SOAR Q4 Why Licensed Toys Will IN
L
icensing was one of the key factors to shape toy and game sales last year, as licensed toys grew by 11 percent in the top 32 global markets. And while this growth reflects a long-term shift in the industry toward licensed products, a combination of factors made last year one of the strongest years of licensed growth to date, and will likely lead to even more profound growth in the fourth quarter. One of the biggest factors behind the robust growth of licensed toys was the number of blockbuster movies that became very popular in late 2013 through 2014. Disney Frozen, Transformers: Age of Extinction, Guardians of the Galaxy, and Captain America: The Winter Soldier were some of the highest grossing movie franchises in 2013 and 2014, and created a strong base for toy sales. Toys based on this December’s highly anticipated Star Wars: Episode VII The Force Awakens are expected to be top sellers this holiday season. Movies were not the only source of popular licenses, as TV also played a very big roll. Shows such as Adventure Time and Teenage Mutant Ninja Turtles remain very popular among children in many Western markets. In Japan, there was an especially strong effect from the Yo-Kai Watch franchise. Yo-Kai Watch had both TV programs and a popular video game behind it, and it quickly became the biggest selling toy brand in
SEPTEMBER/OCTOBER 2015
by:
MATTHEW HUDAK Research Analyst, Euromonitor International
the country. Aside from the incredible amount of available content, the growth of smartphones and tablet devices globally in the past five years has been a huge contributing factor to the rise in licensed toy sales, as these devices allow children to continually access entertainment media content and become more enthusiastic about their favorite characters. In 2014, tablets and other portable computer and smartphone unit sales posted a global growth of 53 percent and 42 percent, respectively. These current trends are expected to keep licensing very relevant to toy sales in the next few years and likely grow its influence even further. Major films are expected from the Marvel, Transformers, Disney, and DC Comics franchises. At the same time, smartphone and tablet ownership is expected to grow, especially among tech-savvy children and teenagers, making licensed characters more accessible than ever. â–
Matthew Hudak is a U.S. research analyst for Euromonitor International. He researches a variety of packaged goods industries and gathers market sizes and brand and company share data for toys and games.
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