Industry

Question 1

What is demand of toys influenced by?

Answer 1

 demographic change
 consumer preferences
 UK economy (fragile in last two years)
 disposable income (fell in 2020-21)

Question 2

Which types of companies are likely to gain a competitive edge?

Answer 2

Companies that create a wide range of products and can adapt them to meet consumer demand

Question 3

What size of companies operate in the industry?

Answer 3

Industry characterised by small, local businesses selling a narrow range of products.

Question 4

Which big behemoth failed in 2018?

Answer 4

o Collapse of Toys ‘R’ Us (major specialist) in 2018 caused dip; return in 2022 may stimulate growth.

Question 5

State the 8 key Industry KPIs

Answer 5

o UK sales: £3 billion.(1/3 online)
o Grew by 5% in past few years; expected to drop by 4% in 2021-22.
o 10-20% of consumers bought a board game for the first time in 2020-21, often going on to buy another one.
o 25% aimed at adults: mainly board games and jigsaws.
o Seasonality: 50% of sales are made in the run-up to Christmas (Nov and Dec).
o Channels: 1/3 are sold online
o Short product lifecycle (especially around film); relatively few last longer than one or two years.
o East of England is home to the highest share (over 20%) of toys and games companies in the UK.

Question 6

What are the five key areas of growth/oppurtunity?

Answer 6

• Jigsaws and Board Games
• Digital games
• Sophisticated variations e.g. 3D puzzles are popular.
• Online sales
• sustainable toys and games