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Technology Stocks : NTOY - over 100 Billion Dollor industry -- Ignore unavailable to you. Want to Upgrade?

To: David in Ontario who wrote (11)	3/20/1999 2:41:00 AM
From: David in Ontario	Respond to of 113

Text - NTOY story - The Small Cap Journal (March 19, '99) smallcapjournal.com +++++++++ Feature Story............................ "Come Out to Play . . . On the Web" Netoy.com Corp.Americans love toys! Toy and collectible sales in the U.S. were estimated to be around $23 billion in 1998 alone. The majority of these purchases were made in toy stores such as Toys 'R Us, Kay-Bee Toys and the hugely popular FAO Schwarz. Traditional retail stores have significant weaknesses, however, when considering certain things. Take for instance, the store itself. The shop owners must make huge investments in inventory, building costs and personnel for each location. These unavoidable costs limit the amount of inventory that can be economically kept on hand. Then somebody had a brilliant idea. Of the $23 billion in 1998, only about 1% of these purchases were made on-line. It is anticipated though, that by the year 2002, 15% will be purchased via the Net. That is nearly 3.45 billion dollars! Netoy.com was founded by businessmen who together, have 20 years of experience in the internet/retail world. They decided this was a market to be tapped and an opportunity that could not be passed up. The Benefits of the Net The on-line retailer has virtually unlimited shelf space, offering vast selection with great ease. Particularly important in the toy market, with such a large number of different items, this factor plays a major role in the company's strategy. Limited physical space is not the only issue Internet retailers have overcome. They can also offer the customer knowledge about different operating features of various toys that are sometimes difficult to fully observe in a crowded store. Toys used to be a mostly seasonal item. Sales would dramatically increase around holidays and be fairly low, in comparison, throughout the rest of the year. Not so anymore. The popularity of "collectible" toys has spread this demand out over the entire year. Certain beanbag critters, not mentioning any names, have brought an even more lucrative side to this business! These particular collector's items get "retired" and are extremely hard to find for those who must have each and every one. It can be quite time consuming and frustrating for these shoppers to try store after store in the search for animals which are no longer being produced. This is where the Virtual Toy Store comes to the rescue. It is so much easier to log onto the Internet and find that one-of-a-kind item than to run all over town. The store is open twenty-four hours per day and does not require the shopper to make a trip to the store. Premium Customer Service Netoy.com Corp. has a simple philosophy of regarding the customer's wants and needs. An interactive relationship with the customers will be emphasized. Features such as "wish lists," next day shipping and even gift-wrap will be available to on-line toy browsers. They are even willing to help customers remember all the special birthdays in their life. Netoy.com will keep an active database which will allow a person to have a password protected "wish list" that will automatically send out eMail reminders and gift selections to other customers who may want this information. In essence, a shopper would be able to find their child's "most wanted" list right there at the Website. As for future revenue, the plan is to build the initial base through several target acquisitions. These targeted acquisitions are expected to total around $41 million. Margins in this market can range widely depending upon demand. As an "e-tailer," however, Netoy.com does not carry the high overhead most retailers do. The returns should reflect this benefit and bring a greater percentage of the gross margin to the bottom line. Bring out the "inner child" that we all have and invest in a market "play" that can really bring BIG returns to your toy box!