25 Jan Christmas could not recover the Failing Toy Market
2018 was not the year for the UK’s toy market. Even with parents amply spending loads for their children’s presents.
According to NPD analysts, the sales in 2017 fell by 5% before the promising Christmas days and continued down by 7% till the end of the year. This decrease in sales was greater than that observed in the rest of Europe (decline by 3%).
The start of the year was highlighted by the demise of the legendary Toys R Us, which had justified 10% of sales, and was concluded by the Brexit confusion.
Now the toy industry considerably relies on the figurines of hit films.
After an uneventful year for family movies in 2018, major epics like Toy Story, Frozen and Star Wars will make a comeback in 2019. Toys associated with these huge successes atone for 25% of the market.
Natasha Crookes of the British Toy and Hobby Association (BTHA) says that the loss of a primary retailer like Toys R Us played a major role in the fall of the market.
According to Frederique Tutt, global toy analyst at NPD, the dealers were caught up in a no-win situation with discounting, despite the fact that parents spend £319 per child on toys. The sales in the UK market still made £3.3bn the previous year.
In 2018, collectables were the crown of the market, bringing about the 32% increase in sales in contrast to the year before. Now, they take up a quarter of the toy sales in UK.
Tutt says that the sector could take a lesson from the agility of the creators of these toys. As newer versions of these toys were released weekly, this stimulated their sales and demand by the public.
Tutt also mentioned that a few medium-sized companies succeeded by making haste in profiting from children’s interests trending on the social media.
The BTHA reported that there was circumstantial proof of dealers building up stocks as a reaction to the Brexit uncertainty.
Natasha Crookes said that customer confidence and variations in the pound due to Brexit confusion would greatly affect the toy market. She relayed that the toy industry requested for a decision on UK’s extraction from the EU in order to devise their strategies.