The firm faces a stagnant market in Japan, with an ageing population, so will seek potential acquisitions in China and the U.S in a bid to double its profitability.
Plans to double operating profit margin to ten per cent in the year ending March 2011 from 5.3 per cent last business year will be reached in part by reducing the number of products.
Other plans include the move of the company’s manufacturing base from China to Vietnam, Thailand and Indonesia to reduce costs and improve quality.
The changes come after Tomy’s merger with Takara in 2006. Kantaro Tomiyama, chief executive and president of the company told Reuters:
“Following the merger we underwent a period of some internal confusion. But things have stabilised and we’ll be more prepared in a few years time for further growth.”
Tomy is also discussing potential partnerships to air the Beyblade Anime series in Asia as early as next year.
The changes are in part due to strengthening competition from rivals Mattel and Hasbro. Toniyama told Reuters there was a lot to learn from Mattel and Hasbro:
“With a good procurement and marketing strategy, they can easily achieve double-digit profitability. But I think we should be able to do that, making full use of our merger benefits.”