Toys and Games in Malaysia

Toys and games continues to perform well driven by demand for digital content

Toys and games in Malaysia continued to post double-digit current value growth, primarily driven by the strong performance of video games, particularly digital video games software. Video games also continued to benefit from product innovation, with Nintendo launching new static consoles and console games towards the end of the review period, resulting in the player gaining overall leadership of the market and helping to drive current value growth of overall video games.

Growing demand from adult consumers for collectibles and limited edition licensed toys

Traditional toys and games received a boost from an increasing number of adult consumers towards the end of the review period, particularly those who like to collect limited edition licensed products. Adults are more likely to be able to afford these types of products and may not necessarily purchase them for their children.

Nintendo continues to strengthen overall lead due to strong position in video games

International brand owners continued to hold dominant value share within both traditional toys and games and video games, with Nintendo retaining its leading position overall due to its strong performance in the latter. Traditional toys and games continued to be led by Hasbro Toys (M) Sdn Bhd, LEGO Trading (M) Sdn Bhd, Mattel (Malaysia) Sdn Bhd, Toys “R” Us Inc, as they benefit from wide product portfolios incorporating popular licensed and unlicensed products, in addition to expansive distribution networks through well-established retailers such as Toys "R" Us.

Internet retailing strengthens position as a leading distribution channel, but toy shopping in store still appeals

While collectively store-based retailing continued to dominate the distribution of toys and games in Malaysia in 2018, the likes of traditional toys and games stores, and media products stores lost ground overall. This was the result of the increasing penetration of the internet in the country, leading local consumers to search online for the best prices, allowing them to save money and offering them the convenience of home delivery through the increasing availability of e-stores and official branded stores online.

Toys and games set to maintain strong performance over forecast period as parents battle devices

Toys and games in Malaysia is predicted to record strong current value growth over the forecast period, driven by the positive performances of both traditional toys and games and video games. Traditional toys and games is expected to record stronger current value growth compared to the review period, due to new product launches and encouragement by parents to shift their children’s attention away from mobile devices such as tablets and smartphones.

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