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Digital entertainment is replacing dolls and board games

The toy sector has had a number of tough years behind it, during which giants including Toys’r’us and BR closed their doors for good. Unfortunately, 2020 was no exception as it has largely been a weak year in terms of growth, both on the e-commerce front and in the physical stores.

However, December was a strong month for e-commerce market participants, but e-commerce growth in 2020 remained at only 8 percent. There are several reasons behind the poor figures. The sector has been characterized by some growing pains in the wave of consolidation that has taken place over the years.


But it is also the case that the sector has expanded to a certain extent to encompass other sectors. Some toys have been electrified and have basically become home electronics. In other cases, direct competitors for children’s atten- tion have emerged in the form of computer games, apps and digital subscription services. Something that has become increasingly popular is to give away streaming services of games as a Christmas gift. This trend has been quite clear this year. Several of the major gaming companies make it possible to buy a monthly subscription where the consumer has access to a number of different computer games.


One market participant that has bucked the negative trend is the
toy company LEGO, which presented good results despite the pandemic. The reason is believed to be that the company has invested in an omnichannel model and, like some other large suppliers, is investing more in increasing consumer contact. It thereby uses digital technology to improve its consumer relationships, at the expense of retailers.

Source: The E-barometern annual report 2020

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