Table of Contents
Executive Summary
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- Overview
- The issues
- Increased online shopping creates new challenges for toy retailers and manufacturers
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- Figure 1: Retailers shopped, July 2018
- Not all consumers are comfortable with generic or unknown brands
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- Figure 2: Preferences for and attitudes toward buying, by age of children by parental status by gender, July 2018
- The opportunities
- Nontraditional retailers have a chance to win more toy shoppers
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- Figure 3: Retailers shopped, July 2018
- Encouraging adults to have fun
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- Figure 4: Reasons for buying, July 2018
- What it means
The Market – What You Need to Know
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- Positive growth trend fueled by interest and universal types of toys
- Which retailers will take over the category?
- Children influence purchases, but their decreased presence will impact the market
Market Size
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- An interest in the category makes for promising growth
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- Figure 5: Total US retail sales of traditional toys and games, at current prices, 2013-23
Market Breakdown
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- Outdoor sets, dolls, and games remain the largest segments
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- Figure 6: Share of sales by type of toy/game, 2015 and 2017
Market Perspective
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- Competitive landscape changes create opportunities for other retailers
- Amazon and mass most likely to benefit
- How will toy shopping evolve?
Market Factors
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- Children will represent a smaller piece of the population
- More spending money could contribute to sales growth, spiking during the holidays
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- Figure 7: Median household income, by age of householder, 2016
- Driving category interest through social media
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- Figure 8: Daily usage of four or more social media services, by age, February 2018
Key Players – What You Need to Know
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- Consumers like the classic and familiar
- Familiarity could create challenges for generic or unknown brands
- The new toy destination has yet to be determined
What’s Working?
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- Classics remain popular, thanks to modern day makeovers
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- Figure 9: Amazon email campaign, February 2018
- Figure 10: Walmart email campaign, August 2018
- Shoppers gravitate to familiar characters
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- Figure 11: Preferences for buying, by select demographics, July 2018
- Encouraging adults to join the fun
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- Figure 12: Reasons for buying, by age and gender, July 2018
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- Figure 13: Amazon email campaign, June 2018
What’s Struggling?
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- Preference for the familiar could challenge future growth of lesser-known brands
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- Figure 14: Preferences for buying, by select demographics, July 2018
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- Figure 15: Target email campaign, September 2018
What’s Next?
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- The battle for future toy sales will continue, starting with the holiday season
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- Figure 16: Walmart email campaign, September 2018
- Will a desire for shared experiences override the desire for toys?
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- Figure 17: Cost plus world market email campaign, February 2018
The Consumer – What You Need to Know
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- Some toys are purchased for all ages
- Toys aren’t just for gifts; entertainment and rewards also motivate purchases
- Competitors edge out toy stores as the top destinations
- Friends and family, product features influence purchase decisions
- Consumers seek the familiar, while using toys to gift and encourage
Items Purchased and Item Recipients
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- Items that can be enjoyed by all are most popular purchases
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- Figure 18: Items purchased, July 2018
- Dolls, figures, and plush are most popular for kids
- Activity-based items are most popular with adults
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- Figure 19: Item recipients – Net, July 2018
- Figure 20: Item recipients, July 2018
- Young adults just want to have fun
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- Figure 21: Item recipients, by gender and age, July 2018
- Moms buy for a variety of reasons, while dads shop based on their interests
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- Figure 22: Items purchased, by parental status by gender, July 2018
- Hispanic consumers buy many types of toys
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- Figure 23: Items purchased, by Hispanic origin, July 2018
Reasons for Buying
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- Gifting and rewarding are top reasons for buying
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- Figure 24: Reasons for buying, July 2018
- Adults without children worth targeting
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- Figure 25: Reasons for buying, by parental status, July 2018
- Younger children prompt educational and impulsive purchases
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- Figure 26: Reasons for buying, by children in the household, July 2018
- Black consumers are motivated by price and educational value
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- Figure 27: Reasons for buying, by race and Hispanic origin, July 2018
Retailers Shopped
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- Mass and Amazon are top toy destinations
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- Figure 28: Retailers shopped – Net, any shopping, July 2018
- Some parents shop toy stores, while also visiting mass and Amazon
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- Figure 29: Retailers shopped, by age of children in the household, July 2018
- Most consumers are already buying toys online
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- Figure 30: Retailers shopped online, by generation, July 2018
- Multicultural consumers favor value-based retailers and toy stores
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- Figure 31: Retailers shopped – Net any shopping, July 2018
Purchase Influencers
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- Children, peers, and features are most influential
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- Figure 32: Purchase influencers – Net, any rank, July 2018
- Wish lists and special events capture children’s interests and make shopping easier for everyone
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- Figure 33: Purchase influencers, by children in household, July 2018
- Younger generations influenced by media and outside sources
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- Figure 34: Purchase influencers, by generation, July 2018
- Black shoppers influenced by traditional sources
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- Figure 35: Purchase influencers, by race and Hispanic origin, July 2018
Preferences for Buying
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- Preferences for buying familiar, traditional, and ethically similar products
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- Figure 36: Preferences for buying, July 2018
- Dads seek the familiar, while moms prefer tradition
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- Figure 37: Preferences for buying, by parental status by gender, July 2018
- Younger children prompt a preference for claims and characters
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- Figure 38: Preferences for buying, by children in the household, July 2018
Attitudes toward Toys and Games
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- Toys are good for encouragement and gifting
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- Figure 39: Attitudes toward toys and games, July 2018
- Those without children see the value of toys
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- Figure 40: Attitudes toward toys and games, by parental status by gender, July 2018
- Single parents and moms interested in trade-in opportunities
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- Figure 41: Attitudes toward toys and games, by select demographics, July 2018
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- Figure 42: Babies “R” us email campaign, March 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Direct marketing creative
- Abbreviations
Appendix – The Market
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- Figure 43: Total US retail sales of traditional toys and games, at inflation-adjusted prices, 2013-23
- Figure 44: population by age, 2013-2023
- Figure 45: Households, by presence and ages of own children, 2017
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Appendix – The Consumer
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- Figure 46: Retailers shopped, in-store versus online, July 2018
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- Figure 47: Purchase influencers, by parental status, July 2018
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- Figure 48: Purchase influencers, July 2018
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