Regulations too.
• The details of the importer who is certifying the product.
• The contact details of the person who keeps the records of the product’s test results, which will usually be the importer.
• The place and date of the product’s manufacturer.
• The place and date of product testing.
• The details of the approved testing facility that performed product testing for certification.

Case study: a magnetic building blocks toy

To make it easier to understand the whole process you need to follow to legally import and sell a toy for children, we’ve drawn up a case study to help you out.

If you wanted to import and sell this product for sale via Amazon (a set of children’s magnetic block toys for ages 3 and up) we will talk you through the steps that you would need to take to legally import and sell the toy in the USA.

The product is designed for children aged 3 and older-so the additional regulations for importing products for children under 5 comes into play here too. From start to finish, here are the steps to follow.

Step one: The rules your toy must adhere to

First of all, determine the rules and regulations that will apply to your toys. For these magnetic building blocks, these are:

• Laboratory testing for safety and materials compliance.
• The tracking labeling requirements.
• Product registration labeling because the toy is designed for toddlers.
• Issuing of the Children’s Product Certificate (CPC).

• For a brand-new product, ask for a replica to be supplied before full production beginning, and have this tested to ensure that you will not find yourself in possession of a full shipment of toys that won’t be legal to sell.

Step two: Laboratory testing

• Find a CPSC approved laboratory to test your toys to ensure that they comply with the regulations on phthalates, lead and heavy metals, flammability, and suitability for the over-3 age group.
• Contact the laboratory directly and confirm that they can test your toys for compliance with the regulations above.
• Find out how many samples the laboratory will need, and how to send them for testing. It is a good idea to ask how long testing will take as well.
• From the larger order of toys you will be importing, choose a random selection of samples for testing, and package them with all the information that the laboratory you are dealing with asks from you such as your contact details as the applicant for testing, the name of the product, and if possible, additional information such as what the toy is made from.
• Send these samples off to the laboratory you have chosen from the CPSC list. When they have been tested and passed, the laboratory will return a full test report to you indicating that the toys have passed.
• An example of the product testing certificate you will receive from the laboratory is shown below: Test_Results-1

Step three: The tracking label

Draw up a tracking label for the toys, which shows:

• The place and date that the toy was made.
• The toy’s batch number or production run, or anything else that will help the manufacturer trace the individual toy back to a specific factory or production run in the case of faults or recalls.
• Your details as the product’s importer, including your business address and contact details, and an outline of what the product is made of in this case, ABS plastic, and metal.
• Then, attach the tracking label to the packaging of each toy and if possible, each toy itself.

Step four: The product registration card

Because your toy is made for toddlers (children aged 3 and over) it must also have a product registration card. The information to put on the card is:

• The name and contact details of the manufacturer.
• The date the toy was made on.
• The batch number, model name, and any other details used to identify this specific toy.
• A prepaid shipping label with room for the buyer’s contact details, so that buyers can register their purchase if they want to, or using them in case of product recalls.
• Details showing how a buyer can register their purchase online if they want to, without the need to mail off the registration card.
• This product registration card should be attached or affixed to the toy itself.
• You should set up a system to record the details of buyers who register their purchases with you, in case of future product recalls.

Step five: The Children’s Product Certificate

Finally, you must issue your toys with a Children’s Product Certificate for import, which shows the following:

• The details (description) of the toy itself.
• The regulations that apply to the product, such as the product testing that your toys will have gone through.
• Your details as the importer who is certifying the product.
• The contact details of the person or office that holds the results of your product tests-usually yourself.
• The place and date the toy was made.
• The details of the laboratory that tested and passed the toys as safe and legal.
• Make sure that the Children’s Product Certificate accompanies your toys for import-and that your freight forwarder also has a copy of the laboratory testing results to hand in case of queries upon arrival in the USA.
• Here is an example of a compliant Children’s Product Certificate for the magnetic building blocks:  CPC-1

What happens if you breach the CPSIA regulations?

The CPSIA regulations are designed to keep consumers safe and ensure that toys and children’s products don’t pose a health hazard or risk to children. The rules are very strictly enforced, and breaching any part of them comes with heavy penalties.

