Insights

Throughout this crazy year, we have been periodically reporting on the progress of our clients and we are delighted to reveal that the babies, kids and toys sector has experienced a huge growth spurt in 2020.

The babies, kids and toys sector has experienced YOY growth in every month this year so far - ranging from 9% growth in January, to a whopping 133% growth in May, with an average growth across the year of 65% YOY. Parents and guardians have really been spending big within the sector to ensure that their young ones' minds are kept busy and active, rather than purely just being sat in front of a screen throughout lockdown. In the warmer months, along with puzzles, games and toys, trampolines, swingsets and playsets were also popular purchases!

Similarly, Global Toy Industry Expert at NPD announced that the biggest sellers have been games and puzzles “to keep the kids occupied while parents were working” - reporting that sales of games and puzzles were up 43% in value in Q1 and Q2 2020 compared to the previous year.

With families being locked down together 24/7 with no school or work as a release, another contributing factor to the increase in sales of games, toys and children’s items could be to maintain harmony within the household. Dr Amanda Gummer, founder of the Good Play Guide commented: “"playing is a great distraction, and families communicate better when they are doing something together". Ravensburger, attributed the “calming effect” from “bringing order to a pile of chaos” to their YOY 370% increase in puzzle sales in the last half of March 2020.

Additionally, with play dates a strict no-go, children’s screen time has been at an all time high. According to AppAnnie (mobile data and analytics company), TikTok has topped the download charts this year. In 2019, users spent an average of 46 minutes a day on the app (opening it 8 times a day approximately), increasing to an average of 52 minutes in 2020. The app has been used as a form of ‘digital word of mouth’ with children and teens learning about the new trends via the app.

There has also been a rise in the ‘Kidult’ - adults seeking that ‘feel good’ factor from playing with nostalgic toys and games from their childhood, and looking to increase their analogue activities with the majority of their time being spent on screens working from home 24/7. Even Harry Potter star, Daniel Radcliffe, indulged in the kidult trend, passing his time in quarantine completing the 3,200 piece Jurassic Park LEGO set.

What’s next for the babies, kids and toys sector?

With non-essential stores closed during lockdown with uncertainty currently on when it will end, eCommerce retailers within the babies, kids and toys sector are expecting big things this festive season.

Hasbro, global play and entertainment company have reported they are “poised for a good holiday season’, while similarly, Mattel, a multinational toy company, have told investors that they are predicting holiday season growth.

After a turbulent year, we predict that parents and guardians will really strive to spoil their children this year to create a truly magical holiday season.

How can retailers prepare?

• Use your data
  In terms of data, retailers have never been in a stronger position to lean on the bundles of information that has been collected over the past few months - this is incredibly valuable for retailers as it can be used to analyse consumer behaviour which can help to inform your marketing message based on mindset.
  
  
• Don’t hold back!
  If you don’t invest in your marketing this Q4, you run the risk of getting drowned out by the competition. Q4 is the most competitive time of year usually, but events from this year means that it is now more important than ever to push more budget into your marketing if you are able.
  
  
• Video marketing
  Regardless of the second lockdown, the nation is still advised to maintain social distance, meaning that eCommerce was still taking the lead over physical footfall when non-essential shops were allowed open. Communicating to your consumers using video adds a personal touch to your marketing message, and can be an incredible way to encourage creative play through product demonstration - which, in turn, could influence orders and revenue.
  
  
• Enable your customers to gift their loved ones eVouchers
  This year, sales of toys and babies and kids items have soared in 2020 and with the lack of house visits, you may not know what your family friends’ children own these days! eVouchers could be an incredible way to gift this year meaning the parent or guardian could choose a new item and also helps to minimise contact as per the government guidelines. Additionally, by letting consumers purchase eVouchers for their loved ones, you can also help to spread out the delivery (if they take a little while to choose what to purchase) and dispatch period, making peak season this year a little more manageable for your warehouse and chosen courier service(s).
  
  
• Flexible payment options
  Events throughout 2020 have meant that consumers may be more likely to be a little more considerate when they are choosing what to spend their money on. This year, providing flexible financial options for your consumers could be the difference between a purchase or not - and also guarantees you a certain level of consistent cash flow for the next couple of months.

Want to find out more about how Visualsoft could help you?

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