Predicting the future of the toy industry covers a lot of different components. Like any child, the toy industry is prone to a lot of fluctuation in its tastes. It’s so important to prepare for future developments, but to do this, we have to look at some of the key forces at play. These include the following:
The Rise (and Rise) of Ecommerce
Amazon continues to grow exponentially, and as Amazon is also entering the bricks-and-mortar race of retailing, there will likely be new ideas and different strategies that turn the brick-and-mortar setup on its ear.
China Is a Major Consumer
China is on course to replace the US as the number one country for toy consumption which will result in several shifts in the dynamic of taste and styles that come in and out of fashion.
The Lack of Desire to Drive to a Store
Millennial consumers are nowhere near as likely to drive to a store in comparison to Baby Boomer parents. And this is all due to the simplicity of buying online.
With these components in mind, what is the toy industry going to look like in 2022?
The Rise of Independent Retail
The demise of Toys“R” Us left a big gap for many suppliers, but as Toys“R” Us is returning under new owners as of 2022, there will be independent specialty retailers that were looking to capture the locations left vacant by the absence of Toys“R” Us. This will make for a very interesting competition between the bigger, more prominent company and the underdog toy retailer.
The Modes of Doing Business Will Change
The Baby Boomers and Generation X managers have left the ranks with Millennials having firmly taken their place. Therefore, they will make significant alterations to manufacturing and retail that do away with the antiquated notions of 20th-century business. Millennials are more digitally savvy, and therefore, will provide a lot more interactive services that will give the toy industry a big shot in the arm.
Shopping Will Be More Interactive
Many people are still using the convenience of shopping online. And while retailers like Amazon will remain as the number one retailer in the United States and most of the world, there will be a yearning for some simpler values such as pre-self-service retail. Combined with the ideas generated by the millennial managers, there will be a mix of digital and physical experiences culminating in a more diverse playing field.
The Push Against Digital Toys
While toys are not immune to digital development, there has been a lot to talk about parents pushing for a return to more traditional methods of play. While technology will continue to grow, it appears to be more in relation to how consumers purchase their items. The pandemic pushed toy sales up by 16% in 2020, with the big sellers being puzzles, games, and outdoor play. While we are in the future, it’s amazing to see that there is still a yearning for simpler methods of play.