After all, breaching the rules might place a child’s life at risk and this is something that everyone should take seriously.

If your products aren’t tested, properly labeled and certified, you could find yourself facing a hefty fine of up to $100,000 per violation, as well as, potentially, criminal prosecution that can lead to your assets being seized, and see you facing jail time of up to five years.

To avoid leaving yourself open to fines, penalties, and prosecutions, it is really important to make sure that your products are not only safe for the children that they are intended for-but that they are also properly tested, labeled and certified as legal for sale in the USA too.

It is important to understand exactly what is required of you before you attempt to import toys into the USA-if you are not sure if the products you plan to import are suitable for resale in the USA, or need assistance with meeting the requirements for compliance, leave a comment or contact us and we will be happy to help.

Further reading: POLYBAG REQUIREMENTS FOR AMAZON SELLERS – WHAT YOU NEED TO KNOW TO STAY SAFE AND LEGALLY COMPLIANT

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A business journal from the Wharton School of the University of Pennsylvania

Marketing to Kids: Toy Sellers’ Bonanza or Parental Danger Zone?

December 5, 2012 • 12 min read.

As toy companies increasingly use the Internet to market to young consumers, some parents and children's advocates worry that kids are not mature enough to know the difference between advertising and entertainment. They also worry that exposure to these ads -- which often appear on a child's personal electronic device -- are much harder for parents to monitor and control.

Gone are the days when kids raced to the toy sections of old-fashioned department stores to find items for their holiday wish lists, or parked themselves in front of Saturday morning cartoons, captivated by a barrage of television commercials for GI Joe action figures, Chatty Cathy dolls and Easy Bake Ovens.

The Digital Age has changed those rituals. Glossy toy catalogs, TV commercials and eye-level in-store displays for the four-feet-and-under crowd still exist, of course, but toy companies these days increasingly use the Internet to connect with young consumers. Through kid-friendly online quizzes and multimedia games for touch-screen phones and tablets, marketers are blurring the boundaries between traditional advertising and children’s entertainment.

Some industry watchers say these marketing strategies represent added value for both the consumer and the marketer: Kids exercise creativity and have fun, while companies reap the benefit of an extremely effective tool for capturing the attention of the youth customer segment. But stealth advertising aimed at kids is also a source of mounting concern for parents and children’s advocates, who say that children are not mature enough to know the difference between advertising and editorial content. There are also worries that exposure to these ads — which often appear on a child’s personal electronic device — are much harder for parents to monitor and control.

“It’s obviously a huge concern,” says Barbara Kahn , director of the Jay H. Baker Retailing Center at Wharton. “Kids can’t differentiate between what’s propaganda and what’s not. And on the Internet, the regulations haven’t caught up.”

Perhaps the biggest difference between the Internet and television commercials is that the level of involvement is much more intense and interactive, notes Kahn. “TV is a passive medium,” she says. “Kids get mesmerized by TV shows, but they’re not engaged. When they are on the Internet playing a game, it’s much more involving. So the effect of the ads is probably greater. Another difference between the Internet and television is the platform: Kids watch television on a bigger screen in an open room. The Internet involves a smaller, personal screen so it’s more of a private experience.”

While the Federal Communications Commission (FCC) regulates television advertising targeted at children, there are no federal rules governing how advertising is offered to kids on the web. For now, it is unchartered territory. “The Internet is a new medium,” notes Kahn. “[It’s not entirely clear] how kids parse what they see and experience online.”

‘Attuned to Technology’

The typical American between the ages of 8 and 18 lives in a home equipped with no fewer than three television sets, three radios, three video players, three portable digital media players — such as iPods or other MP3 devices — two video game consoles and at least one personal computer, according to a report published by The Future of Children, a research group run out of the Woodrow Wilson School of Public and International Affairs at Princeton University and the Brookings Institution. Those children spend more than seven and a half hours a day using a smart phone, computer, television or other electronic device, reported a separate study from two years ago by the Kaiser Family Foundation.

