Tony Bugg, Managing Director of Toy Universe Bugg Solutions
Finally, Australia’s inflation is beginning to ease. Our economy has been facing significant cost of living pressures and households must prioritize their spending.
The toy industry is not immune to this phenomenon and has been lackluster for quite some time. On the positive side, the recent Christmas sales season may lead to positive sales performance until 2025.
From Oz to the World
Australian toy companies have a habit of going above and beyond. Distribution channels in our markets can be challenging. Therefore, focusing on international markets, including North America, has become a top priority for Australian companies.
Moose Toys, Headstart International, Hunter Products, Connetix, BMS Brands and Jellystone Designs are some of the organizations hoping to enter the world stage. The Los Angeles Toy Preview has become a destination for companies to showcase new toys in April and September.
Recent reports indicate that the landscape of the toy industry is changing, with children’s toys said to account for as much as 50% of the market share. One of the major players in this sector in Australia is Ikon Collectables, which distributes Funko and Sideshow merchandise. This market, which typically caters to older adults with good disposable income, is continuing to grow.
A turmoil in the retail industry
In terms of toy development, Kmart continues to dominate the Australian market, especially its own brand Anko. As the brand has grown, it now has a vertically integrated structure behind its growth. It offers low prices and a product line that consumers seem willing to buy.
Amazon continues to grow in our marketplace. The e-commerce giant now has seven distribution centers, allowing it to better understand the vastness of the Australian continent so it can deliver goods in a timely manner. According to many sources, Amazon has the ability to add more products to the Australian toy sector.
Independent retailers including Kidstuff, Toyworld and disposable toy stores are trying to offer diverse and extended product ranges as alternatives.
Toymate is an emerging large-scale retailer with more than 20 stores across the country. It provides another distribution channel and a level of sales.
Connections with the United States
The Australian toy industry has always had close ties with the United States, dating back to the iconic North American International Toy Expo at 200 Fifth Avenue in New York City, once known as the International Toy Center.
I clearly remember working with great American toy companies like Ertl and Galoob. Each year, Ertl offers a special collector vehicle to commemorate a visit to their showroom.
Many Aussies like to follow “Toy Guy” Richard Derr on LinkedIn to stay connected with the local retail scene on a daily basis and hear about trends directly from his Learning Express store in Illinois.
And, like many, we are closely watching how the return of U.S. President Donald J. Trump will impact our economy and global markets.
timeless toy
As many Australian companies seek to compete globally, we cannot underestimate the impact of franchises that have become international hits. Recently, the “Heroes in a Half Shell” Ninja Turtles exhibition settled in Melbourne. This glorious trip down memory lane recalls the series powered by Playmates Toys that has stood the test of time for the past 40 years.
Perhaps the next big toy brand the world will still enjoy forty years from now will come from Australia.
A version of this feature was originally published in The Toy Book’s 2025 International Innovation Issue. Click here to read the full article! Want to receive a printed copy of The Toy Book? Click here to view subscription options!
