INCREASED INTEREST IN RETRO AND EDUCATION PRODUCTS HELPED DRIVE 2003 U.S. TOY SALESPORT WASHINGTON, NY, February 16, 2004 - According to leading market information provider, The NPD Group, retail sales in the U.S. toy industry saw sales figures fall 3 percent to $20.7 billion in 2003 compared to $21.3 billion in 2002. Card games and spinning tops both demonstrated strong sales gains. Konami's Yu-Gi-Oh! was the number one selling license overall with over 100 percent growth. Hasbro's Beyblade product line helped fuel sales as they ended the year as the number two-ranked license behind only Yu-Gi-Oh! Additional bright spots across the industry included categories such as fashion dolls, mini dolls and special feature plush. The dolls super category was able to stay in positive territory due to a 64 percent sales increase in mini dolls & accessories, which includes play sets. Mini dolls and accessories drove doll growth thanks in large part to the revival of classic properties such as Strawberry Shortcake (Bandai) and My Little Pony (Hasbro), with Strawberry Shortcake making a comeback almost 20 years after its initial retail release. Polly Pocket by Mattel and Bratz by MGA Entertainment also helped drive this category with strong 2003 sales. Learning and exploration toys also held strong in 2003, posting a modest gain in dollar sales and eight percent gain in unit sales. "The learning and exploration category should see continued success this year," said Michael Redmond, senior industry analyst, The NPD Group. "It's a win-win situation for both children and parents. Children love to play with fun and interactive products, which also appeal to parents who want to give their children creative toys that engage kids in learning activities such as math, science and reading. All parents want to see their children excel in school. If these products can help provide that education jump-start in the home, there will be much more growth to come in this category." Within The NPD Group toy categories, action figures and accessories, building sets, infant/preschool and vehicles saw the largest percentage declines in dollar volume for each category, with losses of 15 percent, 18 percent, 12 percent and 11 percent, respectively. In 2004, these categories should rebound, with the introduction of new licensed properties and strong branded programs, which tend to drive sales with these types of product lines. Arts and crafts sales continued to see strong segment growth, posting a 5 percent increase in dollar sales and a 10 percent increase in unit sales, compared to 2002. This is the second year in a row that arts and crafts have shown strength, for both pre-schoolers and older age kids. "This year shows a lot of promise for the toy industry," said Tom Conley, president, Toy Industry Association, Inc. "With multiple movies aimed at our target market, more robust educational toys on the horizon and the continued growth of retro products, the year looks to be an exciting one for toys. Looking ahead, we are confident this business will see significant growth." The toy industry can expect to see a much more profitable year in 2004 thanks, in part, to the release of major movie properties and entertainment vehicles specifically geared toward kids. According to industry experts, action figures and accessories would have taken an even larger sales hit in 2003 if not for The Incredible Hulk, Teenage Mutant Ninja Turtles and Lord of The Rings franchises. "Licensed product, which generally comprise 25 to 30 percent of all toy product sales in any given year, helped to keep the toy industry afloat in 2003," said Redmond. "We expect licenses to again show some very bright spots in the market, thanks to the myriad kid-centric movie releases planned for 2004, and with the headliner Spider-Man 2 movie to be released over the July 4th holiday." About The NPD Group, Inc. For more information: |