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The Resilience of the Toy Industry
How has the toy industry, worth over $90bn globally, fared during these most unprecedented of times? When we attended Toy Fair in New York back in February 2020, Coronavirus was known about and certainly being discussed in the aisles, but there was no way anyone could have predicted the complete disruption to every area of life, business and industry that the global pandemic would cause. In fact, this time last year, COVID-19 was already causing big problems with Asian manufacturers, predominantly in
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China, and these problems had a huge impact all the way down the supply chain. The future looked very uncertain. However, the toy industry has proved resilient against the challenges, with one of the primary reasons being that demand is still high – and grew during the pandemic, as did online shopping platforms and e-commerce stores, replacing sales from many traditional toy retailers. The absence of all the major trade shows in the first part of 2021 has meant that the industry has had to show resilience and creativity in a way to ensure the industry keep flourishing. Steve Pasierb, President & CEO, The U.S. Toy Association, notes that while U.S. toy sales were up 19 percent in the first three quarters of 2020, the actual company-by-company results have varied widely. He comments: “U.S. sales have soared for puzzles and family board games, outdoor play equipment, and educational toys and games to help with at-home learning. Likewise, toy companies well-positioned with major retailers such as Walmart, Target, and Amazon have seen consistently strong sales, as have companies and retailers
with strong digital footprints and ecommerce sites. And classic and nostalgic toys and brands have acted as a kind of “comfort food” for families seeking positive outlets in an uncertain world.” Of course, this has been an unprecedented year for everyone, and Steve notes: “Companies that sell primarily to amusement parks, vacation destinations, museums, and other venues have seen little to no sales, as have portions of the specialty retail sector which have either been closed due to local restrictions or have not been able to rely on e-commerce sales. Entertainment companies launching major IP properties have had to pivot and find new ways to drive consumer excitement in the face of an increasingly fragmented audience, and the accelerated rise of e-commerce has forced brands to find ways to interact more closely and dialogue directly with the end-user of their products.” On being asked his thoughts on the future, Steve says: “Looking to 2021, it is expected that many of the positive trends that emerged amid COVID-19 will remain strong; according to our internal trends team, fall previews have shown the continuing impor-
