KIDZ GLOBAL
TOYS ARE STILL ON TOP While entertainment brands and characters continue to increase in popularity, playing with toys remains kids’ No. 1 leisure activity. by PHILIPPE GUINAUDEAU, CEO, Kidz Global TODAY, CHILDREN KNOW MORE entertainment brands, characters, and licenses than they did four years ago. In 2011, children from Europe 5 (the UK, Italy, Spain, France, and Denmark) knew 271 brands* (number of different brands spontaneously mentioned by the child or by parents of children ages 0 to 14). This year, kids know 416 brands, marking an increase of 54 percent over four years—but their combined purchasing power has not changed in the same proportions. What are the reasons for such an increase in the number of brands children know? This growth is linked to three concomitant factors: 1. The sheer number of brands has expanded, but far from our 5 percent total. Therefore, this only explains a small fraction of the phenomenon. Furthermore, toy and game brands did not gain any traction here, still remaining at 9 percent of the brands. 2. Kids now have increased access to the Internet, which in turn increases brand awareness–especially in regard to entertainment content—and generates a strong appetite for licensed products. 3. Distribution has increased the concentration of the offerings of the most popular brands. This effect has enhanced the reputation of these brands, while making it more difficult for the less supported brands to break through. Today, children all know the same six to eight mega brands and a wide range of others that differ from one child to another. What consequences does this landscape present for licensees and toy manufacturers? Imagine: 416 different brands, giving kids prolific choice. Now more than ever, it is important for manufacturers, licensors, and licensees to perfectly master the key factors in the popularity of their brands. Simultaneously, digital entertainment is
growing quickly, and is becoming increasingly popular with children and teenagers of all ages. The majority of kids now have access to a mobile device, whether it’s a smartphone or tablet of their own, or one belonging to a parent, resulting in countless hours spent playing with apps and games. However, no matter how much it may seem like kids are glued to their devices, playing with traditional toys and games is the primary leisure activity of kids ages 3 to 6, far ahead of the second-most popular activity: watching TV. In the U.S. for instance, 16 percent of the active hours** of a 3- to 6-year-old child is dedicated to playing with toys and games, while 11 percent of their active hours are spent watching TV. The same applies in all the countries studied, even in Brazil. In this country, where watching TV is practically a national sport (thanks to the novellas and sports—especially football), this activity is on-par with playing with toys, at 12 percent of kids’ time. For kids ages 7 to 9, playing
with toys and games ranks as the second most popular leisure activity, right behind watching TV. So, although time spent on digital activities is increasing among kids—including the younger ones—playing with toys remains—by far—the most important leisure activity for kids up to 9 years old. »
*Source: Kidz Global - BrandTrends, October 2015 **Source: Kidz Global - Kids Observer Research, December 2015
Philippe Guinaudeau is a senior consultant with 24 years of experience in marketing research. He is also the CEO of Kidz Global, an international market research and consulting firm, with offices in Paris and Hong Kong.
TOYBOOK.COM | FEBRUARY 2016 | THE TOY BOOK 55