HomeEconomyDespite inflation, the toy market remains afloat as Christmas approaches

Despite inflation, the toy market remains afloat as Christmas approaches

As rising prices affect customers, the toys and games market is seeing a decline in sales volume from 2022, but a stagnant value compared to 2021. This year, Christmas will be more of a defining moment for the industry than ever.

The toys and games market saves the furniture. Like the vast majority of business sectors, it does not escape the strong consequences of inflation in the first months of 2022, which usually generates 40% of its annual sales. Revealed this Wednesday at the 15th edition of the Infopro Digital fair dedicated to toys, the figures from the firm NPD show a very slight decrease of 0.2% in the sector’s sales in value at the end of August compared to 2021. But if Compared to 2019, the last reference year before the pandemic, sales are up 5%.

Strong increase in costs for the sector

It is on the sales volume side that the effect of inflation is most felt. The latter have dropped by 12% compared to last year. “Consumers make fewer impulse purchases of small toys while shopping,” analyzes Frédérique Tutt, global expert on the toys and games market at NPD. And it is not for less, the average price of the toy has increased by 13% in one year to reach 14.69 euros. According to Bruno Bokanowski, director of the Toys and Games sector at Infopro Digital, the price increase should not weaken:

“The market is relatively protected”

The firm therefore expects a Christmas of 2022 marked by arbitrations by the French. “However, we are not considering a disaster scenario, because parents continue to buy toys and games for their children,” insists Frédérique Tutt, who recalls that the worst fourth quarter in the sector dates back to 2008 with a 6% drop in sales. sales. worth. The market is relatively protected but consumers will pay attention to promotions. Instead of buying one toy for €100, parents can buy two for €40.”

The results of a study carried out this summer with just over 1,000 French people by the firm call for caution among the players in the sector. This reveals that a quarter of those surveyed spent less on toys and games during the last six months of 2022, while 56% maintained their consumption and 19% increased it in this area.

Kidults, sales boosters

Several trends should continue to dominate the market in the months and even years to come, according to Bruno Bokawoski. In the first place, the dinosaurs that rode the wave of the latest work in the “Jurassic World” saga, released last June in theaters and that allowed this universe to decline in all product ranges. Darkrooms, precisely, have also allowed a resurgence of sales in relation to the Marvel superhero universe and in particular the figurines. But, one of the latest trends that continues to gain strength has a name: “kidults”, those customers who are over 14 years old do not hesitate to spend larger sums on their purchases of toys and games.

Frédérique Tutt is delighted with the rebalancing of shopping channels with a 14% annual drop in online sales versus a 6% increase in stores thanks to the wave of post-Covid reopenings. Digital sales already represent 27% of the total. Another point of satisfaction is the participation of French creations and manufactures, which represent 14% of the market for toys and games in France. “On the other hand, they risk being even more worried about arbitrage because their prices are generally a bit higher,” explains the NPD specialist.

Author: Timothy Talby
Source: BFM TV

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