The toy and gaming industry
In 2019 the global toy and gaming industry reached 109,7 billion dollars. This sector is divided into speciality stores, supermarkets and hypermarkets, departmental stores, online and general stores, who are all selling these types of products. The biggest segment in the market is buying products from speciality stores. The toy and gaming industry is expected to grow annually by 3% between 2020 to 2025.
The greatest trends of the toy and gaming industry
Consumers are starting to move towards online shopping.
E-commerce retailers are especially experiencing success within this sector.
A great focus on new product development.
A great focus on merging together different businesses or making partnerships.
The fastest growing market is Asia, however the expenditure is highest in the US.
The development within technology is also benefiting the toy and gaming industry.
Increased use of social media is a rising trend, applied within this sector.
Increased focus on applying the toy and gaming industry as educational activities.
Making toys which are perceived as personal – e.g. plus toys, which are able to move or speak.
More focus on producing sustainable products for children.
Based on the above trends it is relevant to ensure that your products are differentiated from your competitors. You can differentiate your products by using a dynamic pricing engine and by ensuring a sustainable manufacturing process etc.
The growing tendency of e-commerce
The toy and gaming industry is experiencing a high growth due to the expansion of the online webshops. It is forecasted that online sale of toys will grow from 31,4% in 2019 to 47,9% by 2023.
In 2018 the toy and gaming industry changed dramatically, as the giant player in the market, Toys “R” Us decided to close all its shops. Since this announcement, Amazon has taken the lead and is seen as the number one choice for consumers, when they are buying toys or games online. The online sale of toys and games are growing 2-3 times as fast, as sales in physical stores.
Best practices and solutions
The toy and gaming industry is characterized by a high degree of competition. Consumers are buying the products from the reseller who has the lowest price in the market. Therefore, it is crucial that your firm is familiar with the competitive situation and the different price positions applied in the market.
By applying a price comparison software, such as PriceShape, you will be able to get an overview of your competitive situation. Based on this you can create the most optimal pricing strategy for your specific products. Moreover, it is possible through PriceShape’s software to place your marketing expenses on the most profitable brands or products of your company.