from digital to physical—the return to nondigital toys ... · despite the rapid rise of digital...

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July24,2017

DeborahWeinswig,ManagingDirector,FungGlobalRetail&[email protected]:917.655.6790HK:852.6119.1779CN:86.186.1420.3016Copyright©2017TheFungGroup.Allrightsreserved.

Deep Dive: From Digital to

Physical— The Return to

Nondigital Toys

Deborah Weinswig

Managing Director,

Fung Global Retail & Technology

[email protected]

US: 917.655.6790

HK: 852.6119.1779

CN: 86.186.1420.3016

1) Despitetherapidriseofdigitaltechnologies,weareobservingareturntophysicalnondigital(i.e.,non-electronic)children’stoysintheUSandtheUK.Wenotetoycategoriesthatexemplifythistrend:fidgetspinners,tabletopboardgamesandpuzzles,Play-Doh,Legoaswellascollectiblessuchasdollsandfigurines.

2) Despiteever-expandingdigitaltechnologies,tangiblegoodsstillprovideconsumerswithaestheticpleasure,afeaturethatcannotbeachievedwithdigitalscreens.

3) Aspeoplespendmoretimewithsmartphonesinadigitalworld,theyarealsoincreasinglydesiringmoresocialinteraction,andface-to-facetimebecomesevenmoreimportant—andproductssuchasboardgamessatisfythatneed.

4) Theriseinphysicaltoys’popularityisalsoduetoaresurgenceofunpluggedfamilytimeandtheproliferationofnewandinnovativegames,whichisgrowingsalesinthecategories.

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Contents

ExecutiveSummary.............................................................................................................3

Introduction........................................................................................................................5

LookingAheadtoHolidaySeason2017...............................................................................6

BrandsandCategoriesSeeingGrowingDemand..................................................................9FidgetSpinner.....................................................................................................................................................9Play-Doh............................................................................................................................................................10Lego...................................................................................................................................................................10TabletopBoardGamesandPuzzles..................................................................................................................11CollectablesandFigurines................................................................................................................................13

KeyTakeaways..................................................................................................................14

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ExecutiveSummaryDespitetherapidriseofdigitaltechnologies,weareobservingariseindemandforphysical,nondigital(i.e.,non-electronic)children’sandadulttoys.Inparticular,childrenandadultsalikehaveregainedinterestintangibleentertainmentproducts,andtoyssuchasfidgetspinners,Lego,Play-Doh,tabletopboardgames,dollsandfigurines,andoutdoortoys.

DespitethehypearoundrobotictoysandtheInternetofThings(IoT),salesoftechnology-basedtoyshavenotdominatedthebest-sellercharts.Mostitemsonthetoybest-sellerlistareold-fashionedgames,dollsandLegosets.Moreover,in2016,thefastest-growingcategoriesintheUSwerephysicaltoyssuchasgamesandpuzzles.

Thetoysectorishighlycyclicalanditishardtopredictthenextbigtoyorgadgetcraze,especiallyasthesecanappearoutofnowhereandareacceleratedbytheInternetandsocialmedia.Toyfadsarealsodrivenbynewuniqueproductlaunches,andtoycompaniesarespeedingupdesign-to-marketandproductsupplycycles.

Forthe2017holidayseason,weexpectparentstoseektoysthatarenotjustentertaining,butalsodesignedtoteachchildrennewskillsandenhancecreativitythroughplaytime.Mind-buildingandeducationaltoyswillbefrontofcenter.Collectibles,tabletopboardgamesandLegowillalsocontinuetobepopular.

Source:iStockphoto

ToypurchasesarehigharoundnewmovieboxofficereleasesandnewTVserieslaunches.Cinemaboxofficesalesareusuallycorrelatedwithtoyproductdemand.Multipletoy-basedmoviesarecomingoutinthesecondhalfof2017,whichwilldrivedemandforactionfigurinesamongstkidsandadultsalike.

Mostitemsonthetoybest-sellerlistareold-fashionedgames,dollsandLegosets.

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Numerouscatalystsaredrivingthegrowthinphysicaltoysandgames.Adultsaremorefrequentlypurchasingtoysforthemselves,andsmallertoymanufacturersthatsellthroughAmazonandotherInternetretailersenablethelaunchingofnewproductsandtoyfadstospreadlikewildfire.Thepowerofblogs,onlinevideoandsocialnetworkshascreatedword-of-mouthbuzzforthetoyindustry.

