Toys And Games in the Netherlands
Euromonitor International's Toys And Games in the Netherlands 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.
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Tables: 25 | Publication date: Nov 2006
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- Get insight into trends in market performance
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Executive summary
Growth increasingly driven by video games
Although sales of traditional toys and games still constituted the bulk of total toys and games sales, the growth of video games was significantly stronger and by 2005 accounted for more than a third of total sales value. This is an increase from 2004 when video games accounted for almost 31% of total sales, and the relative growth rates suggest this trend will continue. Between 2001 and 2005, sales of video games increased by an average of 8% in value per year. Meanwhile sales of traditional toys showed a lower average growth, of just 5%. In 2005, there was an increase in sales of traditional toys of just 0.5%.
Despite the overall lacklustre performance of the traditional toys and games industry in 2005 in comparison to video games, some sectors continued to show steady growth. This was primarily the case for construction and activity games, and dolls and figures. Additionally the popularity of franchises based on film and television characters continued to secure strong sales for these sectors, as well as for the video games market.
Steady price drops affecting industry growth
Toys and Games in the Netherlands are generally priced higher than most other European countries, with a significant gap between the Netherlands and neighbouring countries such as Germany and Belgium. This led to allegations of price fixing and a formal investigation by the Dutch consumer association, the Consumentenbond in 2004. The price increases had been strongly correlated with the introduction of the Euro and had in some cases prices jumped by as much as 40% in the 2000-2002 period.
Since 2004 prices for toys and games have fallen fairly significantly, although the affect of this decline on value sales has been diluted by the increasing amount spent per child, due to more expensive products like video games being bought for children, and higher incomes of families. This decline in prices is related to the overall decline in toys and games spending and shifting production patterns.
Seasonal nature of toys and games sales
Sales in the toys and games market are closely linked to the seasons, with by far the highest sales seen in November and December in the run-up to Christmas. This is particularly acute in the Netherlands due to the importance of the Sint Nicklaas celebrations on December 5, known as Sinterklaas. Although in recent years Christmas celebrations are growing in popularity, Sinterklaas remains the most important festivity, with toy shops dropping prices sharply in November.
Changing production dynamics
One of the leading causes of the price decreases has been the shift in production to the Far East, with imports from China constituting the majority of toys and games products available on the Dutch market in 2006. This had led to increasing pressure on Dutch manufacturers to lower their prices to remain competitive, and has led many to shift production abroad. Many Dutch companies like Bruynzeel consequently produce most of their products in China.
This shift has led to controversy in the Netherlands following reports by consumer and human rights associations on the mistreatment of workers in China. It has also led to the Netherlands becoming the fourth largest importer of toys and games in Europe, although many of these imports are then shipped further to other European countries. According to national statistics, more than 65% of these imports originate in China.
Production costs within the Netherlands rose in 2005-2006 due to the increasing cost of raw materials, especially oil. Additionally, new EU safety legislation led to increasing costs as each component of any toy produced must be rigorously tested, increasing production costs by 5-8% in many cases.
Video games growth challenging the leading manufacturers position
The leading toys and games manufacturers remained relatively unchanged, with Mattel and Hasbro still far ahead of the rest, followed by the biggest Dutch toy producer Jumbo. However, the speed with which the video games market is growing suggests that this equilibrium will change somewhat in the future. The largest video games manufacturers, Sony, Nintendo and Microsoft, have all seen rapid growth and Nintendo’s sales figures rival those of Lego. Furthermore, with the release of a new batch of next generation consoles, including the Nintendo Wii (formerly known as the Nintendo Revolution), Playstation 3 and Xbox 360, this growth is expected to remain strong.
The boom in video games sales has attracted attention from other manufacturers, with Mattel and Lego both developing new divisions aimed at this market. Additionally, a number of lesser-known software developers including Namco Bandai, Playlogic and Guerilla Games are enjoying strong performances.
Indoor games still largest sector, but showing signs of decline
The largest sector among traditional toys and games products is indoor games, including items like board games and puzzles, which still retain their appeal to consumers. Nevertheless, sales of indoor games, more than any other type, show consistent and heavy signs of decline and, if trends continue, are expected to lose this dominant position by 2011.
Dolls and figures remained popular choices among traditional toys. Similarly, activity and construction toys continued to sell, including items like LEGO, Playmobil sets, Meccano and train sets. Their increasing popularity demonstrates the enduring appeal and market penetration of such products, and reflects the continuing appeal to consumers of toys with electronic and mechanic components.
Table of contents
TOYS AND GAMES IN THE NETHERLANDS : MARKET INSIGHT
EXECUTIVE SUMMARY
Growth increasingly driven by video games
Steady price drops affecting industry growth
Seasonal nature of toys and games sales
Changing production dynamics
Video games growth challenging the leading manufacturers position
Indoor games still largest sector, but showing signs of decline
KEY TRENDS AND DEVELOPMENTS
Kids getting older younger (KGOY)
Declining birth rates and an ageing population
Higher incomes and a recovering economy
Shifting production overseas
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 - NETHERLANDS
BRUYNZEEL-SAKURA BV - TOYS AND GAMES - NETHERLANDS
STRATEGIC DIRECTION
KEY FACTS
Summary 1 Bruynzeel-Sakura B.V: Key Facts
Summary 2 Bruynzeel-Sakura B.V: Operational Indicators
COMPETITIVE POSITIONING
JUMBO INTERNATIONAL - TOYS AND GAMES - NETHERLANDS
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Jumbo International: Key Facts
Summary 4 Jumbo International: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 5 Jumbo International: Competitive Position 2005
PLAYLOGIC INTERNATIONAL NV - TOYS AND GAMES - NETHERLANDS
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Playlogic International N.V: Key Facts
Summary 7 Playlogic International N.V: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
TRADITIONAL TOYS AND GAMES IN THE NETHERLANDS
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 THE NETHERLANDS
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