Toys And Games in Japan

Euromonitor International's Toys And Games in Japan 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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GBP560.00

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Executive summary

Toys and games market slumps

Increasing market competition, characterised by declining unit prices brought about by the entry of cheaper products from other Asian countries, contributed to the negative performance of the overall toys and games market during the review period. The market became much more saturated, which made the competition even tighter. The entry of new market players and the slower replacement rates of toys and games will lead to a further reduction in growth over the forecast period.

Players suffer from falling birth rate and ageing of population

Japan is characterised by an ageing population and a falling birth rate, both of which are contributing to the volatility of the market in toys and games. This posed a challenge to the market leaders, who followed through their domestic sales with international releases in order to maintain their sales margins. The falling birth rate has had a negative impact on the overall performance of the market, which is characterised by the poor performance of the infant, pre-school and outdoor games subsectors. At the same time, the older population seems to have little interest in this market sector and has switched its attention to other leisure activities and hobbies.

Universal-use toys to target children with different abilities

Japanese toy manufacturers understand the importance of expanding market share and have found means of promoting the use of their toys in the country. To this end, they have promoted “universal-use toys” that enable deaf and blind children to play with traditional toys with ease. These toys are called seimou-kyoku Gangu and use the toys’ body contouring to facilitate play. As a first step, the Toys Association of Japan is overseeing the initial production of these toys and has monitored the success of this initiative since the beginning of 2008. Given the overall slump in the traditional toys and games sector, the introduction of universal-use toys to include children with different abilities may help to boost its performance.

Product launches from popular animes

Japanese consumers’ attraction to animes (cartoon characters) is mirrored in their preferences for toys and games. Manufacturers and retailers have responded by collaborating to introduce products based on popular television animes that have attracted the viewers’ attention. Competition among the key players therefore depends on their use of well-known cartoon characters from film, television and printed matter. For example, Bandai Namco has seen increased demand for its Tamagotchi lines for both traditional and game consoles, while younger Japanese consumers favoured have favoured action figures and game consoles featuring characters from Power Rangers and Ben 10. In 2007, Konami successfully increased its sales of card games and toys by acquiring the rights to use characters from popular comic books and children’s TV programmes.

Depressing future for toys and games in 2013

Since the current market conditions are expected to prevail over the projected period, the overall value performance of toys and games in Japan will underperform relative to the review period. Increased competition arising from the maturity of the market and a series of aggressive product launches for toys and games of all types will lead to declining unit prices, and eventually to a decline in the market’s overall performance. According to trade sources, the rate of replacement of traditional toys by next-generation home-use game consoles is also expected to be much more lethargic by 2013.

Table of contents

TOYS AND GAMES IN JAPAN : MARKET INSIGHT

EXECUTIVE SUMMARY

Toys and games market slumps

Players suffer from falling birth rate and ageing of population

Universal-use toys to target children with different abilities

Product launches from popular animes

Depressing future for toys and games in 2013

KEY TRENDS AND DEVELOPMENTS

Birth rates continue to drop

Leisure and entertainment favour video games

Future impact

Interconnectivity hits toys and games

Mergers prevail in toys and games 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 - JAPAN

KONAMI CORP - TOYS AND GAMES - JAPAN

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Konami Corporation: Key Facts

Summary 3 Konami Corporation: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 4 Konami Corporation: Competitive Position 2007

NAMCO BANDAI HOLDINGS INC - TOYS AND GAMES - JAPAN

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Namco Bandai Holdings Inc: Key Facts

Summary 6 Namco Bandai Holdings Inc: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 7 Namco Bandai Holdings Inc: Competitive Position 2007

NINTENDO CO LTD - TOYS AND GAMES - JAPAN

STRATEGIC DIRECTION

KEY FACTS

Summary 8 Nintendo Co Ltd: Key Facts

Summary 9 Nintendo Co Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 10 Nintendo Co Ltd: Production Statistics 2007

COMPETITIVE POSITIONING

Summary 11 Nintendo Co Ltd: Competitive Position 2007

SEGA SAMMY HOLDINGS INC - TOYS AND GAMES - JAPAN

STRATEGIC DIRECTION

KEY FACTS

Summary 12 Sega Sammy Holdings Inc: Key Facts

Summary 13 Sega Sammy Holdings Inc: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 14 Sega Sammy Holdings Inc: Competitive Position 2007

SQUARE ENIX CO LTD - TOYS AND GAMES - JAPAN

STRATEGIC DIRECTION

KEY FACTS

Summary 15 Square Enix Co Ltd: Key Facts

Summary 16 Square Enix Co Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 17 Square Enix Co Ltd: Competitive Position 2007

TRADITIONAL TOYS AND GAMES IN JAPAN

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 JAPAN

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