Toys And Games in Canada
Euromonitor International's Toys And Games in Canada report offers a comprehensive guide to the size and shape of the traditional toys and games and the video games market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market- be they new product developments, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Tables: 22 | Publication date: Sep 2006
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
A weak year overall
Despite a strong economy and high consumer confidence, 2005 marked a weak year for toy and video game sales in Canada. Overall sales of traditional toys and games remained stagnant as children, in particular the so-called "tween" demographic, continued to be tempted by more grown-up devices, such as video games, MP3 players, cell phones, etc. Meanwhile, many video game fans were holding off on major hardware and software purchases until the predicted launch of the PlayStation 3 (PS3) and Nintendo Revolution in 2006. Despite the hype surrounding the Xbox 360 launch in November 2005, the console's limited supply did not provide the expected boost to hardware sales.
Toy makers learning to adapt to changing play patterns
The failure to adapt to the changing entertainment interests of children was a key factor in lacklustre toy sales in Canada for several years. Ten years on from 1995, it was much more challenging to maintain the interests of a child given the numerous other entertainment options that abound. While some toy makers such as LeapFrog and VTech helped to pioneer new markets in the interactive educational field, innovation for the large part has been lacking in the industry. However, this is beginning to change as manufacturers are placing a greater emphasis on interactive electronic toys.
The challenges and opportunities
Even though toy makers may have been late to adapt to changing play patterns, one aspect which they have no control over is a shrinking population of children. A fall in the number of consumers presents a significant challenge for any industry, but in particular the toy market as the customer base is largely limited to the 0 to 14 year old age group. To off-set this, toy makers are looking at higher-priced electronic toys to help boost their fortunes.
While shifting demographics have burdened the traditional toy sector, it has done the reverse for the video games sector. The number of 15 to 34 year olds, who tend to be the most enthusiastic video game-players, increased during the review period and will continue to grow during the forecast period.
Competition with Wal-Mart heats-up
Wal-Mart's entry into Canada in 1994 dramatically transformed the country's retail market. This was particularly the case for toy and video game retailers because Wal-Mart's aggressive price-cutting forced many independents and even historic department store chains out of business. In 2006, Wal-Mart still rankrd as the leading retailer of toys and video games in Canada — but how long will this last?
Wal-Mart is taking on competition from drugstore chains, hardware stores and supermarkets, which traditionally never carried an extensive line of toys. Even Canada's largest department store chain, the Bay, is re-committing to toys after abandoning the sector for several years. The future expansion of the Best Buy and Future Shop chains are also expected to challenge Wal-Mart's leading position in video game sales.
Brighter times ahead
The microchip is destined to drive toy and video game sales in Canada. While traditional toy sales will likely remain soft, the growing demand for electronic toys is expected to underpin sales within the overall toy sector.
More advanced microchip systems will help power the next generation of video game consoles, which was ushered in with the Canadian launch of the Microsoft's Xbox 360 in November 2005. The Xbox 360 will be joined in 2006 by the PS3 and the Revolution and will help drive hardware and software sales during the forecast period.
Table of contents
TOYS AND GAMES IN CANADA : MARKET INSIGHT
EXECUTIVE SUMMARY
A weak year overall
Toy makers learning to adapt to changing play patterns
The challenges and opportunities
Competition with Wal-Mart heats-up
Brighter times ahead
KEY TRENDS AND DEVELOPMENTS
Canada's changing demographics
Toy makers learn to cater to kids' changing tastes
Wal-Mart being challenged on all sides
Baby boomer grandparents flex their retail muscle
Oil, toys and the Canadian economy
MARKET DATA
Table 1 Retail Sales of Toys and Games by Sector: Value 2001-2006
Table 2 Retail Sales of Toys and Games by Sector: % Value Growth 2001-2006
Table 3 Retail Sales of Toys and Games by Distribution Format: % Analysis 2001-2006
Table 4 Toys and Games Company Shares by Value 2002-2005
Table 5 Forecast Retail Sales of Toys and Games by Sector: Value 2006-2011
Table 6 Forecast Retail Sales of Toys and Games by Sector: % Value Growth 2006-2011
DEFINITIONS
Toys and games
LOCAL COMPANY PROFILES - CANADA
MEGA BLOKS INC - TOYS AND GAMES - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Mega Bloks Inc: Key Facts
Summary 2 Mega Bloks Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 3 Mega Bloks Inc: Production Statistics 2005
COMPETITIVE POSITIONING
Summary 4 Mega Bloks Inc: Competitive Position 2005
TRADITIONAL TOYS AND GAMES IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 7 Retail Sales of Traditional Toys and Games by Subsector: Value 2001-2006
Table 8 Retail Sales of Traditional Toys and Games by Subsector: % Value Growth 2001-2006
Table 9 Retail Sales of Traditional Toys and Games by Distribution Format: % Analysis 2001-2006
Table 10 Traditional Toys and Games Company Shares by Value 2002-2005
Table 11 Forecast Retail Sales of Traditional Toys and Games by Subsector: Value 2006-2011
Table 12 Forecast Retail Sales of Traditional Toys and Games by Subsector: % Value Growth 2006-2011
VIDEO GAMES IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Retail Sales of Video Games by Subsector: Value 2001-2006
Table 14 Retail Sales of Video Games by Subsector: % Value Growth 2001-2006
Table 15 Retail Sales of Video Games by Distribution Format: % Analysis 2001-2006
Table 16 Video Games Company Shares by Value 2002-2005
Table 17 Forecast Retail Sales of Video Games by Subsector: Value 2006-2011
Table 18 Forecast Retail Sales of Video Games by Subsector: % Value Growth 2006-2011