The game and toy industry of Singapore has seen stronger growth in 2017, much hype than the previous year growth. A notable transformation has been seen in the consumer preference they are more interested in adopting interactive and Science, Technology, Engineering and Maths (STEM) toys rather than traditional toys and games. Singaporean consumers have become more optimistic about their spending this is because of the improving economy of the country. In 2017, board games gain more popularity than traditional toys and games and become a boom amongst family and friends. Consumers are now more interested in playing games and puzzles as they discovered it a great way to interact and socialise and moreover they are taking a break from technology.
Singapore’s game and toy industry generated revenue of US$ 153 million (S$ 210.91 million) and video games generated the US$ 391 million (S$ 539.13 million) in 2018. And the revenue of the gaming and toy industry is expected to show an annual growth rate (CAGR 2018-2022) of 20.1%, the market volume of the industry would result in US$ 318 million (S$ 438.47 million) by 2022. User penetration is expected to hit 8.9% by 2022, which is currently 7.5% in 2018. Whereas, in the video game industry the revenue is expected to show an annual growth rate (CAGR 2018-2022) of 8.7%, the market volume of the industry would result in US$ 545 million (S$ 751.47 million) by 2022. User penetration is expected to hit 54.2% by 2022, which is currently 45.5% in 2018.
Rapid Emerging Educational Game and Toy Industry:
The global educational toys industry is expected to grow 10% at a compound annual growth rate (CAGR) by 2021. Singaporean parents’ interest is increasing towards STEM toys with the influencing support from the government policy on toys and games. The educational market is categorized into three major categories, such as; academic, cognitive thinking and motor skills. It was the largest product segment of [the] educational toys market in 2016. These academic toys include; language learning toys, math and science kits and other toys for the three age groups children, such as 0-4 years, 4-8 years and above 8 years to provide basic and advance knowledge to them.
Government policies are fully supporting the Singaporean parents to engage their children in educational activities through the support of such educational toys and make education fun for them. Math and science kit is the most popular academic toys among children and parents, which is started at the early stage of the child, such as early head start programs, preschools and kindergartens, etc. STEM toys helping kids to experiment and get hands-on learning experiences. Parents are buying more STEM toys for their kids to allow them to play with microscopes and learn new complex concepts, like energy, motion, earth science, circuits, conductors, robotics, DNA, crystals and interactive pets, etc.
Local Brick-and-Mortar Toy Shops is More Demanding:
Local brick-and-mortar toy shops are still the first preference of the parents to purchase toys. Despite the rise of internet retailing, the local shops are at the top position. The local brick-and-mortar shops are expected to grow which is worth S$ 279.6 million in 2017. Traditional toys and games market is expected to reach 2.3% until this year. Parents’ first preference and matters the most for them is to see and touch the product when it comes to buying toys for their children. Parents look for the premium quality and safety standard which is quite impossible to get in online shopping.
Singaporean parents can go with the online shopping for themselves but when it comes to selecting any product for their children they still generally prefer the preference of their kids in person. They generally prefer to visit local brick-and-mortar shop with their tots and want their kids to choose what they want. Whereas, there are some Singaporeans who think that online shopping is more convenient and hassle-free to them. This is one of the reasons why brick-and-mortar retailers are losing their stake to online retailers gradually, who often also offer better prices.
Major Challenges to Singaporean Toy Industry:
Most of the Singaporean toy industry manufacturer setting up their manufacturing plant in the offshore region just to reduce the operating costs and stay competitive in the market. Generally, Singapore imports the toys and games from other countries. China and Japan are the leading toys and games exporting country in the world and the competition remains stiff especially from indigenous Chinese enterprises in open items. Brick-and-mortar shops help companies in developing their own brand in a country like Singapore, where people like to visit the shop for the purchase of the toys and games. Marketing and advertising of the product could be a saviour decision for the small manufacturers to stay in the competitive market and make a brand of its own.
Singapore is a highly developed nation and its government policy is aiding both their citizens as well with the businesses. Singaporean parents do not spend a larger amount of money, of their high disposable income on the toys and games. But still, parents are willing to give the best of the technology to their children to make them more efficient when it comes to the education of their child. They demand the latest technology in the educational game to develop their child in the tutorial environment and government is highly supportive.
It is a Denmark-based company, which is engaged in the development of children’s creativity through playing and learning. The company is operating its services in more than 130 countries and it is providing toys, experiences and teaching materials for children. It is the world’s third largest manufacturer of play materials and one of the most trusted brands. LEGO brick is a product of the company for both kids and adults. The companies aim is “to inspire and develop the builders of tomorrow”.
California-based global toy company develop children’s learning and developing through play. It is presently operating in 40 countries with the product sale in more than 150 nations. It net sale worth is more than $5.5 billion. Mattel is a worldwide leader in designing, manufacturing and marketing of toys and family products. Its most selling products are Barbie, Hot Wheels, Monster High, American Girl, Thomas & Friends and Fisher-Price brands, including Little People and Power Wheels, as well as a wide array of entertainment-inspired toy lines.
It is US-based global play and Entertainment Company committed to creating the World’s Best Play Experiences. Hasbro is engaged in manufacturing from toys and games to television, movies, digital gaming and consumer products, the iconic brands under the name are NERF, MY LITTLE PONY, TRANSFORMERS, PLAY-DOH, MONOPOLY, BABY ALIVE and MAGIC: THE GATHERING, as well as premier partner brands. BEYBLADE, SPIDER-MAN and THE AVENGERS from MARVEL, SESAME STREET, STAR WARS and ZYNGA are some of its licensed brands. Hasbro Inc had acquired a majority stake in Backflip Studios, in 2013.
Opportunities in the Singaporean Toy Industry:
Singaporean parents are willing to spend more on technological toys that provide a learning platform to their kids rather than any traditional toys and games. In recent years, the toy industry witnessed a remarkable growth and it is expected to grow continuously. Government is actively working in the game and toy industry so that the children take more interest in the educational activity and moreover they’re trying to make the education a sports activity more than a burden. As the government is supporting such an initiative they can also provide assistance in preparing app which can help a child in their growth not only physically but also in terms of mentally. It helps children in developing their mind in the educational activities where they are willing and curious to gather more knowledge and try to be excelling in such subjects.
In this techno-savvy era, augmented reality and virtual reality-based app help the children to grow and develop faster than the normally could develop ever. Such an app in which a child can understand and play the outdoor game at home, this will help the child in becoming more mentally active and he/she can use utilize such skill at the actual playroom in reality. It will also help a child to take active participation in the sports activity if they really like to play games in the app. With the increasing availability of toys and games in the market and also the high spending with increasing disposable income, so the new the emergent pool of customers looks beyond the common toys, such as those connected with just light, sound and motion.
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