Christmas Toy Sales No Fun Any More
Hypermarkets multiply their areas offering a multitude of toys, pushing traditional toy retailers to the peripheries of the Christmas shopping season.
The traditional Christmas season accounts for 60%–70% of Hungary’s annual toy sales, and hypermarkets are increasing their share of the business as they become the most popular venues for shoppers. Toy manufacturers and traders now have no other choice but pay various special fees to make sure their goods make it to the shelves of hypermarkets. According to market rumors, Lego products were not available in Cora stores for a short period recently as the two companies’ Hungarian subsidiaries could not agree on payment conditions.
Tesco hypermarkets sold a total of 3.5 million toys until mid-November. Besides famous brands, such as Lego or Playmobil, the proportion of Tesco’s own branded toys have grown. For example, a Barbie-type doll called Sally costs only a few hundred forints and Tesco wooden railways are 30%–40% cheaper than the well-known wooden toy brands. As a result of cheap Asian imports, Hungarian suppliers who do not sell international brands or cannot spend millions on advertising a new toy have been played down. Tesco-Globál Stores, for example, imports more than 200 types of toys through its Asian purchase center.
Toy sales in Hungary are estimated at HUF 18 billion–HUF 20 billion a year, out of which illegal imports account for 25%–30%. The proportion of locally manufactured toys has fallen to between 5% and 10%, experts say. Lego’s market share is around 20% in Hungary, while Hasbro Hungary Kft., the world’s second largest toy trader company’s subsidiary, posted revenues of HUF 1 billion during last year’s Christmas season. Hungary’s largest toy wholesaler Gulliver Kft. – which sells Walt Disney plush toys and Ravensburger board games among others – made HUF 3 billion in revenues last year.
The company has a variety of 16,000 toys, and 90% of this comes from imports. “Everybody concentrates on Christmas, those who would like to buy toys another time, find only marginal choice,” said Hasbro managing director Ákos Perjés. Small toy shops can compete large hypermarkets with a wider choice and a better service. “Our shop assistants know all the products,” said Zsuzsanna Szabó, marketing director at a toy shop chain called Játéksziget.
Tesco hypermarkets sold a total of 3.5 million toys until mid-November. Besides famous brands, such as Lego or Playmobil, the proportion of Tesco’s own branded toys have grown. For example, a Barbie-type doll called Sally costs only a few hundred forints and Tesco wooden railways are 30%–40% cheaper than the well-known wooden toy brands. As a result of cheap Asian imports, Hungarian suppliers who do not sell international brands or cannot spend millions on advertising a new toy have been played down. Tesco-Globál Stores, for example, imports more than 200 types of toys through its Asian purchase center.
Toy sales in Hungary are estimated at HUF 18 billion–HUF 20 billion a year, out of which illegal imports account for 25%–30%. The proportion of locally manufactured toys has fallen to between 5% and 10%, experts say. Lego’s market share is around 20% in Hungary, while Hasbro Hungary Kft., the world’s second largest toy trader company’s subsidiary, posted revenues of HUF 1 billion during last year’s Christmas season. Hungary’s largest toy wholesaler Gulliver Kft. – which sells Walt Disney plush toys and Ravensburger board games among others – made HUF 3 billion in revenues last year.
The company has a variety of 16,000 toys, and 90% of this comes from imports. “Everybody concentrates on Christmas, those who would like to buy toys another time, find only marginal choice,” said Hasbro managing director Ákos Perjés. Small toy shops can compete large hypermarkets with a wider choice and a better service. “Our shop assistants know all the products,” said Zsuzsanna Szabó, marketing director at a toy shop chain called Játéksziget.
