Until recently, the production of soft toys attracted the attention of exclusively large companies. But due to the growing popularity of such a trend as handmade - products made with one’s own hands, ordinary housewives and individual entrepreneurs have become quite serious competition for big business.
Brief business analysis: Costs of organizing a business: 821 – 1,298 thousand rubles Relevant for cities with a population: no restrictions Situation in the industry: high competition Difficulty of organizing a business: 2/5 Payback: 1 – 1.5 years
In the entire “toy” market, the sales volume of soft toys is approximately 35-40% of the total. Moreover, “plush joys” are not always bought specifically for children. A soft toy as a gift to your beloved is an excellent occasion to express your feelings. Soft toys, oddly enough, are often bought by single women. But children still remain the main category of consumers.
Where to start producing soft toys
The business of producing soft toys is considered highly profitable and quickly pays off among entrepreneurs. Subject to the correctly selected range of production, the ability to quickly restructure production to produce new trends and a competently implemented marketing strategy.
Determine the range of future products
It is impossible to cover the immensity - the range of soft toys is limited only by the imagination of the designer and business owner. How to determine which toys will be trendy this season? Are classic soft toys in demand? How beneficial will it be to introduce creative ideas?
Despite the fact that the buyers of soft toys are almost always parents, the customers are children. No mother will buy her child a toy that he does not like. Therefore, first of all, you need to study the needs of children.
How to determine which toys are in demand
For example, what cartoon (preferably TV series) is popular this summer 2020 among children aged 3 to 6 years? Russian:
- "Masha and the Bear";
- “Fixies”;
- “Smeshariki”;
- “Lev’s Truck.”
Foreign:
- “Gnomes in the House”;
- "Swan Princess;
- “Japanese anime.”
All these cartoons, or rather their characters, are a ready-made assortment of soft toys that will definitely be popular throughout the year.
For about a century now, classic teddy bears have been trending. Only now they have acquired various individual traits - they have costumes, various accessories, and even friends. The latter, by the way, are an excellent marketing ploy that significantly increases sales volumes. Thus, the child will collect a whole collection of characters from one cartoon.
And on the contrary, interest in the heroes of Soviet cartoons, who are practically unfamiliar to today’s young viewers, has been lost. All the more incomprehensible are manufacturers clinging to a “dusty” range of toys.
It should be noted that sales demand can be predicted and prepared in advance for future trends. An example would be announcements of upcoming cartoon premieres. Such announcements usually come out long ago - 4-6 months before the premiere. This time is quite enough to have time to introduce a new product item into the assortment.
If the premiere is expected, this is a continuation of some super-popular cartoon, then we can say with confidence that there will be a significant “surge” of interest in the toys-heroes of this cartoon.
The following are also in great demand on the soft toy market:
- interactive toys that can pronounce individual words, move, and respond to simple commands;
- toys made from environmentally friendly materials, positioned as completely safe to use;
- small toys in a “pocket” format that are convenient to carry with you, and, on the contrary, huge toys that are fun to play with at home.
Conduct market research
The main tool for accurately determining consumer demand is market and competitor analysis. How to determine and predict the emergence of demand for soft toys?
- Analyze the birth rate. The rise in the birth rate in a particular region two years ago (all information is in the public domain, you can find it if you wish) suggests that, starting next year, there will be an increase in demand for soft toys.
- The main category of consumers of “soft” products is between the ages of 3 and 6 years. To ensure their safety, it is not recommended to purchase soft toys for children under 3 years of age. And for those who have already gone to school. Other interests appear. Therefore, it is necessary to study the needs of children in this age group.
- Seasonal increases in demand must also be taken into account. Typically, more toys are bought for “big” holidays - New Year, September 1, March 8, February 23, etc. The decline, as a rule, occurs in the summer.
Today, Russian-made toys (handmade products are not taken into account yet) occupy only 25-30% of the entire niche. The rest comes from imported products. The most serious competitor today are soft toys made in China. It happens that their wholesale purchase price, even taking into account logistics costs, is somewhat lower than the cost (!) of domestic products.
Determining the factors that generate interest in foreign products means getting the opportunity to compete seriously with foreign manufacturers.
The sales market for soft toys, as a rule, is not limited to one area, although it is focused on increasing sales in the “home” region. The growing popularity of online stores has made it possible to make the geography of sales almost without borders.
