Hi, this is Christian again. Well, first of all, Happy New Year to all of you I hope you had a fantastic New Year In the next coming videos, I will talk a lot about disruptions in the different industries. And actually, the first example I have this year is this. I am standing in front of Top-Toy/Toys’R’Us that just went bankrupt. And this is one of the largest toy chains in
the world and they apparently were not able to read the market trends and transform themselves. They did not do innovation. They just stayed status quo. They didn’t innovate, they didn’t make a new universe or a new concept for
their stores. So what are the problems they had? Well, number one: the digital one.
They didn’t see the digital trends. So Amazon was just taking market share from them. They did not use data, to create new services that would drag customers into
the store. I mean, kids birthdays are important and other events as well. The mother may be buying a gift the father might be buying it. They needed to create this link between the customers and the shop They didn’t do that. Then, the trend.
I mean the trend changed, so people or the kids are playing in a different way
today. They underestimated that that you’ve got competition from video games, from other things. So that’s another big
mistake. And I mean, it’s a big cost to have shops and the assets there and the
people there it’s expensive actually to keep it running So they needed to
have changed and innovated themselves into a different type of store. And what they should have been doing is actually say, if you buy all your toys
here in Toys’R’Us, what you can do is, you can come back with a toy and you can trade it in for another toy. Either you want to buy a used toy or you
buy a new toy. So basically, they could have changed that concept. And imagine if they started with Lego blocks people are using it, I think 30% of their
turnover was from selling Lego. So imagine that you said to the customers if you buy it from us, come in and trade in your Lego blocks and we will sell it to you,
used Lego, per kilo price So the kids could come in and they play, just like you go to a candy store you have all these different colours
of Lego bricks and they would be able to play around with them They would buy half a kilo of the yellow one, half a kilo of another one and so on. So you could make it into something fun. But they didn’t do it. And they did not read the market and that is important when you are in the digital age you need to try things out, try new business models and innovate. Innovation is
everything in this market. So now I’m curious to hear What do you think about this Toys’R’Us, why did they go bankrupt? What do you think was the problem? So, let’s have a discussion