Cell phone ownership among young children is increasingly prevalent, too. Nearly six out of 10 parents of so-called “tweeners” — children aged 8 to 12 — have purchased cell phones for their kids, according to a survey by the National Consumers League. Only 4% of those tweeners have basic phones with no Internet or texting access. About half have mobile phones with texting capabilities, another 20% have non-smartphones with texting and web access and 27% have smartphones.

“This is a generation that is attuned to technology,” says Ronald Hill, professor of marketing and business law at Villanova University. “This is a generation that believes technology should be accessible at all times. They seek out marketing. They seek out apps and Twitter feeds that are related to products and companies that interest them. They are energetically connected to companies that are relevant to their lives.”

Companies, for their part, are taking their cue by spending more money on Internet advertising and designing ads that go beyond simply pushing products.A study released by Nielsen in October found that Internet ad spending grew more than any other media in the first half of this year. (Advertising on the Internet rose 7.2%, radio rose 6.6% and TV increased 3.1% to offset the 1.3% decline in magazine spending.)

Advertising on the web requires a different strategy from other media, however. “Instead of advertising, the most innovative brands are taking content marketing strategies and applying them to kids,” according to Mark Bonchek, founder of Orbit + Co, a social media strategy company based outside of Boston. “In content marketing, the focus isn’t on promotional deals and offers. Instead, there’s some kind of intrinsic value, and the advertising message is embedded within the content or experience.”

There are, for instance, immersive “advergames” — video games made specifically to advertise a product. There are also in-game ads and quizzes where product placements are embedded within a game narrative. Many of these online marketing strategies revolve around a popular character or group of characters, which enable toy companies to continually cross-reference and promote TV shows, branded dolls, T-shirts, action figures and other products.

The Club is an online virtual world run by kid-centric television network Nickelodeon, where users are invited to create avatars and play Super Spongy Square Games (overseen by Sponge Bob), browse the Power Rangers Samurai store or join in Dora (the Explorer’s) Great Big World Game. Disney offers an array of free apps for kids featuring The Muppets and Mickey Mouse. Barbie.com offers video games that enable users to design virtual dresses for Barbie and her “besties,” watch cartoon episodes of “Barbie: Life in the Dreamhouse” or play an assortment of “princess charm school games,” which are, according to the perky disembodied electronic voice of the website, “super glam and royally fun!”

Bonchek says that the most effective advertising approaches are those that establish “a partnership between brands and parents.” They create virtual worlds that inspire kids’ imaginations and help them get more enjoyment out of the products, but also help parents make better gift-buying decisions. “It’s much better than when brands try to turn my children into a new mobile marketing channel,” he notes.

Food companies are especially skilled at content marketing. Kraft has many free kid-friendly apps, including one that lets users watch a cube of Jell-O dance in time to their favorite songs, and another in which kids create digital macaroni art — a subtle promotion of its Kraft Macaroni and Cheese. “Kraft has long been a leader in content marketing with recipes for grown-ups, so it’s not surprising that they have done well in finding innovative approaches to engage kids,” says Bonchek.

Innovative, certainly, but do these advertising practice also prey on the innocence of kids? “I don’t think any more than they prey on grown-ups,” notes Bonchek. “Does the 25-year-old guy really think if he drinks a particular brand of beer that he is going to get that girl?” The good news regarding children, he adds, is that “there are gatekeepers in the form of parents. They control the credit card.”

‘Not Just Adults in Teeny Tiny Bodies’

Parents may have ultimate control over what their children spend money on, but there is no doubt that kids have a large say in those decisions. According to a consumer tracking study conducted by The NPD Group in 2010, nearly half of the total dollars parents spent on kids went to items specifically requested by them. A 2005 estimate by James McNeal, professor emeritus of marketing at Texas A&M University, found that children under 14 influenced as much as 47% of American household spending, amounting to more than $700 billion that year.

