Playing rough: Intense competition has limited industry growth over the past five years

Trading conditions in the Toy and Game Retailing industry have been difficult over the past five years. While solid demand for electronic and interactive toys has provided revenue opportunities for operators, intense internal and external competition has limited industry growth. Industry revenue is expected to grow at an annualised 1.4% over the five years through 2017-18. Industry revenue is expected to rise by 1.6% in 2017-18, to $943.0 million. Real household discretionary incomes, consumer sentiment, and the proportion of the Australian population aged 14 and younger have all affected industry revenue over the past five years. The tough trading environment has significantly increased price competition in the industry, putting downward pressure on profit margins over the period...read more.

Industry Statistics & Market Size
Revenue
$943m
Annual Growth 13-18
1.4%
Forecast Growth 18-23
Profit
Employment
6,060
Businesses
1,235

Industry Threats & Opportunities

  • Strong price-based competition has been putting downward pressure on profit margins
  • The increasing popularity of online shopping has negatively affected industry revenue growth
  • Increasing price-based competition will likely constrain profit growth for many operators
  • Industry Report - Starting a New Business Chapter

    The industry has medium barriers to entry and the trend is steady. Industry competition is medium, which may deter new players from entering the industry. Operators compete on the basis of price and product range, with items significantly discounted during key selling periods and demand for products increasing in the lead-up to Christmas. Prospective operators also face competition from external players such as department stores, which sell toy and game products and seek a share of the market. New entrants may be deterred from entering the industry due to its medium concentration, with the top four players accounting for over 45% of the market. New entrants may also be hindered by the industry's mature life cycle. Its...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
  • Having a wide and expanding product range
  • 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, University Co-operative Bookshop Limited,
  • Table: Toys "R" Us (Australia) Pty Ltd - financial performance
  • Table: Associated Retailers Limited - financial performance
  • Table: University Co-operative Bookshop 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
    Includes:
  • 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 toys designed for older consumers 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 refers to consumers aged 9 to 12 years old.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Toy and Game Retailing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    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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