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

IBISWorld’s Toy & Craft Supplies Wholesaling market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.


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

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    Industry Analysis & Industry Trends

    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...

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    Industry Report - Industry Analysis Chapter

    The past five years have been challenging for operators in the Toy & Craft Supplies Wholesaling industry, as revenue has suffered due to increasing wholesale bypass. The industry’s financial performance never fully recovered from the recession, when industry revenue plummeted 29.6% due plaiting demand for industry items and falling selling prices. Following a postrecessionary rebound, the industry has contracted during much of the current five-year period. Over the five years to 2017, industry revenue is expected to decrease at an annualized rate of 2.4% to $25.1 billion. This includes a projected 1.2% revenue decline in 2017.


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    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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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

  • Products & Markets
    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
    Competitive Landscape
    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
    Major Companies
    Mattel Inc.Hasbro Inc.
  • Table: Mattel Inc. - financial performance
  • Table: Hasbro Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    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
    Jargon & Glossary
    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.
  • Why buy this report?

    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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