Slower growth in toys and games during 2013
Slower positive growth in toys and games was seen during 2013 as various external factors were impacting the sales performance. Malaysia posted slower GDP growth of merely 5% as compared with the historical period. Slower economic growth was reflecting lower consumer confidence in Malaysia. In addition, slower growth in construction toys slowed the overall growth of traditional toys and games. This is mainly because construction toys are approaching a mature market size in value terms so strong growth is impossible. Furthermore, the conversion of many free-to-play mobile games also indicated that less consumers are purchasing mobile games.
Increasing number of licensed toys in Malaysia
Licensed toys are picking up again in Malaysia with a stronger penetration rate found across many categories in toys and games. While the share of licensed toys is already high in categories like action figures, dressing-up and role play, many other categories in toys and games, such as arts and crafts, video games software and games and puzzles, now have more licensed toys. For example, the launch of the Disney Princess Play-Doh series, MEGA Bloks Barbie series, Saidina Upin & Ipin and The LEGO Movie video games are all indicating that demand for licensed toys is increasing due to the high level of awareness created by multiple marketing campaigns from different channels.
International players dominate toys and games
International players, such as Mattel, Hasbro, LEGO, Sony, Nintendo and Electronic Arts, continued to lead toys and games in 2013. These brands continued to show a strong sales performance in Malaysia due to their strong brand names established with aggressive marketing campaigns conducted both internationally and domestically. The sales performance contributed by domestic players remained small, with only a few players like SPM and Dooodolls maintaining their competitiveness in toys and games. These local companies continued to launch new and innovative products in order to remain competitive.
Store-based retailing remains the major distribution channel of toys and games
Store-based retailing channel remained the leading distribution channel of toys and games in 2013. The expansion strategy pursued by traditional toys and games stores like Toys “R” Us continued to boost the distribution share of the store-based retailing channel. Besides, the opening of Hamleys toy store during 2013 marked another milestone for store-based retailing outlets in Malaysia. Internet retailing is still at an infancy stage, with only limited players offering toys online. For example, Toys “R” Us offers its products through the online shopping website Rakuten Malaysia.
Optimistic outlook for toys and games over the forecast period
Over the forecast period, toys and games will enjoy positive growth as a result of younger generation parents with higher literacy rates becoming more sophisticated in their selection of toys for their children. Younger generation parents are looking for toys incorporating more electronic features which help to develop interactive and cognitive skills. A boost in more licensed toys will also stimulate sales growth as licensed toys are more expensive than non-licensed toys. Furthermore, the launch of new consoles like Sony PlayStation 4 in 2013 is expected to boost sales growth for video games over next few years followed by the release of new video games software for the new consoles.
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The Toys and Games in Malaysia market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic values and company shares
- Five year forecasts of market trends and market growth
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Toys and Games in Malaysia?
- What are the major companies Malaysia?
- How was toys and games affected by the global recession?
- Which product categories performed best in the last year?
- What are the new any safety regulations affecting the industry?
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This industry report originates from Passport, our Toys and Games market research database.