Kaleidoscope began 35 years ago as a home-based wholesale business in 1989, founded by Jos Benner, who struggled to find captivating toys made from natural materials for her three young children. Her guiding principle emphasised the importance of avoiding batteries, plastic, licensed toys, and short-lived products, focusing instead on quality. The initial toy ranges were sourced from her native New Zealand, which served the business well until manufacturing there became less competitive.
As her children grew and she began attending trade fairs abroad, Jos expanded the portfolio to include a diverse array of brands, now totalling 18, all aligned with a sustainable and educational theme. Notable among these is the long-standing brand Folkmanis, known for its high-quality puppets, and Djeco, which offers a wide range of products including baby toys, art and craft supplies, stationery, lifestyle items, puzzles, games, and educational toys.
In the last 12 months, several new brands have been added to the lineup, further enhancing the variety available to customers. The collection features brands that specialise in genres such as wooden toys, ride-ons and pretend play, ensuring a comprehensive selection for different interests and developmental needs.
Kaleidoscope has achieved numerous awards throughout its history, reflecting its commitment to quality and innovation. A significant milestone came in 2012 when the company moved to its own warehouse. Jos often reflects on this achievement with pride; as she drives in each morning, she marvels at the sight of 10 staff cars parked outside, a symbol of the growth and stability the business has attained.
Watching staff develop in their professional and personal lives—buying homes, starting families, taking up sports, or enjoying well-deserved holidays—has been a rewarding aspect of her journey, and she values the ability to support employees in balancing work and family life.
Jos’ son, James McDowell, has been part of the business for 12 years and is now a co-owner, looking to guide the company into its next exciting chapter. He recalls the early days of the home-based business, where the house became an overflow space for stock when the sheds were full, with boxes stacked high and limited space to navigate. James’ involvement has been instrumental in shaping the future of Kaleidoscope, as he brings fresh ideas and a modern perspective to the established values of the company.
However, the journey has not been without challenges. While Kaleidoscope boasts a dedicated team, finding great staff, particularly for the warehouse, has become increasingly difficult in recent years, emerging as the company’s biggest challenge. Inventory management and exchange rate fluctuations follow as secondary concerns.
The pursuit of toys without plastic has also been challenging, but public sentiment has increasingly aligned with Kaleidoscope’s ethos in recent years. Additionally, finding environmentally friendly packaging has proven difficult, as some manufacturers are hesitant to invest in this area, highlighting a past disregard for packaging despite the quality of the toys.
Over the past 35 years, many changes have occurred, including the merging of boys’ and girls’ toys, the introduction of culturally and socially diverse toys, a greater focus on specialty toys for specific learning needs, and a keen awareness of current trends. Strong brand awareness and a solid company reputation are more important than ever, especially as many shoppers never see or touch their purchases before committing. Great brand and supplier support have become paramount, with manufacturers providing lifestyle photos, dimensions, and other collateral that have transformed the online selling process.
Having navigated several economic downturns over the years, the team at Kaleidoscope has developed a philosophical outlook, recognizing their ability to respond to market conditions more easily than their larger counterparts. Remaining nimble and regularly analysing statistics and spreadsheets has been key to their ongoing success.
Kaleidoscope’s enduring success can be attributed to its dedicated staff over the years and the loyal customers who share a passion for quality toys. The support of these customers has been crucial in reinforcing the belief in the importance of good toys.
Read on as we speak to Jos Benner (founded Kaleidoscope) and James McDowell (Jos’ son and co-owner) about the business and what the future holds!
Feature Interview
Questions To James McDowell
Acknowledging the challenges associated with staff recruitment and retention, what specific strategies and programs are being implemented to support the continued growth and operational efficiency of Kaleidoscope?
Staffing has been challenging for us in recent times, as it has for everyone. We aim to make Kaleidoscope a pleasant place to work; if we treat the staff well, they are more likely to stay for longer. We regularly review and fine-tune our systems and processes to identify and improve any inefficiencies, which helps us maximise the potential of the team we have.
Recognizing the increasing prevalence of online commerce and the importance of brand visibility, how is Kaleidoscope adapting its marketing and sales strategies to effectively engage target audiences and maintain a competitive advantage in the evolving digital marketplace?
We focus on providing our retailers with quality product images and marketing collateral. We put a lot of effort into keeping our website up to date and maintaining a high standard, as this is where the bulk of our business is conducted. Additionally, we are allocating more resources to digital marketing than we have in the past.
Considering the integral role of strong brand and supplier partnerships, what measures are being taken to cultivate and strengthen these relationships, ensuring continued access to high-quality products, effective marketing resources, and mutually beneficial collaborations?
We regularly keep in contact with all of our suppliers through Zoom meetings. We have long-standing relationships with our suppliers and aim for a win-win outcome during negotiations. Both parties need to be satisfied with the result if we are to work together for years to come. We also attend the Nuremberg Fair every year, which provides a great opportunity to meet our suppliers in person. There is no substitute for face-to-face conversations, as it is very different from a Zoom meeting.
Questions To Jos Benner
Given the founding principle of prioritizing natural materials and avoiding plastic and licensed products, how has this core philosophy influenced Kaleidoscope’s long-term strategic direction and market positioning?
Due to the slightly higher price of our toys (particularly those made from wood and organic materials), our market has been directed at specialty and educational sectors, where the quality, safety, and longevity of a toy are important. While we do have mainstream customers, they are not our main focus. We are mindful of trends and the expansion of non-traditional retailers to include more eco-friendly products. This shift has worked in our favour in recent years, as eco-friendly options have become more sought after. We could do a lot more in this area so watch this space!
Considering the company’s experience navigating multiple economic downturns, what key strategic insights have been gained regarding business resilience, adaptability, and effective response to fluctuating market conditions?
Small businesses are quite nimble when it comes to adapting to market conditions. Our operating costs are relatively low, we don’t rely on commission agents, and we are constantly reviewing price points and product mix. Exploring new channels (e.g. Kidults) is important to consider when customer spending is shrinking. Additionally, we have trade credit insurance for added peace of mind.
In light of the emphasis on cultivating loyal customer relationships, what specific initiatives and strategies have been instrumental in fostering customer loyalty and ensuring sustained business success over the years?
We have always prioritised customer care, which has enabled us to retain many customers for over 20 to 30 years. Business must be a win-win situation; if customers feel that they are being looked after and are receiving a fair deal, then everyone is happy. Of course, that can never happen if one doesn’t have the backing of good brands and great staff who share our values.
This article originally appeared in Edition 14 of The Toy Universe Magazine
