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Special Feature - Letter from Australia
No worries down under?
Tony Bugg is publisher of The Toy Universe - a B2B toy industry publication which features toy news covering Australia and New Zealand. Having held senior Sales and Marketing roles for over 30 years, in 2008 Tony founded The Bugg Report to produce news on brands and licensing. He has held the positions of director of the Australian Toy Association and MD of Licensing International in Australia & New Zealand. Here he shares the latest toy market news from down under with Toy World readers.
The Australian toy market is markedly different to other global markets during June and July each year. Since the early 1990s, we have witnessed the mid-year toy promotional sale cycle. Originally launched by Target Australia, other retailers such as Kmart, Big W, Myer, David Jones and more followed suit. But, as the years have rolled on and the toy landscape has changed, Big W is the only mass retailer which still offers this activation. The sale commences in late June and concludes on July 20th each year and has developed into a key window for toy companies to launch and showcase new product to consumers.
This year, one of the major focuses was on the launch of game show board game Deal or No Deal. The game has been launched by Imagination Gaming and includes the opportunity for a consumer who purchases the game to win a cash prize of Aus$1m. The item is located prominently at the entrance to all Big W stores with a special pallet display and by all accounts has proved to be a huge success. Shane Yeend, the founder of Imagination Games has been developing game show board games for 40 years and is extremely experienced in brokering highly successful activations to promote his games.
Target Australia recently launched an online toy sale where it was interesting to see a raft of impressive new releases from Zuru, including Mini Brands Home/Garden, Robo Alive Shark, Dino Escape and Smashers Horror.
The Australian Toy Association hosted its annual Mid-Year Toy Fair in Sydney from 27th- 28th of June. This year’s show saw 40 exhibitors on the floor. Buyers and visitors attended the show to see the latest releases for the second half of 2024 and 2025. New products creating a buzz included Cubeez from Headstart, Emma Memma accessories from Pink Poppy, Wicked by Zimbler Toys, Nationary family card game, Harlington/Thomas Kinkade premium puzzle range and the Uno No Mercy card game. In terms of licences, Disney’s Stitch and Universal’s Despicable Me 4 toys were very prominent.
An exciting new partnership between Brave Toys, parent company of Connetix, and My Creative Box was announced at the show. Connetix is already active in 83 countries where it offers global award-winning, STEAM accredited magnetic tiles. Moving forward, the company is looking to introduce new play patterns and new products via distribution networks.
The market in Australia has become more challenging for toy suppliers as a result of Kmart continuing to ramp up its in-house brand, Anko. The toy department is now dominated by Anko product in most categories. Kmart has recently entered into a partnership with Mattel, whereby it will offer Mattel brands within its wooden toy ranges in Anko packaging. This has created a situation where suppliers need to be more mindful than ever before to launch product that offers a point of difference and something that Kmart can’t do itself, such as high-profile licensed product and bespoke developments.
As a market, Australia has always punched well above its weight. As the toy business has evolved there have been several Australian companies who have stepped up and become successful on the world stage, such as Moose Toys, Headstart, Connetix, Toy Monster with Jurassic Park, Eezy Peezy, Crystal Gaze and more recently Jellystone Designs.
A notable recent development from Moose Toys has been its collaboration with Mr Beast, a phenomenon in the influencer space. Moose’s Mr Beast Lab collection launched here in July. Another ongoing and emerging trend which is fuelling growth in the toy business is Kidults. This older age group with disposable income is buying up collectibles, board games and nostalgic toys in large quantities.
Amazon is continuing to evaluate the market here in Australia and will soon open its eighth warehouse. As the online retailer continues to refine its offer, which includes Prime, there is no doubt that offering same day delivery, and perhaps even delivery within a couple of hours, will mean that Amazon is likely to become a dominant retailer in this market sooner rather than later.
