Growth in 2012 supported by sharp growth in digital gaming
Toys and games in South Korea performed well in 2012, mainly due to digital gaming market expansion. Even though the healthy growth was mainly derived from video games, traditional toys and games supported the growth as well. With major game titles launched and new licensed traditional toys and games introduced, the total toys and games market in South Korea was able to post its highest value growth despite enjoying double-digit growth over the entire 2007-2012 review period.
Domestically grown licensing takes significant role in toys and games
In toys and games in South Korea, local home-grown licensing brands have been and are more prosperous compared to global ones. Local licensing brands have an advantage over global ones because they have higher exposure to children. Local licensing brands are mostly spread through TV animation and global brands through blockbuster movies. The animation series come in a number of episodes, thus keep children’s interest for a long time. Blockbuster movies do attract attention for a short period, but since it is only a one-time show with short exposure, children’s initial interest in them eventually fades away. Also, local manufactures prefer to make products using home-grown license brands due to government encouragement, lower licensing fees and the like.
Online game publishers lead toys and games
Online game publishers such as NC Soft and Blizzard Entertainment are leading toys and games in South Korea because the market size difference between traditional toys and games and video games has become significant. Traditional toys and games manufacturers will need to take considerable amount of market share in order to stand out in total toys and games market. Amongst the top five leading players, four were game publishers in 2012. Traditional toys and game manufactures such as Bandai Korea are growing in sales value, but since the market size of the two markets are incomparable, the market share remains low.
Internet retailing is a key and growing channel
The retail landscape of toys and games in South Korea is heavily dominated by internet retailing. This is due in part to the prominence of digital gaming sales in relation to overall toys and games. Given that internet retailing is the leading channel for digital games its lead is mirrored in overall toys and games. Internet retailing’s rising importance is also attributable to the convenience it offers with its anytime, anywhere shopping premise. At the same time, prices of toys and games tend to be highly competitive in this channel. These factors have contributed to internet retailing being a key and growing channel in toys and games in South Korea.
Positive growth to continue over the forecast period
Toys and games in South Korea is expected to see steady constant value sales growth over the forecast period. Digital games will continue to drive sharp general market growth until 2014 and then slow down. Conversely, video games hardware and software are expected to show negative growth rates due to competition from a diversity of other new gaming platforms and, in the case of video games software, from piracy. However, as free-to-play games are expanding at the expense of games for pay, the market growth of digital games may slow down more suddenly in the forecast period.
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The Toys and Games in South Korea 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
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Our market research reports answer questions such as:
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- 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.