Competitor Strategies in Toys and Games

Delivery

This report comes in PPT.

Key Findings

Demand for toys and games remains strong in the wake of the pandemic, with Tencent leading the pack

Despite rising global inflation caused by the war in Ukraine, demand for toys and games remains stable. The pandemic caused a shift in how people use their leisure time, with families now seeking more entertainment options at home. Tencent leads the market in terms of sales value, as mobile gaming booms, trailed by Nintendo and Sony.

Growing demand for digital entertainment, social media and e-commerce is seeing toy manufacturers pivot their strategies

Gaming continues to experience growing demand, following the launch of the next-gen consoles, while rising smartphone penetration has lowered barriers to entry. As children spend more time on social media, toy companies are rushing to ensure their characters are brought to screen. Growing demand for e-commerce services is encouraging omnichannel retail strategies.

Sustainability is gaining traction within corporate strategies

The growing risk posed by climate change has led to a rapid acceleration in the implementation of sustainability-related initiatives by toys manufacturers globally. This has seen LEGO testing the production of LEGO bricks made from sugarcane, Mattel launching new toys made from recycled or plant-based material, and Hasbro committing to eliminate all plastic in packaging for new products by the end of 2022.

Toy companies are embracing inclusivity, with a focus on race, positivity and removing gender biases

Inclusivity is gaining traction, with manufacturers introducing toys that embrace multiple skin tones, while seeking to remove gender biases. To this end, Hasbro has dropped the “Mr” from “Mr Potato Head”, Mattel has launched new Barbie figures with different ethnicities and a wider range of body types, while LEGO plans to launch a reimagined range of LEGO Friends characters in 2023.