創易分享

It's official, UK manufacturing is on the rise and there’s one vertical market leading the charge. No, it’s not the automotive industry, it’s not electronics, and it’s not plastics – it’s toys and games.
Toys and games were the fastest-growing manufacturing sector, with production worth £273 million in 2013 compared to £155 million in 2012; a year-on-year increase of 76.1 per cent and a six-year high for toy-makers.
These are remarkable statistics considering that toy and game manufacturers in the UK have been facing challenging conditions over the last five years. Trading conditions have been affected by foreign-made toys and games, which have flooded the domestic market and proved to be tough competition for UK-manufactured goods. The economic downturn reduced the amount of money consumers had to spend on the industry's products, encouraging them to purchase cheaper, imported alternatives. Additionally, demand for professional and arcade games also remained weak, hampering industry performance. Meanwhile, VAT increases, and preference and demographic changes added to the woes engulfing the industry.

So why are toy and game manufacturers outgrowing other vertical markets, and what can other UK manufacturing firms learn from their approach?

1. Take pride in the Made In The UK label ( 品牌 )
Quality over quantity has long been the ethos of UK game and toy manufacturers, and many have concentrated their marketing efforts on the fact that their products offer great British quality over cheaper overseas competition. Even when British manufacturing didn't attract such international respect a few years ago, and many businesses off shored their operations, companies in this sector continued to spread the Made In The UK message, meaning that when the re shoring trend started to gather pace a couple of years ago, UK toy and game manufacturers were well placed to supply to larger UK retailers.

2. Reduce barriers entry  ( 排障 )
At a time when the UK automotive engineering sector is concerned about a skills shortage, and the quality of apprentices and graduates coming through the education system, UK toy and game manufacturers don’t have such political education issues. There are no formal academic qualifications required to set up an independent toy manufacturing business, which means that experience and passion are key to market entry; two attributes often lacking in the quality of some manufacturing apprentices in other vertical markets. While the industry may be smaller than others in the UK, it is attracting the right kinds of people and because it only takes 2-3 years to be considered a professional, career growth is a lot more progressive than in other sectors.

3. Maintain absolute control of inventory ( 存貨管理 )
For many years the UK toy and game industry was playing catch-up with the Chinese market, but all that changed a few years ago when toy makers in China and the US came under fire for having poor quality control and safety records. The UK market was able to take advantage with its message of quality and strict factory processes. Many UK game and toy manufacturers maintain absolute control over their products from design to production and distribution, reducing the risk of quality and safety breaches. In effect, the manufacturers themselves control lead times, inventory and productivity, helping build longer and more trustworthy relationships with suppliers. This period saw toy manufacturers such as Orchard Toys and Noah’s Ark Toys in the UK really exploit market weaknesses and achieve significant growth.

4. Create multiple distribution channels ( 多條通路 )
When it comes to taking a new toy to market, there is no shortage of distribution channels you can explore. Traditional outlets are toy, game and hobby stores, large national chains as well as small, independent toy shops; discount, variety, department, gift/novelty and drug stores; and others, such as online, supermarkets, card/stationery stores and catalogue showrooms. You can explore the e commerce route, partner with distributors and sales channels and are not dependent on exclusive OEM networks, making distribution a far simpler process.

5. Automation ( 自動化 )
Savvy UK toy manufacturers have embraced automation and technology over recent years to revive the sector and keep up with overseas competition. One of the main reasons many toy manufacturers off shored to the Far East in the 1980s is because the industry was becoming too labour intensive and the country was struggling to compete on cost. In response, the industry in the UK has been embracing automation tools such as Enterprise Resource Planning applications in order to save time and money in the supply chain and once again become internationally competitive.

The UK toy and game sector still has its challenges as it works to topple the market majority enjoyed by the Far East but early signs show that it is well on the road to growth. Throughout the last few decades, the sector has concentrated on producing high quality goods and continuing the international reputation the UK manufacturing sector has long had for quality and durability, and as it leads the UK’s manufacturing recovery, is it about time other vertical markets started to follow suit?