Richprime Global Inc., the country’s largest distributor of toys and children’s clothing and accessories, has reported a slowdown in sales growth as the influx of electronics gadgets its toll on the traditional toys market.
Myrna T. Yao, Richprime president and CEO, told reporters at the company’s official launch as the operating unit of Richwell Trading Corp., that company sales growth has slowed down to 15-20 percent annually from a higher 20 to 25 percent three years ago.
“Our growth has slowed down, but we are still growing between 15 to 20 percent in sales,” Yao said.
Yao said that despite the influx of electronics gadgets there is still demand for traditional toys.
“There’s still demand for traditional toys but if we don’t keep on introducing, the parents and children tend to veer away from it,” she said adding there is also a factor of peer pressure to have those electronic gadgets.
“Gadgets just tire their eyes and mind becomes dependent on it, but toys is where creativity starts. With gadgets they get so engrossed they don’t think anymore so parents should get good toys and educational toys,” she added.
She noted though that because every family would also like to have an electronic gadget and this has resulted in a lesser budget for traditional toys.
“We could have grown more had we not been slowed down by the electronics gadgets although we are still growing at double-digit and we are still fine. In fact, we’re doing better than other countries which are growing at single digit,” she added.
The Philippines has remained the largest in sales in the Southeast Asian region.
“We are the biggest in southeast Asia for Barbie,” said Yao.
According to Yao, toys still account for 20 percent of its total sales with Barbie dolls as its biggest brand contributing 20 percent of its total sales.
To ensure growth, Yao said the company continues to bring in new toys to the market by allotting 10 percent of its revenues to expand its product portfolio.
“We are doing this because we believe that every child deserves a happy childhood,” she said.
Richprime has now a total of 40 brands, including four house brands for children’s clothing and shoes– Ollie, Big and Small, Orange Juice and Spin.
For its house brands, Yao said the company is exporting to other Asean countries to prepare for the 2015 ASEAN economic integration.
For instance, Ollie (shoes) is being exported to Thailand while Big & Small (clothes) and Spin (clothes for pre-teen boys) is going to be exported to Indonesia, Singapore and Thailand.
Ana Melissa Yao, Richprime managing director, said the company hopes to bring in new brands including Boom Co, which are blasters, of Mattel. It is also bringing in Tobots, a Korean brand for young boys, that has outsold Lego. Also coming in is the Masked Rider toys from Bandai and Thomas and Friends.
“Our biggest hit this year are Frozen and Ninja Turtles,” she added.