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The Toy and Games industry is expected to experience a difficult market over the five years through 2012-13. Incorporating the manufacture, wholesale and retail sale of toy and game products, industry revenue is projected to decline over this period. The toy and game market has undergone considerable transformation compared with its origins. For these reasons, industry research firm IBISWorld has updated its report on the Toy and Games industry in Australia.
Melbourne, Australia (PRWEB) November 25, 2012
The Toy and Games industry is expected to experience a difficult market over the five years through 2012-13. Incorporating the manufacture, wholesale and retail sale of toy and game products, industry revenue is projected to decline by an annualised 1.5% over this period. According to IBISWorld Industry analyst Claudia Burgio-Ficca, “the toy and game market has undergone considerable transformation compared with its origins”. At the manufacturing level, toys that were once crafted by hand are now largely mass-produced in overseas facilities, which offer cheaper labour costs. The industry has experienced high growth in the development of new products due to the advent of electronic and interactive goods. There has also been a reduction in product life cycles, with children demanding more adult-like toys at a younger age. The wholesale market for toy and game products has also been affected by retailers increasingly choosing to bypass wholesalers in preference of the competitive prices on offer from manufacturers.
Industry sales are expected to decline by 0.9% to $3.21 billion in 2012-13. Demand for toy and game products is likely to be hindered by uncertainty in global markets and contractions in the trade-weighted index, which will affect the price of imported material, parts and products for manufacturers and wholesalers. "The retail market will suffer as a result of intense price-based competition between operators and external players", says Burgio-Ficca. Over the next five years to 2017-18, sales across the Toy and Game industry are projected to decline. Sales will be affected by competition from imported merchandise and the continued threat of wholesale bypass. Demand will also be affected by strong price-based competition across the industry.
The Toy and Games industry exhibits a low level of market share concentration. Despite this, concentration levels over the past five years are expected to have trended upwards owing to the mature life cycle status of the industry and the continued consolidation of operators. At the manufacturing level, market share concentration is regarded as low owing to the impact of significant international competition. While Mattel and Hasbro are primarily regarded as wholesalers across the Australian landscape, these players control numerous branded merchandise and as a result are considered operators at the manufacturing level. Market share concentration levels at the manufacturing level has also suffered over the past five years owing to the continued influx of internationally made goods across the domestic market. The competitive nature of the industry is expected to have hindered market share concentration at the wholesale level over the past five years. The low level of concentration for this industry has also stemmed from the availability of imported goods on the domestic economy and the continued shift towards wholesale bypass. Albeit from a low base, market share concentration at the retail level has intensified over the past five years owing to greater competition between players. The major players in the industry are Wesfarmers, Toy ‘R’ Us, Associated Retailers, and Woolworths.
For more information, visit IBISWorld’s Toy and Games industry report in Australia industry page.
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IBISWorld industry Report Key Topics
This industry includes companies that manufacture, wholesale or retail toys and games. Examples of products in this industry include toys for infants, boys and girls; puzzles; educational toys; and board games. Video game products (such as consoles, games and accessories) are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.
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