Mintel reveals toy report

Mintel is releasing new research into the UK toys and games market.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

The report predicts that the market will be down in 2008 and highlights games and puzzles, construction toys and action figures as the sector's best performing lines.

Exclusive data from the report will appear in ToyNews. The document also includes the following summaries:

● The UK market for toys and games is large and robust, estimated to be worth nearly £2.2 billion in 2007, which is up by 22% in real terms on 2003. Nevertheless, Mintel has estimated a year-on-year drop to £2.1 billion for 2008 and, although this may prove to be too pessimistic, economic conditions in particular were already dampening sales.

● New product introductions have been a vital component in growth as always. In addition, and very probably as a result of growing pressures on household income, traditional games and toys with proven appeal have been much in demand throughout 2008. Rubik’s Cube, Scrabble and Monopoly are all among predicted bestsellers for Christmas.

● Overall, the strongest-performing sectors are construction toys, games and puzzles, vehicles and action figures, while arts and crafts and outdoor games are holding steady. Again, perceived good value may well play a part here.

● Licensed products continue to grow in importance and are estimated to account for around a third of the market. In 2007/08, major names include In the Night Garden (first and foremost in its impact), Pirates of the Caribbean, Indiana Jones, Batman, Transformers and High School Musical.

● The toys and games market is highly fragmented with the largest companies surrounded by hundreds of others, often specialists in sectors such as wooden toys, puzzles, crafts, educational toys and games, plush and models.

● The larger players include – in alphabetical order – Bandai, Character Group, Crayola, Flair, Hasbro, Leapfrog, Lego, Halsall, Hornby, Mattel, MGA Entertainment, Tomy, Vivid Imaginations, VTech and Zapf Creations.

● More channels of distribution are opening – greater competition for the toyshops to be sure but also offering opportunities. Consumers have more opportunities to buy, for instance online and through supermarkets.

● And, very importantly, the internet brings opportunities to small manufacturers and retailers to grow their sales. Its very convenience may also bring incremental growth to the market as a whole.

● There are too many positives for this not to be a strong and enduring market, most importantly the fun of toys, kids’ urge to collect and parents’ desire to give their children pleasure and help them learn, all reinforced with the major influence of licensed characters.

● Even so, the market faces challenges – most immediately from tougher economic conditions, and secondly from competitors for kids’ time like console games and social networking. Manufacturers need to promise and deliver good lasting value as a priority in their product development and promotion.

● Real and soundly based growth over the longer term is still achievable despite this market’s already large size if manufacturers focus on quality and innovation that is responsive to kids’ wants.

● An over-reliance on licensed brands is not a stable base for product development or growth.

Related

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.