Therefore, there is no need to conduct special research on manufacturers in your region. The main attention should be paid to the largest companies that produce soft toys, and those small companies whose products are at the peak of demand.
Draw up a business plan for a future company
Do you need a business plan for the production of soft toys? Necessarily! Any business needs a step-by-step guide that will not only determine the sequence of actions when organizing your business. But already at the development stage it will show nuances that require special attention, mistakes to avoid, prospects to strive for.
You can try to write a business plan yourself, using detailed instructions, or order it from a company specializing in developing business plans. The approximate cost of the document will be from 5 thousand to 150 thousand rubles, depending on what type of business plan is needed.
Where it all started
Hello, my name is Shatilova Veronika Eduardovna, I live in Moscow. I want to share with you my experience in running a small business. Maybe my story will be a good motivation for someone on how to make money from their favorite hobby. The business was launched in 2010, has been operating for 8 years and is still operating.
My mother-in-law is my inspiration
In general, from childhood I loved to knit, and I knitted at an amateur level throughout my life. I knitted for myself and my family (toys, hats, scarves, mittens, potholders and other little things). But when I met my mother-in-law, who, ironically, just like me, knits and sells her products to friends and acquaintances of friends, I realized that you can also make money doing what you love (and if you try, good money). In general, at first I didn’t expect any big money.
One of my works.
But my mother-in-law gave me inspiration and convinced me to try to join her and knit together. She convinced me that even if I didn’t earn a lot of money, I would simply have additional income for women’s pleasures. For the fact that my mother-in-law became my inspiration and gave me a good push, I am still grateful to her.
Article on the topic: Is it possible to make money from a hobby? Candid notes from a handicraft mother.
First calculations and figures
I didn't have a specific business plan. I also continued to knit for people who learned about me through word of mouth. Acquaintances of mother-in-law and friends of friends have also increased. I had a starting capital of 20 thousand rubles, with which I purchased threads, yarn and additional consumables. On average, revenue was 50 thousand, profit was about 30 thousand. This was a very good start for me, even more than I expected. But we also had to work carefully.
My husband financed my work. He made the first purchases, buying threads, various hooks and other necessary materials. In principle, the money for all this was spent from the family budget, to which, of course, if you look at it, he made the main contribution. I am very grateful to my husband for believing me and my hobby and investing without talking.
How to register your business
After the “brainstorming” to determine the direction of the production niche has been completed, marketing research has been conducted showing the possibilities of organizing a business, and a guide to action has been drawn up, you can begin to officially register your company.
This instruction will help you make a choice between two forms of entrepreneurial activity. Here you can learn in detail how to open an individual entrepreneur, and at this link you can read how to register a limited liability company.
Choosing a form of taxation
Today, in order to determine the most suitable form of tax payments for an enterprise, it is not at all necessary to seek the help of specialists. This source will allow you to do everything yourself. In addition, there is currently a regime combining two main tax regimes.
You can read more about the simplified taxation system, the most popular among individual entrepreneurs, here, and about what taxes an individual entrepreneur pays in this publication.
GOST standards for soft toys
At the moment, the production and quality of manufactured toys, including strength and soft ones, is determined by GOST R 53906-2010. All changes to this standard can be found in the “National Standards” register, which is published annually. This document should become fundamental when developing the design of soft toys.
How to obtain a certificate for manufactured products
The procedure for obtaining a special quality certificate confirming the safety of the product and the possibility of its sale is carried out according to the following scheme:
- it is necessary to select a certification body that is accredited and has the right in a given region to conduct product tests and issue quality certificates.
- Next, the business owner draws up an application for certification using a special form and submits it to the certification center as part of a package of documents, including: a certificate of registration of a legal entity or an extract from the Unified State Register of Individual Entrepreneurs on registration as an individual entrepreneur; a document confirming ownership of the production premises (lease agreement or purchase and sale agreement); documents that will describe and confirm the production process; documents for equipment used in production; certificates of conformity for the materials from which toys are made (issued by Rospotrebnadzor); and the organization’s report on the inspection performed.
- Within 3-5 days, the applicant for a certificate receives approval or refusal to issue a certificate.
A quality certificate is issued for a period of 1 to 3 years, but in some cases - only for a specific batch of products.