As for 2012, it appears that the holiday shopping season is already off to a rollicking start. Despite the shaky economy, Americans spent $11.2 billion at stores across the U.S. and a record $1.04 billion online on Black Friday, according to ShopperTrak and ComScore, both retail and technology research companies. The National Retail Federation’s holiday consumer spending survey projects that the average holiday shopper will spend $749.51 on gifts, décor, greeting cards and other items, a slight increase from what they spent last year. The largest share of shoppers’ budgets this year will go toward gifts for family members — with much of that money going to presents for kids.

During the holiday season, children’s desires for new toys and games reaches a frantic, whiney pitch familiar to all parents. “It’s obvious that kids bug their parents so much because it works really well,” says Stephen Hoch , professor of marketing at Wharton. “Especially at Christmastime, parents want to buy something that their kids would like to get.”

Desperate children plus eager-to-please parents are a potent combination for toy marketers at Christmas. There is a reason, after all, that this time of year sees a significant uptick in holiday-themed advertisements meant to build up expectations around what packages might be arriving from the North Pole. These ads have an especially powerful effect on kids who have difficulty differentiating between editorial content and marketing, according to Hoch, a former Walt Disney executive who used to run the company’s children’s music division in the late 1970s. “Kids are not as savvy to the methods and motives of advertisers,” he notes. “Young kids are more gullible.”

Online, even fully-fledged adults can’t always tell the difference between marketing and editorial. “We have all accidentally clicked on a display ad that didn’t look like a display ad,” says Hoch. “But as adults, we set up defenses when we see the intention to persuade. That’s why it’s more difficult to persuade an adult of something than it is a little kid. As kids get older, they wise up to this. But when we’re talking about kids playing an online game or [being immersed in a] continuous stream of content on a computer screen, it’s not clear how vigilant they are.”

Research suggests it is unlikely that kids fully grasp the marketing processes at work behind many of these online advertising strategies. Indeed, evidence points to the fact that until the age of eight, most children are unable to understand persuasive intent — the fundamental basis of marketing, which makes kids especially vulnerable to an ad’s techniques.

Children deserve special consideration, according to Susan Linn, director of the Campaign for a Commercial Free Childhood, a Boston-based advocacy group, and a psychiatry instructor at Harvard Medical School. “Children are not just adults in teeny tiny bodies,” she says. “They don’t have the same impulse control as adults, and they have a harder time separating reality from hype. Very young children can’t differentiate between a commercial and a program. And even older children are more susceptible to persuasion.”

While the Internet remains a largely unregulated domain, the U.S. regulates marketing for children less than most other industrialized nations. Canada has very stringent regulations stating that companies can’t market to children on television who are under the age of 12. In Sweden and Norway, companies can’t market to children under the age of 13. In Greece, there are no television advertisements allowed on until after 10 p.m., and no war-related toys, such as toy guns, are advertised at all.

The Internet and other new technologies have made marketing to children more pervasive and even more effective, Linn notes. She says that laws against false and deceptive marketing could be enforced better and that marketing to kids on the web that is based on television and movie characters should be limited. “Advertising on the web is so much more insidious. For one, kids spend more time with the ad. For another, with handheld devices, it’s so much harder for parents to control [what their child sees and does] once that child has access to the Internet. It’s really hard to have parental control.”

Privacy is another area of concern. Online research applications allow marketers to piece together richly detailed consumer profiles based on the aggregate data gathered from children — a demographic that is otherwise extraordinarily hard to access, according to a study by Sara Grimes, an assistant professor of children’s literature and new media at the University of Toronto. Her study appeared in the International Journal of Communications and Law Policy .

Still, it’s not certain whether regulations that govern Internet advertising aimed at kids are the answer. Regulators are still finding their way, notes Jonah Berger , professor of marketing at Wharton. “Regulations often chase new technologies, but they often come with a substantial delay [as] people figure out what the issues are and how best to protect children. Regulators have yet to get used to this new environment.”

At a time when nearly one in three children is overweight, makers of salty snacks and sugary drinks are already under scrutiny for their advertising practices. Many food and beverage companies have signed on to the Children’s Food and Beverage Advertising Initiative, part of the Better Business Bureau, which encourages voluntary commitments to advertising healthier dietary choices and healthy lifestyles. The Federal Trade Commission soon plans to publish a report describing the ways in which food companies market their products to children.

