TRADITIONAL TOYS AND GAMES MARKET ANALYSIS

One of the major challenges facing by this market is the growing inclination of kids and families towards smartphones, tablets, and computer games. With advancements in technology, more immersive and interactive digital games are being developed which is attracting the younger audience away from traditional toys. Many kids now prefer to spend their leisure time playing games on mobile and computers instead of using physical toys. This has reduced the demand and sale of conventional toys. As reported in a November 2022 UNICEF study, children in developed nations spent an average of 7-8 hours daily on digital devices even before the COVID-19 pandemic accelerated online education and socialization. This underscores the immense popularity of digital entertainment over physical play, adversely hitting the sales of conventional toys.

Market Opportunity - Emerging markets in developing nations

The traditional toys and games market has a huge opportunity in the emerging markets of developing nations. With rising incomes and growing middle class population, the demand for toys is increasing rapidly in countries like India, China, Indonesia, Brazil, and others. As people in developing countries are becoming more affluent, they are willing to spend more on children's toys and leisure products. For instance, toys based on Superhero franchises from Marvel and DC have found huge fan following in countries like India, the Philippines, and Nigeria among young boys. According to UNICEF, in the Philippines alone, sales of action figures doubled from 2020 to 2022 among kids aged 5-12 years. The trend shows how western pop culture is influencing toy choices. International toy companies should look to tap into these emerging markets and introduce affordable toys catering to local tastes and preferences. Setting up manufacturing units in these regions can also help lower costs.