Toys Market in Europe to grow at a CAGR over 3% during 2016-2020

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Market outlook of toys in Europe

E-retailing has become an emerging trend for almost all types of retail services. The rise in online line sales of toys and games is one of the major factors driving the growth of the toys market in Europe. Technavios market research analyst expects the toys market in Europe to grow at a CAGR over 3% between 2016 and 2020. The prices offered are often lower online because of a reduction in overhead costs. The European online retailing market grew by almost 18% in 2014 from 2013.

The eco-friendly toys made from materials such as wood, cardboard, and organic cotton is another fast-moving trend propelling the growth of the market. For instance, Oompa toys, the online retail toys store provide organic toys, high-quality toys, and wooden toys that are safe to play compared to the other toxic toys, which are also harmful to health. Green Toys is another company that makes toys from recyclable plastic milk bottles. They had a tie-up with Walmart to sell their toys, as it was the most preferred shopping venue for the customers.

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Product segmentation and analysis of the toys market in Europe

Plush toys
Infant/pre-school toys
Activity toys
Games and puzzles

Others (electronic toys, construction toys, raffles and musical toys)
Plush toys have gained significant popularity among children over the years. Hence, this segment dominated the global toys and games market as of 2015. Hugo, Disney, Garbaris, Munecas Rauber, Bedtime Originals, and Mary Meyer Corporation are some of the top vendors providing plush toys.

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Segmentation and analysis by distribution channel of the toys market in Europe

Specialty stores
Hypermarket, supermarket, and discounters
Departmental stores
General stores

Specialty stores dominated the toys market in Europe in 2015. It includes independent retail stores that exclusively offer products in a single category. They sell branded toys and games and have traditionally been the principal shopping destination for parents.

Competitive landscape and key vendors

The toys market in Europe is marked by the presence of multiple large and small retailers/suppliers and large retail chains. Specialist retailers find it difficult to compete with retail giants that operate large stores such as hypermarkets and supermarkets because they enjoy economies of scale and offer products at lower prices than specialist retailers. Differentiation of products, price, low brand loyalty, low buyer switching costs, easy availability of products, and rapidly changing technology are some of the dominant factors that outlines the toys market in Europe.