Tangiblegoodsstillprovideconsumerswithaestheticpleasure,whichcannotbeachievedbydigitalscreens.Manyconsumersstillcravetheauthenticityoftangibleproductsthatcanbecollected.Thefaneconomyformovieandcartooncharactersisstimulatingsalesoftoysandcollectibleproducts.

Thereisasurgeofnew,innovativegameswithartisticandcreativedesignsandthemesbeinglaunchedonthemarket.Thegrowthofthevideogamesindustryhasparadoxicallycontributedtotheproliferationofmodernandinnovatively-designedboardgames.Numerousmobilegameshaveaphysicalversionandviceversa.

Duetotheabundanceofdigitaldistractions,parentsareseekingtospendtimewiththeirchildreninan“unplugged”familyenvironment,drivingthegrowthinphysicalgamesandpuzzles.GenZersandmillennialsareplayingalotmoregames;theylikesocialtabletopgamesbecauseitiseasytogettogetherwithfriendstoplayboardgamesandhavefun,andtosharethisonsocialmedia.

Source:iStockphoto

Tangiblegoodsstillprovideconsumerswithaestheticpleasure,whichcannotbeachievedbydigitalscreens.

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IntroductionDespitetherapidriseofdigitaltechnologies,weareobservingariseindemandforphysical,nondigitalchildren’sandadulttoys.Inparticular,childrenandadultsalikehaveregainedinterestintangibleentertainmentproductsandtoyssuchasfidgetspinners,Lego,Play-Doh,tabletopboardgames,dollsandfigurines,andoutdoortoys.ThisreportfocusesonthesetypesofproductsintheUSandtheUK.Wealsoanalyzethereasonsbehindthepopularityoftraditionaltoys,despitecontinuedtechnologicaladvancesandtheproliferationofdigitalandconnectedgadgets.

DespitethehypearoundrobotictoysandtheIoT,salesoftechnology-basedtoyshavenotdominatedthebest-sellercharts.Internet-connectedtoysstillaccountforlessthan1%ofalltoysales,accordingtomarketresearchfirmNPD.Mostitemsonthetoybest-sellerlistareold-fashionedgames,dollsandLegosets.Moreover,in2016,thefastest-growingcategoriesintheUSwerephysicaltoyssuchasgamesandpuzzles.

Figure1.2016USToyCategorySalesGrowthin%

Source:NPD

USoveralltoysalesincreased4.7%toUS$20.4billionin2016,accordingtoNPD,markingthetoyindustry'smostrobustpaceofgrowthinoveradecade.NPDforecastsrevenuewillincreasetonearly$21billionin2017.Keytoyindustrythemesfor2017includeretrotoys,boardgamesandoutdoorandsportstoys,accordingtoNPD.

Likewise,intheUK,thecollectablesmarketconsistingofdollsandfigurines,increased44%yearoveryearin2016,accountingforalmostoneoutoffourtoyssold,accordingtoNPD.Aswellascollectables,thegamesandpuzzlessectorintheUKincreased21%yearoveryearin2016.Thiscomparestooveralltoyindustrygrowthof6.3%yearoveryearintheUKduringthesameperiod.

18.0%

10.0% 10.0%

4.7%

GamesandPuzzles Dolls OutdoorandSportsToys

TotalToyIndustrySales

Internet-connectedtoysstillaccountforlessthan1%ofalltoysales.

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LookingAheadtoHolidaySeason2017Thetoysectorishighlycyclicalanditishardtopredictthenextbigtoyorgadgetcraze,especiallyasthesecanappearoutofnowhereandareacceleratedbytheInternetandsocialmedia.Toyfadsarealsodrivenbynewuniqueproductlaunches,andtoycompaniesarespeedingupdesign-to-marketandproductsupplycycles.MosttoysalesoccurbetweenJulyandDecember,inanticipationoftheholidayseason.Weexpectthefollowingclassicandretrotoytrendstocontinueinthesecondhalfof2017:

• Parentswillseektopurchasetoysthatarenotjustentertaining,butalsodesignedtoteachchildrennewskillsandenhancecreativitythroughplaytime.Mind-buildingandeducationaltoyswillbefrontofcenter.Furthermore,toysthatencouragekidstobeactiveandmovearound,aswellastoysthatencouragecommonfamilytimewillcontinuetobepopular.

• Collectiblesareexpectedtomaintaintheirpopularity,especiallywhenchildrendonotknowwhichfigurinefromacollectiontheywillreceive,asthesurpriseelementkeepschildrenexcited.

