Toy industry – Play Fair http://play-fair.org/ Wed, 16 Nov 2022 16:02:08 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://play-fair.org/wp-content/uploads/2021/08/cropped-icon-32x32.png Toy industry – Play Fair http://play-fair.org/ 32 32 US toy industry sales increased 4% in third quarter • The Toy Book https://play-fair.org/us-toy-industry-sales-increased-4-in-third-quarter-the-toy-book/ Wed, 16 Nov 2022 16:02:08 +0000 https://play-fair.org/us-toy-industry-sales-increased-4-in-third-quarter-the-toy-book/
Source: stock.adobe.com

The American toy industry continues to grow despite the challenges of inflation.

On the heels of Target’s third quarter earnings call this morning, in which the retailer noted the expected recovery in toy demand heading into the holiday shopping season after the “deceleration” in October, new data from the NPD group has emerged for the third quarter.

The US toy industry saw total sales rise 4% in the third quarter, with unit sales up 1%. The average selling price (ASP) of $11.47 marked a 3% increase in the quarter. In the first nine months of 2022, U.S. toy industry revenue climbed 3% while unit sales fell 3% alongside a 6% increase in ASP.

“The performance of the U.S. toy industry in the third quarter continues to amaze us, especially after growing 12% in the same quarter in 2021 and 22% in 2020,” said Juli Lennett, adviser to the American toy industry for NPD.

Looking at the three-year compound annual growth rate from 2019 to 2022, NPD reports that US toy industry sales revenue grew 12% year-over-year, driven by an increase of 8 % of ASP and a 4% increase in unit sales.

Large estates are booming

According to NPD, the top 10 properties in the third quarter collectively rose 10%, compared to a 1% decline in the rest of the market.

“As we’ve seen throughout the pandemic, nostalgic properties have continued to be popular with consumers,” says Lennett. “However, when it came to the fastest growing properties, content was king.”

Top 10 properties in the 3rd quarter

  • Pokemon
  • star wars
  • Barbie
  • Marvel Universe,
  • squishmallows
  • Fisher-Price
  • Hot Wheels
  • National Football League (NFL)
  • Lego Star Wars
  • jurassic world

In terms of revenue growth, NPD says Pokémon, Squishmallows, NFL, Jurassic World, Toy Story/Lightyear, Disney Encanto, Sonic the Hedgehog, Magic Mixies, Gabby’s Dollhouse and Disney All Other led the charge.

According to NPD’s Retail Tracking Service, nine of the 11 tracked supercategories rose in the third quarter. Plush leads the pack with a 27% gain. Only dolls and vehicles slowed down in Q3.

]]> Toy industry faces heat of downturn – The New Indian Express https://play-fair.org/toy-industry-faces-heat-of-downturn-the-new-indian-express/ Sat, 12 Nov 2022 03:14:00 +0000 https://play-fair.org/toy-industry-faces-heat-of-downturn-the-new-indian-express/

By Express press service

BENGALURU: With macroeconomic conditions and recession fears, the global toy industry is facing heat with steep declines in higher value products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for the aerospace, toy and durable consumer goods industries, said she was feeling the heat as higher value products ($50 and more) were struggling in the market.

Aequs, which exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also now focusing on the domestic market. With the arrival of the holiday season, the exact demand and impact would be known. “Some volumes are down,” he said. With the holiday season approaching, they have yet to see what the impact would be. But $15-20 products are doing well compared to $50 and up, he said.

Melligeri sees huge opportunities in the domestic market and hopes the production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. India’s toy industry is growing, with exports reaching USD 177 million in 2021-22, and this could reach USD 1 billion over the next five years.

Of the approximately $90 billion global toy market, India accounts for just $1.5 billion a year. China dominates in the toy sector, followed by Vietnam and Mexico. Aequs currently only manufactures certain types of toys and not complex products like dolls. “We don’t make dolls like Barbie because they are more complex,” he said. The company also has an industrial park for durable consumer goods in Hubballi, Karnataka.

“We started the consumer durables business in the time of Covid. During the pandemic, we realized this could be an opportunity to scale up,” he said. Aequs specializes in precision machining for aerosystems, aerostructures, landing gear and engine components, forging and surface treatment, among others.

