Toys And Games in Russia
Euromonitor International's Toys And Games in Russia 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: 30 | Publication date: Nov 2008
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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
The growth rate is declining
The Russian toys and games market continued to grow rapidly in 2008, when value sales rose by 19.0%, but the growth rate is expected to fall to 11–12% per year over the forecast period. This is mainly because parental incomes will increase less rapidly than the prices of toys and games, which are rising to meet parents’ expectations in terms of product design, increased safety and interactive functions.
According to the National Toys and Games Association in Russia, the growth of the market will slow, because of the imbalance between increases in salaries and product prices, and the slow development of Russian manufacturers. Russian parents increasingly expect products that will reflect Russian traditions and mentality, which foreign companies are unable to provide.
Main factors that stimulate growth
One of the most important factors influencing market performance is the rise in income levels, which in turn boosts expenditure on the games and toys. Russian parents can now buy more products than in the previous period.
The increase in the birth rate also increases the companies’ volume sales, especially in the pre-school subsector.
The safety of toys and games is now a major factor in purchasing decisions. Government interventions such as the enforcement of strict quality control on products have therefore led to a reduction in the imports of Chinese toys. Russian parents are changing their attitudes towards better-quality and more expensive products.
The companies that develop and manufacture interactive games are expanding their product lines and introducing new products into the Russian market.
The Russian toys and games market has a regional character. The most developed areas are Moscow, St Petersburg and other big cities, which influences its market structure. In these cities, parents pay greater attention to the safety of products.
Interactive games improving children’s development
The market structure continues to change, as interactive toys and games are replacing the more traditional dolls, model soldiers and toy cars. According to the International Association of Toys and Games Manufacturers, the traditional toys and games subsector lost about 20% of its market because of the development of the video games sector. The market is changing because Russian parents want to prepare their children before they go to school, and because children’s more rapid development is encouraging parents to buy new interactive games.
Russian manufacturers account for about 10–12% of the domestic market, but the quality of their products such as board games, model vehicles and action figures is sometimes higher than for those produced by the foreign companies. In addition, the Russian companies are trying to find niche markets in subsectors such as dolls/figures and soft/plush toys.
Chinese toys and games are leading the market
Chinese-made toys currently account for some 70% of the Russian market (especially in soft/plush toys and dolls/figures), followed by European countries and the US. The Russian manufacturers hold 10–12% of the domestic market, and their sales are growing by just 2%. This reflects not only the lower costs of production in Asia but also the removal of restrictions on foreign trade, which enables other countries to sell cheaper products.
While the Chinese manufacturers have a very strong position in the Russian market, Russian consumers’ preferences are switching towards the more expensive European products, as parents pay more attention to product safety rather than price.
Growth will be slower than in previous years
Growth in this market will slow down to about 11% per year over the forecast period.
According to the National Toys and Games Association in Russia, the slow-down in the market will be caused by the imbalance between the increases in salaries and product prices.
Product prices will increase because Russian manufacturers are slow to develop their products and because the share of imported products is continuing to increase.
Table of contents
TOYS AND GAMES IN RUSSIA : MARKET INSIGHT
EXECUTIVE SUMMARY
The growth rate is declining
Main factors that stimulate growth
Interactive games improving children’s development
Chinese toys and games are leading the market
Growth will be slower than in previous years
KEY TRENDS AND DEVELOPMENTS
Increased incomes influencing consumers’ behaviour
Russian manufacturers aiming for niche sectors
Changes in distribution
Safety a major factor influencing consumer choice
Increasing seasonality of the Russian market
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 - RUSSIA
MIR DETSTVA - TOYS AND GAMES - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Mir Detstva: Key Facts
Summary 3 Mir Detstva: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Mir Detstva: Competitive Position 2007
NORDPLAST - TOYS AND GAMES - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Nordplast: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 Competitive Position 2007
NOVY DISK - TOYS AND GAMES - RUSSIA
STRATEGIC DIRECTION
Summary 7 Novy Disk: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Novy Disk: Competitive Position 2007
ZAO STEP PUZZLE - TOYS AND GAMES - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 ZAO Step Puzzle: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
ZVEZDA OAO - TOYS AND GAMES - RUSSIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 OAO Zvezda: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 11 OAO Zvezda: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 12 OAO Zvezda: Competitive Position 2007
TRADITIONAL TOYS AND GAMES IN RUSSIA
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 RUSSIA
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