• Webelievelicensedtoysandcollectiblesmerchandisewillcontinuetogrow.Inparticular,toypurchasesarehigharoundnewmovieboxofficereleasesandnewTVserieslaunches.Cinemabox-officesalesareusuallycorrelatedwithtoyproductdemand.Multipletoy-basedmoviesarecomingoutinthesecondhalfof2017.Theseinclude(USreleasedates):

o DisneyCars3(June2017)

o Transformers:TheLastKnight(June2017)

o WonderWoman:(June2017)

o Spider-Man:Homecoming(July2017)

o TheLegoNinjagoMovie(September2017)

o MyLittlePony:TheMovie(October2017)

o Thor:Ragnarok(November2017)

o StarWars:TheLastJedi(December2017)

• ActionfigurinestiedtoblockbustermoviessuchasStarWars,Transformers,MyLittlePonyandWonderWomanwilllikelybepopularamongstchildrenandadultfansalike.

• Collectiblecharacterfiguresandgadgetstiedtothechildren’sTVseriesPawPatrol,suchasPawPatrolSeaPatroller,willalsobeindemand,asmoreseasonsoftheseriesscreeninNorthAmericaandEurope.

• LegotoysetssuchasLEGOFriendsSunshineCatamaranandLEGOBoost,aswellasanynewproductlaunchesrelatedtotheLegoNinjagomoviereleasedlaterthisyear.

• Strengthintabletopentertainmentgameswillalsocontinue.NewHasbrogamessuchasSpeakOut—Parents,ToiletTroubleandEggedOncontinuetosellwell.

Parentswillseektopurchasetoysthataredesignedtoteachchildrennewskillsandenhancecreativitythroughplaytime

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CatalystsDrivingResurgenceofPhysicalToysandEntertainmentWeidentifythefollowingcatalystsdrivingthegrowthinphysicaltoysandgames:

• Adultsaremorefrequentlypurchasingtoysforthemselves,withoneinevery11toyssoldintheUKin2016purchasedbyanadultforthemselves,accordingtoNPD.UKadults’purchasesincreasedby21%yearoveryearin2016.Pleaseseethetablebelowforthemostfrequentadultself-purchases.

Figure2.ToyCategoryPurchasesbyAdultBuyersforThemselvesin%

Source:NPD

• SmallertoymanufacturersthatsellthroughAmazonandotherInternetretailersenablethelaunchingofnewproductsandtoyfadstospreadlikewildfire.Onlineretailershavemadegamesfarmoreeasilyavailablethaninthepast,whenmanycouldonlybeboughtfromasmallnumberofspecialistshops.Furthermore,thepowerofblogs,onlinevideoandsocialnetworkshascreatedword-of-mouthbuzzforthetoyindustry.About50%ofconsumersarepostingvideosoftheirgame-playingonlineandsharingtheirfunexperiencesonsocialmedia,accordingtotoymanufacturerHasbro.

• Tangiblegoodsstillprovideconsumerswithaestheticpleasure,whichcannotbeachievedbydigitalscreens.Manyconsumersstillcravetheauthenticityoftangibleproducts.Inadigitalizedworld,consumersseektangiblegoodsthatcanbecollected.Thefaneconomy(movieandcartooncharacters)isstimulatingsalesoftoysandcollectibleproducts.

• Hasbromanagementstatedthatoverthelastcoupleofyearsithasnoticedthatconsumers,especiallyyoungpeople,areconsumingmoremediaandmoreexperiences.Thetoybusinessisoneofstory-ledbrands.Thereismorestorytellingaroundtoybrands,withmoremoviesandTVseries,whichisdrivinginterestinthetoyindustryand

Newmovies,TVseriesandcartoonlaunchesdriveinterestinthetoyindustryandindollsandcollectiblefigurines.

Onein11toyspurchasedintheUKin2016wasboughtbyadultspurchasingtoysforthemselves.

17.0%16.0% 16.0%

11.0%

GamesandPuzzles BuildingSets AcmonFigures Vehicles

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collectiblefigurinesanddolls.Childrenandevensomeadultsgravitatetobrandsandcertainmovieorcomicbookcharacters,andtheywanttoexperiencethemacrossdifferentmediums.

• Therehasbeenasurgeofnewgamesbeinglaunchedonthemarket—aproliferationofnewandinnovativegameswithartisticandcreativedesignsandthemes.NewgamessuchasPandemicandTheSettlersofCatanareengagingconsumersbecausetheyembracearangeofsubjects.Thousandsofnewtabletopboardgamesarereleasedeveryyearandthemostpopulargamessellmillionsofcopies.

