Revue et indicateurs du marché du jouet - Septembre 2012

2. Overview and key figures of the toy market – Sept 2012

Frédérique Tutt, Europe Sector Analyst, NPD GROUP

The panel NDP France covers 69% of the market.

Weight of the toy market in the world: $ 84 billion in 2011. Growth was 1% vs. 2010 and was mainly driven by northern Europe including France, China and the Middle East.

Europe with two-speed North v South

Market growth 2012/2011

USA -2%

UK 3%

France 6%

Germany 7%

Italy -3% *

Spain -7%

(*) The first decline in the market for a long time in Italy, started declining in 2010 and confirmed in 2011.

Comparison of the average basket and the number of toys purchased by countries.

Average basket / year Number of toys Average

UK € 400 38 € 10.52 / toy

France € 249 19 € 13.10 / toy

Germany € 135 20 € 6.75 / toy

Cons market:

- The situation deteriorated during the year

- They say the market "resistant" rather than "resilient" now: increased arbitrage costs (with the purchase of particular occasion)

Positive market:

- Europe is a growing market + 3% in 2011, versus -2% in the U.S. market, a larger market

- Multinational companies are doing well, but it is harder for smaller businesses

- Low prices suffer more than others

- The online sales increase

- The +6Years old drag the market up,

- Cars drove sales (thank you Disney)

Expenditure growth between 2010 and 2011:

Parents + 9%

Godfathers, godmothers ... + 15%

Grandparents 0%

Growth by age group between 2010 and 2011:

6-8 years ?

9-11 years + 15%

12-17 years + 14%

Market weight YTD August 2011-August 2012

USA -1%

UK 0%

France -4%

Germany 4%

Italy -3%

Spain -13%

Explanations:

- Lower purchases of parents and family

- Lower demand and impulse purchases

- Growth of shopping promos: France = 16%

- Growth in online shopping: 47% in Europe and 71% in France.

- Increased credit purchases (especially the UK)

- Reduced purchases by check and cash

- Reduced purchases by employees and intermediate occupations

Also note: sales below € 20 are down and sales of more than € 20 increased by 5% between August 2011 and August 2012.

In the U.S., the market is down -7% in YTD August 2011 to August 2012.

Categories increased in France are:

- Lego

- Dolls (Monster High, Barbie)

- Electronics (VTech, Hexbugs)

Categories decreased in France are:

The Action Figures (-4%)

Licenses share:

USA Distribution Evolution

Licenses 26% -6%

Brands 46% -3%

Other 28% ?

France Distribution Evolution

Licenses 23% -7%

Brands 40% -3%

Other 27%

The weight of the film strengthens the market

7% of sales in Europe came from the movies: this is the reason for the growth in the share of licenses

Licenses Emerging from the web

USA - Angry Birds

EU - Monsters Moshy

Top licenses in France YTD August 2011-August 2012:

1. Cars

2. Beyblade

3.

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