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Factor That Influence Toy Industry Sales in Usa

Essay by   •  May 22, 2013  •  Essay  •  448 Words (2 Pages)  •  1,628 Views

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California is one of biggest state of America. We have chosen California State to start our business. We will offer Indonesian Wooden toys and decided to enter Los Angeles City, California State based on below mentioned reasons.

During Last Decade, American total population was grew 8%. Especially In California, Population growth was 8.5%. State's population growth was more than American average population growth. Rate of Persons under the 18 years old in California is 25.7% and which means that this rate is more than Average Rate of Persons under the 18 years old in America. Furthermore, Rate of Persons under the 18 years old in Los Angeles City is 36.3% and it outweighed Average rate of California and America. Most important factor that influence sales of Toy industry is personal income per capita. If it is more than other state, they are more desire to consume their money for toy industry. According to research, in 2006, this rate was 39626$ in California and average rate in America was 36714$. Similarly, Average earning per job is 15% higher than American average earning per job.

Los Angeles city has strong presence for tourism industry as well as world's biggest movie maker city in the world. This would allow our product to be more familiar for international role and could influence sales rate. Why we choose Los Angeles in terms of location is that it will be easy to transport our goods from Indonesia and Southern Asian Countries. We just choose shipping. All of these factors strongly support us to run toy business. Why we choose especially toy business is that

Indonesian wooden toy product is steady business and doesn't affect economy recession. Maybe some people think that in recent years, children and parents tend to choose more sophisticated toy like video games but actually this kind of toys affects children's behavior to be belligerent and addictive. So that we will offer our product girls and their parents who will prefer to use this kind of toys instead of newly emerging video games. It is easy to transport place to place and don't break easily through transportation. And also, some plastic toys banned in USA toy market because of hazardous material and WTO pressured southern Asian Countries' toy makers to change raw material as an eco material and consumers want like what we offer them. That enables us to offer Indonesian wooden toys with competitive advantage. Moreover, It is easy to sell this wooden toys via E-commerce and other internet commerce website. We can measure and figure wooden toys easily and this meets customers' expectation. On the other words, their first expectation consist with their first impression which gives them high satisfaction.

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