Misfit toys: Operators will struggle amid rampant wholesale bypass and a consolidating market

Companies in the Toy and Craft Supplies Wholesaling industry in Canada have encountered significant barriers to success in recent years, due in large to increased wholesale bypass. However, industry revenue has been supported by overall economic growth, rising levels of disposable income and increased consumer confidence. Moving forward, industry revenue is projected to decline as the toy manufacturing market becomes increasingly consolidated and demand for analog toys remains limited. However, this decline will be mitigated by improving consumer conditions and an expected appreciation of the Canadian dollar...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 12-17
0.3%
Forecast Growth 17-22
Profit
Employment
2,198
Businesses
627
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • An anticipated appreciation of the Canadian dollar will bolster foreign demand for industry wholesalers
  • A depreciating dollar has negatively affected operators’ bottom lines
  • Acquisition activity will expand product offerings and access to consumer and geographic markets
  • Industry Report - Industry Analysis Chapter

    Over the five years to 2017, the Toy and Craft Supplies Wholesaling industry in Canada has become increasingly irrelevant to the overall toy and craft supplies sector. The current five-year period has been characterized by the proliferation of wholesale bypass and a rising level of consolidation within the upstream Toy, Doll and Game Manufacturing industry in Canada (IBISWorld report 33993CA), which has limited the usefulness of wholesalers in the supply chain. Fortunately for industry operators, improving economic conditions have enabled Canadian consumers to increase spending on a range of discretionary items, including toys and craft supplies. For...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 Consumer spending and Demand from hobby and toy stores 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 wholesales various toys and craft supplies, including dolls, games, fireworks, playing cards, model planes and arts supplies, excluding video games. Merchandise is largely sourced from domestic and international manufacturers and sold to retailers such as small toy and hobby stores, big-box merchandisers and discount department stores.

    Industry Products
  • Traditional toys
  • Hobby and craft supplies
  • Outdoor toys
  • Industry Activities
  • Wholesaling vehicle toys (not including bicycles)
  • Wholesaling colouring books
  • Wholesaling craft and model kits
  • Wholesaling dolls
  • Wholesaling fireworks
  • Wholesaling electronic games
  • Wholesaling playing cards
  • Wholesaling board 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
  • Consumer spending
  • Demand from hobby and toy stores
  • Demand from department stores
  • Canadian-dollar effective exchange rate index

  • Current Performance
  • Wholesale bypass
  • Exchange rate dynamics
  • Consumer conditions and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Negative revenue trends
  • Areas of opportunity
  • Profit and participation
  • 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 in Canada
  • Fabric, Craft & Sewing Supplies Stores in Canada
  • Department Stores in Canada
  • Dollar & Variety Stores in Canada

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

  • Products & Services
  • Traditional toys
  • Other
  • Hobby and craft supplies
  • Outdoor toys
  • Chart: Toy & Craft Supplies Wholesaling Industry Products and Services Segmentation

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

  • Major Markets
  • Other retailers
  • Warehouse clubs and hypermarkets
  • Hobby, toy and game stores
  • Wholesalers
  • Department stores
  • Other
  • 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
    ProfitPurchasesWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Toy & Craft Supplies Wholesaling

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Toy & Craft Supplies Wholesaling Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    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 (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    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.
  • Tweens
  • A child between the ages of eight to 12 years old.
  • Wholesale Bypass
  • A popular trend within retail and manufacturing industries where producers supply goods directly to stores, eliminating the middleman.
  • Youth Electronics
  • Toys and learning games that operate using electricity and lower level computers. They are exemplified by toy robots, simple handheld gaming systems and remote control devices.
  • What Our Customers Say

    Why buy this report?

    The Toy & Craft Supplies Wholesaling market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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
    • Quickly build competitive intelligence
    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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