One of the main factors influencing toys market dynamics is positive changes in demographic situation. E Toys sector is the most developing segment of the market. Experts agree and call it the most prospective sector of the baby goods market. General market size of Toys & Games is more than 4 billion USD.
Two factors that urging market development
However birth growth is unequally geographically distributed. According to Comcon, the birth growth in Moscow and other big cities has decreased and became rather stable, on the other hand in small regional towns with population from 100 ths to 500 ths people the growth increases.
Toys market growth leads not only to increase in buyers number by 60% but also to increase in expenditures connected with toys by 67%.
Another factor influencing toys market capacity is buying power of Russians. This figure grows all the time, and it means increase in expenses for children. At average at least 120 USD is spent on one child. Researches of baby goods consumer behavior performed by RosBusinesConsulting company in 13 Russian cities including Moscow, Saint-Petersburg and the biggest regional centers shown average expenses for baby goods in a one-child family amount to 160 USD per month in Moscow and 40 USD less in regional centers.
The biggest share in the market structure is taken by baby clothes – in 2008 its share will equal 39%. This segment increases mostly because of import, especially due to Chinese producers. As for baby cosmetics, according to the results of this market has increased by 23% and will grow in next years. Russian producers positions on the market are rather strong. The strongest among them are Svoboda, Nevskaya kosmetika, Kalina.
One of the most prospective segments is a diapers sector. According to experts the market saturation accounts for only 17%.
Production of baby food in Russia is on rather high level and sustains competition with Western manufacturers. Production of dry milk and mixtures for nursing babies has been developing for the last time. Technological production process of the this kind of product is the most complicated and expensive that is why the most part of breast-milk substitutes was imported to Russia however today Russian producers have rather stable positions demonstrating a growth for the last 5 years. In 2007 baby food market increased by 13% in value.
Baby shoes market as well as other sectors of baby goods market has been showing currently a positive dynamics. For 2007 its volume increased by 26%. The most part of growth consists of import products imported from the South-East Asia.
Baby furniture is considered to be the most prospective sector of the furniture market. In 2007 furniture sales volume increased by 35%, it is the highest figure comparing with other types of furniture. Russian producers take leading parts on the market – share of the import does not exceed 30%.
Parents emphasizes more in product quality
Toys sector is the most developing segment of the market. Experts agree and call it the most prospective sector of the baby goods market. General market size of Toys & Games is more than 4 billion USD. According to experts, for 2008 toys market increased by 21%. There are some factories producing competitive goods in Russia such as Elf Market, Zvezda, etc. As a result import producers take leading positions on the market. Among toys Fairs & Exhibitions should be mentioned Toy Russia as the leading and most professional.
It is necessary to notice a common trend for all mentioned above sectors of baby industry: growth of culture of consumption result in the fact that parents more worry about quality of the goods purchased for their children and respectively demand is switched to the products more expensive and of better quality as well imported from Europe as produced by domestic factories.
Baby goods market future looks positive. According to experts the following factors will prevail for the next five years:
– forming the infrastructure of organized trade;
– intensive development in regions;
– appearance of new players, and foreign ones as well;
–growth due to new sales forms;
- market consolidation due to acquisition by big players of small local companies.
The article is based on the materials of Elf Market company and other open sources.
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