First Research US Industry Profile

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Toy & Game Manufacturing
SIC Codes: 3942, 3944
NAICS Codes: 33993
Last Quarterly Update: 5/13/2019
Companies in this industry manufacture electronic and nonelectronic toys and games, including dolls. Major companies include Mattel, Hasbro, and JAKKS Pacific (all based in the US), along with Geobra Brandstätter (Germany), LEGO (Denmark), Namco Bandai (Japan), and Sanrio (Japan), as well as the gaming hardware divisions of Microsoft, Nintendo, and Sony.
Global toy sales were about $89 billion in 2017, according to data from The NPD Group compiled for the Toy Industry Association. Major markets include the US, the UK, France, Germany, and Australia. China is the world's largest manufacturer of games and toys.
The US toy and game manufacturing industry includes about 560 establishments (single-location companies and units of multi-location companies) and has annual revenue of about $1.3 billion. Revenue from toy manufacturing that takes place in the US represents only a portion of revenue recorded by US-based manufacturers, which commonly arrange to have toys produced at factories in countries where costs are lower.
The industry includes manufacturers of video game consoles, which are covered in the Electronic Toys & Games Manufacturing industry profile, but does not include companies that produce software for video or computer games, which are covered in the Entertainment & Games Software industry profile.
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.
Imports, primarily from China, make up the vast majority of the US market. Canada is the largest market for US toy and game exports. Manufacturers of video and electronic games face increasing competition resulting from the increasing use of smartphones and tablets for gaming purposes, driven by the massive increase in the number of mobile game apps and other free or low-cost games available to consumers.
Products, Operations & Technology
Major product segments include nonelectronic toys (transportation toys and sets); electronic toys and games (video game consoles, excluding game cartridges ... plus:
Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms

Historical Profiles (PDF format)

02/11/2019
11/05/2018
07/30/2018
04/30/2018
01/29/2018
10/23/2017
07/24/2017
04/24/2017
01/23/2017
10/10/2016
07/11/2016
04/11/2016
01/11/2016
09/28/2015
06/29/2015
03/30/2015
01/05/2015
10/06/2014
06/30/2014
04/07/2014
01/06/2014
09/30/2013
06/24/2013
04/01/2013
12/17/2012
09/24/2012
07/09/2012
04/16/2012
01/09/2012
10/03/2011
06/27/2011
03/21/2011
12/06/2010
09/13/2010
06/07/2010
03/01/2010