Scope and Methodology

• Scope of Report and Methodology

The Market


• Overall Retail Sales Climb to $8.6 Billion
• Table 1-1: U.S. Retail Sales of ITP Home Furnishings and Toys, 1998-2007 (in billions of dollars)
• Sales by Category
• Retail Channels
• New Products Will Drive Market Growth

The Marketers


• Major Marketers and Brands
• The Competitive Situation
• Marketers Spend Over $100 Million on Advertising in 2001

The Consumer


• Overview of Consumer Purchasing

Chapter 2: The Market

Market Size and Growth

• Market Definition
  • Home Furnishings
  • Toys
  
  
• Methodology for Packaged Facts’ Estimates
• Retail Sales Top $8.6 Billion in 2002
• Home Furnishings Category at $5.83 Billion in 2002
• ITP Toy Sales Reach $2.8 Billion in 2002
• Figure 2-1: Estimated U.S. Retail Sales of ITP Home Furnishings and Toys, 1998-2002 (in billions of dollars)
• Table 2-1: Estimated U.S. Retail Sales of ITP Home Furnishings and Toys, 1998-2002 (in billions of dollars)
• Table 2-2: Estimated U.S. Retail Sales of ITP Home Furnishings, 1998-2002 (in billions of dollars)
• Table 2-3: Estimated U.S. Retail Sales of ITP Toys, 1998-2002 (in billions of dollars)

Market Composition


• Home Furnishings Account for 67% of Retail Dollars
• Market Composition by Retail Channel
• Mass Merchandisers Lead Home Furnishings Sales…
• …And Control Nearly Half of Toy Sales
• Figure 2-2: Estimated Share of ITP Home Furnishings and Toys Dollar Sales by Category, 2002 (percent)
• Figure 2-3: Estimated Share of ITP Home Furnishings Dollar Sales by Retail Outlet, 2002 (percent)
• Figure 2-4: Estimated Share of ITP Toys Dollar Sales by Retail Outlet, 2002 (percent)

Market Forecasts


• Demographic Trends
  • The Rising Birth Rate
  • More Older Mothers
  • Higher Disposable Income Means More Spending on Furnishings and Toys
  • Grandparents a Prime Market
  • Ethnic Populations Growing
  
  
• Market Dynamics
  • Poor Economy Hampers Sales in 2002
  • Convenience Yields Duplicate Sales
  • New Safety Legislation Boosts Home Furnishings Sales
  • New Product Classifications A Plus
  • Child Safety Products Booming
  • The Portable Baby
  • High-Ticket Toys Drive Dollar Growth
  • Educational Toys
  
  
• Sales to Top $11.0 Billion by 2007
• Table 2-4: U.S. Population of Children Age 5 and Under, 1998-2010 (in thousands)
• Table 2-5: Projected U.S. Retail Sales of ITP Home Furnishings and Toys, 2002-2007 (in billions of dollars)
• Table 2-6: Projected U.S. Retail Sales of ITP Home Furnishings, 2002-2007 (in billions of dollars)
• Table 2-7: Projected U.S. Retail Sales of ITP Toys, 2002-2007 (in billions of dollars)

Chapter 3: The Competitive Situation

Marketers and Brands

• About 500 Competitors
• Home Furnishings Leaders
• Other Hard Goods Leaders
• Soft Goods and Nursery Accessories Leaders
• Child Safety Products
• Second-Tier Home Furnishings Marketers
• Three Dominant Toy Marketers
• Licensing Companies
• Table 3-1: Selected U.S. Marketers of ITP Home Furnishings and Toys

Marketing Trends


• Licensing Continues to Be Big Business
• Licensing Trends
  • ”Evergreens”
  • Current TV Characters
  • Extending and Borrowing Brand Equity
  
  
• Home Furnishings Trends
  • Products Evolving
  • Car Seats
  • Strollers
  • High Chairs
  • Cribs
  • Child Safety Products
  • Adding Bells and Whistles
  
  
• Toy Trends
  • Smarter “Smart Toys”
  • Aromatherapy Toys
  • Bilingual Toys
  
  
• Marketers Spend Over $100 Million on National Advertising
• Mattel’s Fisher-Price the Leading Advertiser, at $71 Million
• Advertising Positioning
• Consumer Promotions

Retail and Internet Trends


• Focus on Mass Merchandisers
  • Key Advantages: Value Pricing + One-Stop Shopping
  • Mass Merchandisers Upgrading Kids’ Home Furnishings
  
  
• Focus on Specialty Chains
  • Three Types of Specialty Chains
  • Key Advantages: Depth of Selection + Location, Location, Location
  • Furniture Specialty Chains Growing Rapidly
  • Newest Strategy: Strategic Stores-within-Store Alliances
  • High Drop-Out Rate for Educational Toy Stores
  
  
• Focus on Independent Specialty Stores
  • Key Advantages: Unique Items + Superior Customer Service
  
  
• Focus on the Web: E-Commerce
  • An Increasingly Viable Option
  • Key Advantages: Availability + Ease of Shopping + Price
  • EBay Siphoning Sales from Traditional Toy Retailers

Chapter 4: Competitive Profiles

Competitive Profile: Crown Crafts, Inc.

