Child's Play
This small sector is generating big sales for Dubai Duty Free. Lisa Phillips finds out more
ITS toy sector may only account for less than 1% of total duty-free sales, but in typical Dubai Duty Free fashion the retailer is ploughing substantial resources into the category, with plans to grow it by more than the 16.22% rise it experienced in 2007. Later this year, Dubai Duty Free is intending to open a toy shop on the newly-opened Concourse 2, in addition to an ongoing programme of promotions. Last year’s promotions generated double and tripledigit sales increases for individual brands, with sales of the Ferrari Range growing by a massive 472% during the period of the promotion.
“Soft toys, electronic games, remote-controlled cars and educational toys continue to be the best-sellers,” says Saba Tahir, deputy manager of Dubai Duty Free’s purchasing department. “Occasionally, due to children’s movie launches (eg. Shrek, Spiderman, Transformers, Power Rangers, etc), there is a high demand for their respective action figures. We keep a very close eye on the changing trends in this industry and try our best to introduce the products [that are] in-demand much before the local market. As suppliers become increasingly aware that the ‘youth of today’ has more access to disposable income, they are investing more time and effort to keep them updated with the trends in the market.”
Dubai Duty Free’s toy offer currently covers 1,575sq ft, and is situated near related departments like children’s books, stationery, gadgets and tapes. Easily accessible gondolas, a wide range of merchandise and brightly-coloured visuals have worked in combination with shrewd placement to not only increase the penetration rate of customers, but also to generate incremental sales in other departments. Although the toy sector market share has dropped slightly from 0.99% to 0.90% in the last year (due, says Tahir, to children’s increased focus on electronic games like PlayStation and X-Box), more space and focus is planned for the category in 2008. “We target children and adults alike by using attractive, well-designed display units of the right height and shape,” says Tahir. “Toy promotions are featured in the seasonal Dubai Duty Free flyers, available in all Dubai Duty Free areas.”
This month [June], Modhesh is being highlighted during the Dubai Summer Surprises promotion, as well as the Freej characters, which are very popular with local travellers. In addition, DDF is planning a surge of promotional activity around the ‘back to school’ and Christmas periods.
Best-selling brands for the retailer include Tech, Bratz, Barbie and back to school products, as well as Russ, Mattel, Nintendo and Maisto. Integral to their success, says Tahir, is a combination of competitive pricing, periodic promotions, merchandising help and efficient co-ordination with the Dubai Duty Free purchasing and warehouse departments to ensure stock continuity all year round. Tahir is confident that not only these suppliers, but also upand- coming brands will enjoy healthy sales with Dubai Duty Free in 2008, and notes: “With the opening of Concourse 2 and the increase in the number of passengers, we expect considerable growth in the toy category.”
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