For now, it is up to parents to monitor what their child sees and does online. “We live in an age where advertising is pervasive,” says Bonchek, the social media strategist. “Parents have a responsibility to educate their children about marketing and advertising. We need to lean into it. You can’t protect them from everything.”

More From Knowledge at Wharton

Marketplace Dignity | Cait Lamberton

Cait Lamberton, Author of Marketplace Dignity

Why Representation Matters in Marketing

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Toy products are subject to strict safety and quality regulations around the world, making it imperative that toy manufacturers have a reliable and robust quality control program in place to ensure compliance. In such a fast-moving industry, this program must also be flexible and allow for unpredictability.

This case study demonstrates how QIMA helped a leading toy company improve the quality of their products and adaptability of their supply chain through a comprehensive inspection, audit and lab testing program.

Client Background

The client is a major European toy company sourcing over 1,000 product lines from Asia. The bulk of its sourcing is done in China, Vietnam and India and its sales region is Europe and the USA.

As a toy manufacturer, the client had a particular responsibility towards children and parents to ensure the safety of their products. The client aimed to live up to its image as a creator and supplier of top quality creative and educational toy products.

The client produced three core lines (toys and games, decorations and creative leisure) spanning over 1,000 products every year, sourced from over 70 factories in China, India and Vietnam. Constantly innovating, they create a new product nearly every day and are always willing to take risks to turn dreams into reality. Such originality brings a great deal of unpredictability to the supply chain.

In order to achieve their goal, the client must comply with a wide range of laws and regulations in the EU and US regarding the production of their toys. QIMA's role was to help our client in doing the utmost to ensure that these requirements were met.

Toy regulation is organized and based on the intended use of the toy, the age category (children under 36 months etc.), and the material used (wood, textile, cardboard and paper, electrical components etc.).

QIMA was able to provide the necessary expertise in supporting the client in achieving compliance in all of these categories through audits, inspections and lab testing.

Implementation

Utilizing our expertise in the toy industry across audits, inspections and lab testing, QIMA was able to design and implement a full quality control process across the supply chain.

The program aligned with the client's exact specifications for each product and category, incorporating technical diagrams and information regarding product and age categories for each unit.

Thanks to QIMA's extensive network coverage, the program was implemented and coordinated across China, India and Vietnam, allowing the client to check production at any stage of the supply chain.

In order to ensure that all products that arrive at customs comply with EU and US regulations, QIMA implemented a strict process of tracking production from end-to-end and organized random sample collection at various stages of the supply chain for lab testing. On behalf of the client, QIMA conducts tests according to the New Toy Safety Directive EN 71-1/2/3 for the European market and CPSIA ASTM F963 for the US market.

QIMA's Total Quality Control Program consisted of:

• Safety Assessment
• Ethical Audits
• Pre-Production Checks
• During Production Checks
• Pre-shipment Inspections
• Container Loading Checks
• Lab Testing
• Measuring Impact and Results

In addition to designing and implementing the program, QIMA was able to provide the client with online Business Intelligence Tools which provide the client with real-time data on individual suppliers and their performance, allowing the client to monitor progress at all stages of production, including the results of Ethical Audits conducted regularly across their 70+ suppliers.

QIMA was able to provide the client with a simple, effective and comprehensive quality control program, and worked with the client to develop it into a global supply chain solution.

Prior to beginning the program, the client had a Beyond AQL rate of over 38%. One year after implementing the new program, the client reduced poor quality products and the Beyond AQL rate decreased by 40%.

The program enabled the client to be proactive in responding to their flexible supply chain needs by using critical point analysis to identify strong and weak points in their production, ensuring that production needs are met in a timely fashion and comply with all necessary regulations, in addition to reducing the risk of costly recalls and ensuring that their responsibility to the consumer is met.

