Toy World Magazine June 2020

Page 24

NPD Insight Changing consumer habits during Covid-19 lockdown Moneeba reveals the latest toy retail trends and how respondents to the NPD’s Consumer Panel are feeling about toy purchasing at the current time.

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he coronavirus and resultant lockdown will continue to purchase toys before the end of have had a huge impact on daily life in lockdown. 56% of those who plan to buy toys will be the UK over the last quarter, impacting purchasing with pure players – retailers with no brick health, the economy and shopping and mortar stores - and nearly a third will purchase habits. It has also had a big impact on UK toys via grocers. With brick and mortar stores closing, toy sales. Unlike our European neighbours (with the toy specialist websites and toy manufacturer’s exception of Germany), the UK toy market is bucking websites account for 46% of respondent’s choice of the pandemic lockdown trend and the market has where to purchase. grown +3 % since January (YTD Wk18 in value). This So, what are consumers buying? The fastest isn’t the case across Europe, where toy value sales as growing supercategories YTD have been Games a whole are down -5% YTD Wk18. Southern Europe & Puzzles, up +43% and Outdoor Sports, up +31%. has seen the biggest decline, with France (-13%), Italy Games & Puzzles has been a key category in driving (-22%) and Spain (-22%) all heavily down. Germany, the toy market growth. Our survey found that almost try to keep children occupied, with Craft Kits up +6% like the UK, is showing growth of +4% YTD. At the half of consumers have increased the amount of time and Reusable Compounds +21%. Hasbro’s Playdoh is time of writing this article, it has been eight weeks spent playing with games/toys with family or alone. the No.1 property, growing since the school closures +29% YTD, but is seeing and it is important to note strong competition from that whilst consumers Spin Master’s Kinetic +79% are buying less toys, with and Epoch’s Aquabeads volume sales down -16%, UK Toy market is growing in value both vs. last year and previous week for +45% YOY. Crayola and nd they are spending more w/e 2 May, driven by Specialist & Mixed online sales Tomy’s Aquadoodle with value up +15% YOY. have also enjoyed strong What is being purchased is Sales % Change versus year ago growth. Consumers are a different mix of categories 100% also purchasing more with higher prices. The 80% construction items during 60% growth in the UK is due 40% Specialists & Mixed the lockdown, with Total Sales Trend Week 18: to six supercategories 20% Value +3% Building Sets accounting Total Market including Infant/Toddler & 0% Units +3% for 14% of the total market Pre-school (+10%) and Dolls -20% Avg. Price +37% Grocery - the No.1 item in Standard -40% (+17%), with continued -60% Building Sets being Lego’s double-digit growth from w/e 4-Jan 18-Jan 1-Feb 15-Feb 29-Feb 14-Mar 28-Mar 11-Apr 25-Apr 9-May 22-May Half-term Minifigures DC Comics Arts & Crafts +60%, Games First U.K. case School closures 3/23 (31-Jan) Super Heroes. & Puzzles +56%, Outdoor Lock-down & non-essential stores closed 3/24

Moneeba Baloch

Account Manager, UK Toys, Euro Toys

UK – weekly £ sales trend

+13% and Building Sets +39% YTD. Each of these categories has a high time investment and play value for the items within them.

At the time of writing, it has just been announced that lockdown rules have been eased slightly and there is a possibility of reopening stores early in June. Post-lockdown life is something that consumers are starting to think about. Of the people we surveyed, nearly a quarter said that going on holiday would be the first thing they would like to do with their children, while a further 10% said they would like to take their children to theme parks. When it comes to toy consumers specifically, over a quarter are looking for new products which create excitement postlockdown. This is second only to consumers who are looking for promotions and special offers when purchasing toys. Whatever the outcome in terms of how long we stay in lockdown, the toy market is growing and keeping children entertained and engaged during this crazy time.

Source: The NPD Group | Retail Tracking Service FIRST ALERT | U.K. 2020 vs 2019

DocumentThe classification: Client/Third Party Confidential NPD Group, Inc. | Proprietary and confidential

In 2019, NPD’s Consumer Panel showed that, 38% of all toy sales were online. In the past few weeks, this proportion has inevitably been far higher, with the Specialist & Mixed channel evolving into mostly online sales, as the majority of brick and mortar stores in this channel are closed. Since lockdown, this channel has accounted for 75% of total toy sales and has grown by +11% YTD. In a recent study conducted by The NPD Group, results showed that 43% of UK consumers have either shopped for toys online more frequently, or at least the same, as pre-lockdown. We also found that over half of the consumers who planned to purchase toys or games at this time

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Items such as Monopoly Classic (up +94%), Dobble (up +30%) and Karty Uno (up +59%) have been the key winners during the lockdown. Overall, Games & Puzzles represent 13% of the total market value. As we head into the summer months, it is no surprise that the Outdoor & Sports Toys supercategory has been driving the value of the total market. As a result, we are seeing mid-sized outdoor manufacturers climbing the ranks with Pools up triple figures, Water Blasters +65% and Playground Equipment +42%. With more time spent at home by families and adults, other supercategories which have shown growth include Arts & Crafts and Building Sets. Arts & Crafts has enjoyed growth of +15%% YTD as parents

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