• Thegrowthofthevideogamesindustryhasparadoxicallycontributedtotheproliferationofmodernandinnovatively-designedboardgames.Numerousmobilegameshaveaphysicalversionandviceversa,suchasthepopularmap-buildinggameCarcassonne.AdultcardgameMagic:TheGatheringhaditseighthstraightyearofsalesgrowthin2016.Theriseofsmartphonesandtabletshasgivenplayersaninexpensivewaytotrydigitalversionsofboardgames,andmanygoontobuyphysicalcopiesofthesamegames.

• Boardgamesfocusandinspireteamwork,somethingparentstrytoencouragethroughtoysandleisureandentertainmentactivities.Buildingphysicalthingscankeepchildrenengagedforlonger.Physicalandtactilegoods,suchasPlay-Doh,encouragelearningandcreativityinchildren.

• Hasbrohasstatedthatitbelievesthataspeoplespendmoretimewithsmartphones,theyarealsoincreasinglydesiringmoresocialinteraction,andface-to-facetimebecomesevenmoreimportant,andboardgamessatisfythatneed.Thesocialandphysicalnatureofboardgamesisbehindthephenomenon,andboardgamecafésprovideasocialnetwork.Duetoanabundanceofdigitaldistractions,parentsareseekingtospendtimewiththeirchildreninan“unplugged”familyenvironment,drivingthegrowthinphysicalgamesandpuzzles.

• AccordingtoHasbro,youngadultsarealsospendingmoremoneyandtimeonexperiences.GenZersandmillennialsareplayingalotmoregames—theylikesocialtabletopgamesbecauseitiseasytogettogetherwithfriendstoplayboardgamesandhavefun,andtosharethisonsocialmedia.

Hasbrohasstatedthatitbelievesthataspeoplespendmoretimewithsmartphones,theyarealsoincreasinglydesiringmoresocialinteraction.

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BrandsandCategoriesSeeingGrowingDemandAwealthofbrandsandcategoriesareattestingtothegrowingdemandforphysicaltoysandgames.

FidgetSpinnersThelatestcrazetoemergeinchildren’stoysisthefidgetspinner,asimple,palm-sizedgadgetthatconsistsofthreebladesofinterlockedplasticcirclesthatareflickedorspunaroundthefingerlikeapropeller.Oncethespinnerisrotating,trickscanbeperformed.Spinnertoysaregenderneutralandareconsideredrelaxationtoysthatsupposedlyincreasefocus.

Source:iStockphoto

• Saleshavesurgedandawidevarietyofretailershavestartedsellingthetoytocapitalizeonrampantdemand.Nowadays,thespinnerscanbefoundonlineandatvirtuallyeverymom-and-popstore.

• ThedeviceshavebecomesopopularthattoyretailerssuchasSmythsandToys“R”Ushaveexperiencedproductshortages.Toys“R”UsisevenairfreightingtensofthousandsoftheunitsfromfactoriesinChinatomeetcustomerdemand.

• ThefidgetspinnertrendhasboostedstorefoottrafficandisacceleratingsalesatUSdiscountretailerFiveBelow,drivingrobustshare-priceperformance,accordingtoBarron’s.Intheearlydaysofthespinnerfad,thegadgetswerehardtofind,andFiveBelowwasoneofjustafewbigUSretailersthatofferedthem.

• WalmartexecutivesstatedthatthespinnersarethebiggestcrazeforanyproductWalmarthasseeninthepastfiveyears.

• Freshonthefootstepsofthespinner,asimilarfidgettoycalledtheFidgetCubehassurfaced.AKickstarteronlinefundraisingcampaignfortheFidgetCubehasraisedUS$6.4million.Thecubeddevicefeaturesavarietyofclickable,twistableandflickablesurfaces.

WalmartexecutivesstatedthatthespinnersarethebiggestcrazeforanyproductWalmarthasseeninthepastfiveyears.

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Play-DohPlay-Dohhasremainedrelevantforover60years,andcontinuestoperformatrecordlevelsaroundtheworld.

Source:iStockphoto

• US-basedPlay-DohmakerHasbroreportedthatsalesofPlay-Dohhaveincreasedonaverageby20%annuallyoverthepastfiveyearsandthecompanycurrentlyproducesover500millioncanseveryyear.Approximately64%of2016Play-DohnetrevenueswerederivedoutsideoftheUS.