BENGALURU: With macroeconomic conditions and recession fears, the global toy industry is facing heat with steep declines in higher value-added products. Aravind Melligeri, CEO of Aequs, a contract manufacturing company for the aerospace, toy and durable consumer goods industries, said she was feeling the heat as higher value products ($50 and more) were struggling in the market.

Aequs, which exports, has set up a 400-acre toy cluster in Koppal, Karnataka. It is also now focusing on the domestic market. With the arrival of the holiday season, the exact demand and impact would be known. “Some volumes are down,” he said. With the holiday season approaching, they have yet to see what the impact would be. But $15-$20 products are doing well compared to $50 and up, he said.

Melligeri sees huge opportunities in the domestic market and hopes the production-linked incentives (PLI) for toys will boost exports. It has the potential to create many jobs. India’s toy industry is growing, with exports reaching USD 177 million in 2021-22, and this could reach USD 1 billion over the next five years.

Of the approximately $90 billion global toy market, India accounts for just $1.5 billion a year. China dominates in the toy sector, followed by Vietnam and Mexico. Aequs currently only manufactures certain types of toys and not complex products like dolls. “We don’t make dolls like Barbie because they are more complex,” he said. The company also has an industrial park for durable consumer goods in Hubballi, Karnataka.

“We started the consumer durables business in the time of Covid. During the pandemic, we realized this could be an opportunity to scale up,” he said. Aequs specializes in precision machining for aerosystems, aerostructures, landing gear and engine components, forging and surface treatment, among others.

]]> Global toy industry sales revenue up 30% from pre-pandemic levels • The Toy Book https://play-fair.org/global-toy-industry-sales-revenue-up-30-from-pre-pandemic-levels-the-toy-book/ Wed, 09 Nov 2022 18:40:04 +0000 https://play-fair.org/global-toy-industry-sales-revenue-up-30-from-pre-pandemic-levels-the-toy-book/

Source: stock.adobe.com

The cash register bells have rung, and that’s good news for the global toy industry as we approach halfway through the holiday shopping season.

Toy industry sales in the 12 global markets tracked by the organization reached $36.7 billion in the first nine months of 2022, according to new data from the NPD Group. an increase of 2% since the start of last year, the impressive revelation is that revenue has increased by 30% from the $28.3 billion generated between January and September 2019, the last year of the pre-pandemic era.

“Unlike many other categories that grew tremendously during the pandemic and then saw their sales drop dramatically after COVID-19, the global toy market continues to perform well and maintain a high level of sales,” says Frédérique Tutt, global toy industry analyst at NPD. “As we approach the last quarter of the year, seeing revenue growth of 2% is encouraging for the industry. Once again, toys and games are proving their resilience in the face of political and economic uncertainties.

While total revenue continues to grow, overall unit sales volume has fallen 4% year-to-date, but saw a slight uptick in September.

NPD’s retail sales tracking service reports growth in seven tracked countries, led by a 23% boom in Brazil followed by a 13% spike in Mexico. These figures were followed by more modest gains in Spain, Canada, the United States, Italy and Australia.

Winning categories

Plush continues to lead supercategory growth with a 32% year-to-date gain, followed by a 12% increase in figures and accessories. Other growth supercategories include Exploration & Other Toys (10%) and Building Sets (5%).

According to NPD, child and adult “kidult” collectors are driving a boom in the three fastest-growing subclasses this year. Non-strategic trading cards and stickers, action figures and collectibles, and traditional plushies are all trending.

Best licenses

Licensed toys are driving sales growth worldwide, with 29.8% of all toys sold being licensed. Pokémon took the top spot through September, followed by Star Wars, Barbie, Marvel Universe and Hot Wheels.

Coupled with encouraging consumer habits reports from the National Retail Federation as the holiday season approaches, the industry looks set to score more victories in the weeks ahead.

]]> Orijin Bees is buzzing with success in the toy industry https://play-fair.org/orijin-bees-is-buzzing-with-success-in-the-toy-industry/ Fri, 28 Oct 2022 11:20:01 +0000 https://play-fair.org/orijin-bees-is-buzzing-with-success-in-the-toy-industry/

With close family ties to West Africa – in particular, Cabo Verde and Ghana – Melissa Orijin and her husband taught their eldest daughter to be proud of her roots.

