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Collectables continuing to drive toy market

Licensed properties account for 35% of all collectables, says NPD.

The European toy market grew 3.3% in the first eight months of 2017, with 25% of the volume coming from the collectable category.

Rory Partis from The NPD Group presented this and other facts and figures as part of his seminar during Brand Licensing Europe last month.

Collectables are now a major part of the toy market, accounting for 9% of the toy market (by value) and 25% of volume.

“Collectables are the one word that jumps out in all of our stats,” says Rory Partis, senior account manager for The NPD Group. “Licensed properties account for 35% of all collectables. In 2016 collectable sales were worth €262 million, compared to €324 million in 2017 (YTD Aug 17).”

The top 5 collectables by growth are:

1.    Pokémon (+€25m)
2.    DC superheroes (+€14m)
3.    LOL Surprise (+€13m)
4.    Yo Kai (+€8m)
5.    Num Noms (+€6m)

Collectables to look out for in the next few months include: LOL Surprise Lil Sister, Pikmi Pops and the Hatchimal collectables.

The other major trend coming through in the NPD data is the growing importance of online in the influencing of toy purchasing.

“This is something we’ve been noticing since 2012,” says Rory. “The primary motivation for purchasing a toy is no longer TV or movies, it is what kids see online. Traditionally we would see a spike in toy sales at the release of a movie, which we still do get.

“But then you get something like Pokémon Go, which acted as a movie release in terms of a property boost. This is something really different, and just shows how important the digital landscape is now.”

Interestingly boys are slightly more motivated by content (whether that is online, movie or TV) than girls, who are more influenced by peers.

And although toys are still the number one category in terms of driving growth for licensed properties (accounting for 29% of the UK licensed spend for kids), licensors and licensees shouldn’t just focus on toys.

Clothing accounts for nearly 20% of the licensed spend, with the number one UK licensed kids’ property – Disney Frozen – having clothing as its number one category.

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