For the production of soft toys - products intended for children, obtaining such a document is mandatory. But many entrepreneurs who have been working in this industry for a long time also advise obtaining a voluntary certificate of quality compliance - to strengthen confidence in the products of buyers and potential partners.
Where to sell
The question of whether it is possible to make money from handicraft worries almost all craftswomen and craftsmen who have decided to make money from their knowledge and skills. In this area, it is important not only to create high-quality and visually impressive products, but also to be able to sell them, which can be done via the Internet or in reality.
Online
The easiest way to organize sales is through social networks. To do this, you need to create a group or community and fill it with useful content, as well as place sales advertisements in them. You can attract the attention of users and make them want to join the group by publishing useful tips, which, if followed, can create interesting products.
Earning money from making and decorating confectionery products
Sales can be organized through advertisements on specialized portals. The site “Fair of Masters” is popular. You can sell quickly through Akruga. Efficiency can be achieved by synchronizing the resource with five sites. Having placed a sale on one of them, advertisements are published on all resources connected to it, which increases the chance of sales.
You can list 10 products for free on LoveMade. If you need to sell products in larger quantities, you can pay for a subscription of 100 rubles and place advertisements. On Avito you can offer products and services to users. Through this service you can also promote master classes and sell paid lessons.
When planning to seriously engage in a hobby business, you should select popular types of needlework for earning money.
For mass production, it is better to organize sales through your own online store. When posting a product on the Internet, you should pay special attention to the description of its characteristics and the quality of presenting photographs.
Offline
Offline sales of products at the initial stage of activity are carried out through friends and acquaintances. The implication is that they will start word of mouth to generate advertising and thus demand. If there are sufficient quantities of products, you can register to participate in fairs and exhibitions. They are held regularly in every city.
When putting a product up for sale, you should design it effectively, which will attract additional attention from potential customers. To do this, you need to think about the packaging and the background on which the presentation will be held.
Supply channels for raw materials for toys
Possible suppliers of raw materials must be identified at the stage of drawing up a business plan. What is needed to produce soft toys?
- First of all, these are different types of fabric - velor, corduroy, suede, plush, velvet, felt, silk, faux fur, etc. The appropriate material must be selected for a specific type of toy. A toy intended for active use must be made of durable material.
- Holofiber, synthetic winterizer, granulate, cotton wool and foam rubber - for use as filler.
- Beads, buttons. Special fittings - to give the appearance of the product.
- Satin, silk, chintz, etc. ribbons - for finishing.
- Threads of various grades, diameters and colors.
Accordingly, the search for possible suppliers of raw materials for production should be carried out among knitting factories and workshops engaged in the production of sewing accessories. The largest part of manufacturers is concentrated in Moscow and the Moscow region. It is from here that the largest part of the raw materials is supplied, from which soft toys are then produced.
Organization of the production process
Organizing the production process is the most expensive part in the entire business. It is simply unrealistic for one person to cope with such a volume of work, therefore, even at the planning stage, a whole team of diverse specialists should be involved in the business.
The production of soft toys can be organized as an additional direction in an already existing sewing workshop. In this case, the cost of purchasing the necessary equipment is significantly reduced, and the need to find qualified employees also disappears.
Production room
The area of the production facility depends on the planned volume of production. A small workshop for the production of 100-150 products per month will need from 25 to 35 sq. meters (+ separate storage rooms). Production designed to produce up to 500 units of goods per month needs larger premises - up to 70 square meters. meters.
In addition, you will need office space, but many small companies get along just fine without them, preferring to do most of their paperwork remotely.
The premises must be suitable in terms of lighting, ventilation, utilities (water supply, heating, sewerage, etc.), and have a convenient access road for a truck (for shipment of finished products).
Necessary equipment
The main production tools are sewing machines. At the initial stage of business development, stuffing toys can be done manually; after “promotion” it is better to purchase a special machine for stuffing.
An approximate list of required equipment is given in the table:
| Equipment and tools | Cost, rub. |
| Sewing machine | 12 000 – 25 000 |
| Embroidery machine | 22 000 – 28 000 |
| Stuffing machine | 230 000 – 300 000 |
| Sewing tools (scissors, awl, needles, etc.) | 3 000 – 5 000 |
| Total | 247 000 – 358 000 |
| Total including staff: 2 seamstresses | 494 000 – 716 000 |
Personnel for work
To organize the work of a small workshop designed to produce up to 150 toys per month, a permanent staff of 4 people will be required:
- 2 seamstresses;
- 2 auxiliary employees performing work on decorating toys, stuffing, etc.
