Global Toy Industry
The toy industry is a term that’s now used to refer to the massive industry concerned with making playthings for youngsters. Previously, the term 'toy' was employed to refer to tiny items like buttons and hooks. As this use is presently superseded, most references to the toy industry, in modern contexts, relate to children’s playthings.
The global toy industry is highly competitive with low barriers to entry, and traditional toy manufacturers are seeing increasing competition from digital gaming products, digital media and products that combine traditional “analog” products with digital play. Several external factors may influence demand for traditional toys. One is the aging of society in mature markets, witnessed already by a more or less stable number of children in the EU and the U.S. A one-child policy and rising incomes have even led to a sharp decline in the child population in China.
Consumers are fairly price sensitive. This means that producers face cost and price competition to a significant extent. This competition on costs is reflected in the production strategy of producers, with many producers off-shoring and outsourcing production to China to reduce production costs.