How Toys “R” Us Dominated the Toy World

This is a post about how Toys “R” Us dominated the toy world (and what you can learn from it).

Toys “R” Us is a classic example of retail domination of a product category (in this instance it’s toys).

This is a classic formula. This is what they did and you can mimic their success.
 
STEP ONE:

Choose a category that no-one is dominating, and learn from the dominant retailers that have preceded you.
 
STEP TWO:

Narrow what you do to a singular product category. (In the Toys “R” Us example, the product category is obviously toys.
 
STEP THREE:

Stock your product in depth. This means that you stock all types of toys (depth) but don’t go wide (in other words, don’t venture beyond toys into other children’s products).
 
STEP FOUR:

Buy cheaply (which often means you have to have buyer power which comes from owning multiple stores or having consolidated or cooperative buying power through the cooperation of multiple stores (such as a franchise).
 
STEP FIVE:

Sell cheaply at retail to make it hard for other players to compete with you.
 

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