NPD: Toys & Tech Drive Licensed Sales for Kids

This article contains excerpts from a press release published on June 20, 2017 by The NPD Group titled: “Toys and Technology Drive Licensed Sales for Kids in the U.S., NPD Finds.”

June 20, 2017 | Toys are the top licensed industry at most U.S. retailers, on par with video games, electronics, and apps, which make up a combined 22 percent of kids’ licensed product dollar sales, according to global information company The NPD Group.

Toys capture the largest share of licensed sales among younger kids, representing over one-quarter of dollar sales for kids ages 2 to 5; however, this percentage shifts as video games, electronics, and apps gain more prominence as kids get older. Video games alone garner 27 percent of sales among boys ages 10-14 (versus 14 percent for toys), and share also increases substantially among girls as they get older.

Toys capture the largest share of licensed sales for Disney Frozen, Paw Patrol, Star Wars, and Teenage Mutant Ninja Turtles. Overall, toys and video games represent the largest share for eight out of the top 10 licenses for kids. The majority of kids’ licensed purchases are made in stores, although online sales represent more than one-third of total sales across a number of industries including video games (39 percent), apps (38 percent), and electronics (33 percent). Online toy sales are just shy of that mark, at 31 percent.

“There are many variables and moving parts when it comes to licensing out a property, which means there is not one formula for success,” says Juli Lennett, NPD’s senior vice president and U.S. toys industry analyst, in a press release. “This presents an opportunity for retailers to more strategically merchandise their licensed products and diversify their offerings, giving consumers an easy opportunity to buy deep into the license. The online platform in particular is well-suited for this bundling strategy allowing consumers to buy across categories in one place, and keep them engaged in the license.”