Asia Pacific is the second largest market for traditional toys and games, and remains one of the fastest growing regions. While Asia Pacific has a falling birth rate and had the second lowest per household expenditure on traditional toys and games in 2018, the region is still expected to enjoy good value growth, due to rising disposable incomes, smaller average household sizes, the premiumisation trend and product innovation.
While birth rates remain low in Asia Pacific, manufacturers are still confident that the overall market will grow. Manufacturers have extended the target age range of traditional toys and games to include consumers from older demographics. In addition, with the decline in the average household size, families can now afford more premium products. These factors will enable manufacturers to achieve positive sales growth, despite the unfavourable demographics.
Despite the growing share of sales contributed by internet retailing, offline retailers remain competitive by engaging consumers in ways that internet retailing does not. These retailers offer an experiential shopping journey beyond displays of their products, such as by organising meet-and-greet sessions with iconic characters like Hello Kitty and Pikachu. Interactive zones and larger-than-life displays are also used in stores to appeal to children.
The boom of internet retailing has given rise to good opportunities for counterfeit traditional toys and games to be distributed and sold widely to consumers who are looking for affordable products. The e-commerce marketplace for third party sellers has bred an extensive ecosystem of counterfeiters and knockoffs that pose a threat to existing players, competing for their share of the market.
Licensed toys continue to be popular amongst the young and old, and consumers increasingly buy these licensed toys with the intention of collecting the series. This rising trend boosts value sales as consumers are willing to spend on limited editions and sophisticated designs to have these toys as part of their collection. Meanwhile, blind collectibles are also spurring growth as they are popular amongst girls, and this trend is expected to continue over the forecast period.
This is the aggregation of traditional toys and games and video games.See All of Our Definitions
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