• Corporate Background
• Product Areas
• Competitive Advantage: Valuable Licenses

Competitive Profile: Dorel Industries, Inc.


• Corporate Background
• Product Areas
• Competitive Advantages: Well-Known Brands and Distribution

Competitive Profile: Hasbro, Inc.


• Corporate Background
• Hasbro Retrenching
• Hasbro Letting the Ball Drop in ITP

Competitive Profile: LeapFrog Enterprises, Inc.


• Corporate Background
• Product Areas
• Competitive Advantages: A Winning System

Competitive Profile: LEGO Co.


• Corporate Background
• LEGO Under Fire
• LEGO Preschool
• Competitive Advantages: Iconic Status and Large-Scale Promos

Competitive Profile: Mattel, Inc.


• Corporate Background
• Fisher-Price: The World’s Largest ITP Toys Marketer
• The Most Extensive Product Line
• Recent Product Introductions
• Competitive Advantages: Number One and Not Resting on Laurels

Competitive Profile: Newell Rubbermaid, Inc.


• Corporate Background
• Product Areas
• Competitive Advantage: Aggressively Turning the Business Around

Chapter 5: The Consumer

Demographics

• Note on Simmons Survey Data and Figures
• Overview of Purchasing
• Purchasing Patterns
  • A Family Profile
  • Asians - no Hispanics - Are Prime Consumers of Infant Toys
  • Regional Skew to the Northeast
  • Higher Education = Higher Sales
  • Middle- to High-Income Skew
  
  
• Table 5-1: Adult Purchasers of ITP Toys, 2002 (% of U.S. households)
• Table 5-2: Demographic Characteristics Favoring Purchase of Infant Toys vs. Preschool Toys, 2002 (U.S. adults)
• Table 5-3: Purchasing Indices for ITP Toys: By Presence of Children by Age, 2002 (U.S. adults)
• Table 5-4: Purchasing Indices for ITP Toys: By Age Bracket of Purchaser, 2002 (U.S. adults)
• Table 5-5: Purchasing Indices for ITP Toys: By Household Size, 2002 (U.S. adults)
• Table 5-6: Purchasing Indices for ITP Toys: By Ethnic Group, 2002 (U.S. adults)
• Table 5-7: Purchasing Indices for ITP Toys: By Region, 2002 (U.S. adults)
• Table 5-8: Purchasing Indices for ITP Toys: By Educational Attainment, 2002 (U.S. adults)
• Table 5-9a: Purchasing Indices for ITP Toys: By Household Income Bracket, 2002 (U.S. adults)
• Table 5-9b: Purchasing Indices for ITP Toys: By Household Income Bracket, 2002 (U.S. adults)
• Overview of Purchasing: Home Furnishings
  • A Family Profile
  • Blacks Are Largest Group
  • Regions: Midwest for Infants, West for Children
  • Higher Education = Higher Sales, But Not Always
  • Middle- to High-Income Skew
  
  
• Table 5-10: Adult Purchasers of ITP Furniture, 2002 (% of U.S. households)
• Table 5-11: Demographic Characteristics Favoring Purchase of Infant Furniture vs. Children’s Furniture, 2002 (U.S. adults)
• Table 5-12: Purchasing Indices for ITP Furniture: By Presence of Children by Age, 2002 (U.S. adults)
• Table 5-13: Purchasing Indices for ITP Furniture: By Age Bracket of Purchaser, 2002 (U.S. adults)
• Table 5-14: Purchasing Indices for ITP Furniture: By Household Size, 2002 (U.S. adults)
• Table 5-15: Purchasing Indices for ITP Furniture: By Ethnic Group, 2002 (U.S. adults)
• Table 5-16: Purchasing Indices for ITP Furniture: By Region, 2002 (U.S. adults)
• Table 5-17: Purchasing Indices for ITP Furniture: By Educational Attainment, 2002 (U.S. adults)
• Table 5-18a: Purchasing Indices for ITP Furniture: By Household Income Bracket, 2002 (U.S. adults)
• Table 5-9b: Purchasing Indices for ITP Toys: By Household Income Bracket, 2002 (U.S. adults)

Chapter 6: Looking Ahead

Trends and Opportunities

• Value-Added, Convenient Products
• Interactive and Educational Toys
• Aromatherapy Products
• Targeting Ethnic Markets

Appendix: Addresses of Selected Marketers