Toy & Game Manufacturing

Toy & Game Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry primarily engage in manufacturing complete dolls, doll parts, doll clothes, action figures, toys, games (including electronic), hobby kits, and children's vehicles. Major companies include Hasbro, JAKKS Pacific, and Mattel (all based in the US), along with Bandai Namco and Sanrio (both based in Japan), Geobra Brandstätter (Germany), and LEGO (Denmark), as well as the gaming hardware divisions of Microsoft, Nintendo, and Sony.

COMPETITIVE LANDSCAPE

Growth in the population of children age 12 and younger drives demand for toys; demand for electronic gaming products is driven by personal income and product innovation. The profitability of individual companies depends on identifying market trends and marketing effectively. Large companies can offer a wide selection of toys, and they have scale advantages in purchasing, manufacturing, distributing, selling, and marketing. Small companies compete effectively by specializing in a product segment or by responding faster to market trends. The US industry is highly concentrated: the top 50 companies generate about 80% of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major product segments include toys, games, and hobby goods which account for nearly 30% of the industry revenue. This is followed by dolls, action figures, toy animals, and stuffed toys (about 5%) and Baby carriages and children's vehicles (about 2%). Other products and services include coin-operated amusement machines.