by TONY BUGG, Managing Director, Bugg Solutions, The Toy Universe
Finally, inflation in Australia is beginning to ease. Our economy has been experiencing significant cost-of-living pressures, and families must prioritize their spending.
The toy business is not immune to this phenomenon and has been flat for some considerable time. On a positive note, the recent Christmas selling season may spark positive sales results leading into 2025.
FROM OZ TO THE WORLD
Aussie toy companies have a habit of punching well above their weight. Channels of distribution in our market can be challenging. Therefore, focusing on the international market, including North America, has become a key priority for Australian companies.
Moose Toys, Headstart International, Hunter Products, Connetix, BMS brands, and Jellystone Designs are some organizations looking to enter the world stage. The L.A. Toy Previews have become a destination for companies to showcase their new toys in April and September.
Recent reports suggest that the shape of the toy business is changing, with the kidult category said to be as much as 50% of the market. One of Australia’s major players in this space is Ikon Collectables, which distributes Funko and Sideshow merchandise. This market, which generally caters to an older demographic with good disposable income, is holding up.
RETAIL RUMBLINGS
Regarding the evolution of toys, Kmart continues to dominate the Australian market, particularly with its in-house brand Anko. As this brand has evolved, it now has a vertically integrated structure behind its development. It offers low prices and a range that consumers seem comfortable buying.
Amazon continues to grow in our market. The e-commerce giant now has seven distribution centers and better understands the Australian continent’s vastness to make timely deliveries. According to many sources, Amazon has a significant capacity for additional listings in the Australian toy space.
Independent retailers, including Kidstuff, Toyworld, and one-off toy shops, are trying to offer diverse and extended product ranges as an alternative.
Toymate is a new and emerging big-box retailer with more than 20 outlets nationwide. It offers another distribution channel and a level of volume.
THE U.S. CONNECTION
The Australian toy biz has always had strong connections with the U.S., dating back to the iconic North American International Toy Fairs held at 200 Fifth Avenue in New York City, once known as The International Toy Center.
I fondly remember dealing with great American toy companies such as Ertl and Galoob back in the day. Each year, Ertl offered a special collectible vehicle to commemorate a visit to their showroom.
Many Aussies love to follow Richard Derr, “The Toy Man,” on LinkedIn for a daily connection to on-the-ground retail and insight on trends directly from his Learning Express store in Illinois.
And, like many, we are monitoring closely how the return of U.S. President Donald J. Trump will impact our economy and the global market.
TIMELESS TOYS
As many Australian companies seek to compete globally, we cannot discount the influence of franchises that have become international hits. Recently, “Heroes in a Half Shell,” The Teenage Mutant Ninja Turtles Exhibition set up shop in Melbourne. This brilliant journey down memory lane was a welcome reminder of a franchise — driven 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 four decades from now will originate 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 issue! Want to receive The Toy Book in print? Click here for subscription options!
