NPD Group Names Toys, Technology as Top Kids’ Licensed Products
June 21, 2017,
The NPD Group’s U.S. Kids License Report reveals the shift in licensed products sales by age.
According to the report, toys capture the largest share of licensed sales among younger kids, representing over one-quarter of dollar sales for kids ages 2-5. However, this percentage shifts as video games, electronics and apps gain more prominence as they get older. Video games alone garner 27 percent of sales among boys ages 10-14 (versus 14 percent for toys), and this share also increases substantially among girls as they get older.
Looking at the industry distribution for the top 10 licenses on the market, toys and video games capture the largest share for eight out of the top 10 licenses, illustrating the weight carried by each of these industries.
In terms of purchase method, the majority of kids’ licensed purchases are made in stores across industries, though online sales represent more than one-third of total sales across a number of them including video games (39 percent), apps (38 percent) and electronics (33 percent). Online toy sales are just shy of that mark, at 31 percent. Among these industries, specialty stores compete with mass chains and the online channel for share of licensed spending.
“There are many variables and moving parts when it comes to licensing out a property, which means there is not one formula for success,” said Lennett. “This presents an opportunity for retailers to more strategically merchandise their licensed products and diversify their offerings, giving consumers an easy opportunity to buy deep into the license. The online platform, in particular, is well-suited for this bundling strategy allowing consumers to buy across categories in one place, and keep them engaged in the license.”
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