Monday, September 28, 2009

DIETHELM BUILDS ON LEGO TOY SUCCESS

       Diethelm, the distributor of Lego building bricks and mini-figures, expects its sales value to grow more than 15 per cent next year as it cashes in on higher demand for educational toys.
       Chukiat Tokamolthum, a department manager, said parents were more willing to pay for such toys, which pushes the segment's growth rate beyond others in the industry.
       The economic slowdown has affected the overall Thai toy market, whose value will be unchanged at Bt10 billion this year. However, the educational toy segment has shown growth, he said.
       "Parents believe educational toys will enhance the mental and physical growth of their children," he added.
       Educational toys are in the premium segment, for which annual sales are about Bt1 billion. Lego has a 15-per-cent share of the premium market, while the overall educational toy share in the segment is expected to rise from 35 per cent last year to 45 per cent this year.
       He said Lego had witnessed 10-per-cent sales growth in the first eight month, but the annualised growth rate would be 15 per cent.
       "The growth of Lego in Thailand has reflected consumer's behaviour. They now realise that Lego is a brand of toy that helps improve children's skills. This is the same trend in developed countries in Europe," he added.
       Chukiat said that unlike educational toys, other products in the premium segment faced a reduction in sales. The share of boys' toy has fallen to 25 per cent from 35 per cent last year, while that of toys from China has decreased to 5 per cent from 10 per cent.
       The trend has convinced Diethelm that sales growth will be no less than 15 per cent this year, despite negative factors such as political turmoil, the economic crisis and the H1N1 flu.
       Diethelm allocated Bt20 million this year for marketing activities to boost sales and brand awareness.

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