• AccordingtoUSdiscountretailerFiveBelow,do-it-yourselfslime,usingElmer’sglue,isstillpopularwithchildren.

LegoLego,theDanish-basedproducerofunisexsmallplasticbrickshascontinuedtoperformwellandcontinuestoexpandrapidly.

Source:iStockphoto

• In2016,Legosoldover75billionparts,3,700shapesandlaunched335newplaysets.

• Legoexecutiveshavestatedthatthemarketfortraditionaltoys,inwhichLegooperates,sawhealthygrowthduring2016.Globalconstant-currencyrevenuesforthefiscalyear2016increased5.5%yearoveryear.

• Duringthecomingyears,Legoexpectstoincreasesalesmoderatelyaheadoftheglobaltoymarket,whichisforecasttogrowinthelow-to-midsingledigits.

Play-Dohsaleshaveincreasedonaverageby20%annuallyoverthepastfiveyears.

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• Since2010,thebuildingsetstoycategory,whichincludesLego,hasincreasedby121%invalueterms,asofSeptember2016,growingnearlysixtimesfasterthantheoveralltoymarket,accordingtoNPD.LegoisoneofthemostfrequentlyboughtphysicaltoysamongstUKadults,accordingtoNPD.

TabletopBoardGamesandPuzzlesWearealsowitnessingaresurgenceofphysicalboardgamesandplayingcards,forbothclassicandnewgames.NPDrecordeda20%increaseinUKtabletopgamesalesin2016;thisincludescardanddicegames,wargamesplayedwithminiaturefiguresandrole-playtitlessuchasDungeons&Dragons.

• AmazonreportedthattheBananagramswordgamehasbeentheUK'sbest-sellingtoyoverthelast16years,havingsoldmorethananyothertoysince2000.Thegameisessentiallyaportablewordpuzzle.

Source:bananagram.com

• BoardgamecaféshavebeenestablishedintheUK,theUSandCanada,whereyoucanorderdifferentboardgamesonamenuandthecafésprovideforsocialinteractionandasocialnetwork.

• NewergametitlessuchasTheSettlersofCatan(nowrebrandedCatan)andCardsagainstHumanityarebecomingincreasinglypopular.

Majorglobaltoymanufacturersarealsoridingthewaveofthegrowingpopularityofanaloguetoys,andareexpandingproductintroductionsinthesecategorieseitherthroughorganicgrowthoracquisitions.

• US-basedtoymanufacturerHasbroisthelargestoperatorinthegamesandpuzzlescategoryinNorthAmerica.Thecompanystatedthatface-to-facegaming(non-digitalgamesplayedbypeopleinthesamephysicalspace)wasoneofthecompany’sfastest-growingproductcategoriesinfiscalyear2016andthatthecategoryis

In2016,UKtabletopgamesalesincreased20%yearoveryear.

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expectedtocontinuetoperformatahighlevel.Hasbro'sface-to-facegamesincludeaportfolioofclassic,well-knowngamessuchasOperation,Monopoly,Jenga,TheGameofLife,TwisterandnewergamessuchasPieFace,SpeakOutandCandyLandaswellasadultgameslikeTaboo,CraniumDarkandTrivialPursuit.

• Hasbro’sclassicgamessuchasmonopolyhavecontinuedtogrowthroughreinvention,newtechnologiesandnewformfactorsthatallowdifferentwaystoexperiencetheclassicgames.

• Thecompanykeepslaunchingnewtabletopgamesforbothchildrenandadultsusingcustomerinsightsandsocialmediascraping.PieFace,whichwaslaunchedin2015,wasthetopgameintheUSin2016,andSpeakOutwasthenumber-twonewgameintheUS.For2017,Hasbroislaunchingabroadlineofnewgames.

• Hasbrohaslaunchedasubscriptionboard-gameservicecalledHasbroGamingCrateinJune2017.TheserviceconsistsofHasbroshippingathemedboxcontainingthreebrandnewboardgamestouserseverythreemonths.

Duetotherisingpopularityofthephysicalgamescategory,CanadiantoycompanySpinMasterhasbeenbuildingupitsgamesandpuzzlesportfoliothroughacquisitions.Followingaslateofseveralacquisitions,SpinMasterisnowthenumber-twotabletopgamesandpuzzlesproducerinNorthAmericawithaportfolioofgamesandhands-ontoysincludingHeadbanz,EscapeRoom,BoomBoomBaloon,KineticRock,PotteryCoolandBuild-A-Bear.

