A game of tag: Despite solid demand, revenue has suffered due to intense price competition

Retailers in the Toy and Game Retailing industry have endured difficult trading conditions over the past five years. While solid demand for electronic and interactive toys has provided revenue opportunities for operators, trading conditions have been tough due to intense internal and external competition. As a result, industry revenue is expected to grow at an annualised 1.4% over the five years through 2017-18. Real household discretionary incomes, consumer sentiment, and the proportion of the Australian population aged 14 and younger have affected the industry's revenue prospects over the period. Industry revenue is expected to rise by 1.6% in 2017-18, to $943.0 million...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Strong price-based competition has been putting downward pressure on profit margins
  • The increasing popularity of purchasing goods online has negatively affected revenue growth
  • Mounting price-based competition will likely constrain profit growth for many operators
  • Industry Report - Industry Investment Chapter

    The industry exhibits low capital intensity. For every dollar spent on capital, $12.67 is spent on wages. As a service industry, wage costs are an integral part of daily operations. Industry players demand retail staff to undertake a range of activities including customer service, inventory control and taking care of in-store product displays. Growth in store size and an expansion in store networks effectively increase the number of staff required by operators.Capital expenditure for the industry includes the cost of equipment and technology used by operators as part of the retail sale process. Key examples include store fixtures and fittings, cash registers and point of sale systems. Alb...purchase to read more.

    Additional Insights for the Toy and Game Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Toy and Game Retailing Industry are

  • Proximity to key markets
  • Economies of scope
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Real household discretionary income and Consumer sentiment index in the Toy and Game Retailing industry impact industry performance..

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    What's in this report

    What is the Toy and Game Retailing Industry?

    Industry operators sell a range of toy and game products including dolls, hobby equipment and board games. Retailers operate as part of a chain-store network, or are franchised businesses or independent players. Store merchandise is purchased from domestic manufacturers and wholesalers, or imported into Australia from overseas suppliers.

    Industry Products
  • Traditional toys and games
  • Electronic toys and games
  • Hobby equipment and supplies
  • Industry Activities
  • Traditional toy and game retailing
  • Electronic toy and game retailing
  • Hobby equipment and supplies retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household discretionary income
  • Consumer sentiment index
  • Population aged 14 and younger
  • Demand from department stores
  • Demand from online shopping

  • Current Performance
  • Operating landscape
  • Competition and profitability
  • Tradition versus technology
  • Enterprises and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • Operating landscape
  • Competition and profitability
  • Tradition versus technology
  • Table: Toy and Game Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Toy and Game Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Computer and Computer Peripheral Wholesaling
  • Data Processing and Web Hosting Services
  • Toy and Sporting Goods Manufacturing
  • Toy and Sporting Goods Wholesaling

  • Products & Services
  • Traditional toys and games
  • Electronic toys and games
  • Hobby equipment and supplies
  • Chart: Toy and Game Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • People aged 35 to 54
  • People aged 15 to 34
  • People aged 55 and over
  • Corporate or business clients
  • Chart: Major Market Segmentation for the Toy and Game Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Toy and Game Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Toy and Game Retailing Industry

  • Industry Globalization
    Toys "R" Us (Australia) Pty Ltd, Associated Retailers Limited,
  • Table: Toys "R" Us (Australia) Pty Ltd - financial performance
  • Table: Associated Retailers Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Toy and Game Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Toy and Game Retailing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Age Compression
  • Children demanding more adult-like toys at a younger age.
  • Interactive Toys
  • Toys that have been electronically enhanced to enable consumer interaction, either via voice or movement.
  • Tweens
  • Consumers that are no longer children but not yet teenagers. Generally covers consumers aged 9 to 12 years old.
  • What Our Customers Say

    Why buy this report?

    The Toy and Game Retailing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    This report on Toy and Game Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Toy and Game Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Toy and Game Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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