State of the
Industry equally engaged in traditional play and activities as they are technology play and activities, according to NPD’s Kids’ Share of Time & Wallet 2015 report, demonstrating that kids are not swapping dolls and building sets for tablets and video games, but are making time for both types of play. Tied together with this, the study found that mobile device usage has impacted the way in which kids engage with TV and movies. Kids today are spending about 6.7 hours per week watching traditional television and about 4.3 hours watching TV, movies, or videos on a mobile device, which includes smartphones, tablets, and iPod touches. The integration of mobile devices into kids’ daily lives has shifted the technology landscape, and has the potential to positively influence their relationship with traditional toys. Amid the growth of
The holidays boded well for toy sales this past holiday shopping season. With Christmas Day falling on a Friday in 2015, consumers had one extra day to shop in the week compared to 2014. As a result, the week of Christmas (Dec. 20 through 26) grew 25 percent in 2015, and its growth was larger than all the other weeks in Q4 combined. The week of Christmas also represents 8 percent of all toy sales for the year, and is the second most important week of the year for the toy industry—the week before Christmas being No. 1 at 8.5 percent, illustrating the importance for retailers to stay well-stocked up until Christmas Eve. Another important callout for 2015 is the co-existence of traditional and technology play as a toy industry influencer. NPD recently found that kids are just about $1,800 $1,600 $1,400 $1,200
Dollar Sales By Week for Q4 2015
The five largest weeks in Q4 contribute over one third of all dollar sales for the year.
$1,000 $800
Difference 2015 v 2014
$600
Dollar Sales 2014
$400 $200 $0 -$200
Week 40
W41
W42
W43
W44
W45
W46
W47
W48
W49
W50
W51
Kids’ Share of Time and Wallet
73 percent of kids ages 0 to 14 are engaged with a mobile device in a typical week. Activities Engaged in During Typical Week—Incidence
W52
technology and mobile device usage, the U.S. toy industry—as we clearly see from its annual performance—is also growing, and at a higher rate than it has been for the past few years. As evident from the list of top new items for 2015, manufacturers are integrating technology and mobile in more and more interesting ways. Examples of such toys include Sphero’s BB-8 App-Enabled Droid, Anki Overdrive Starter Kit (which is used with a mobile device), and Spin Masters Meccanoid G15. In addition, drones are occupying an exciting, emerging space for retailers. Looking specifically at the sales of drones within the toy industry, dollar sales reached about $40 million for full year 2015, with $37 million coming from Q4 alone**. There is a lot of fresh and exciting activity taking place within the toy industry, setting the stage for even more innovation and development to come in 2016 and beyond. Today’s products are appealing to kids, but they are also bringing older children and adults back into the toy marketplace, growing sales and restoring play, in all its shapes and forms, into the lives of more people across all ages. » *Source: The NPD Group Inc. / Retail Tracking Service, January-December 2015 **Drones tracked under the U.S. Toys Retail Tracking Service are intended for kids aged 0 to14 and typically retail for less than $100. Data is representative of retailers that participate in The NPD Group’s Retail Tracking Service. NPD’s current estimate is that the Retail Tracking Service represents approximately 80 percent of the U.S. retail market for toys.
Percent Among Moms with Kids 0 to 14
87
Traditional Play/Activities
85
Technology Play/Activities 73
Mobile Device Play/Activities Hobbies/Interests
51
Sports/Outdoor Recreation
49
58 THE TOY BOOK | FEBRUARY 2016 | TOYBOOK.COM
Juli Lennett, senior vice president, industry analyst for The NPD Group’s U.S. Toys division, has spent the past 11 years at NPD managing client relationships and consulting to a variety of manufacturers, licensors, and retailers within the toy industry.