Their efforts worked until their daughter became the only black girl in her class at school and her confidence started to drop. This experience led her to dislike the texture of her hair and the color of her skin and, in turn, to favor Caucasian dolls. Orijin’s efforts to find a doll that looked like his daughter in the local department store’s toy aisle proved futile. Then a pioneering business idea emerged when Melissa’s husband, Archyn, suggested, “Why don’t you just make the dolls you want to see?”

How an Epiphany Became a Booming Business

This epiphany turned into a passion project for Melissa. She says her then four-year-old daughter Esi inspired her to start Orijin Bees. The company is a collection of dolls authentically representing Black and Brown children. “From their facial features, variety of skin tones and range of curl patterns, our Baby Bee dolls are on a mission to encourage self-love and inclusion during play,” says Orijin.

Launched over three years ago, Orijin Bees has caught fire with retailers and celebrities. The toys landed on Oprah’s list of favorite things in 2021 and were included in Amazon’s “Toys We Love” for 2021 and 2022. “Celebrities have also shown love for the dolls,” says Melissa Origin. Earlier this year, Orijin said Kandi Burrus suggested making Orijin Bees the “next big brand for kids” during a livestream. And Keke Palmer featured Orijin Bees while reporting on Women’s History Month with Amazon. “Everyone loves Keke and having her include Orijin Bees on her roster means everything to us,” says Orijin.

Expand offers to reach new customers

Orijin Bees now offers over 20 different Baby Bee dolls for kids three and up. The company recently launched Nu’Bee Plush Baby Dolls, a line representing newborn babies, and a new red-haired doll has been a hit. He plans to unveil a male version of Baby Bee Dolls this year.

Although the company is successful, starting Orijin Bees was no small feat. Orijin says she stumbled to become an entrepreneur in the toy industry, adding that her business is really an extension of her purpose as a mother. She continues to learn and gain experience as her business grows. In fact, one of her biggest challenges, she says, was leaving a stable career in financial services to operate Orijin Bees full-time.

“I was so nervous but I kept walking in this direction, one day at a time,” Orijin says. “Those nerves still haven’t gone away, but I’m relying on my faith to carry on.”

Challenges after launch

Another challenge was managing the overwhelming flood of orders after making Oprah’s favorite things list last year. She says it took extra logistical planning and forecasting to prepare for a successful holiday season. “We sold out several times, but we had systems in place to restock quickly so as not to disappoint customers,” says Orijin.

The budding entrepreneur invested $50,000 to start her business. Orijin says its start-up costs included manufacturing, logistics, product sampling and marketing payments. At every stage of development, Orijin points out that she has grown her business by keeping children at the forefront of strategic decisions.

The value of being an entrepreneur mom

Her research and project management skills proved extremely useful in her entrepreneurial activities and helped her overcome challenges. Being a mompreneur has been critical to the brand’s success by helping to fill the gaps in the industry that she shares with other moms. “Not only are mothers not getting enough credit to overcome the challenges of raising children,” Orijin also believes they are simultaneously playing the roles of CEO, COO, and CFO in their household.

She expects the company’s revenue to hit the seven-digit range in 2023. To further support growth, Orijin plans to increase product distribution to other national retailers and online stores, s to expand into international markets and sell more accessories and clothing for dolls and children. .

Grow with Amazon

Orijin Bees’ expansion has been largely driven by product sales in Amazon stores since 2020, says Orijin. She notes that showcasing her products in front of millions of potential customers around the world has

proved invaluable. “Customers who may have never heard of our brand can learn more about our products when shopping in the Amazon store. Otherwise, we would have missed these potential new customers.”

Last year, Orijin Bees began participating in Amazon’s Black Business Accelerator (BBA), a four-year, $150 million engagement program to help create sustainable diversity and provide opportunities for growth. to black-owned businesses.

“Programs like BBA give Black-owned businesses so many resources to support us and help accelerate our growth. From resources to specialists, advertising credits, media exposure and other opportunities, we are very grateful to have been selected to be part of this program,” says Orijin.

So what are Orijin’s growth aspirations over the next five years?

By 2027, she wants Orijin Bees to be a household name and reach over nine-figure revenue. “Five years ago I wouldn’t even have thought it would be a possibility, but I’ve learned that if you follow your goal, work hard, have the right team and have faith, anything is possible.”