All employees must be interchangeable, i.e., be able to perform each other’s duties. An equipment repairman, designer, accountant, and auxiliary worker can be called upon as needed. There is no need to include them in the staff. The functions of a technical worker can be performed by permanent employees of the workshop.
How can you make money?
To make money in the field of handicrafts, you need to have certain skills or be able to organize a business with hired workers who would do the work.
An entrepreneur from this perspective needs to research the market, initiate the creation of sought-after masterpieces and organize their sales. If you operate independently, you will have to do all this yourself. At the same time, you need to correctly select the types of needlework from which you can earn money. In modern conditions, the following areas are relevant:
- knitting;
- embroidery;
- creation of educational toys;
- scrapbooking;
- felting;
- making dolls;
- creation and decoration of confectionery products;
- sewing leather goods.
You can earn extra money by selling handicraft materials. Another option for making money on handicrafts is teaching or conducting master classes. Training sessions can be conducted online or offline. You can sell a master class on thematic Internet portals. Many of them advertise their readiness to purchase high-quality text and video content.
Knitting
Crochet and knitted products are always in fashion trend. They are popular among both adults and children. When creating masterpieces, you need to focus on seasonality, as well as current fashion trends. Sets of scarves, hats and gloves will be in demand among women. Such elements of the wardrobe of a modern fashionista as vests and cardigans will also be popular.
For men, vests and sweaters of formal or sporty styles, as well as winter hats, will be purchased. The easiest way to succeed is in the children's clothing industry. Parents always take care of their children, so products for newborns and babies do not go out of fashion and do not change over time. Booties, blouses, and hats knitted from natural thread are always in demand. For older children, bright dresses, sweaters, hats, and cardigans with spectacular images of cartoon characters will be purchased.
Earning money by sewing to order
To succeed in this direction, you need to find a place to purchase threads at competitive prices, as well as regular customers. When working to order, you should take into account the customer’s point of view, even if it does not coincide with your own views.
When planning a mass production launch, you should carefully study the sales market to understand what will be in demand and what is more likely to be unclaimed.
The analysis should be carried out using online information resources. Elements of analysis can be surveys or likes and comments on social networks left under products.
Sewing
Where to start making money from handicrafts is a pressing question for a sewing master. It is better to focus on orders, since creating a finished product requires a lot of time and energy, and if the orientation in the sales market is incorrect, it may not be quickly implemented.
To form or expand your customer base, you should post advertisements near your home or publish them on the Internet on specialized notice boards. For beginners in sewing, it is better to start with sewing bed linen and kitchen utensils.
Soft toy manufacturing technology
The initial stage in the production of soft toys is the development of design. The designer can work under a temporary contract, or a freelancer with appropriate education and a suitable portfolio will be hired for this work.
The designer needs to make a technical sketch of the toy model, control the production of the prototype, according to which the toys will be mass-produced, and the production of patterns, according to which the toy elements will subsequently be cut out.
Next, the work of the seamstresses begins. First, a pattern is made of all the component parts, then, if necessary, the elements are embroidered and basted on a sewing machine. The next stage is stuffing the toy and, finally, designing its appearance. Packaging is carried out if necessary.
Product sales market
Finding distribution channels for your products is a problem for any business, especially in the presence of high competition. Where can I sell soft toys?
- You can open your own retail outlet, in addition to this you can open an online store.
- It is necessary to send catalogs of your products with a commercial offer to toy stores operating throughout the country.
- You can introduce work under the dropshipping scheme and release of goods for sale.
Most importantly, you always need to develop your brand, work to improve product quality, and follow new trends in the soft toy industry.
Reviews about handmade income
On thematic forums there are directly opposite opinions about the earnings of needlewomen. For some, the amounts received for unique works seem ridiculous.
Another disadvantage of the handmade business for them is that they have to work on something they are not passionate about . They encourage you to work at your usual workplace, and to pursue your passion in your free time, that is, to divide your money and your favorite pastime.
