Vtech 2004 Annual Report Download - page 8

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VTech’s strategy to develop the China market
continued to make progress during the
financial year 2004. Supported by the country’s
rapid economic growth and the creation of a middle class
that places great emphasis on children’s education, we are
currently focusing on the development of our electronic
learning products business and we see
China offering medium and long-term
growth potential for the Group. Despite
the rapid market growth and the huge
potential, we recognise that China is a
market that needs to be approached
cautiously.
In July 2003, we developed and launched
16 products that were specifically
designed for this market. To support the
launch, a comprehensive promotional
campaign, including TV commercials, PR
activities, as well as newspaper and
magazine advertisements were put in
place. We also participated in a number
of trade fairs, such as the 16th
International Toy Fair in Guangzhou, to
build up our base of sales agents.
The initial response from the market has
been positive. Our products are now
available in major department stores and
supermarkets, including Carrefour,
WalMart and Jusco in the Pearl River
Delta, the Yangtze River Delta, Beijing and
its surrounding areas, as well as Chengdu
in Sichuan province.
Message from
Deputy Chairman
To increase brand awareness and
market penetration in China, we
are partnering with Beijing San
Chen Blue Cat Toy Co., Ltd to co-
develop the Chinese electronic
learning products market using
new “Blue Cat • VTech” branded
products
To increase brand awareness and market
penetration in China, we are partnering
with Beijing San Chen Blue Cat Toy Co.,
Ltd to co-develop the Chinese electronic
learning products market using the new
‘Blue Cat • VTech’ branded products. This
agreement was announced in May 2004.
‘Blue Cat’ is a cartoon character that
enjoys tremendous popularity in China
through television and a wide range of
products, including books, stationeries
and apparels. Currently, ‘Blue Cat‘
products are being sold in approximately
3,000 retail outlets across China,
representing the largest distribution
network for children’s consumer products
in the market.
By leveraging the popularity and the
extensive distribution network of ‘Blue
Cat’, the partnership will be an important
step forward for VTech’s development in
electronic learning products in China.
Supported by our strong R&D capability
and TV commercials, we are confident
that VTech will benefit from the huge
potential of this emerging market and
achieve further expansion in the
financial year 2005.
Message from
Deputy Chairman
6
Albert LEE Wai Kuen
Deputy Chairman
VTech Holdings Ltd Annual Report 2004