Toys and Games in South Africa

Brand value and reinvention crucial for continued growth of toys and games industry in South Africa

South African consumers’ taste and preferences for toys and games continue to be in line with global trends. The overall industry recorded growth in 2017 despite continuing economic uncertainty and shrinking average disposable incomes.

Toys and games industry continues to grow despite local economic challenges

Undesirable economic conditions continue to impede growth as rising utility prices and higher costs of living put further strain on average disposable incomes. Despite these challenges, toys and games managed to record continued growth in 2017, with video games registering a double-digit increase in current value sales.

Innovation and cross-industry convergence reflect positive sentiments

An innovative agreement has been reached between LEGO Systems in South Africa and I-flix. The agreement will see the self-proclaimed “Netflix of Africa” entering into a major 2-year distribution agreement to add a range of popular LEGO series to I-flix streaming services.

Price comparisons encouraging for online retailing channel

Despite the traction of video games and age compression redefining what toys children are demanding within various age groups, traditional toys and games sales continue to influence the demand for certain products. Retailers remain savvy in terms of their product ranges, ensuring that demand stays constant as traditional toys and games stores remains the leading distribution point for purchases.

Reinvention is key to remaining relevant

Amid closures globally, the robustness and resistance of Toys “R” Us on local shores proves encouraging as the retailer continues to promote toys and games regionally. The incorporation of Babies “R” Us stores into Toys “R” Us is also encouraging for the forecast period.

Files are delivered directly into your account within a few minutes of purchase.