]]> It’s time to go! Toy Industry Revenues and the Holiday Rush • The Toy Book https://play-fair.org/its-time-to-go-toy-industry-revenues-and-the-holiday-rush-the-toy-book/ Mon, 24 Oct 2022 16:44:35 +0000 https://play-fair.org/its-time-to-go-toy-industry-revenues-and-the-holiday-rush-the-toy-book/

When was the last time you saw a Walmart action aisle look like this? | Source: James Zahn/The Book of Toys

You can practically hear the sleigh bells on the horizon, and in just two months – as expected – Santa Claus will be coming down the chimneys to deliver toys and games to children around the world. Of course, old Kris Kringle won’t be the only one spreading joy throughout the season as families come together to celebrate a host of holiday traditions.

In retail, holiday preparation is in full swing, and if stores aren’t ready yet, they’re already behind. After all, despite the annual mid-August arrival of the usual “Christmas Creep” claims by some consumers (spoiler alert: that’s nothing new), the company’s seasonality is returning to its pre-pandemic form.

According to the latest data from the National Retail Federation (NRF) and the US Census Bureau (which track sales using different methodologies), retail sales in September were essentially flat compared to August, but increased by one year to the next. The NRF reports a 7.2% spike from a year ago, while the Census reports a 9.4% spike. While inflation is certainly a factor in driving some numbers higher, consumer foot traffic appears strong.

Toy departments are stocked

In my own store checks, warehouse clubs including Costco and Sam’s Club seem to have a slightly wider assortment of toys this season, and pallet shippers were installed and released in mid-September.

Over the past week, I’ve had the opportunity to stop by several different Walmart and Target stores and have seen healthy inventory levels and solid pricing across the board. At the Target locations I visited, toys were starting to overflow into adjacent departments with excess inventory placed on overhead risers. One change over the past month is that stock levels appear normalized from the late summer weeks in which I noted very different Target merchandising, including overstocked toys stacked on pallets in main aisles at discounted prices in a few stores.

The big surprise was Walmart.

While they have the volume, store-level merchandising and restocking is a notoriously mixed bag that few seem to publicly admit. Over the past few years, the stores I’ve visited have always been ripe with empty pegs and haphazardly filled shelves. More alarmingly, it hasn’t been uncommon to see a brand new product go straight into the clearance aisles as store associates apparently use the country of yellow and black signage as a catch-all for anything that hasn’t. no shelf label yet or is already full in its usual place.

At the Toy Association‘s 2023 preview in Dallas last month, I discussed this off the record with a few different companies who admitted to seeing sales pop up with clearance prices at random Walmart stores in some cases even before that an item is supposed to be on the shelves. Just a week before the show, I personally saw Super Impulse’s new Minis-in-Minis in a Walmart clearance aisle in what was to be the line’s first market launch.

My visits to Walmart stores revealed a shock: they actually look good (see top photo).

Beyond the masses, independent toy stores are gearing up for Neighborhood Toy Store Month, presented by the American Specialty Toy Retailing Association (ASTRA) and Toyland opened at farm chain retailers, including Blain’s Farm & Fleet and Fleet Farm on October 15. , October 15 was also the official opening date for Toys “R” Us at Macy’s.

Results season + some rumblings

Hasbro kicked off the third-quarter earnings season last week with disappointing but not unexpected numbers, though the company is sticking to its full-year guidance. This week Mattel and Jakks Pacific will check in followed by Funko and Spin Master next week. So far, all indications point to more positive news than Hasbro reported for Q3.

On a more interesting note, it looks like news of some mergers and acquisitions is pending.

Over the past few months, there have been rumors and rumors about several private toy and game companies quietly exploring sales options. Sources tell me that a deal is already in place and we could see an announcement as early as next week. Meanwhile, another company (a leader in its field) keeps popping up in the conversation, so it’s only a matter of time until someone pulls the trigger and makes a purchase. It should be noted that none of them are among the upcoming acquisitions that Funko hinted at during its recent Investor Day.

To borrow from the great Orson Welles, “there will be no wine before its time”. That said, it’s definitely not my place to talk about anything until the time is right, but feel free to speculate if you must!

