

In the same year, it implemented the toy industry's first quality assurance system the first toy approved by this was the 1956 Toyopet Crown model car, which was also Bandai-ya's first product with a guarantee.

A manufacturing facility, Waraku Works, was opened in early 1955 to increase the production of toys. A new shipping and warehouse facility was constructed in spring 1953, followed by research and development (R&D) and product inspection departments later that year. Īs its revenue increased, Bandai-ya began expanding its operations. Several of these were exported to the United States and elsewhere as a result of their popularity, being among the earliest "Made In Japan" products exported outside the country. Bandai-ya improved the quality of its products as it continued designing new kinds of toys, such as inexpensive metal cars and aircraft models. The company released its first original product the same year, the Rhythm Ball, a beach ball with a bell inside that suffered from numerous quality defects.

The name was derived from Japanese reading of Chinese phrase "bandai fueki" (万代不易), meaning "eternally unchanging" or "things that are eternal." Being assisted by Atsuko Tatsumi, publisher of the Weekly Toy News in Tokyo, Bandai-ya distributed and imported celluloid dolls, metallic toys, and rubber swimming rings.
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Yamashina assumed full control of the toy division on 5 July 1950, when it was spun-off as a separate company named Bandai-ya in Taitō, Tokyo. The two had little money or exposure in the field, working long hours to establish a small toy distribution division within the textile business. Intrigued, Yamashina convinced his wife to travel to Tokyo with him to begin studying the potentially lucrative market for toys. He made little money working, and as he was having a difficult time finding ways to allow the business to pick up, a neighbor told him about the potential of the toy industry and the financial success that could be generated from it. The textile business, run by his wife's brother, was struggling financially as a result of Japan's post-war economy. The eldest son to a rice retailer, Yamashina had studied business in high school and was enlisted in World War II, where an impact from a grenade shrapnel blinded him in his right eye. In 1947, Naoharu Yamashina began working for a Kanazawa-based textile wholesaler.
