Played out: Industry revenue is anticipated to decline as wholesale bypass persists

Operators in the Toy & Craft Supplies Wholesaling industry are expected to cope with challenging operating conditions over the five years to 2018. 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
Revenue
$28bn
Annual Growth 13-18
-1.1%
Forecast Growth 18-23
Profit
Employment
38,610
Businesses
9,573
Market Share of Companies

Industry Threats & Opportunities

  • Vertical integration of large manufacturers has hindered industry revenue and margin growth
  • Toy imports have been on the rise as a share of domestic demand over the past five years
  • Low input and labor costs will likely continue to entice manufacturers to offshore and outsource
  • Industry Report - Industry Investment Chapter

    The Toy & Craft Supplies Wholesaling industry has a low level of capital intensity. This is typical for industries within the wholesale sector, as companies predominantly rely on human labor, rather than capital assets, to execute their daily operations. IBISWorld estimates that, in 2018, for every dollar spent on wages, an expected $0.05 will be spent on capital investments.The main function of wholesalers is to get products to market. Therefore, the industry requires experienced workers for daily tasks such as marketing, preparing, checking and shipping orders to customers. In addition, since this industry exhibits high internal competition, sales personnel are required to help form relationships with key retailers...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
  • Import boost
  • Manufacturers reduce industry’s role
  • Chart: Revenue Growth

  • Industry Outlook
  • Import penetration
  • Threats to the industry
  • 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
  • Other
  • Hobby and craft supplies
  • 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Per capita disposable income (2009-2023)

  • 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?

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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

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