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Tuesday, July 31, 2007

Used Toys:Exploring Business Possibilities

TRUSTED TOYS (Used and seconds Toys up for sale)
This can be one of the markets still unexplored.
It will a highly revenue generating business proposal for a new comer with no competition around.
This is all about “used toys”. In India people have not started talking of it, so we should talk!
Hardly there would be a kid who would not have thought or played with a toy.
As the economy grew the market of toys have also grown
The turnover has gone up. So many new companies have joined the army
Thousands of new products have rewritten the toy story.
I remember when I was a kid I used to buy cheap and usually familiar n common toys.
A pigeon for Rs.10 and a Light sparkling gun for at the most Rs.30.
But as the time passed the new generation wants all together new kind of toys,
which never costs less than Rs.100 and some tag as high as over Rs.1000.
This new generation is very impatient .Morning you give them a toy and in the evening
They would adore even seeing it and then they demand a new one.
Although it was the case earlier also but that time the toys hardly cost Rs.10.So it was not that
A big economical shock for the parents. But today toys are very costly as I mentioned
And being a product of a reputed brand it doesn't loose its iron and looks so easily and early.
They are made of High Quality material which rarely breaks.
Well, one can't afford a new toy everyday.
Recently, I visited my brother's house at pune.He has a sweet one and half year old baby.
I chanced to look at her almirah which were full of toys. All high value toys and mostly in good condition.'
But she hardly enjoys and likes any of them. As per one study IQ level of the new born have gone very high.
And so the curiousity.So today kids get soon fed up by the toys and then they demand for

Here is the market for an entrepreneur, a venture capitalist to explore in India. I emphasize again this
Business model will work in India only.
Well, some day reading a classified if my brother gets an opportunity to buy a New Like used toy
For 1/3 rd of the price then will he not be happy?
If we can exchange the toys with each other,ofcourse for some sum ,will it not ease the burden of the
Parents who works very hard to earn peanuts :-).
Further the kids will be more than happy as they were enjoying variety of toys day on day.
They will thus be more creative now and the parents definitely love the smiling face of their kids.
It has one other tangible benefit also. As u know that these toys are made of plastics and we know that
plastic is not bio-degradeable.So this way sharing the toys will decelerate the production of new toys
Which finally are going to affect the environment at a later point of time?
And at this time when the Ghost of “ Green house " is knocking our doors, it becomes our moral responsibility
To serve and save our earth well.
Produce should be taken as Pro-(the)-use, means less production and whatever we have
Use that efficiently. This may really disinterest some Venture Capitalists.
I am really sorry for that but we need to understand the need of the hour today, lest it becomes too late.
Infact when the governments will start taking call on it, there will be two potential products:-
1 New Market
2.Used Market

The companies will be asked to slow down their production level and in order to meet the

Cost of operation they will be free to charge high premiums.

Say If they today earn Rs.100 per deal an do 1000 deals, they will be compelled to sell/produce only

500 units with an earning of Rs.200 per deal. And this will be the time when production

Rate will be hit, as we can't maintain current production rate growth longer.

Here the used market will play a major role. Like today we scrap the item after use,

Things will not be same as of now. So many local level ,it may be company operated also,

will be opened that will refurbish the product and will sell it as new .The OEMs will

Have their share in it. This way companies will be able to sustain the financial pressures

Arised due to loss of production.

Further one thing to observe that why the new products will be able to enjoy high margins.

It is ok that there is always a niche group of customer who buys only new. But with the availability of

New Like Used products, even this niche customer base may drift.

But there will be one thing that will work as a resistance for this user group to stick to new products.

That is "innovativeness".

It is but natural that the new products, the innovative one can never be sold as used first.

So the used product buyers will have to wait till the product becomes used and becomes available in the market

Now the new products will be custom made and will drift from the present practice of

Mass production. It is very true that due to Mass production we sacrifice

innovativeness sometimes.Beacuse if the companies start introducing innovativeness

every now and then to their products in mass production, the cost will go very high

Beyond the reach of moderately earning customer.

And this way we are stopping innovativeness which we can never do.

So, with the environmental pressures mounting and no sacrifice to

Innovation this type of market dynamics will emerge. New and Used.

Have money go NEW and Innovative one.

So, during the passage of time New Products and Innovative Introductions

will become synonyms.

Some Pundits may objects whats rubbish I am saying, even many may even

Not like to take pains to comment rather. But how the time changes no one can

Predict. See this one:-

In the stone age we used to write from right to left but with the adoption of ink pens

We started writing left to right. Why?

Obviously, it was easy to strongly hammer a stone when we move from right to left

and it may spoil our shirts if we write from right to left using ink pens, so compelled

To start a new tradition of writing left to right.

Coming back to our Business Model.
This was the future strategy where our business model will be at its peak but even today
It doesn't loose its charm of money churning.
Key Points:
1. The entire system will be web based.
2. The user will not be charged any fees.
3. For Used Toys it will be completely C2C transaction.
4. Search Engine will be provided to pick a specific toy.
5.Defective Toys from Toy Manufactures can also be displayed
which generally make their way to Auction houses presently, selling 1/3
of their costs.
6. Contact Information of the buyer as well seller will be displayed.
7. System will not ask for any registration for using the website.
8. The opening page will be kept simple like Google’s.
9. Special Courier /Shipping charges if our services are availed.
10. Will be promoted through General Bulletin Boards of various companies form sectors like IT, BPO etc.using contacts.
11. No Vulgar Product selling.

Like Google's business strategy ours will also follow the same .Let the people use

And verify the usefulness and credibility of your website.

And once they get addicted to your website like orkut and the day your VHR's

Visit hit rate per day surpasses 1000 mark a day, you become a potential channel

For the sellers and now not only for used one but also for new ones too.

And here the revenues start flowing in your system.

Following are the ways through which revenues can be generated:-
1. Google’s Sponsored Ads.
They pay 3 cents per click.
2. Commission from the Sale of New Toys.
At later point of time, this option may be considered.
3. Tie up with shipping companies.
We can crack a deal with courier companies so that we can offer
shipment of toys at a highly affordable, reliable and negotiable rates
We may charge a commission from the courier company as we are giving them the additional business.
This will be win-win situation for all.We, customer and Courier Companies. All will benefit
4.Income from advertisements
5. Can provide value added services to the users by tying up with other websites in the future.

But as of now the only aim should be to increase the VHRs and develop the interest among the net using


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