Be A Bear toy Company

Presented by

Sky

Overview

Brief Summary of the company

“Pains” and “Benefits”

Business Model

International Market Screening Process

Q&A

Conclusions

Summary of the company

Our company named “Be a Bear”, which Chinese name is “熊熊工作室” .

make friends and make the baby bears have families with sisters and brothers.

Our business mission is “Let’s grow up together”.

Why Children need “Be A Bear” ?

Training Children’s Responsibility

Quality and Safety

Brand

“one child policy”

Social Responsibility

Quality and Safety

BrandLargest producer

70% of the products are processing with supplied materials and samples for processing for the Western countries.

few own brand

a good opportunity to develop our own brand

Chinese “build-a-bear workshop” own technology and suppliers.

Business Model

our product positioning is upscale plush toys

the price is about 200 RMB (about 25 dollars) for a bear

We provide the “Daily staff for Teddy Bear”

Have a vacation with family. Classes. Jobs.

Have a vacation with family

Different kinds of courses

Plan the future for “both”

Together With You

International Market Screening Process

Step 1 Determine Basic Demand For The Product

Step 2 Assess The National Business Environment

Step 3 Measure Market Potential

Step 4 Conduct A Preliminary Competitor Analysis

Step 1

Determine Basic Demand For The

ProductHow much are the parents willing to purchase the toy doll?

What’s the potential target market in China?

• One of the largest manufacturing bases of toys in the world

• High market demand

• Annual Sales of Chinese Toy (Unit: Hundred Million)

2002 2003 2004 2005 2006 2007

Annual Sales

25.3 28.7 33.4 40.0 44.4 54.7

Step 2

Assess The National Business

EnvironmentCulture Forces

Political and Legal Forces

Economic and Financial Forces

Logistics

Culture Forces

Target Market 0-14 years 260.3 million

What is the preference level of Chinese parents purchase toys?

• China ranked as number 5 in the toys imported market.

How the customers prefer the customized product?

Marriage

Political and Legal Forces

Are there any regulations and deregulations for a foreign company to establish in China?

• Notice of Prohibiting the Manufacturing and Sales of Toy Guns.

• Recall System of Toy Products.

• Compulsory Certification System of Toy Products.

Economic and Financial Forces

What is the GDP, inflation rate and interest rate in China?

GDP (ppp) per CAPITA $5,971.00 (2008 est.)

Inflation Rate -0.80% (2009 est.)

Population 1.34 billion (2009 est.)

Interest Rate 6.31 percent

Logistics

Which city would be best one to start the business?

Step 3

Measure Market Potential

What is the future outlook for the market and potential opportunities?

What is the SWOT analysis?

• Strengths: customized product, visibility of product

• Weaknesses: price, source

• Opportunities: internet and digital media, demographics

• Threats: electronic games, safety, related products

Step 4

Conduct A Preliminary Competitor

AnalysisWho are “Be A Bear ” major competitors?

Direct competitors: Teddy Bear

Nanhai Sino-U.S.A. Toy Factory

Jetta Company

Zhongshan Chonggao Toy Manufacturing Company

Wynnewood Toy Industry Co. Ltd

Milestone

6/ 2012 make a contrast with the toy factory and cotton factory

7/ 2012 look for a rental space and decoration shop

11/2012 get ready the bear toys and prepared to hire the labor

11/30/2012 get all the licenses

12/12/2012 open

Questions?

Conclusion

China is a medium risk country to do business

There are some limitations for doing business

The overall economic rating is low

Chinese people are more comfortable with new products that are imported from Western countries

The toy industry has been growing

Chinese consumers considered more about toy’s quality and safety recently

Consider about:

Further research on price

New style of plush toys to attract customers

Hire local advertising agency

Focus advertising on high quality and customized product

Supply

Supplier Line

For the cotton supply, we try to get the cotton directly in store to reduce spend.

Also we plan to cooperate with a small toy factory

We need to import a machine or may try to get the technology that could make the cotton into the bear’s body.

COST 1,000,000 CNY

=153,609.831 Dollars

What is the currency exchange between Chinese RMB and U.S dollar now?

1 USD= 6.51 CNY

1 CNY= 0.1536 USD