Toys And Games in South Korea
Euromonitor International's Toys And Games in South Korea 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: 33 | Publication date: Oct 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
Growth led by video games sector
The overall toys and games market grew by 12.8% in 2008, pushed by strong growth in the video games market which is expected to continue its rapid growth in future. Meanwhile, the market in traditional toys and games has not been performing well, because of various factors such as the low fertility rate of Korean women and the increased interest in digital technology among children, and this pattern is expected to continue.
Korean economy looks gloomy
Korean GDP per capita has reached US$20,000 but many Koreans are dissatisfied with the current levels of output and unemployment. The current president Lee Myung-Bak (elected in December 2007) has promised to deliver economic growth and a business-friendly environment but this has not yet been transformed into concrete results. Many Korean companies are struggling to compete, including the leading suppliers of online games and toys. The political environment is also less than stable, as the president’s unpopularity rose sharply following the turn of the year, as highlighted by the recent public demonstration.
2007: boom year in video games
The fastest-growing market in 2008 was the video games sector, with growth of 15.9% and 17.6% in hardware and software sales respectively. This growth was ignited by a tight three-way race between the main video console producers; Nintendo of Korea, Sony Computer Entertainment Korea and Microsoft Korea. Another reason for the fast growth in this sector is the stagnation of the online games industry, which is the most popular type of gaming in Korea.
Toys and games market becoming concentrated
The toys and games market is becoming concentrated, with considerable M&A activity within the video and online games markets. The traditional toys and games markets in particular are showing signs of domination by the big multinationals, which mainly reflects the difficulties of boosting sales in a declining industry that requires investment on a huge scale, which can only be undertaken by major companies with significant assets. This trend is also prevalent within Korea’s online games industry, where the market is now mature with high barriers to entry. This has resulted from a combination of factors, ranging from consumer preferences for established games (such as Blizzard’s World of Warcraft or NCsoft’s Lineage series) to the lack of big “hit” products.
Survival depends on research and innovation
The traditional toys and games market is expected to grow at a low level during the forecast period. The reduction in the Korean fertility rate, combined with the digitalisation of leisure activities, will lead to both growth in the video games market and hardship within the traditional toys and games market. Traditional toys and games companies will therefore need to appeal to the consumers in different ways. The video games sector must also stay alert; despite an exuberant market performance in the video games market, challenges lay ahead for the video games companies as they seek to “sell” their products to education-focused Korean parents.
Table of contents
TOYS AND GAMES IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Growth led by video games sector
Korean economy looks gloomy
2007: boom year in video games
Toys and games market becoming concentrated
Survival depends on research and innovation
KEY TRENDS AND DEVELOPMENTS
Imitation problem requires stronger government action
Blurring of distinction between toys and video/online games
Korean licensed characters are increasing in market share
“Edutainment” trend
Health and safety: Another factor to consider when producing and selling
Online game addiction poses a serious problem to society
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 - SOUTH KOREA
AURORAWORLD CORP - TOYS AND GAMES - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Aurora World Corp: Key Facts
Summary 3 Aurora World Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Aurora World Corp: Competitive Position 2007
HANBIT SOFT INC - TOYS AND GAMES - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 HanbitSoft Inc: Key Facts
Summary 6 HanbitSoft Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 HanbitSoft Inc: Competitive Position 2007
NINTENDO OF KOREA CO LTD - TOYS AND GAMES - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Nintendo of Korea Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Nintendo of Korea Co Ltd: Competitive Position 2007
SONOKONG CO LTD - TOYS AND GAMES - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Sonokong Co Ltd: Key Facts
Summary 11 Sonokong Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 12 Sonokong Co Ltd: Competitive Position 2007
SONY COMPUTER ENTERTAINMENT KOREA INC - TOYS AND GAMES - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Sony Computer Entertainment Korea Inc: Key Facts
Summary 14 Sony Computer Entertainment Korea Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 15 Sony Computer Entertainment Korea Inc: Competitive Position 2007
TRADITIONAL TOYS AND GAMES IN SOUTH KOREA
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 SOUTH KOREA
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