Melbourne, Australia (PRWEB) February 01, 2014
The past five years have been all fun and games for the Online Toy Sales industry. Revenue is forecast to grow at an annualised 24.6% over the five years through 2013-14, to reach $86.5 million. According to IBISWorld industry analyst Andrei Ivanov, “this growth has been primarily supported by the increasing acceptance of the internet as a shopping medium for everyday products”. Online sales have grown substantially as portion of total toy and game sales over the past five years. Growth in discretionary incomes and the population aged under 14 years has also boosted industry growth. The industry has a low level of concentration, with the top three major players - Toys "R" Us (Australia) Pty Ltd, Wesfarmers Limited and Woolworths Ltd – accounting for a small share of the market.
The advantages of shopping for toys online are plentiful, with the most obvious being the price. Because goods purchased online for under $1,000 are exempt from the GST, industry participants can offer their products for a lower price than traditional bricks-and-mortar retailers. The high Australian dollar over the past five years has made toys purchased from overseas online stores even cheaper, enough to offset any shipping costs. Although this has not directly helped local online toy sales, it has raised awareness of the Australian Online Toy Sales industry. Other advantages offered by industry participants include wider range and greater specialisation. “Industry participants specialising in niche markets, such as educational toys and hobby products, have been able to reach more customers and grow their sales”, says Ivanov. However, all the positive aspects of Online Toy Sales industry are attracting more enterprises and competition is rising. Furthermore, the industry is facing strong competition from video games.
IBISWorld expects that as generation Y comes of age and enters parenthood, demand for online toys will continue to grow over the five years through 2018-19. Because the business model relies on economies of scale, higher volumes of sales are expected to be favourable for profitability.
For more information, visit IBISWorld’s Online Toy Sales report in Australia industry page.
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IBISWorld Industry Report Key Topics
This industry sells a broad range of toy and hobby goods via the internet. Products include traditional dolls and toys, electronic toys (excluding video games), board games, hobby kits and craft supplies. These goods are purchased from domestic and international manufacturers and wholesalers, and then retailed to the general public online. Operators that retail used toys and hobby goods are not included in the industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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.