]]> Toy industry can generate 30,000 jobs in TN with government support https://play-fair.org/toy-industry-can-generate-30000-jobs-in-tn-with-government-support/ Wed, 12 Oct 2022 07:00:00 +0000 https://play-fair.org/toy-industry-can-generate-30000-jobs-in-tn-with-government-support/

The toy industry in Tamil Nadu can easily generate nearly 30,000 jobs if given the necessary support from the state government, which would give a boost to the sector. With minimal number of toy makers in the state, Chennai and Tuticorin can be ideal destinations for the industry with port connectivity, said Tamil Nadu Toy Dealers Association Chairman Santosh Kumar..

In elaborating, he said, while holding the National Toy Exhibition in New Delhi, the Telangana government allocated 1,000 acres of land for the industry.

This is a very important and positive step, many people in the industry have already stepped forward and booked their places (in Hyderabad). Something similar (type of support) is required here in Tamil Nadu.

According to him, Chennai is the capital of the toy market in the southern region and with huge investors in this space.

People from neighboring Kerala Andhra Pradesh came here because we have port connectivity here and it is easy for logistic support,” he said.

Kumar noted that the toy industry in Tamil Nadu alone was valued at Rs 600 crore and can grow further if the government provides land at subsidized rates for manufacturing and warehousing.

Chennai is sort of a very strong market with its logistical support. But, unfortunately, we don’t have the support that every other government provides.,” he said.

Speaking about the toy industry at the national level, he said the industry was open and there were gray markets in cities.

The gray market was thriving in places like New Delhi, Mumbai, Chennai as the toys produced were without specifications or standards and were of poor quality at very low prices and also without any customs duties,” he said.

With the launch of the Centre’s “Atmanirbhar Bharat” campaign, Kumar said the import of toys, which previously accounted for 90% of products, has fallen to 5%. “Before, 90% was imported, of which 75% came from China. Now imports from China are as good as nothing at 5%,” he said.

Echoing similar views, Toy Association of India chairman Ajay Agarwal said the government’s policy of increasing tariffs on imported toys and mandating BIS certification for toys had given a boost to the domestic toy manufacturing sector.

The Indian toy market is growing at more than 12%. Three years ago, nearly 80% of toys were imported. But today, the scenario has changed as imports have dropped dramatically, Agarwal said at the toy expo held in the city recently. According to Agarwal, more than 5,000 artisans have been involved in toy manufacturing and nearly 75% of toy manufacturing facilities include micro, small and medium enterprises.

Maharashtra is a major toy market, followed by Tamil Nadu, Andhra Pradesh and New Delhi, he noted. For making these toys, Kumar said places like Uttar Pradesh, New Delhi, Noida and Mumbai have the right infrastructure for makers.

.. if the government of Tamil Nadu provides support on the model of the government of Andhra Pradesh, which has allocated about 1,000 acres of land, I believe that in Tamil Nadu we can easily generate direct employment to the tune of 20,000 to 30,000,” he said.

Listing the products that can be made in Tamil Nadu, he said soft toys, battery operated toys, baby products and wooden educational items can be made here.

There is no Montessori equipment in Tamil Nadu. Nobody makes that kind of toy for kids here. Maria Montessori is a French conception of teaching, which is very good because a student will never forget what he has learned. No one manufactures this kind of product in Tamil Nadu. But in Karnataka people do,” he said.

With a minimum of one acre of land and a capital requirement of Rs 50 lakh, one can set up a toy factory. “It’s a simple industry. It’s not rocket science,” he said.

]]>
Toy industry can generate 30,000 jobs in TN with government support, Retail News, ET Retail https://play-fair.org/toy-industry-can-generate-30000-jobs-in-tn-with-government-support-retail-news-et-retail/ Mon, 10 Oct 2022 02:40:00 +0000 https://play-fair.org/toy-industry-can-generate-30000-jobs-in-tn-with-government-support-retail-news-et-retail/
Representative picture

Chennai: The toy industry in Tamil Nadu can easily generate nearly 30,000 jobs if given the necessary support from the state government, which would give a boost to the sector. With minimal number of toy manufacturers in the state, Chennai and Tuticorin can be ideal destinations for the industry with port connectivity, said Tamil Nadu Toy Dealers Association Chairman Santosh Kumar.

