Greetings from Nuremberg. I have been having some very interesting conversations with exhibitors and attendees. For example, I was surprised to discover that one major toy company’s biggest increases this year were in Greece. Greece, as we know, has been suffering major economic problems so I had to ask; why the increase? The answer is that while adults are cutting back on trips, restaurants, etc., they are buying for their children. There is concern that the children will emotionally suffer from the economic downturn so the parents want to cushion the blow through play. I guess the toy industry really is recession resistant.
Having said that, Europe is a complex place with some countries struggling (Spain with near 25% unemployment, 50% among young adults) while others like Germany experiencing increases in 2011 toy sales.
In addition, toy companies I spoke with are bullish about doing business in Russia. They tell me they are experiencing strong growth through reliable distributors. They see Russia as a major market and growth opportunity.
There was a report last month that the UK was up 3% over last year. I did some research and found that the number was accurate but 2 ½% of the 3% was due to an increase in the Value Added Tax (VAT). So, the UK was really a wash in 2011.
Very interesting global assessment. A reminder that parents want the best for their children no matter the economic or geographical circumstance. Enjoy the rest of the Toy Fair!
Posted by: Laura Hathaway | February 8, 2012 at 03:15 PM
I braved the cold in Nurember also.
One note on Spain's unemplyment. I understand that they have an underground/black market concerning jobs. It is well known that many people collect unemployment whils also having a full time job.
Posted by: Peter Santaw | February 8, 2012 at 03:35 PM
Well, that is again confirmation that Russia is definitely next frontier for licensing industry, especially toys & games, publishing...together with other "fields" of licensing business Russia is really booming market. Experts predict that strong market growth in Russia will continue in next 3 to 5 years. That is another reason to participate at large upcoming events in Moscow in March: Licensing@Russia + Toys & Kids Russia Trade Fair + Skrepka International Stationary Fair. Those 3 events will take a part at the same time (14-16 March 2012) at Crocus Expo International Exhibiting Center. With already confirmed 15.000 trade visitors those events are really worth to visit and feel the market and opportunities from first hand.
Posted by: Goran Krnjak | February 9, 2012 at 01:36 AM