• SpinMastersacquiredlicensedandvalue-channelgamesandpuzzlesmakerCardinalinOctober2015,obtainingclassicgametitlessuchascheckers,dominoes,cardgames,puzzles,bingo,andlicensedtitlessuchasUnoandOthello.

• SpinMasteralsopreviouslypurchasedMarbles,whichincludedbrain-buildinggamessuchasOtrio,OhSnap!,NewtonandTheSherlock,andItaliantoycompanyEGGames,whichownedsomeofItaly’sbest-knownboardgamesincludingRisikoandScarabeo.

• SpinMastermanagementbelievesthattheriseinphysicaltoypopularityismorethanaone-yeartrend,andisoccurringduetoaresurgenceofunpluggedfamilytimeandagreaterwillingnessofmoreconsumerswillingtotryoutnewgames.

• Theunpluggedthemeisalsoadriverofgrowthintheoutdoorcategory.Parentsofchildrenandteenagersliketohavetheirkidsgooutsideandmovearound.Tohaveafootholdinthefast-growingoutdoorcategorySpinMastersacquiredSwimways,amanufacturerofoutdoorrecreationtoysandproducts.TheUSoutdoorsportscategorygrewby10%yearoveryearinvaluetermsin2016,accordingtoNPD.

Hasbrostatedthatface-to-facegamingwasoneofthecompany’sfastest-growingproductcategoriesin2016.

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CollectablesandFigurinesAccordingtoNPD,theUKcollectablesmarketincreased44%yearoveryearin2016,accountingforalmostoneoutoffourtoyssold.Thiscomparestooveralltoyindustrysalesgrowthof6.3%yearoveryearin2016,accordingtoNPD.Likewise,wehavewitnessedsimilartrendsintheUSmarket.

Source:iStockphoto

CollectablesincludedollssuchasBarbieandMyLittlePony,aswellascollectiblefigurinessuchasTransformers,MarvelLegendsandStarWars-themed,aswellastoycarssuchasHotWheels.Movies,gamesandcartoonsareoverwhelminglydrivingdemandforanalogandphysicalcollectablefigurinesamongstchildrenandadultsalike.

• BarbiedollswereontheNationalFederationofRetailers’listofthemost-populargirls’giftsintheUSin2016.

• In2016,theminiatureShopkinsdollswerethemostpopularcollectible,accordingtotheBritishToyandHobbyAssociation.StarWarsactionfiguresandLegominifigureswerealsoamongthemostpopularranges,especiallyforadultsbuyingforthemselves.

• Hasbro’sgirls’divisionpostedrevenuesof50%year-over-yeargrowthinFY16.SaleswereflatteredbyshipmentsofDisneyfigurinessuchasDisneyPrincessandFrozenfashiondolls,aswellasTrollsandBabyAlivebabyfigures.

• Newcompanieswithinnovativeeducationalproductsandfinecraftsmanshiparealsoenteringthemarket.Forexample,London-basedPapineeproducesupscalecollectibleplushtoysandstory-tellingkits.

In2016,collectablesaccountedforoneinfourtoypurchasesintheUK.

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KeyTakeaways• Despiteanincreasinglydigitalizedworldandaplethoraofdigital

entertainment,suchasdrones,videogameconsolesandsmartphonegames,wearewitnessingarevivalofinterestintraditional,nondigitizedchildren’sandadulttoysandgadgets.

• Physicaltoysandgamestargetgamersofallages,andprovideanostalgicandsoothingantidotetoanincreasinglytechnologicalworld.

• Theglobalappetiteforentertainmentisgrowing,drivenbynewcontentandnewplatforms.Toypurchasesarestronglyinspiredbystrongmediacontentcycles.

Wearewitnessingarevivalofinterestintraditional,nondigitizedchildren’sandadulttoysandgadgets.

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DeborahWeinswig,CPAManagingDirectorFungGlobalRetail&TechnologyNewYork:917.655.6790HongKong:852.6119.1779China:86.186.1420.3016deborahweinswig@fung1937.comEvaKubickaSeniorResearchAssociateHongKong:8thFloor,LiFungTower888CheungShaWanRoad,KowloonHongKongTel:85223004406London:242-246MaryleboneRoadLondon,NW16JQUnitedKingdomTel:44(0)2076168988NewYork:1359Broadway,18thFloorNewYork,NY10018Tel:6468397017

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from digital to physical—the return to nondigital toys ... · despite the rapid rise of digital...

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