New research by NPD on Russia suggests that the territory could be the next to see major growth in the toy space.
NPD found that tastes, spend and buying habits in the region, suggest that toy firms should be looking to it as a source of potential revenue growth.
Frédérique Tutt, toys global industry analyst at NPD Group, told ToyNews: “One of the key facts we identified is the very high level of spend Moscovites are used to as far as toys are concerned. This stands at £255 per child per year in Moscow compared to £312 in Britain (for kids aged 0-11). £255 is pretty much on par with what the French are spending.
“The affluent urban population is the exact target our clients are focusing on, so this research is really good news for them.
“Even in main cities, the average toy spend per child is rather strong; it stands at £183 which is larger than the spend on kids in Italy under 12 years of age.”
The research has also found that toy tastes between children in the West and in Russia aren’t too dissimilar.
“Russian kids seem to want similar brands to what we see in the West,” added Tutt. “Angry Birds is the most wanted for girls, for example. We tend to find consumer behaviour in Russia is close to what we see in Germany in terms of brands and categories: construction and vehicles are strong sellers for boys.”
Elsewhere, price is not as important to Russian parents. Instead, the educational value ranks high when considering what toys to purchase.
Tutt continued: “Most consumers compare prices before buying, but price does rank lower in Russia. Whilst ‘value’ is a major factor for European consumers (more than 40 per cent of all toys sales are done on promotion), this ranks only number seven for Russian parents.
“Consumers are reporting educational values and fun as being equally important in their decision making.”
The Russian market also stands out in terms of seasonality, with toys bought around occasions other than Christmas.
“During the New Year holiday, 87 per cent of parents buy a toy for their kids,” said Tutt. “They don’t really celebrate Christmas as we do (only five per cent of gifters give kids a present for Christmas), but they do buy kids presents for other occasions like men’s and women’s day.”
NPD’s research also highlighted Turkey as another source of growth.
Tutt said: “From 1999 until 2013, Turkey GDP Annual Growth Rate averaged 3.9 per cent. According to the survey, parents spend about £129 per child on toys per year.
"Most of it happens around the child’s birthday. There are some key toy chains there that seem to dominate the market and stock a wide range of Western brands.”