Case Study on Toucon Collection, Inc.

Ashtrith.K.P, A(06) @03413526

Case Study on Toucon Collection, INC.

Toucon Collections, INC is an importer and distributor of South Africa and American, they deal with artifacts. There major source of southwestern Indian Especially Hopi and Navajo were dealing with jewelry and pottery. Through major verification they were developed to be national recognized and respected importer of artifacts. In mid 1990’s Toucon expanded its production line or product line to include the replica artifacts production, but this production accounted a small portion of the total sales which they were making every year which was making around $25 million and have a increased by 20% annually since the last 10 years. Toucon products were distributed by exclusive department stores, decorators, interior designers and many other kinds of distributers. And also for some reason in South America and Africa there was major acceptance regarding Toucon products which was sold by many departmental store and customers were changing their options after looking at Toucon production which was unique and different from other product which they were producing. But most recently it was presented with a exclusive offer from a mass-merchandise department store, The store also proposed to purchase Toucon’s complete production line at 10% below its existing prices with an initial purchase of $750,000 and also there is a chance of purchases could increase up to $4million a year and also there is a major stipulation in the market where in Toucon had to make 3 times more replica products to complete the contract which was taken by mass-merchandise department store.

Problems faced by Toucon Collection, INC:

Firstly, Toucon’s position as a wholesaler importer reduced because all most all the distributors were ordering the artifacts directly from the dealers (i.e. Hopi, Navajo, South America, etc). Secondly, Toucon replica business was also working hard towards the competition in the market which was created by mass-merchandise store, they were buying similar or almost same product for a less price compared to Toucon’s distribution price. Thirdly, the market share and gross margin of the company has reduced because of the high competitors who were five and now have increased to eleven within a decade.