Business Idea: An online toy outlet for the Three Kings!

Why?

In Mexico, the most common gifts for the Three Kings Day , which is celebrated on January 5 and 6, are toys, smartphones, gadgets and electronics, as well as clothing and sporting goods, according to a survey conducted by the Chamber of Commerce Small Tourism and Services in Mexico City (Canacope Servytur).

The main ways in which the Three Wise Men face the expense of this date are: allocate a part of their salary (16%), request a loan (15%), take advantage of previous promotions such as the Good End (12%), make use of credit card (10%), sell some belongings (10%), work overtime (9%), use the Christmas bonus (9%), save in advance (8%) and pawn some belongings (5%), according to data from the same survey.

According to figures from the National Institute of Statistics and Geography (Inegi), they revealed that in the first nine months of 2019 the value of toy sales totaled 300.8 million pesos, that counting the 40% contraction caused by COVID-19.

Another fact to take into account: the Three Wise Men usually allocate between 1,500 and 4,000 pesos for the purchase of gifts for each child. This means an economic benefit to the commercial sector of 2,500 million pesos just for this holiday of the year. While according to an opinion poll carried out by the Small Chamber of Commerce, Services and Tourism ( Canacope ) of Mexico City, 99% of the capital’s children will receive a present from the Three Kings this January 6 .

Most of the toy-consuming public is made up of infants under 12 years of age, who not only receive this type of present at Christmas and New Years. You also have to count the child’s day, birthdays, baptisms, first communions, etc.

How?

The first advantage of this business model is that you can set it up in a physical format (with a commercial store), mobile (a stand that can be located in squares, fairs or bazaars) and even online (through a portal from Internet). Whichever option you choose to undertake (or combine), you will have to find good suppliers of legal, quality toys that offer you a wide variety, as well as competitive prices and credit.

The fact that it is an outlet does not mean having an old or defective stock, but rather line toys that never go out of style: from tricycles, balls and dolls, to racetracks and educational games. Make sure to invest between $ 100,000 and $ 150,000 to offer variety to your clients. To this add another $ 100,000 for the rent and adaptation of a premises or for the development of a website (rich in photographic material).

A good strategy to make yourself known is to participate in school fairs or bazaars. In these types of events, dads meet whom you will conquer with two key added values: price and quality.

Success example

In Spain: Outlet PC