Toy and Games in Australia Industry Market Research Report Now Updated by IBISWorld

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The Toy and Games industry in Australia has experienced high growth in the development of new products owing to the advent of electronic and interactive goods. The industry has also experienced a reduction in product life cycles, with children demanding more adult-like toys at a younger age. The wholesale market has also been affected by retailers increasingly choosing to bypass wholesalers in preference of the competitive prices on offer from manufacturers. For these reasons, industry research firm IBISWorld has updated its report on the Toy and Games industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Product life cycles are shorter and children are demanding more mature toys at an earlier age

The Toy and Games industry has experienced high growth in the development of new products owing to the advent of electronic and interactive goods. The industry has also experienced a reduction in product life cycles, with children demanding more adult-like toys at a younger age. According to IBISWorld industry analyst Alen Allday, “the wholesale market for toy and game products has also been affected by retailers increasingly choosing to bypass wholesalers in preference of the competitive prices on offer from manufacturers”. Industry revenue has risen an estimated 0.5% per annum in the five years through 2011-12.

Toy and Games industry sales are expected to rise by about 0.5% to $3.18 billion in 2011-12. Allday adds, “manufacturing conditions will remain weak during the year owing to a rise in the Australian dollar making imported goods more affordable compared with domestically produced goods”. Wholesalers will also suffer with exports being subject to a higher price tag and trading conditions will be heightened by price-based competition between wholesalers, which will continue to erode already fragile product margins. Retail sales will also be aided by growing popularity of family games, video games and computer games, with interactive entertainment continuing to provide families with good value for money.

IBISWorld estimates that the Toy and Games industry has a low market share concentration level. Industry concentration varies between the different stages of the supply chain. Industry concentration is high at the retail level, but low at the wholesaling and manufacturing levels. Major companies include Wesfarmers Limited (Target and Kmart), Funtastic Limited, Toys ‘R’ Us and Associated Retailers Limited. While traditional toys will continue to lose market share to electronic and interactive merchandise, industry sales will be driven by growth in the volume and rate of new product innovations over the next five years. Annual sales will be constrained by manufacturing imports, which will account for a larger share of revenue, while trade volumes for wholesalers will be affected by fluctuations in the value of the Australian dollar. Nonetheless, retail demand will drive sales across this industry due to growth in disposable income, the rising birth rate and continued demand for the latest in tech toys.

For more information, visit IBISWorld’s Toy and Games report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

This industry includes companies that manufacture, wholesale or retail toys and games. Examples of products in this industry include toys for infants, boys and girls; puzzles; educational toys; and board games. It should be noted that video game products (such as consoles, games and accessories) are excluded from this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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