EDENS smART Retail Challenge 2013
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Transcript of EDENS smART Retail Challenge 2013
Hunter Thomas Gabbi Baker Alex Caffrey
February 3, 2013 New York, NY
agenda
– meet the team – mission & business concept – a change in play – our niche
– conceptual store design – advertising & marketing – financials – growth landscape
meet the team
hunter gabbi alex
mission
fundamentalplay is committed to child development.
We believe that great play creates great minds.
By creating interactive and educational play experiences, we can grow young minds to
reach new heights of imagination, creativity and intellectual development.
business concept
specialized, unique focus
exceptional service
high quality products
engaging experience
a change in play
competitive playground
a change in play
competitive playground
new consumers
a change in play
competitive playground
new consumers
evolution of play
$23.9
$7.3
$23.3
$3.1
$23.1
$2.6
world toy industry
$84 billion 2.14% growth rate (‘07-‘11)
US toy industry
$22 billion US
69% of sales for
children under 8
$284 avg. yearly expenditure
per child
a change in play
competitive playground
new consumers
mom: then
traditional homemaker
rise of soccer mom
family activity director
mom: now
work-life balance
increasing selectivity
mom’s community
a change in play
competitive playground
new consumers
evolution of play
evolution of play
kids getting “older younger”
play has become digital
social explorations
a change in play
competitive playground
new consumers
evolution of play
toy stores: slow to change
1950s
toy stores: slow to change
1950s 2010s
toy stores: the reality
toy stores: the gap
• shift towards international growth
• focus only on kid’s experience
• lack of attention to post-toddler years
• rising cost and market limitations prevent potentially great, new toys
our niche
consumers location employees
products & brands
retail perspective
consumer
purchasing power of women
$7T 85% of all
consumer purchases in the U.S. are
made by women
is contributed by women in the U.S. in consumer spending
1.3M
women earn more
than $100,000 in annual
salary
2/3 of consumer wealth in the
U.S. will belong to
women in the next decade
consumer
moms
aunts
grandparents
looking for meaningful products and expert advice
shopping for the child’s smile at any price
buying classic toys that ground their grandchildren
consumer: moms
$2.1T 50%
preschool toys purchased for
education
1 in 5
households contain a mother, father &
child under 18
spending power of U.S. moms annually
mom
consumer: aunts
aunt
76%
spend $500+ annually per child
68%
are role models for kids in their lives
23
million U.S. Professional
Aunts No Kids
feedback
“This [concept] is fantastic…the PANK has
long been ignored by marketers, and when she is
appreciated and acknowledged, undeniably
she becomes loyal.” Melanie Notkin,
Founder, SavvyAuntie
consumer: grandparents
grandparents
2/3
“spoil” their grandkids
$52
billion spent on grandkids
70
million American grandparents
location
• near affluent suburban and urban neighborhoods
• co-located in grocery-anchored centers that include yoga studios, children’s clothing boutiques and lifestyle stores
• high traffic areas with surface parking
employees
specialized training
friendly service
college & graduate students
child development focus
products
Ubooly Radio Flyer Wagon
Plan Toys Dollhouse
Green Toys Block Set
Hape Toys Peg Puzzle LEGO Life of George
craftsman & independent digital & building
traditional & licensed
brands
retail perspective
We Are We Are Not
• Neighborhood Store
• Unique, High Quality
• Educated, Friendly Staff
• Teacher Supply Store
• “Play Zone” or Day Care
• Mindless Toys
feedback
“This is a great idea! It’s the right time for
fundamentalplay to enter an underserved niche market.”
Caren Shalek, Board Member,
Toy Industry Foundation
store design
1
2
store design
3
4
store design
5
6
store design
7 8
7
advertising & marketing
social media
community engagement
events & promotions
advertising & marketing
social media
community engagement
events & promotions
social media
social media
advertising & marketing
social media
community engagement
community engagement
• partnerships with neighboring retailers
• involvement in local schools
• charity toy drives
advertising & marketing
social media
community engagement
events & promotions
events & promotions
toy registry program
events for secondary caregivers
storytelling and expert
lectures
new product launches
seasonal workshops
feedback
“We hear a lot in our forum that…events tailored to
working parents would be more valuable. Your
demographic is definitely looking for what you offer.”
Maria Sokurashvili and Jeff Steele
Founders, DC Urban Mom
spotlight: Bethesda, MD
$130K median HH
income
Population: 60,858
Annual Revenue: $1.6 million
$400 per year per child
19.2% under 14 years old
40% of the market
spotlight: Bethesda, MD
SPACE
store: 1,800 SF rent: $60/SF
EXPENSES
team: manager + 8 employees marketing & other expenses
financials
REVENUE
sales: $600/SF markup: 45%
GROWTH
first year: 5% after: 2%
operating income
FYE1 FYE2 FYE3 FYE4 FYE5
growth landscape
Bethesda, MD
White Plains, NY
Greenwich, CT
Brookline, MA
Alexandria, VA
growth strategy
10-15 locations
seasonal pop-up shops
omnichannel expansion
private label & exclusive lines
in review
inspiring experience
meaningful toys
targeted market
community engagement
above all, child development
future of play
Hunter Thomas Gabbi Baker Alex Caffrey