Tapping into kidult market
While the declining birth rate in Thailand poses a challenge, the Toys“R”Us Asia CEO also highlighted the importance of expanding into the growing kidult market, with 40% of Thai population under 35 years old.
Currently, about one-eighth of our business comes from the kidult market, but we see significant potential for growth, and we anticipate that this segment will eventually account for around one-third of our total business, Tsoi explained.
To cater to this demographic, the company noted that products that are fashionable, collectible and usable are keys for engaging this group of audiences.
Toys and collectibles, as well as special promotions on those items, are offered on the store’s social media and e-commerce platforms to meet the kiddults’ trend to search for items online at reasonable price.
Artificial intelligence has also been adopted to optimise store layouts, personalise customer experiences and streamline marketing efforts.
“Kidults are looking for something unique to express themselves,” Tsoi said, adding that the company has collaborated with several intellectual properties on developing products to meet kidult needs, such as Sanrio and Roblox.
Thailand as strategic growth market
Tsoi described Thailand as a cornerstone of the brand’s regional strategy. With a burgeoning young population and increasing urbanisation, the country offers a fertile ground for growth.
He noted that the toy and gaming industry in Thailand is projected to grow at a compounded annual growth rate of 7.5% over the next five years.
“Thailand’s vibrant retail scene and its enthusiastic embrace of trends make it a perfect market for innovation,” he said.
To capitalise on this potential, the company plans to expand its presence in high-traffic locations and revamp existing stores, such as the upcoming remodel of the IconSiam branch, which is having a grand reopening celebration on January 9, 2025.
Looking ahead
The Toys“R”Us Asia CEO expressed confidence in achieving single-digit growth driven by strategic initiatives to increase the kidult’ contribution, while maintaining strong growth in traditional toy categories.
Key drivers include:
- New store openings: Expanding the footprint in strategic locations.
- Enhanced customer experiences: Leveraging technology to create seamless, engaging interactions.
- Exclusive product launches: Continuously refreshing the product lineup to meet diverse customer expectations.
“The essence of Toys“R”Us is joy,” Tsoi concluded. “Our mission is to bring that joy to as many people as possible, in new and unexpected ways.”