Table of Contents
Issues in the Market
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- Key themes
- Definitions
- Financial definitions
- Abbreviations
Future Opportunities
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- Opportunity One
- Guaranteed to please
Market in Brief
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- Toys and games recovery after two tough years
- Big focus on price in the market
- Collapse of Woolworths causes shake-up in sector
- Plenty of winners in the wake of Woolworths’ exit
- Multichannel retailing increases range of options
- Capturing both the planned and impulse element
- Pester power a big influence
- Bringing stores alive and guiding consumer choice
- Educational element also a big factor
- Strong support from manufacturers to retailers
- More children will help market growth
Internal Market Environment
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- Key points
- Strong competition keeps prices down
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- Figure 1: Consumer price indices (not seasonally adjusted), January 2008-September 2010
- Market dominated by imports
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- Figure 2: International trade of toys and games, 2005-09
- Figure 3: Sources of imports of toys and games, 2005-09
- Pester power an important influence
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- Figure 4: ‘I find it difficult to say no to my kids’, by gender, socio-economic group and age of children, 2010
- High dependence on Christmas
- Collapse of Woolworths shakes up sector
Broader Market Environment
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- Key points
- Younger children a boost to market
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- Figure 5: Child/youth population, by gender and age, 2005-15
- Increase in one-child families
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- Figure 6: Dependent children in Great Britain, by family type, 2004-10
- Older mothers have more to spend
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- Figure 7: Fertility rates in UK, by age of mother at childbirth, 2000-09
- Negative impact of exchange rates
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- Figure 8: Quarterly average spot exchange rates, 2007-10
- Internet increasing in importance
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- Figure 9: Broadband penetration, by age group, 2004-10
Strengths and Weaknesses in the Market
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- Strengths
- Weaknesses
Who’s Innovating?
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- Key points
- Increasing industry links
- Toys ‘R’ Us Dora campaign
- Dressing up at Hamleys
- Mighty Beanz promotion at Entertainer
- Retail meets leisure
- Legoland Discovery Centre
- New design for Disney Store
- Celebrating the launch of Toy Story 3
- New product ranges
- ELC seeks to broaden its audience
- Charity begins at Christmas
- Buzz Lightyear auction at Argos
- Sponsor a soft toy at Disney
- Toy Scrappage Scheme
- Looking for new ideas
Competitive Context
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- Key points
- Video games and consoles hit traditional toys and games
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- Figure 10: Consumer expenditure on toys and games compared to other areas, 2005-09
- 7-10s make toys and games top choice
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- Figure 11: Trends for how 7-10s spend their money, 2004-10
- Purchasing declines among 11-14s
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- Figure 12: Trends for how 11-14s spend their money, 2004-10
- Children becoming less active during leisure time
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- Figure 13: Children’s lifestyle attitudes, 2006-10
Market Size and Forecast
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- Key points
- Toy sales show recovery after two difficult years
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- Figure 14: UK retail value sales of toys and games, at current and constant prices, 2005-15
- The future
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- Figure 15: Forecast of UK retail value sales of toys and games, at current prices, 2005-15
- Research methodology
The Consumer – Where They Buy Toys and Games
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- Key points
- Argos the top choice for toys and games
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- Figure 16: Outlets used for buying toys and games in the last 12 months, September 2010
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- Figure 17: Outlets used for buying toys and games, 2006 and 2010
- Wide choice and ease of shopping at Argos
- Toy chains limited in numbers
- Half of pre-school parents shop at ELC
- A magical experience from Disney
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- Figure 18: Purchasing of toys and games from Toys ‘R’ Us, Early Learning Centre and Disney Store, by presence of children and Mintel’s Special Groups, September 2010
- Independent toyshops dwindling in numbers
- Supermarkets offer value and convenience
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- Figure 19: Purchasing of toys and games from Tesco and Asda, by main supermarket used, September 2010
- Internet important source for toys
- Not ignoring the grandparents
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- Figure 20: Outlets used for buying toys and games in the last 12 months, by adults with no children in the household, September 2010
- Number of outlets used
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- Figure 21: Number of outlets used for buying toys and games for a child aged under 16 in the last 12 months, September 2010
Consumer Buying Behaviour
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- Key points
- Mixture of planned and impulse buying
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- Figure 22: Agreement with statements on shopping behaviour when shopping for toys and games, September 2010
- Older buyers need more help with ideas
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- Figure 23: Finding out what the child wants and impulse buying when shopping for toys and games, by age and socio-economic group, September 2010
- Younger women the biggest impulse buyers
- Special offers can clinch the decision
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- Figure 24: ‘I tend to make the most of special offers (eg 3 for 2)’, by gender, age and socio-economic group, September 2010
- Pester power in the shops
- Internet versus catalogues for browsing
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- Figure 25: Browsing the internet and catalogues for toys and games, by outlets used for buying toys and games, September 2010
- More occasions for toys and games
Factors That Would Encourage More Shopping
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- Key points
- Catalogues a top consumer preference
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- Figure 26: Factors that would encourage more shopping at a particular store, September 2010
- Trying before buying aids consumer choice
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- Figure 27: Testing/playing with toys before buying and demonstrations of new toys, by age, September 2010
- Home delivery not a major factor
- Children’s activities have more limited appeal
- Giving shoppers more ideas
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- Figure 28: Lists of bestsellers, by age group, area of gift ideas, by price and pocket money area, by age, September 2010
Attitudes Towards Buying Toys and Games
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- Key points
- Educational element seen as important