There are also opposing reviews : you can make a lot of money from manual creativity, immediately and easily . Such needlewomen demonstrate extremely dubious products as samples of products. It’s amazing that you can even find a buyer for such “products.”
Business ROI calculations
In addition to the above-mentioned costs for purchasing equipment, there are still a lot of expenses to be incurred in organizing a business. All approximate costs required for the production of soft toys are reflected in the table:
| Expense item | Amount, rub. |
| Rent | From 20,000 to 150,000, depending on the region |
| Purchase of equipment and tools | 494 000 – 716 000 |
| Salary to employees | 72 000 |
| Communal payments | Up to 10,000 |
| Development of toy design and corporate brand/style | 25 000 – 50 000 |
| Material purchase | 100 000 – 150 000 |
| Conducting an advertising campaign | 50 000 – 100 000 |
| Other and unforeseen expenses | 50 000 |
| Total | 821 000 – 1 298 000 |
Provided that all products produced by the workshop are sold at a rate of 150 units of goods per month, the enterprise will reach the payback point after approximately 1 year of operation.
Description of the business idea, relevance and advantages
A significant advantage and at the same time a distinctive feature of entrepreneurial activity involving the production of toys is the constant liquidity of the goods produced. Soft toys are not considered essential goods, but they have their own popularity and constant demand among the target audience.
The relevance of the business, among other things, is due to the relatively low level of competition in certain cities and regions of the country, especially when it comes to the production of high-quality and visually attractive goods. In addition, the country’s direction towards import substitution also applies to soft toys, thanks to which buyers give preference to domestic goods rather than toys made in Europe or America. At the same time, this aspect largely depends on the price category of the product being manufactured: the Chinese market is firmly entrenched among low-cost goods, European and American soft toys belong to the high-price category, while the mid-price niche is based more on domestic goods.
Handmade - home business for making soft toys
Over the past few years, handmade products, including toys, have gained immense popularity. An activity accessible to literally everyone allowed almost anyone to create their own, albeit small, business. Housewives, women on maternity leave, people with disabilities - all of them together have “bitten off” a rather serious “piece of the pie” from the big business of producing soft toys.
What is necessary
You don’t need any special expenses to create an additional source of income in the form of making and selling soft toys. Many people have a sewing machine, scissors, needles, and an awl in their homes. If not, then the total cost of all necessary purchases will be no more than 10,000 rubles (there is no need for professional equipment in the first stages of work).
The only thing you will definitely have to spend money on is purchasing materials for work, threads and accessories.
How to learn
Learning how to make soft toys is not a problem, if you have the desire. On the Internet you can now find many different training courses on the production of soft toys, both paid and free.
Features of making money on handicrafts
Handicraft is a business, with the right approach to which you can make good money doing what you love. But we’ll figure out how you can make money on the Internet with handicrafts. But before you make a choice in favor of this income, admit to yourself, are you ready to spend maximum time and make dozens, or even hundreds of identical crafts for your clients?
Making money from handicrafts at home is a full-time job that requires 100% dedication. If you plan to build a business on this, it will be difficult to combine your main activities and creative ones. Not everyone can cope with this. Before you start earning money, you need to prepare. To do this, take five steps.
- Choose a niche. Everything is simple here. Determine what you do best: drawing, pottery, modeling, ikebana, floristry, cooking, carpentry, etc.
- Research your target audience. Look at what exactly customers like and what there is demand for. Think about what you can create to interest people.
- Research your competitors. See what other artists are doing in your chosen niche. Study their style. This will help you find your own unique flavor that will set you apart from others.
- Create a business plan. Be sure to reflect in it: To whom you will sell. Make a portrait of the person for whom you are creating your product. Everything down to the smallest details, down to the floor and the presence of pets. What do you need for work. Make a complete list of the working materials and equipment you need to create your crafts. Investments. Calculate how much it will cost you to buy everything you need. Advertising campaign. Think about how you will sell and in what ways to promote your product. Is it possible to do this yourself and for free? Certainly! But you will need to invest a lot of effort and energy. The cost of the advertising campaign. Create a budget that you can spend on advertising your product. Sales platforms. Conduct an analysis of websites, stores, and creative workshops that provide online showcases where you can post your works.
- Set up your workplace. Find a secluded corner in the house, turn it into a workshop and arrange it so that it is convenient and comfortable for you to work.
