Toys And Games in Germany
Euromonitor International's Toys And Games in Germany 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: 35 | Publication date: Oct 2008
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- Get insight into trends in market performance
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Executive summary
Slight growth revives the market
After years of stagnation and decline, the overall market for toys and games in Germany showed growth in 2007 and remained stable in 2008. Traditional toys were the weaker sector, experiencing less growth than in 2007. Here, the subsector with the strongest growth was once more indoor games, puzzles and construction toys. The principal driver was the video games sector, where growth continues to be strongly dynamic both for hardware and software. The launch of the Wii at the end of 2006 and PlayStation 3 in 2007 particularly stimulated this sector.
Toys and games sector safe from inflation
The general economic trend in Germany has been positive since 2006, with a 1.7% growth after 2.5% in 2006. Unemployment was below four million and income rose by an average 1.2%. According to Postbank, Germany’s biggest private customer bank, Germany is now the growth engine within the EU. However, the inflation rate vacillated between 2.1% and 3% in 2007, which was a 13-year high, principally as a result of the rising prices in the energy and fuel sectors. Average prices for FMCG increased 6.8% in 2007. The danger of inflation is historically an indicator that makes German consumers anxious and dampens consumption. However, prices in the consumer electronics sector were decreasing and those of traditional toys remained stable. 2007 also proved to be something of a baby boom year, especially in the big cities. This was attributed to new legislation for parent subsidies installed in 2007. Many experts believe the demographic u-turn to be an ongoing trend.
Dynamic video games market
The driving engine in the German toys and games market continues to be video games, which has shown strong growth for the past two years. The games sector, which is clearly divided into the three consoles from manufacturers Nintendo, Sony and Microsoft, is strongly fragmented but is showing signs of consolidation. At present, demand for games on mobile phones is lagging behind other countries but, with the iPhone 3G, launched in June 2008, a new games contender is presenting itself in the mobile phone sector as a games console. “Brain training” games for adults in the video games sector are becoming a growth industry, with “edutainment software” for video game consoles being sold to children from the age of ten and games stimulating “brain jogging” growing popular.
Online sales gaining ground
The market for toys in Germany is fragmented and mature, with specialist small and medium size retailers and manufacturers playing a strong role. The influence of mixed leisure and personal goods retailers is being eroded by the growing popularity and confidence in online sales. Specialist retailers of traditional toys in Germany are mainly organised into three buying cooperations, Vedes, Spiel & Spass and Idee & Spiel, and a growing share of sales are accounted for by large chains. In the area of video games, electronic chains like Media Markt, Saturn and Euronics have the strongest share of the retail market. Almost one third of sales in this market are achieved in two months preceding Christmas, due to the demand for toys and games as presents. In 2007, retailer/customer relationships were strained by frequent recalls due to faulty toys.
Wider consumer base for future growth
The review period did not show a dynamic picture of this market but this could improve if the increasing birth rate turns into a trend rather than just a one-off. It is widely commented that future growth in the toys and games market will depend on the widening of the consumer base. Already, the over-forties are having an impact on sales of indoor and video games with a strong demand for brain training games. For video games, where the main user group is traditionally young males, the opening up of female and older target groups could determine long term growth. On the down side, the industry is expecting to have to raise prices which, in turn, could further reduce the rather weak demand.
Table of contents
TOYS AND GAMES IN GERMANY : MARKET INSIGHT
EXECUTIVE SUMMARY
Slight growth revives the market
Toys and games sector safe from inflation
Dynamic video games market
Online sales gaining ground
Wider consumer base for future growth
KEY TRENDS AND DEVELOPMENTS
Economic growth feels fragile
More urgency for safe play
The social impact of the growing video games market
New consumer groups revive toys and games
Marketing to children as consumers
MARKET DATA
Table 1 Sales of Toys and Games by Sector: Value 2003-2008
Table 2 Sales of Toys and Games by Sector: % Value Growth 2003-2008
Table 3 Sales of Toys and Games by Distribution Format: % Analysis 2003-2008
Table 4 Toys and Games Company Shares by Value 2004-2007
Table 5 Forecast Sales of Toys and Games by Sector: Value 2008-2013
Table 6 Forecast Sales of Toys and Games by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - GERMANY
FISCHER GROUP - TOYS AND GAMES - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Fischer Group: Key Facts
Summary 3 Fischer Group*: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Fischer Group: Competitive Position 2007*
GEOBRA BRANDSTäTTER GMBH & CO KG - TOYS AND GAMES - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Geobra Brandstätter GmbH & Co KG: Key Facts
Summary 6 Geobra Brandstätter GmbH & Co KG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Geobra Brandstätter GmbH & Co KG: Competitive Position 2005
MäRKLIN HOLDING GMBH - TOYS AND GAMES - GERMANY
MÄRKLIN HOLDING GMBH
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Märklin Holding GmbH: Key Facts
Summary 9 Märklin Holding GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Märklin Holding GmbH: Competitive Position 2005
RAVENSBURGER AG - TOYS AND GAMES - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Ravensburger AG: Key Facts
Summary 12 Ravensburger AG: Operational Indicators*
COMPANY BACKGROUND
PRODUCTION
Summary 13 Ravensburger AG: Production Statistics 2006
COMPETITIVE POSITIONING
Summary 14 Ravensburger AG: Competitive Position 2005
ZAPF CREATION AG - TOYS AND GAMES - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Zapf Creation AG: Key Facts
Summary 16 Zapf Creation AG: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 17 Zapf Creation AG: Competitive Position 2007
TRADITIONAL TOYS AND GAMES IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 7 Sales of Traditional Toys and Games by Subsector: Value 2003-2008
Table 8 Sales of Traditional Toys and Games by Subsector: % Value Growth 2003-2008
Table 9 Sales of Traditional Toys and Games by Distribution Format: % Analysis 2003-2008
Table 10 Traditional Toys and Games Company Shares by Value 2004-2007
Table 11 Forecast Sales of Traditional Toys and Games by Subsector: Value 2008-2013
Table 12 Forecast Sales of Traditional Toys and Games by Subsector: % Value Growth 2008-2013
VIDEO GAMES IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 13 Sales of Video Games by Subsector: Value 2003-2008
Table 14 Sales of Video Games by Subsector: % Value Growth 2003-2008
Table 15 Sales of Video Games by Distribution Format: % Analysis 2003-2008
Table 16 Video Games Company Shares by Value 2004-2007
Table 17 Forecast Sales of Video Games by Subsector: Value 2008-2013
Table 18 Forecast Sales of Video Games by Subsector: % Value Growth 2008-2013