Big
Tree Group, headquartered in Shantou on the eastern coast of Guangdong, in what
is considered by many in the toy industry to be the toy capital of China (a
prefecture-level city where sourcing and distribution are made easier for
market participants due to the large number of toymakers), today offers
customers a lineup of over 300k different kinds of toys, acting as an
authorized agent for more than 8k Chinese manufacturers. The company also has
two sizeable showrooms in Shantou where they showcase their dizzying array of
toys (as well as processing orders and shipping them out to destinations all
around the world), everything from sports and educational toys, to remote
control cars, dolls and toys for infants, even the company’s own proprietary
Big Tree Magic Puzzle construction toys, which are similar to LEGO, the maker
of which overtook Hasbro, Inc. (NASDAQ:HAS) last year to become the number two
toymaker after Mattel, Inc. (NASDAQ:MAT).
Seemingly
able to source just about any kind of toy from Chinese producers, BIGG is in an
enviable spot amid a domestic manufacturing industry that grew 8.5% last year
alone to around $29.21B according to IBISWorld’s Toy Manufacturing market
research from late 2013. IBISWorld also noted in their report that China, the biggest
manufacturer and exporter of toys on earth, has also become a larger and larger
consumer of toys as well. Families in the rapidly growing Chinese middle class
are spending more and more on their children, with domestic demand rising some
16.8% per year over the half a decade leading up to last year, coming in at
around $17B for 2013. Little wonder then that revenues for Chinese toy
manufacturers have been tracking at around 10% growth per year, an extremely
healthy environment for BIGG, which is also thriving due to their having fully
embraced ecommerce vectors from very early on.
The
recent innovation earlier this year by BIGG establishing a branded toy
experience platform, Afangta (www.afangta.com), is set to drive improved
ordering and product distribution capabilities for Big Tree Group’s customers,
as well as their vast supply chain partner network. Afangta’s comprehensive
client-focused toolset, featuring things like an information exchange, as well
as full catalogs to look through, gives domestic consumers, channel partners
and manufacturers a web portal that is as “one stop shop” for information and
services, as the company is for finding great toys.
Other
features of Afangta, like online trading services and bulk purchasing, will
further facilitate the expansion of BIGG’s business model and clients can rest
assured when using the site thanks to a third-party payment guarantee system
implemented via China Union Pay, the PBOC-enabled and sole domestic bank card
organization in the country. Afangta is a solid move to increase domestic
clientele for BIGG and help flesh-out their brand presence at the same time.
Toy
Industry Association data for 2013 pegs the size of the U.S. traditional toys
category as a whole at around $21B, a very boisterous market despite NPD Group
data showing retail dollar sales of toys in the U.S. slumped by about one
percent last year. Nevertheless, some segments of the U.S. toy market, like
youth electronics, or arts and crafts, have seen handsome growth, up 18% and 8%
respectively, perhaps indicating a gradual consumer shift more towards console,
PC, and mobile gaming.
BIGG
is helmed by one of the most hardened veterans of the Chinese toy industry with
over two decades in the game, the founder of toy export/import company Shantou
Dashu Toy Corp. Ltd., CEO Wei Lin. Further bolstered by an aggressive
management team of senior industry professionals and positioned to capitalize
on the toy industry’s growing global demand with priced-to-move toys in
extremely wide variety, BIGG was even highlighted by Market Advisors, Inc.
recently, with the established stock research and analysis firm giving BIGG a
12-month price target of $0.20 per share in late July when they issued their
report.
For
more information on Big Tree Group, visit www.bigtreegroup.net
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