Elaborating, he said, while holding a national toy exhibition in New Delhi, the Telangana government has allocated 1,000 acres of land for the industry.

“This is a very important and positive step, a lot of people in the industry have already stepped forward and booked their places (in Hyderabad). Something similar (sort of support) is needed here in Tamil Nadu.”

According to him, Chennai is the capital of the toy market in the southern region and with huge investors in this space.

“People from neighboring Kerala, Andhra Pradesh, have come here because we have port connectivity here and it’s easy for logistics support,” he said.

Kumar noted that the toy industry in Tamil Nadu alone was valued at Rs 600 crore and can grow further if the government provides land at subsidized rates for manufacturing and warehousing.

“Chennai is sort of a very strong market with its logistical support. But, unfortunately, we don’t have the support that every other government provides,” he said.

Speaking about the toy industry at the national level, he said the industry was open and there were gray markets in cities.

“Grey market was thriving in places like New Delhi, Mumbai, Chennai as the toys made had no specification or standard and were of poor quality at very low prices and also without any duty,” he said. .

With the launch of the Centre’s “Atmanirbhar Bharat” campaign, Kumar said the import of toys, which previously accounted for 90% of products, has fallen to 5%. “Previously, 90% was imported, of which 75% came from China. Now imports from China are as good as nothing, at 5%. He said.

Echoing similar views, Toy Association of India President Ajay Agarwal said the government’s policy of increasing tariffs on imported toys and mandating BIS certification for toys had given a boost to the domestic toy manufacturing sector.

The Indian toy market is growing at more than 12%. Three years ago, nearly 80% of toys were imported. But today, the scenario has changed as imports have dropped dramatically, Agarwal said at the toy expo held in the city recently.

According to Agarwal, more than five million artisans have been involved in toy manufacturing and nearly 75% of toy manufacturing facilities include micro, small and medium enterprises.

Maharashtra is a major toy market, followed by Tamil Nadu, Andhra Pradesh and New Delhi, he noted.

For making these toys, Kumar said places like Uttar Pradesh, New Delhi, Noida, Mumbai have good infrastructure for makers.

“.. if the government of Tamil Nadu provides support on the model of the government of Andhra Pradesh, which has allocated about 1,000 acres of land, I believe that in Tamil Nadu we can easily generate direct employment to the tune of 20,000 to 30,000,” he said.

Listing the products that can be made in Tamil Nadu, he said soft toys, battery-operated toys, baby products and wooden educational items can be made here.

“There is no montessori equipment in Tamil Nadu. No one makes such kind of toys for children here. Maria Montessori is a French concept of teaching, which is very good because a student will never forget this that he learned. Nobody makes these kinds of toys. Products in Tamil Nadu. But in Karnataka, people do,” he said.

With a minimum of one acre of land and a capital requirement of Rs 50 lakh, one can set up a toy factory. “It’s a simple industry. It’s not rocket science,” he said.

]]>
Toy industry can generate 30,000 jobs in Tamil Nadu with government support https://play-fair.org/toy-industry-can-generate-30000-jobs-in-tamil-nadu-with-government-support/ Sun, 09 Oct 2022 11:28:00 +0000 https://play-fair.org/toy-industry-can-generate-30000-jobs-in-tamil-nadu-with-government-support/ The toy industry in Tamil Nadu can easily generate almost 30,000 jobs if it receives the necessary support from the state government, which would give a boost to the sector.



With a minimum number of toy makers in the state, Chennai and Tuticorin can be ideal destinations for industry with port connectivity, the Tamil Nadu Toy Dealers Association said President Santosh Kumar.

Elaborating, he said, when the National Toy Expo was held in New Delhi, the Telangana government allocated 1,000 acres of land for the industry.

“This is a very important and positive step, a lot of people in the industry have already gone ahead and booked their places (in Hyderabad). Something similar (sort of support) is needed here in Tamil Nadu .”.

According to him, Chennai is the capital of the toy market in the southern region and with huge investors in this space.

“People from neighboring Kerala, Andhra Pradesh, have come here because we have port connectivity here and it’s easy for logistics support,” he said.

Kumar noted that the toy industry in Tamil Nadu alone was valued at Rs 600 crore and can grow further if the government provides land at subsidized rates for manufacturing and warehousing.

