Distribution is the key element of any business supply chain, which in simple form is composed of (Vendor – Distributor – Retailer – Consumer).
In the MENA toy market the cycle starts with local players pitching for distribution rights from vendors and licensors; each demonstrating their skills and capabilities base in order to champion the rights of top brands and hot new IP’s.
The question is: “What makes a particular distributor the right partner?” Certainly there are basic key success factors for any business in order to survive and there are also other factors that make a distributor stand out, lead, shape the market, set new trends and be ahead of the game!
To provide you with the right answer, we have interviewed a seasoned toy industry leader; Raief Hafez. One of the top names in the field who is well known for his knowledge on toys, business acumen and most importantly for being a kid at heart! The Chief Operating Officer at NewBoy – a main player in the region – took a break to share with me some tips to reaching the top! And here is the summary:
Main Key Success Factors:
1. Passion at work
2. Good reputation
3. Strong customer relations
4. Sound financials
Manufacturing related KSFs:
1.Solid relations with suppliers
2. Ability to localize and adapt to market requirements
Logistics related KSFs:
1.Local warehousing and distribution facilities, serving markets from within, verses central cross boarder distribution
2. Integrated ERP system
Marketing related KSFs:
1. Smart product selection
2. Profound industry knowledge
3. Strong marketing campaigns with further emphasis on social media and BTL activities such as: demonstrations and events
4. Strong in-store presence; in terms of shelf space and in store activations
5. Multiple media relations
Skill and Capability related KSFs:
1. Talented team
2. Strong after sales support
3. Innovation; every business process
Now with these great tips from the COO of NewBoy, you can transfer your business to a new level of greatness by reassessing your strategy and adapting the required changes. Remember as a prerequisite step it is important to analyze both the intrenal and external business environment by applying SWOT and competitive analysis in order to set new objectives and redesign an effective action plan that will take you from you are to where you want to be!