Yann Fresnel, a top French executive in the Toy Industry, has agreed to write about his home toy market “France” with a complete overview of 2023. Mr. Fresnel bases his comments upon data from Circana, La Revue du Jouet, the French Toy Federation, and his observations and opinions.
Yann has 30 years of experience selling Toy products to European retailers and e-retailers. He has worked for companies like Berchet (Smoby), Newell Brands, BERG Toys, and SmarTrike.
Yann started his toy sales consultancy in May 2021. He named it Toy Influence . The company represents foreign Toy firms in France. He conducts direct sales and marketing with retailers / e-retailers, as well.
If you are looking to invest in France and enter direct to retail, you can learn more about Yann on LinkedIn or by calling him at +33 6 48 94 02 05 or emailing him at yann@toyinfluence.com
The French Toy market has delivered -5,2% results and -8% in volume in 2023.
It’s in the same negative number as Germany and UK (-5% results around).
It has been negative during all the year. Permanent was -4% end July and end September.
The main driver, the “Outdoor Toy” category, was strongly impacted by terrible weather in spring and, again, lousy weather in the West/North area in July.
Christmas campaign was quite bad with -6%. December was -2%
The French Toy market is now 4,3 billion Euros (-220 Million Euros in 2023)
December month is 30% of global sales (27% in 2022). People bought very late their toy presents (week 51 was +7% compared to 2022)
EXPLANATIONS FOR TOY MARKET DECREASE
Inflation has been strong (+4,9% in 2023 after +5,2% in 2022). Toy part inflation was smaller especially in Christmas catalogues with all promotions. People made choices and finally bought less toys (value-10 Euros was down)
Number of Births decreased a lot again (-6,6% in 2023) at 678 000 (lowest number since world war 2) so it means nearly -20% in last 13 years (833 000 down to 678 000 so -155 000 baby born)
Second hand is really a trend in different sectors for a few years and in Toy too. We saw toy chains opening special section for second hand and some specific second hand firms selling to Hypermarkets. Value is growing. It looks it’s now 6% of global sales.
Outdoor Toy partas mentioned for permanent (key driver) was really bad due to poor weather.
PERFORMING CATEGORIES
Strategic cards (+10%), interactive plush (+23%), cards (+13%), building (+2%) and pre-school figurines (+13%)
Electronic Junior, building, plush and games & puzzle were up in 2023.
Growing segment is KIDULT (+12Y old) who like collectibles, trading cards (Pokemon, too), building and adult games & puzzles. (+7% at 28% of global sales)
TOP PRODUCTS IN DECEMBER 23
FURBY, RAINBOW HIGH and BITZEE are top 3 (2 interactive plush).
5 products in top 10 are electronic junior (4 VTECH and 1 CANAL TOYS)
TOY RETAIL 23 FACTS
Smyths Toys has rebranded all their 41 shops early 23 (old PicwicToys)
Joue Club (300 shops) bought La Grande Récré (137 shops), keeping two brands (Joue Club is more in the suburbs/family, and La Grande Récré is more in the center of town/children. They keep too all contracts with Total and Club Med (corners).
King Jouet is taking back 70% of their firm (Prenatal 30% + 3 banks) and opening a special holding with Prenatal for private labels and big toy players (exclusivities).
Casino Hypermakets and Supermarkets (313 shops) are for sales in order to decrease their debt. Hypermarkets will be bought by AUCHAN and Supermarkets by INTERMARCHE. They bought already 119 Casino supermarkets this summer.
DISTRIBUTION CHANNELS
Hypermarkets are still decreasing (-10%) like Supermarkets (-9%). Non-food sections are not their priority and battle is on food.
Specialists are gaining market share and are now representing more than 40% of the market. Toy chains are -3% and multi specialists +3% due to Kid adult focus.
Online was -5% and second year decreasing (around 25% of global sales). AMAZON is still n°1 player
LICENSING
It has been quite a good year again with vigorous activity with movies (26% of global sales)
The top licenses are Pokemon, Paw Patrol, Barbie, Marvel and Harry Potter.
Barbie was a hit in August. Gabby dolls house, Disney 100, Pokemon and Lilo & Stich were performing
TRENDS
Made in France” accounts for 14% of total sales (stable). Buyers are giving these products more visibility with their Fairs, media coverage, and space in Christmas catalogs.
Kid-adult games are growing, representing 28% of total toy sales. The adults are buying regularly, and the average price is high. They have a unique space in Christmas catalogs (Games and puzzles, cards, collectibles, and building with licenses).
CHALLENGES FOR 2024
Buying Power (electricity will increase by 9% in Feb and 2024 inflation?)
Cost of containers (transport price doubled since November)
Costs for running shops which are growing
Baby born figures (any change in this negative trend? Will our government decrease some VAT for children buying or help mothers with more money for new baby born?)
