While e-commerce has continued to gain share in recent years, helped by lockdowns and enforced closures of store-based retail outlets during the pandemic, traditional toys and games stores do still have a role to play, particularly for traditional toys and games, given they can offer children an experience that is still difficult to replicate online, although, in video games, physical stores are increasingly fighting a losing battle, particularly with the immense popularity of mobile gaming.
This report comes in PPT.
With sustainability increasingly close to many consumers’ hearts, plastic reduction will be an important step for toy companies in making the world a “greener” place, in both the toys themselves as well as their packaging. In video games, it could be argued that buyers of digital games, over physical games, are already doing their bit for the environment in terms of reducing usage of raw materials as well as doing away with the need for any transportation.
Specialist traditional toys and games stores remain an important distribution channel for the toys and games industry. While struggling in video games, these store-based specialist outlets can offer children, and even kidults, a special place to shop as well as experience products, both new and old, as toy stores can offer an experience that cannot easily be replicated online.
Toy companies are digitalising their assets onto the big screen, as more consumers become more digitally entrenched. The popularity of these films can have a potentially huge impact on generating stronger sales of physical toys.
The metaverse and virtual gaming offer potential for AR/VR headsets, which were, by some way, the most dynamic category, with further strong growth expected over the forecast period. However, companies might be well advised to view the metaverse as another platform to engage with customers and build brand awareness and loyalty, rather than just seeing it purely as a money-making opportunity.
E-commerce is now the dominant distribution channel for toys and games globally, helped by the major share it holds in the bigger video games category. The pandemic and its various restrictions, including lockdowns and non-essential retail store closures, helped further drive the move towards online sales, with even store-based retailers recognising they would need to pursue an omnichannel approach in their business operations in the future.
This is the aggregation of traditional toys and games and video games.
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