RETAIL TRENDS Toys, what’s new in retail

RETAIL TRENDS

TOYS, WHAT’S NEW IN RETAIL

By Matteo Melani

With a volume of business close to 90.7 billion recorded last year, the toy industry has established itself as one of the most competitive market sectors.

At Global Toy Connect, a virtual event organized by the NPD Group streamed last February, industry experts took stock of trends and the current state of the toy market, from sales to retail. In 2020 the United States toy industry recorded a growth of 16% compared to 2019. Despite restrictions due to the pandemic, the American market survived, so much so that the month of May alone recorded a 38% increase in sales compared to last year, with sales increasing in both stores and online. “2020 was an unprecedented year for the toy industry in the United States. The growth we have seen shows that parents are willing to put their children’s happiness above all else,” said Juli Lennett, Vice President

and Industry Consultant, US Toys, The

NPD Group. She continued, “Families have understood that toys help to keep their children busy, active and happy.” In Europe, however, the situation has seen more shadows than light. In France, the entire retail market decreased by 1.5% compared to 2019, while in Italy it fell by 6.9%. In addition to sales, the NPD Group representatives also addressed new marketing and product trends, explaining that to operate in such a varied market, innovative sales techniques that consider the needs of children are needed. Here are some examples.

THE EFFECTIVENESS OF GEOMARKETING

The differences in sales between various countries were determined by several factors, such as the purchasing power of families, restrictive measures, and the presence of children at home. For a company that wants to export their products abroad, geo-marketing is an essential tool to communicate their brand and find new customers. Geomarketing refers to sales techniques based on geographical information that allows for better commercial planning, from the analysis of the competition to the development of distribution channels. However, not all economies are the same

The growth we have seen shows that parents are willing to put their children’s happiness above all else”

and, as the NPD data shows, not all families often have the same resources in equal measure. One example is the practice of discounts which, as explained by Rodrigo Vivanco, Analytic Solutions Europe & APAC, has had different effects in different countries. In the United Kingdom, thanks to discounts, the toy market recorded a surge of 5%, while in Italy it saw a decrease of 7%. On the pricing front, geo-marketing remains a very practical tool to help define promotional campaigns as well.

THE IMPORTANCE OF EXPOSURE

New technological devices such as touch-screen monitors and displays (e.g., showcases and shelves) have a strong visual impact on customers, and are also vital for enhancing the products in-store. Looking at the latest polls, Aurelia Florent, Head of Analytics

Solutions France, and Francois Dealu, Head of Analatycs Solution

Europe, said that displays represent a real investment opportunity for toy manufacturers and retailers, and as such require careful consideration. The criteria of choice are related to the impact on sales, inventories, and the increase in customer forecasts. Store managers often turn to agencies specialized in commercial outfitting that can customize the space according to needs: launches, Christmas holidays, local restyling. In their speech, Florent and Dealu said that single-brand stores are the most attentive to displays, precisely because it is a vital element in the promotion of a new product.

HARRY POTTER AND BARBIE: TWO EVERGREEN BRANDS

In a moment as complicated as the one the market is experiencing; historical brands are surviving the crisis well. Not even Covid has been able to stop the force of Barbie, which won four NPD awards this year: Global Top Toy Property of the Year, Europe; Top Fastest Growth in Mexico; Top Selling US; and Top Toy Property of the Year, Brazil. Results shared across several parts of the world show that a serious geo-marketing strategy and attention to displays at the point of sale can give guaranteed results. The case of Harry Potter, the famous spectacled wizard born from the pen of

the English writer JK Rowling, is interesting as well. Despite the last film in the series being released in 2011, Harry Potter toys continue to sell. The reasons are to be found both in the appeal of the brand and in the new video platforms. In addition to younger fans, Harry Potter has a place in the hearts of many adults who, as children in the early 2000s, did not miss a film from the saga and who today collect objects or mini figurines of the various characters. Then, as Gabriella Lo

Bue, Specialist Client Development USA

explained, the launch of films or videos on Netflix has encouraged the sales of the magician’s toys, a sign that even video content can extend sales for decades.