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What the Research Says: Impact of Specific Toys on Play

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NAEYC asked two researchers about what their work tells us about toys, children, and play. Jeffrey Trawick-Smith is Professor of Early Childhood Education at the Center for Early Childhood Education at Eastern Connecticut State University in Willimantic, Connecticut. We talked to him about the impact different types of toys have on play. We also spoke to Judith Elaine Blakemore, professor of psychology and associate dean at Indiana University−Purdue University in Fort Wayne, Indiana, about gender-typed toys .  

Tell us about your toy research.

Professor Trawick-Smith : Studies have looked at the impact of peers, teachers, families, and classroom and home environments on play interactions. But few studies have looked at the effects of individual toys on play  activities . This is surprising, since about 90 percent of preschool children’s play in the United States involves a toy. So, our center conducts an annual study in which we observe children playing with a variety of toys-nominated by teachers, parents, researchers, and even children—in a free play setting in preschool classrooms. We code children’s use of the toys in three areas, using a coding instrument that we have developed: thinking/learning/problem solving, social interaction, and creativity.

What message do you think early childhood teachers and other educators could take from your research?

Professor Trawick-Smith : The most important finding emerging from our studies is that different toys impact children’s behavior in different ways. Some toys have a powerful influence on children’s thinking, interaction with peers, and creative expression. Other toys do not. Some of the toys that look most interesting to adults are not particularly effective in promoting development. This suggests that teachers can make decisions about toys as thoughtfully as they do when making decisions about any other area of the curriculum. Once toys are selected, teachers can carefully observe their impact on children’s play. Do toys elicit a good balance of play behaviors, across social, intellectual, and creative areas of development?

What message about toys do you think families of young children could take from your research?

Professor Trawick-Smith : We are cautious about recommending specific toys to families. This is because play interests vary greatly across cultures, children and families. However, one trend that is emerging from our studies can serve as a guide to families as they choose toys:  Basic is better . The highest-scoring toys so far have been quite simple: hardwood blocks, a set of wooden vehicles and road signs, and classic wooden construction toys. These toys are relatively open-ended, so children can use them in multiple ways. Also, they have all been around for a long time. There may be a reason these toys have been enjoyed by children over the generations! Simple, classic toys would be our recommendation for families.

What's the most surprising thing you think your research tells us about children, toys, and play?

Professor Trawick-Smith : We have found some surprising gender differences in our study. Many of the toys nominated by parents and teachers were used most often and in the most complex ways by boys. This included items that seemed gender-neutral from an adult perspective. What set the highest-scoring toys apart was that they prompted problem solving, social interaction, and creative expression in both boys and girls. Interestingly, toys that have traditionally been viewed as male oriented—construction toys and toy vehicles, for example—elicited the highest quality play among girls. So, try to set aside previous conceptions about what inspires male and female play and objectively observe toy effects to be sure boys and girls equally benefit from play materials.   

Professor Trawick-Smith directs the TIMPANI toy study, which looks at how young children in natural settings play with a variety of toys.

9 Marketing Strategies to Improve Your Toy Store Selling Offline and Online

• Post author: Tony Chen
• Post published: July 2, 2021
• Post category: E. Tips of Selling Strategy
• Post comments: 0 Comments

Sell toys can be easy today if you have the right marketing strategies.

There is no one in this unique world that does not enjoy the eternal laugh and play of brood. Children are not the only ones who enjoy playing with toys. Adults, such as collectors and parents, make up a large portion of toy store customers. This is a target market that toy sellers should focus on as well because they have the purchasing power, or product with limited capital.

However, if you are not a major retailer, you will need to put efforts in toys marketing strategy ( business idea to improve toys selling ) if you want to maintain a steady stream of new and returning customers. However, coming up with new ways to sell toys or gift store can be extremely difficult at times. To aid you in creating your toys marketing strategy, this is a post on how to sell toys store both online and offline.

Let’s take a look at the offline strategies of easy and simple ideas to incorporate into your toys marketing strategy.

1. Create In-Store Events

Events can help you attract a crowd, which will increase store awareness and sales. Your events can range from game nights to figurines, charity drives, and even sales, but they should be planned months ahead of time. You can also organize seasonal and holiday-themed toy events and sales, as well as parenting classes and gift classes for birthday parties and baby showers.