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- Figure 29: Attitudes towards buying toys and games, September 2010
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- Figure 30: ‘I try to buy educational toys’, by outlets used for buying toys and games, September 2010
- Traditional games have lost some of their appeal
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- Figure 31: ‘I look for games the whole family can play together’ and ‘I prefer buying more traditional games’, by age and socio-economic group, September 2010
- Big and noisy toys not for everyone
- Quality and safety important factors
- Big challenge to get adults interested
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- Figure 32: ‘Games make good presents for adults as well as children’ and ‘I like to buy toys and games I played as a child’, by outlets used for buying toys and games, September 2010
- TV adverts and peer pressure drive sales
Channels of Distribution
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- Key points
- Big three becomes big two
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- Figure 33: Distribution of toys and games, by major channels, 2007 and 2009
- Argos the dominant mass merchandiser
- Selected ranges at most other stores
Retail Competitor Analysis
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- Key points
- Exit of Woolworths helps other toy retailers
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- Figure 34: Estimated market shares of major players, 2005-09
- Combining online growth with store development
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- Figure 35: Review of major players, 2010
Retailer Profiles
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- The Disney Store
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- Figure 36: The Disney Store Ltd, financial performance, 2008 and 2009
- Early Learning Centre
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- Figure 37: Early Learning Centre Ltd, financial performance, 2008 and 2009
- The Entertainer
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- Figure 38: The Entertainer (Amersham) Ltd, financial performance, 2009 and 2010
- Hamleys
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- Figure 39: Hamleys of London Ltd, financial performance, 2009 and 2010
- Toys ‘R’ Us
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- Figure 40: Toys ‘R’ Us Ltd, financial performance, 2009 and 2010
- Smyths Toys
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- Figure 41: Smyths Toys UK Ltd, financial performance, 2008 and 2009
- Games Workshop
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- Figure 42: Games Workshop Ltd, financial performance, 2008 and 2009
- Build-A-Bear Workshop
- Argos
- Supermarkets
- Department stores
- Other retailers
- Home shopping
Retail Advertising and Promotion
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- Key points
- Decline in advertising by toy stores
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- Figure 43: Main media advertising expenditure by toy stores, 2006-10
- Toys ‘R’ Us the leading advertiser
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- Figure 44: Main media advertising expenditure by toy stores, by retailer, 2006-10
- Press and TV dominate spending
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- Figure 45: Main media advertising expenditure by toy stores, by media type, 2006-10
- Advertising peaks in run-up to Christmas
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- Figure 46: Main media advertising expenditure by toy stores, by month, 2006-10
- Strong support from toy manufacturers
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- Figure 47: Main media advertising expenditure on toys and games, by manufacturer, 2006-09
Appendix – Broader Market Environment
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- Figure 48: Broadband penetration, by demographics, 2004-10
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Appendix – Where They Buy Toys and Games
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- Figure 49: Most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, by demographics, September 2010
- Figure 50: Next most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, by demographics, September 2010
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- Figure 51: Repertoire of source of purchase for toys and games for a child aged under 16 in the last 12 months, by demographics, September 2010
- Figure 52: Repertoire of source of purchase for toys and games for a child aged under 16 in the last 12 months, by source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
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Appendix – Consumer Buying Behaviour
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- Figure 53: Most popular attitudes towards shopping for toys and games, by demographics, September 2010
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- Figure 54: Next most popular attitudes towards shopping for toys and games, by demographics, September 2010
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- Figure 55: Attitudes towards shopping for toys and games, by most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
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- Figure 56: Attitudes towards shopping for toys and games, by next most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
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- Figure 57: Attitudes towards shopping for toys and games, by other source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
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Appendix – Factors That Would Encourage More Shopping
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- Figure 58: Most popular factors simplifying and influencing to purchase more at the particular store, by demographics, September 2010
- Figure 59: Next most popular factors simplifying and influencing to purchase more at the particular store, by demographics, September 2010
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- Figure 60: Factors simplifying and influencing to purchase more at the particular store, by most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
- Figure 61: Factors simplifying and influencing to purchase more at the particular store, by next most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
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- Figure 62: Factors simplifying and influencing to purchase more at the particular store, by other source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
- Figure 63: Factors simplifying and influencing to purchase more at the particular store, by number of outlets used for buying toys and games for a child aged under 16 in the last 12 months, September 2010
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Appendix – Attitudes Towards Buying Toys and Games
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- Figure 64: Most popular attitudes towards buying toys and games, by demographics, September 2010
- Figure 65: Next most popular attitudes towards buying toys and games, by demographics, September 2010
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- Figure 66: Factors simplifying and influencing to purchase more at the particular store, by most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
- Figure 67: Factors simplifying and influencing to purchase more at the particular store, by next most popular source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
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- Figure 68: Factors simplifying and influencing to purchase more at the particular store, by other source of purchase for toys and games for a child aged under 16 in the last 12 months, September 2010
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