Toy Industry Growth From COVID
Toy sales skyrocketed thanks to COVID-19! Is that the ultimate COVID Silver Lining, toy people?
The NPD Group, the market research firm that tracks toy industry sales, reported a staggering 19.1% sales growth in the first three quarters of 2020.
These sales figures are unheard of for the toy industry. In a “normal year” 70% of toy sales happen in Q4. In a “normal year,” the toy industry hopes for warm weather for Easter. In a “normal year” 1% to 3% sales growth is considered great news for the toy industry. But we all know 2020 was far from “normal”.
During the pandemic, consumers purchased, what we refer to in the industry, as “traditional toys”. The sales went to games and puzzles, outdoor and sports toys, building sets (such as LEGO), arts and crafts, and dolls (notably Barbie). I guess it’s easy to see why these categories were top choices. Families were stuck at home with lots of hours to fill and screen-fatigue quickly set in. We’ve all spent way too much online this year, don’t you agree?
The toy industry has a phrase called “kids getting older younger” (KGOY). Oddly, on the flip side, adults are staying younger longer. (Hello to the non-adulting millennials following me!)
This KGOY phrase has been referenced in the industry as if it’s a disease with no cure. Toy companies sometimes throw their hands up and say, “oh well, kids are getting older younger!.”
Well, toy people, it took a global pandemic for us to learn that’s simply not true. COVID-19 shifted everything. This year proved kids love toys! Parents love toys! Families love togetherness and play time!
The toy industry has known for years that families are over-scheduled and stressed out and that leaves little time for meaningful play. But what can we, as an industry, actually do to bring consumers back to the joy of play?
The toy industry was presented with a valuable opportunity in 2020. We need to embark on an industry-wide marketing campaign that speaks to parents. When the world emerges from COVID-19, do we want to go back to “normal?” I don’t think so.
We need a united toy industry marketing campaign focusing on these touchpoints:
• Let’s pull at the nostalgic heartstrings of families for increased togetherness.
• Prove the emotional and social benefits of traditional play. It’s easier than you think.
• Aim to reduce screen fatigue in kids and parents using toys and play.
In Episode 45, we’ll tap into ways to keep this amazing sales momentum moving forward.
We’ll also cover the important shift in impulse toy shopping from in-store to online. Yes, you can make consumers impulse shop from your site! I’ll teach you how to toss that toy into their cart. Tune in to learn more on the art of the upsell.
WANT TO LEARN MORE ABOUT THE GROWTH IN THE TOY INDUSTRY IN 2020?
Make sure to listen to the full episode How will COVID-19 Affect The Toy Industry’s Holiday Sales?