“Chennai is sort of a very strong market with its logistical support. But, unfortunately, we don’t have the support that every other government provides,” he said.

Speaking about the toy industry at the national level, he said the industry was open and there were gray markets in cities.

“Grey market was thriving in places like New Delhi, Mumbai, Chennai as the toys made had no specification or standard and were of poor quality at very low prices and also without any duty,” he said. .

With the launch of the Centre’s “Atmanirbhar Bharat” campaign, Kumar said the import of toys, which previously accounted for 90% of the products, had fallen to 5%.

“Previously, 90% was imported, of which 75% came from China. Today, imports from China are almost zero at 5%. He said.

Echoing similar views, Toy Association of India chairman Ajay Agarwal said the government’s policy of increasing tariffs on imported toys and mandating BIS certification for toys had given a boost to the domestic toy manufacturing sector.

The Indian toy market is growing at more than 12%. Three years ago, nearly 80% of toys were imported. But today, the scenario has changed as imports have dropped dramatically, Agarwal said at the toy expo held in the city recently.

According to Agarwal, more than five million artisans have been involved in toy manufacturing and nearly 75% of toy manufacturing facilities include micro, small and medium enterprises.

Maharashtra is a major toy market, followed by Tamil Nadu, Andhra Pradesh and New Delhi, he noted.

For making these toys, Kumar said places like Uttar Pradesh, New Delhi, Noida, Mumbai have good infrastructure for makers.

“.. if the government of Tamil Nadu provides support on the model of the government of Andhra Pradesh, which has allocated about 1,000 acres of land, I believe that in Tamil Nadu we can easily generate direct employment to the tune of 20,000 to 30,000,” he said.

Listing the products that can be made in Tamil Nadu, he said soft toys, battery operated toys, baby products and wooden educational items can be made here.

“There is no montessori equipment in Tamil Nadu. No one makes such kind of toys for children here. Maria Montessori is a French concept of teaching, which is very good because a student will never forget this that he learned. Nobody makes these kinds of toys. Products in Tamil Nadu. But in Karnataka, people do,” he said.

With a minimum of one acre of land and a capital requirement of Rs 50 lakh, one can set up a toy factory. “It’s a simple industry. It’s not rocket science,” he said.

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]]> Toy Industry Stakeholders Urge Tamil Nadu Government to Support the Sector https://play-fair.org/toy-industry-stakeholders-urge-tamil-nadu-government-to-support-the-sector/ Thu, 29 Sep 2022 17:18:00 +0000 https://play-fair.org/toy-industry-stakeholders-urge-tamil-nadu-government-to-support-the-sector/

They say the market in Tamil Nadu is worth around ₹600 crore to ₹700 crore, and if the state came up with a policy, more toy manufacturers would be willing to invest in the state.

They say the market in Tamil Nadu is worth around ₹600 crore to ₹700 crore, and if the state came up with a policy, more toy manufacturers would be willing to invest in the state.

The toy industry in Tamil Nadu is growing and the government should consider developing a policy for this particular sector, said Santosh Kumar, president of the Tamilnadu Toy Dealers’ Association.

“Tamil Nadu is not conducive to the toy industry. They focus on information technology, electronics and real estate, but not toys. There is huge potential, and it is high time they realized that many children play with toys,” he said. The Hindu on the sidelines of ‘Toy Expo Chennai 2022’.

According to data provided by Mr. Santosh, the toy market in Tamil Nadu is worth around ₹600 crore to ₹700 crore and growing year by year. Ajay Agarwal, chairman of the Toy Association of India, said if the state came up with a policy, more toy makers would come here and invest. “There is also a demand for storage space. Tamil Nadu also has ports and we can export from here,” he added. Mr. Agarwal said that domestically, the domestic toy market has grown very rapidly in recent years.

Government policies such as increasing tariffs on imported toys and imposing BIS certification requirements for imports have not only boosted domestic manufacturing but also helped the industry explore global markets and to increase exports, he said. Details provided by Mr. Agarwal showed that earlier exports were around ₹1,000 crore to ₹1,500 crore but are now approaching the ₹3,000 crore mark.

There is a high demand for Indian toys in markets like Africa and the Middle East. Board games, wooden toys and even plastic cricket bats are among the favorite products in the export market. The key regions for India’s toy market are Maharashtra, followed by Tamil Nadu, Karnataka, Gujarat, Delhi and other smaller pockets.

