Tag Archives: asia toy market

Asia’s Fast-Growing Economies To Drive Long Term Growth In The Toy Business

Asia’s Fast-Growing Economies To Drive Long Term Growth In The Toy Business

For the last 2 centuries or more the economic powerhouses in the world have been Western, Europe first, followed by the might of the USA. Looking further ahead into this century though, it is clear to see that future economic growth on this planet is going to grow most rapidly in Asia. Asian countries once viewed as 3rd world are now coming to the fore.

There are various data sources supporting the evident economic growth ahead in Asia, the one we will refer to in this article is Price Waterhouse Coopers ‘The World In 2050’ published report. That report shows clearly that the largest 5 economies in the world by 2050 will be (in order of size): China, India, USA, Indonesia & Brazil. Much has been written about China’s economic miracle since Deng Xiaoping’s ‘Opening up’ of China’s economy, but far less has been written about the massive economic growth prospects of India and Indonesia.

India is still today a country with many problems to resolve including massive infrastructure investment needed, terrible poverty for hundreds of millions of people and issues with public health which would be viewed as catastrophic elsewhere, but in India are just viewed as normality. At the same time though, India’s massive population is still set to grow further, unlike China’s current population trajectory. Additionally, having contributed so much to major global tech companies away from India, that trend is now reversing with India’s tech scene gathering pace. In terms of consumerism, India has a growing middle class of several hundred million people who are now finding they have disposable income and want to give their children more affluent upbringings than they may have had. The massive growth of Hamleys in India shows that India is no longer just a low quality, super low price point market, there is a growing appetite for ‘international’ standard toys.

Indonesia has around 275million people and is expected to rise above 300million sometime between now and 2050. Today Indonesia’s economy is the 15th biggest in the world – around the size of the Netherlands – just above $1 trillion USD. Yet by 2050 it will hit 4th biggest economy in the world. With economic growth typically comes an accompanying growth in consumerism.

Whereas Asia was once viewed by Western toy companies as difficult to access, difficult to scale up and therefore were often a lesser priority, this view can no longer be allowed to prevail. Lego’s massive store opening program in China (targeting 300 stores by end 2021) is just one example of a significant shift in focus for Western toy brands.

Over the next few decades, the economic fulcrum of the world is going to shift dramatically towards Asia, and alongside that will come increased sales opportunities for toy companies in the West, alongside a growth in Asian toy companies seeking to sell their toy lines into the West. Interesting times are ahead!

 

Do you need help to grow sales for your toy company? We help people from all around the world to sell more toys, both in their home markets and into export markets. For more information on how we do this, check out our services here: www.KidsBrandInsight.com/services

Have you listened to our Playing At Business podcast? We talk about selling toys & games, interview successful people from across the toy business & we look at key trends in the toy & game business: https://playingatbusiness.libsyn.com/

 

The 21st Century Is Asia’s Century: Implications For The Toy Business

The 21st Century Is Asia’s Century: Implications For The Toy Business

Those of us ‘Westerners’ in the toy business who have lived our entire lives believing that the USA and Europe were the centre of the world are heading for a rude awakening, and if we don’t prepare them for the change our children and their children will miss many opportunities in the remainder of the 21st Century.

The reason for this is the unstoppable economic growth of the most populous continent on the planet – ASIA. Let’s not look at this in generalities though, let’s get specific – the following stats have been taken from a combination of the IMF, the World Economic Forum & the World Bank. Some of these stats are projections, as any one who has ever tried to forecast toy sales in terms of units and shipment phasing will know – future projections are nearly always wrong in some direction! Having said that though, even if some of the projected statistics don’t get to exactly where predicted they nevertheless represent major trends and shifts in the global economy.

So let’s cut to the chase, here’s the projected Top 10 economies in the world in 2024, in order of size:

  1. China
  2. USA
  3. India
  4. Japan
  5. Indonesia
  6. Russia
  7. Germany
  8. Brazil
  9. UK
  10. France

Source: https://www.weforum.org/agenda/2020/07/largest-global-economies-1992-2008-2024/

This means that four of the five biggest economies in the world will be in Asia by 2024 – that’s not very far in the future! To be specific about the toy business though, GDP doesn’t necessarily correlate exactly with toy market size and ranking by country, but having a far larger number of people with higher disposable income is likely to lead to higher toy sales.

This then is a massive growth opportunity for the toy business, but in some cases we will have to work hard on our marketing to make sure our toy ranges are relevant to consumers with newly found spending power.

The reality we have to take from these projections is that while we are not likely to lose significant opportunity in the USA & Europe, we should be turning our eyes and ears eastwards to capitalise on the opportunities which are going to abound across the next decade in Asia. It will take work, it will take effort & it will probably take a willingness to get things wrong a few times. It may also take patience as society, economic behaviour and consumer spending take time to adapt, but if you are still focused only on the USA & Europe right now you may be left behind.

The sheer speed of economic advancement in the up and coming powerhouses of Asia (most notably China, Indonesia & India) has to offer growth opportunities to toy businesses from outside Asia, the question is how many of us will be flexible enough to pivot East and to trailblaze new opportunities?

We run a Consultancy business advising toy companies on how to grow their business by a combination of strategic analysis and export sales facilitation. We have helped more than 100 toy and game companies grow. For more information on our process and methodology for growing toy sales: https://www.kidsbrandinsight.com/blog/toy-co-growth-booster-program/

We also run a venture helping Asian toy companies to find more customers and to build their own toy brands, for more information: www.ToyTeamAsia.com 

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