2. Get Involved with Charities

There are dozens of charities that work with children and teenagers, many of which revolve around toys. Participating is a great way to get your name out there, build your toys brand , and do some good. Toy-based charities are held both seasonally and year-round for a variety of reasons, ranging from assisting children in hospitals with toys to assisting children from low-income families with Christmas gifts. What you support is entirely up to you, but you can use it to promote your brand while also assisting others.

3. Improve your Store Layout

Experience is essential for small businesses, and your shop is a huge part of that experience. Does your store have old-wooden floors, a workshop and play area, and unusual items on the walls? Tell the story. Create a quick-post every time you modify the layout of your business, add a new section, or redesign it. Take every chance to remind them to come by and see what they’ve been missing. The interior design of a Toy Store or Gift Shop is important in fostering an experience of fun and discovery.

4. Product Overviews, Unboxing Products and Game Demos

In regarding product overview, this section of your marketing plan should be used to fully describe your product and its purpose.. Make sure that all the information is specific and accurate. If your product is brand new, simply describe it and its features… But hold on!

This section of your marketing strategy should be a piece of cake. You’re familiar with your product, right? You are aware of its features, absolutely right? But do you know what benefits your customers get from your product? You’d better, because that’s what’ll sell it.

As for unboxing products and Game Demos, if you have the newest toy that everyone is raving about, do a live in-store unboxing of the product and promote it on Facebook, either live or after the fact, through all channels. Inform the customer that you have what they are looking for!

5. Customer Experience Spotlight

What better way to attract customers than to acknowledge how you provided an exceptional experience or helped someone in finding the best gift?

Can you recall a time when your store dazzled someone? They gushed about how they’d been looking for “something like this” for someone special in their lives? This is an excellent opportunity to express your appreciation for them sharing their joy with you. Request if they mind if you tell their short story. If they agree, take a photo of them holding their purchase and ask them:

• Which area they are from (local or visitor),
• What is unique about the item they purchased, and what they want to use it for, or what they believe the recipient would think?

As it highlights what makes you distinct and important, this may be brief, sweet, and to the point.

Article: 5 best toys business ideas to improve your toys business

Marketing toys online an excellent approach to reach a big number of customers at a minimal cost. It enables you to connect with local customers, locate new ones, and maintain long-term relationships with existing ones.

(Article: 6 best way to sell toys online – how to Make money Online  )

1. Facebook

You may reach out to your customers using Facebook ‘s newsfeed. With a solid content publishing plan, you will be able to grab your audience and keep them engaged with your business on a consistent basis.

Through its chat feature, Facebook makes it simple to provide rapid customer service. Using Facebook’s paid advertising platform, you may market your shop, products, or services.

2. Pinterest

Pinterest is a popular shopping platform, and if you have high-quality images of your toys, you may use it to pique the attention of parents looking for present ideas. It should be noted that location tagging is critical, especially if you do not have an online domain.

3. Google + Local

Google Local allows you to create a business page, validate the location, and have it appear in a map search with your address. Confirming your Google Local address allows others to find you using Google Maps, which is incredibly handy.

4. Promote Your Toys Business via Emails (Email marketing)

Email marketing should probably be at the top of. The reason it’s so low is that I’m presuming everyone has already sent emails. If you aren’t sending emails to your customer list on a regular basis, you should start today!

Below are few of Captivating Email Marketing Features:

• Greet Customers Using an Autoresponder: When customers join up for your toy store’s newsletter, you may greet them with an automatic email template. This will decrease the amount of manual labor required.
• Assured Inbox Delivery: Ensure 99 percent inbox delivery, which assures email opening and, as a result, increases the likelihood of more toy purchases.
• Leads Can Be Gathered Using a Subscription Form: This is a form that visitors can use to quickly subscribe to your toy selling services and begin getting emails from you. It compiles a list of customers on your website.

What sells best on Amazon, and how do you find the best things to sell?

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9+ Tips to Choose the Best Toys for Your Retail Store to Sell

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How to do toys business online & offline?

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