The Toy Book (TTB): What kind of marketing promotions are going on in the region in anticipation of Chinese New Year?
Billy Lagor (BL): We have significant promotional activity surrounding Chinese New Year. This consists of a substantial range of marketing activity to engage our shoppers and consumers, similar to what happens during the holiday season in the U.S., and development of unique products designed with a Chinese New Year theme or to meet specific Chinese New Year product expectations. See below for some examples from the past two years.
TTB: Do Chinese consumers typically give toys for the New Year, or is this a recent behavioral change? If the latter, why do you think that is?
BL: The primary form of gift-giving for Chinese New Year remains Lycee red packets, especially for children. Toys are also a key part of Chinese New Year, driven by gifting–of often high perceived-value gift boxes–and by children using red packets to purchase toys and games.
TTB: In general, which have you found to be the most effective ways to market toys to Chinese consumers?
BL: Marketing to consumers in China is similar to western markets. For adult-targeted product–e.g., preschool-focused toys–parents are the primary focus with social media, bloggers, and influencers becoming as important as traditional forms of advertising, such as TV commercials and print advertisements. In-store execution is also critical, given the amount of time consumers spend at shopping activities. Additionally, online marketing is critical as this channel continues to grow significantly versus the rest of the market.
For products that are kid-targeted, demand is often driven by the content that they view, and marketing is typically a mix of traditional and digital advertising and in-store promotional activities and events. This can range from driving branded content through videos, digital shorts, and short- and long-form content; to product and lifestyle messaging around the brand; to having character appearances at a local mall. In general, digital communication is outpacing traditional as a key form of brand communication from a media perspective, while experiential and content marketing continues to be of key importance.
TTB: Which of Hasbro’s brands has done especially well in China?
BL: Hasbro has a wide range of iconic and beloved brands, which along with our key partner brands have built or are building a strong consumer base in China. The Transformers brand is likely one of the most notable examples, particular given Transformers: Age of Extinction, which had a record-breaking box office last year in China. Over the years, the Transformers brand has grown into more than just a toy line. It has captivated millions of kids and fans around the world as well and is truly “more than meets the eye,” from the toy and game line to the live-action movies and related merchandise.
TTB: How would you describe the average Chinese buyer who purchases Hasbro toys? For example, do they tend to be urban professionals, middle class, upper-middle class, etc.? How has that description changed over the past five or 10 years, if it has changed at all?
BL: Hasbro brands appeal to a wide range of consumers, and our toys, games, and licensed products reach a deep cross section of the population. The rise of e-commerce has only served to widen the reach and access of our brands. But certainly, the growing middle class provides an excellent base as our brands expand across the Chinese market.
