Home Blog Let’s Reconsider Discounting Toys for Christmas
Nov 21, 2017

Let’s Reconsider Discounting Toys for Christmas

Subscribe to our blog

The first ‘Black Friday’ email landed in my inbox with Thanksgiving still a week away. May I just say that I think this is a really bad idea? What is the point of discounting toys in the weeks and days before Christmas? The global toy industry earns 50 percent of its revenue in the last quarter of the year, so why is there a need to cut margins right at the moment when parents and givers want to (and will always) buy toys? The fact is, toy sales during Black Friday declined in UK, France, Germany, and Italy last year; only Spain – where the adoption of the event is very recent – saw an increase, so it is likely that they will follow in the footsteps of the other European markets.

What we should collectively think about is how to drive growth for the global toy industry outside of the peak season. How can we convince consumers to part with their cash in the summer, for Easter, for back-to-school, for their holiday trips, for children’s day or grandparents’ day, and so on… anything other than the run-up to Christmas!

In fact, there are some wonderful examples of occasions around the world which have grown the toy market. In my opinion, the best one for a long time has been the ‘Toy Cat’ event in Australia. Pure invention from retailers, the event started with a dual purpose: clear the decks to make space (discount) and launch brand new autumn/winter toys in the middle of their (cold!) winter as kids spend more time indoors. Though it has now fizzled out a bit as some retailers have changed their strategy, it worked well for a number of years, so much so that the ‘toy cat’ period was almost as big as December at one point.

There are many other examples from around the world where we see an uplift in toy sales: Children’s Day in Mexico; Women’s Day and Men’s Day in Russia; Chinese New Year and Singles’ Day in China; the Epiphany in Spain and Italy; and Saint Nicholas’ Day in the Netherlands and Belgium. In truth, we ARE full of good ideas and initiatives, and I have not even mentioned advent calendars or movie releases. But please, don’t discount toys in November. If anything, it brings sales forward a little and empties stores for the next two weeks. There has got to be another way.


Stay current in your industry
SUBSCRIBE

Related Blog Posts

Tagged: Toys


What Does the Future Hold for Amazon Prime Day?
What Does the Future Hold for Amazon Prime Day?

Amazon's Prime Day has evolved into a shopping holiday. Four of NPD's Industry Advisors share their insights and expectations for the future of this retail event.

The Wizarding World of Harry Potter
The Wizarding World of Harry Potter

The global toys industry is seeing an increase in Harry Potter toy sales, likely due to the launch of the Wizards Unite AR app as well as the 20th anniversary of the release of the first book

Endgame for Avatar?
Endgame for Avatar?

Avengers is about to take top spot at the global box office worldwide; and that means there’s the potential for a record-breaking year for licensed merchandise, too

The Paw Patrol Powerhouse
The Paw Patrol Powerhouse

NPD’s Sartori Bernbeck provides analysis on the importance and impact of successful cross-entertainment product strategies

Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice.

Follow Us

© The NPD Group, Inc.