The Toy Book - 2016 NY TOY FAIR EDITION

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