State of play: Industry revenue declines as consumer preferences shift towards electronics

Operators in the Toy and Sporting Goods Wholesaling industry have faced difficult trading conditions over the past five years. Wholesale bypass has negatively affected industry revenue over the period, as retailers have increasingly purchased products directly from manufacturers. Consumer preferences have shifted from traditional toys and sporting goods towards consumer electronics, computer games and gaming consoles, which are not included in the industry. This trend has further constrained industry revenue over the past five years. A depreciating Australian dollar has also raised import costs over the period, placing downward pressure on industry profitability. As a result, industry revenue is expected to decline at an annualised 2.1% over the five years through 2018-19, to $3.3...read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 14-19
-2.1%
Forecast Growth 19-24
Profit
Employment
6,150
Businesses
1,615
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Consumer preferences have shifted away from traditional toys and sporting goods towards electronics
  • Declining profit margins have prompted many wholesalers to rationalise their product ranges
  • Intensifying industry competition is forecast to erode industry profitability
  • Industry Report - Industry Investment Chapter

    The Toy and Sporting Goods Wholesaling industry displays low capital intensity. For every dollar spent on capital in 2018-19, industry operators will spend an estimated $8.07 on wages. The industry’s low capital intensity reflects a shift in industry operations, as wholesalers have reduced storage capacity and inventories in an effort to lower capital requirements and storage costs. By improving storage and delivery efficiencies and inventory turnover ratios, industry wholesalers have been able to protect their profit margins. The industry’s high labour intensity can be attributed to the industry’s need for sales professionals. Ind...purchase to read more.

    Additional Insights for the Toy and Sporting Goods Wholesaling Industry

    IBISWorld has determined the most important Key Success Factors for the Toy and Sporting Goods Wholesaling are:

  • Must have licence
  • Ability to control stock on hand
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from sport and camping equipment retailing and Demand from toy and game retailing in the Toy and Sporting Goods Wholesaling industry impact industry performance..

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    What's in this report

    What is the Toy and Sporting Goods Wholesaling Industry?

    Industry operators wholesale toys, bicycles and bicycle parts, playground equipment, firearms, ammunition, fireworks, and sporting equipment (except clothing, footwear and tents). Wholesalers source these products from domestic and international manufacturers and then sell them to retailers such as specialist stores, department stores, educational institutions, and clubs or associations.

    Industry Products
  • Sporting goods
  • Toys and games
  • Other products
  • Industry Activities
  • Bicycle and bicycle parts wholesaling
  • Playground equipment wholesaling
  • Sporting goods wholesaling (except clothing and footwear)
  • Toy wholesaling
  • Ammunition wholesaling
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from sport and camping equipment retailing
  • Demand from toy and game retailing
  • Population aged 14 and younger
  • Trade-weighted index
  • Sport participation

  • Current Performance
  • Struggling retailers
  • Profit margins
  • Trade volumes
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand trends
  • Profit margins
  • Trade volumes
  • Table: Toy and Sporting Goods Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Toy and Sporting Goods Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Department Stores
  • Sport and Camping Equipment Retailing
  • Toy and Game Retailing
  • Education and Training
  • Sports Administrative Services

  • Key Selling Industries
  • Toy and Sporting Goods Manufacturing

  • Products & Services
  • Sporting goods
  • Toys and games
  • Other products
  • Chart: Toy and Sporting Goods Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Specialist toy and game retailers
  • Department stores
  • Sporting clubs and educational institutions
  • Consumers
  • Chart: Major Market Segmentation for the Toy and Sporting Goods Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Toy and Sporting Goods Wholesaling

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Toy and Sporting Goods Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Toy and Sporting Goods Wholesaling 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 Sporting Goods Wholesaling Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Age Compression
  • The trend whereby children demand more adult-like toys at a younger age.
  • Participation Rate
  • The share of consumers actively involved in sports activity as a share of the total population.
  • Wholesale Bypass
  • A trend where the wholesaler is bypassed in the supply chain and retailers purchase directly from the manufacturer.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Toy and Sporting Goods Wholesaling 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 Sporting Goods Wholesaling:
    • 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 Sporting Goods Wholesaling 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 Sporting Goods Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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