Toys "R" US history
In what year was Toys "R" Us founded?
1958
Where on the list did Japan rank in terms of the size of its toy market?
2nd
Who was the local partner chosen by Toys "R" Us to help enter Japan?
Den Fujita
What enabled Toys "R" Us to offer lower prices than its competitors?
Sourcing directly from manufacturers
Why were competitors afraid of Toys "R" Us?
They were better (cheaper and bigger)
Who founded Toys "R" Us?
Charles Lazarus
What was the estimated size of the Japanese toy market in 1991? (in billion)
¥932 billion ($7.1 billion)
What other U.S. brand did Den Fujita successfully introduce to Japan?
McDonald's
What was one benefit for Japanese consumers if Toys "R" Us succeeded?
Lower prices / greater selection
When did the first Toys "R" US store open in Japan
1991
What innovative retail model did Toys "R" Us introduce to the toy market?
A self-service, supermarket-style format
What percentage of Japanese retail outlets employed five or fewer people in the 1980s?
Above 85%
What percentage stake did McDonald’s Japan take in Toys "R" Us Japan?
20%
How did Toys "R" Us manage to keep customers all year around?
Year-round advertisement campaigns (not only traditional holiday seasons)
Which type of partnership did Den Fujita and Toys "R" US form?
Joint venture
In which country did Toys "R" Us open its first international store?
Canada
How many square feet is a typical Japanese toy shop compared to a Toys "R" Us store?
3,200 sq. ft. vs. 54,000 sq. ft.
What made Fujita the perfect partner for Toys "R" US?
He had much previous experience. (he was not only bilingual, but bicultural)
How much discount could Toys "R" US offer compared to local store?
10-20%
Why was it impractical for Japanese store owners to buy in bulk?
Limited shelf space
By 1988, what percentage of the U.S. toy market did Toys "R" Us capture?
20%
How many intermediary layers did the Japanese distribution system typically have?
Between 3 and 5
How did MITI influence Toys "R" Us decision to enter Japan?
The reform made it easier for foreign companies to enter Japan (approvals and less restrictions)
How did the "keiretsu system" force price loyalty among retailers?
By blacklisting store owners who deviated from the manufacturer’s suggested price.
Which demographic factor in Japan led to increased spending on toys and made the toy market more lucrative?"
The falling birthrate allowed families to spend more on fewer children