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US Toy Industry Sales Rise Amid Inflation • The Toy Book https://play-fair.org/us-toy-industry-sales-rise-amid-inflation-the-toy-book/ Thu, 22 Sep 2022 07:00:00 +0000 https://play-fair.org/us-toy-industry-sales-rise-amid-inflation-the-toy-book/
New toys from Hasbro, Mattel and Magformers on display at a Costco in Illinois this month. | Source: James Zahn/The Book of Toys

by Juli Lennett, Vice President, Industry Advisor, American Toys, The NPD Group

After two years of record growth in 2020 and 2021, US toy industry dollar sales increased 2% or $231 million to $11.4 billion from January to June 2022, according to The NPD Group. . Unit sales decreased 6% and average selling price (ASP) increased 8% to $11.30. Although growth so far so far this year has been somewhat muted, it comes after sales increased 18% in 2020 and 20% in 2021. Looking at the compound annual growth rate (CAGR) on three years from 2019 to 2022, toy industry dollars grew 13%, driven by PEA growth of 11%, while units grew 2% over the same period.*

Across the 13 general merchandise categories tracked by NPD, the toy industry gained 0.3 points of consumer wallet share year-to-date to June 2022, underscoring the resilience of toys during a period of ‘inflation. Additionally, buyer penetration increased by 0.1%, resulting in a gain of approximately 155,000 buyers in the first six months of this year. Buyer penetration has been virtually flat all year – which is positive, as it suggests the industry is maintaining the substantial increases in new buyers of recent years. Overall, the toy industry saw an increase of almost 16 million buyers compared to 2019.**

Performance Supercategory

Four of the 11 supercategories tracked by NPD have shown growth so far this year. Compared to 2019, 10 supercategories posted a positive three-year CAGR. Outdoor and sports toys continued to be the largest supercategory with sales of $2.7 billion. Plush had the largest dollar gain of $301 million and the fastest dollar growth of 43%.

Key Properties and Key Growth Drivers

In the Plush supercategory, the Squishmallows, Magic Mixies and Disney brands were the main growth drivers. Squishmallows had seven of the top 15 selling toys for the entire toy industry since January-June 2022.

Exploration and other toys increased by 28%. Licensed products from the National Basketball Association, National Football Association and Major League Baseball led the category’s growth as trading cards continue to be hot.

Action figures and accessories also recorded double-digit growth. With the release of the film Jurassic World Dominion in June, the Jurassic World property saw the strongest growth, followed by Funko Pop! and Sonic The Hedgehog, which also hit theaters in April. Finally, building sets grew by 8%, with LEGO Star Wars generating the strongest growth, followed by LEGO Creator Expert and LEGO Technic.

Year-to-date consumer insight for the first half of 2022

Using NPD’s proprietary payment data, three key consumer insights were identified for the current year in June 2022.**

  • Adults without children in the household have overtaken households with children. Households without children increased by 4%, while those with children only increased by 1%.
  • Households with an income above $100,000 increased by 6%, while households with an income below $50,000 decreased by 2%.
  • Consumers take fewer trips to buy toys and buy fewer toys per trip, but spend more money overall. The trend of taking fewer trips and buying fewer toys is driven by consumer behavior in physical stores, while in the online channel, consumers take more trips and buy more toys per trip, resulting in stronger digital growth.

Look forward

There is no doubt that we are going through a period of economic uncertainty. As we emerge from the pandemic, the realities of inflation, the potential for a recession, and the unpredictability of the geopolitical climate continue to challenge the retail landscape. The good news is that the toy industry has always been resilient during times of recession.

Given the headwinds mentioned above, it is clear that the next six months are far from predictable. However, if the pandemic has taught us anything, it’s that during times of economic uncertainty, parents will prioritize their children’s happiness above all else. And while I predict changes for the industry over the coming year, it’s worth bearing in mind that sales are up 45% year-to-date from June 2019.

  • *Source: The NPD Group/US Toys Retail Tracking Service, January-June 2022
  • **Source: The NPD Group/Checkout/American Toys

This article originally appeared in the September 2022 Fall Toy Preview edition of The toy book. Click here to read the full issue!

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