Most countries experienced a slight increase (+1 to + 4% in average) in sales since the beginning of 2005. This was mainly due to a boost in licensing products (Star wars, Batman, and Harry Potter). In all countries the segments which grew most were action figures and building sets whilst dolls decreased. Germany however, reported a 10% decrease of sales compared to last year. Forecasts were not optimistic particularly for traditional toys. It was noted that because Germany was such a large market, this situation was likely to impact intra-European trade.
The general feeling was that the rest of the year will be difficult as people were reluctant to spend money because of the current difficult economy (unemployment, rise in oil prices and political situation in some countries). It was therefore proble-matic to make forecast for Christmas.
For the Nordic countries the situation is completely different as they experience low unemployment rates and people and companies are therefore optimistic. Again, the increase in sales was mainly due to licensing and 2005 was predicted to be a good year for the brand industry.
For Spain, NDP figures appeared to be very optimistic and were not corroborated by manufacturers and retailers.
For Italy, sales grew by 1,5% during the first semester. Imports increased by 2,8% whilst exports decreased by 1,9%. For Christmas, sales were expected to be at the same level as last year.
In Austria, the first semester registered a 3,3% increase.
Regarding the evolution of the toy retail sector, France and Spain reported an increased number of openings of specialised toy shops. In France, which is traditionally dominated by hypermarkets, this phenomenon was exacerbating competition. In Spain, toy retailers are working to make shops more attractive to kids. In all countries, the extensive use of promotional tools meant that whilst the volume sold increased, the value decreased with reduced margins for toy manufacturers. This is particularly true in the UK where the value of sales has been flat year to year.
The general feeling was that the rest of the year will be difficult as people were reluctant to spend money because of the current difficult economy (unemployment, rise in oil prices and political situation in some countries). It was therefore proble-matic to make forecast for Christmas.
For the Nordic countries the situation is completely different as they experience low unemployment rates and people and companies are therefore optimistic. Again, the increase in sales was mainly due to licensing and 2005 was predicted to be a good year for the brand industry.
For Spain, NDP figures appeared to be very optimistic and were not corroborated by manufacturers and retailers.
For Italy, sales grew by 1,5% during the first semester. Imports increased by 2,8% whilst exports decreased by 1,9%. For Christmas, sales were expected to be at the same level as last year.
In Austria, the first semester registered a 3,3% increase.
Regarding the evolution of the toy retail sector, France and Spain reported an increased number of openings of specialised toy shops. In France, which is traditionally dominated by hypermarkets, this phenomenon was exacerbating competition. In Spain, toy retailers are working to make shops more attractive to kids. In all countries, the extensive use of promotional tools meant that whilst the volume sold increased, the value decreased with reduced margins for toy manufacturers. This is particularly true in the UK where the value of sales has been flat year to year.
