Game of monopoly: Vertical integration has hindered revenue and margin growth

Operators in the Toy and Craft Supplies Wholesaling industry are expected to cope with challenging operating conditions over the five years to 2017. Large scale wholesale bypass and declining demand from department stores have been the primary drivers in its recent decline, though the industry has recovered some of the revenue lost in the wake of the recession. Still, many smaller wholesalers have been squeezed out of their traditional place in the supply chain by increasing vertical integration on the part of manufacturers. Over the next five years, industry revenue is expected to continue its decline despite the improving economy, though increased import penetration will present an opportunity for toy distributors to improve their margins...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • Vertical integration of large manufacturers has hindered industry revenue and margin growth
  • An increase in import penetration has benefited wholesalers that participate in international trade
  • Rising wholesale bypass is expected to increasingly drive smaller operators out of business
  • Industry Report - Industry SWOT Analysis Chapter

    The Toy and Craft Supplies Wholesaling industry is in the decline stage of its life cycle. Over the 10 years to 2022, industry value added (IVA), which measures the industry's contribution to the economy, is expected to decrease at an annualized rate of 0.2%. US GDP is projected to grow an annualized rate of 2.0% during the same period, indicating that this industry's contribution to GDP will decrease quickly, which is a characteristic of a declining industry.Over the 10 years to 2022, the number of establishments is expected to decrease at an annualized rate of 0.6%, as underperforming operators are expected to either merge with other players or exit the industry as industry revenue and profit decline with the contraction of downstream demand. Add...purchase to read more.

    Additional Insights for the Toy & Craft Supplies Wholesaling Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Toy & Craft Supplies Wholesaling Industry are

  • Superior financial management and debt management
  • Ability to control stock on hand
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from department stores and Import penetration into the manufacturing sector in the Toy & Craft Supplies Wholesaling industry impact industry performance..

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    What's in this report

    What is the Toy & Craft Supplies Wholesaling Industry?

    This industry consists of wholesalers of toys and craft supplies, including fireworks, games, playing cards and hobby goods. These products are purchased from domestic and international manufacturers and the merchandise is then sold to retailers, such as discount department stores, big-box stores and independent specialty toy stores.

    Industry Products
  • Traditional toys including children's vehicles
  • Video games
  • Hobby and craft supplies
  • Industry Activities
  • Wholesaling vehicle toys (not including bicycles)
  • Wholesaling coloring books
  • Wholesaling craft and model kits
  • Wholesaling dolls
  • Wholesaling electronic games
  • Wholesaling fireworks
  • Wholesaling hobby supplies
  • Wholesaling playing cards
  • Wholesaling games and puzzles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from department stores
  • Import penetration into the manufacturing sector
  • Consumer Confidence Index
  • Demand from hobby and toy stores
  • External competition for the Toy and Hobby Supplies Wholesaling industry

  • Current Performance
  • Demand fluctuates
  • Imports give industry a boost
  • Manufacturers reduce industry’s role
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand fluctuates
  • Imports give industry a boost
  • Industry threats
  • Table: Toy & Craft Supplies Wholesaling Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Toy & Craft Supplies Wholesaling Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Hobby & Toy Stores
  • Fabric, Craft & Sewing Supplies Stores
  • Department Stores
  • Dollar & Variety Stores

  • Key Selling Industries
  • Printing
  • Toy, Doll & Game Manufacturing

  • Products & Services
  • Traditional toys including children's vehicles
  • Video games
  • Hobby and craft supplies
  • Other
  • Chart: Toy & Craft Supplies Wholesaling Industry Products and Services Segmentation

  • Demand Determinants
  • Downstream demand
  • Consumer tastes
  • Vertically integrated manufacturers
  • Seasonality

  • Major Markets
  • Discount department stores
  • Big box stores
  • Independent specialty stores
  • Wholesalers and distributors for resale
  • Direct sales
  • Businesses for end use
  • Chart: Major Market Segmentation for the Toy & Craft Supplies Wholesaling Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation, rent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Toy & Craft Supplies Wholesaling

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Toy & Craft Supplies Wholesaling Industry

  • Industry Globalization
    Mattel Inc., Hasbro Inc.,
  • Table: Mattel Inc. - financial performance
  • Table: Hasbro Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Toy & Craft Supplies Wholesaling Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Toy & Craft Supplies Wholesaling Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Demand From Hobby and Toy Stores (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Age Compression
  • The state where children outgrow toys at a younger age than the target market, resulting in greater demand for more adult-like merchandise.
  • Baby Boomers
  • Consumers born between 1946 and 1964 that account for a major proportion of the population.
  • Big Box Store
  • A retail store that is differentiated by its sheer size and large range of products, including electronics, household goods and other consumer products.
  • Offshoring
  • The relocation of a company's business process, such as manufacturing or accounting, from one country to another, whether the work is outsourced or stays within the company.
  • Outsourcing
  • To procure goods or services under contract with an outside supplier.
  • Tweens
  • A child between the ages of eight to 12 years old.
  • Vertical Integration
  • Owning different parts of the supply chain, either in the form of forward integration (owning upstream suppliers) or backward integration (owning downstream buyers).
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Toy & Craft Supplies Wholesaling Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Toy & Craft Supplies Wholesaling:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Toy & Craft Supplies Wholesaling market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Toy & Craft Supplies Wholesaling, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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