As always I was interested to track what happened with toy sales at Christmas. It wasn't great. Toy sales have been in decline for sometime, excluding the pandemic when it was a pretty wild picture! A good time to be in toys then for sure (probably less so in home having to play with them 24/7, lol, *shudders*). The same old reasons are banded around and as someone who has worked around the toy sector for many years, I’m kind of bored hearing about them! They include kids spending more time on screens, kids aging up and out of toys younger, the financial climate and the re evaluation of value of toys within people’s personal finances, plus changes in behaviour in response to environmental concerns (though this varies massively by country and is a lower priority for some).
Whilst I think all of these are 100% true and are playing a role, I believe there are some big insights are missing. There is more going on which concerns more about the wider role of play in children and families lives and how they are approaching it which goes deeper than these more obvious surface factors. Because let’s face it, when something is really good and kids want it…it sells.
So here's my view on some other lesser spoken about factors that I think could be having a bigger impact on changing the shape of the toy industry:
The second hand toy market is booming. It's now so easy to buy and sell and for this category and it makes so much sense (especially for those environmentally aware). Kids love novelty so reselling and buying second hand allows a cycling through of toys to keep their interest. Parents are reminding one another on social media that ‘new’ is what is new to kids, not new to the world. This way of acquiring and selling on is changing how consumers feel about buying toys box fresh every single time.
The category is same old, same old. The entire sector is based on age-old play patterns and whilst these still remain true, it can feel incredibly predictable. Parents as well as their kids, have a sense of 'seen it all before' in a way prior generations haven't, and when they reach this feeling during their shopping experience feel less willing to part with their £$. I think there is a lack of risks being taken in the category to mix up gender, age and play pattern norms. Gen Alpha are really hard to define, you can’t put them in any box and so they don’t want to shop continuously in a space that feels like that - it gets boring quickly
It's too toyetic. Bear with me. Families today do not live linear lines; the dream family home for many is literally one without many walls; it’s an open, fluid flowing space which blurs the boundaries between work, rest and play. Toys are too stuck in being toys! Online trends point to a blurring of playing+storing+organising or fun+character development+well being. Toys are maybe a bit too obsessed with being toys, and could take what they do brilliantly and mash that up with other categories
There is a trend for 'investment purchases'. Whatever your budget, getting something that is open ended, with multiple ways to play, that feels age and gender agnostic is seen as worth saving or family crowd funding for. This is instead of having loads of mid range items which can feel under used and clutter homes. Think active gym toys, trampoline, large selection of construction bricks etc. A smaller toy might not think they're in competition with a trampoline or magnet tile set, but in the new value equation it's very possible that they could be
Prices don't always make sense to consumers. I was looking for the Barbie movie doll to buy for my 4 year old (he loves the movie and regularly announces that he's 'just Ken’) and in a sea of £15-ish dolls I found her....for £45! LOL. I get that movie tie ins have a premium, but the way this was positioned in store as a parent shopping for a 4 year old at christmas, bought me no joy, only rage! Kids are aspiring up to content that has mixed age appeal, but still need price friendly ways to access non premium products (that don’t make you weep if the hair gets cut off). There is still a strong need for good innovation and quality open ended play experiences at the £15 mark
Family play is in demand, but kid-centric products still dominate. If we were to look at shifts in play time, we have a generation of parents who are probably playing with their kids more than any other (pros and cons to that, but that's a post for another day!) Some parents find this hard and need help. They struggle with some of the ways kids play at their different stages, so when it's their focussed time that they've committing to turning that phone off to play with their kid, they're looking for something that helps them ease into play (because this is not easy for busy adults). But apart from board games there is very little innovation being done with this specific moment in mind - simple ways to connect parent and child in small bursts that specifically help adults unlock their inner child. Products that do this have a viral / WOM effect
I’ve been talking about this forever and I feel like a lot of big brands just don’t believe it, or don’t care, but aesthetics matter. Gen Alpha and their parents have a rich experience of design. Many of us are much more responsive to design than prior generations might have been and whilst we’re increasing our appetite for more creative and interesting ideas in the areas of fashion and interiors, a lot of design in the consumer products world is actually getting more beige, boring and predictable. The toy category still fails to trust consumers to be able to cope with a deviation from expected colour pallets - there is an assumption that what sells points to what people want, but more consideration should be given to what sells is sometimes just because that’s what is there to choose from
A job of parent today is to balance children’s lives. The world is full, or overflowing with things that are ‘good but then bad if you have too much’. The most obvious one being ‘screen time’. As a result lots of parents (especially since covid) are turning to the outdoors, to nature, to playgrounds, to IRL experiences as the new default designated play space. If kids have filled their play boots here, then at home play play is more digital because they’ve moved, socialised and had some fresh air so it’s more guilt free and part of their balance of time. That means less need for toys at home!
Eastern influence becoming more interesting to the West. For those kids who are leaving their toys for other activities, what does keep them engaged or bring them back is increasingly more likely to be characters and creative from outside of the West. Manga content, kawaii characters, Korean fashion and beauty are just a few examples which feel unique and interesting to kids. These often have a broader age appeal and are consumed by young adults too. Perhaps this is why Pokemon has been able to remain popular and stable with kids as they grow up for so long, as there are different cultural dimensions to appreciate as you grow-up
And finally….Temu. I’ll just leave that one there. EEK.
I would LOVE to hear your thoughts readers! How is your relationship with toy buying today? Are you cutting down based on lack of play value from past purchases? Cost of living or environmental concerns? Are you buying more second hand or bigger investment purchases? Or are you making more of a commitment to playtime being out the home to balance out digital play in the home? Or something else!
Let me know in the comments your thoughts on my insights and share your own.
We tend to buy more ‘makers’ stuff these days, with the occasional fun toy thrown in. For our autistic girl who currently loves the red pens we bought every red pen we could find. For my bracelet loving toddler boy we bought beads. Eldest likes creating game worlds so switch games that allow it. A little keyboard thing so they can play music when they listen to Scratch Garden.
Tbh, i go into a toy shop and I’m a little overwhelmed. Never mind the obvious division of ‘pinks n blues’ but theres just so much you’re not able to see what’s good. Unless you go in with a set plan, i guess. I just felt the aisles closing in on me. Too. Much. Stuff.😂
When we went on holiday with our 2 year old we obviously took a minimal range of toys and I was so struck by how much more he played with the things we took than he ever does at home where there’s much more choice. This cemented my natural tendency towards less is more when it comes to toys and definitely made me feel comfortable with buying less for him at Christmas. On top of that, his main present, a duplo train set was secondhand. We tend to veer towards things we know we’ll enjoy getting involved in too (husband is a big Lego fan) so that influences us too!