The Spanish toy tradition is increasingly appreciated abroad and as a result, progresses slowly and with good lyrics. Spanish toy exports grew 6.8% in 2019, until almost reaching a turnover of almost 1,900 million euros with Poland, France and the United Kingdom as the main markets, according to the report «The rules of the game 2019» of the EAE Business School. However, Spain is still far from the first exporters of these products, such as China, the United States or Germany, which exceeded 6,000 million euros in sales abroad. The Spanish items that are most bought abroad are dolls, whose sales rose 15%; the cards, which grew 10%; the tricycles with 9.77%; the skates, with another 9.77%, and the pedal cars, whose sales increased another 9.77%.
The same study also shows that within our country sales of 3,151 million euros were harvested during the current year compared to 3,046 million last year. The companies with the largest market share in this sector are Fabricas Agrupadas de Muñecas de Onil S.A (14.6%), followed by Mattel (12.20%), Hasbro (9.50%), Lego (5.20%), VTech Holding Ltd with (2.70%) and Bizak (2%). By autonomous communities, the Valencian Community, which is the one that has traditionally always had more toy companies, has been surpassed this year by Catalonia which, despite having fewer companies, exports more in terms of volume. For its part, Madrid has been the most dynamic in Spain in the last decade and the one that has increased the most in its industrial fabric.
By sales channels, internet is preferred by Spanish consumers and already reaches 37.85% share. However, one in four toys are still bought in traditional stores and supermarkets and hypermarkets do not reach 10% market share. “The large stores try to keep giving more weight to their websites to sell the same thing in another way,” says the report.
The business is not without difficulties since both in Spain and in the rest of the world, “physical” toys give way to digital, in addition, it is very atomized and no brand exceeds the two-digit quota. Against this background, the EAE Business School professor and study author, Eduardo Irastorza, points out that there are three ways of the future in the toy business. «The first is a greater concentration that translates into economies of scale and a greater profit margin; the second, greater specialization and an enhancement of the differential value that is associated with it; and the third, better coordination and lobbying to defend common interests and obtain the support of the Administration, ”he says.
The report also concludes that Amazon has established itself as the leader in the toy sector within Europe after reaching an annual turnover of 45,000 million and doubling the sales of the second operator in the ranking, MediaMarket / Saturn, which reaped sales 21,000 million euros. “Its only threat in the future can only come from Asia, if Alibaba decides to bet hard on this sector,” says Irastorza.