8/1/2013
It is the best of times and the worst of times for toy makers. Families continue to spend millions on toys and games each year, helping to establish new multimillion-dollar evergreen properties, whose newest members include Jake and the Neverland Pirates and Angry Birds. At the same time, fewer retailers mean fewer store shelves to display toy products, and, this summer in particular, few movie toys sales are meeting expectations.
And then there’s the issue of technology. Many argue that technology enhances the toy experience. In this regard, more than one in two parents of children ages 2-12 (51%) say technological devices have not impacted the time their children spend with traditional toys, according to the NPD Group. Meanwhile, 40% say their children are spending less time with traditional toys and more time using technology.
Although analysts tend to position playtime as technology versus traditional toys, new research illustrates that the issue is more nuanced than that. Young children turn to technology when they need distraction, such as at restaurants or during car trips. Older children, however, tend to devote any free time to technology, thus reducing their time spent on traditional toys.
Where the Money Goes
Parents who spend at least $200 a year on technology are more likely than parents who spend less than that to shop most toy categories and spend more when they do. In fact, these technology-purchasing parents are 40% more likely to purchase action figures.
Technology also isn’t taking market share away from traditional toys. Among parents who have decreased their spending on leisure and entertainment products for their children, more cite the economy and less disposable income than those who say they shifted their budgets to technology (54% vs. 24%).
Parents, for their part, believe their children benefit from both traditional toys and technology. They like how traditional toys offer a unique “touch and feel” experience, whereas technology delivers educational opportunities.
SOURCE: NPD Group, Kim McLynn, 900 W. Shore Rd., Port Washington, NY 11050; 847-692-1781; kim.mclynn@npd.com; www.npd.com.
© 2013 Business Valuation Resources, LLC (BVR). May not be reproduced without written consent of publisher.