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manufacture retail trade toys games industry south africa

The Manufacture and Retail Trade of Toys and Games Industry in South Africa 2017

Yasmin Mahomedy | South Africa | 13 December 2017

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Introduction

This report focuses on the manufacture of toys and games in South Africa, a sector that consists of products that are mainly handmade, produced in small workshops and that do not carry brand names. The formal toys and games sector is dominated by imported branded products and there is very little local manufacture in this segment of the industry. The estimated value of the total retail toy market is R9.6bn. As most toys, games and gaming devices are imported, the industry is affected by the Rand/Dollar exchange rate. This has had negative implications especially for the cost of video games in South Africa, as prices are usually set by the international publisher in US dollars.

Strengths

• All the most popular international brands are available locally.
• Well established distribution channels.

Weaknesses

• Lack of enforcement of safety standards.
• The Film and Publications Amendment Bill is expected to negatively impact on game development in South Africa.
• The sector is heavily reliant on imports and is vulnerable to fluctuations in the local currency.
• Very little local toy manufacturing.

Opportunities

• Expansion into the rest of Africa
• Growing demand for educational toys.
• Growth in online shopping provides opportunities for retailers to increase sales by offering online shopping facilities.
• Growth in the local game development sector.

Threats

• Counterfeit and grey products make legitimate traders seem uncompetitive in terms of price.
• Increasing input costs for manufacturers and retailers.
• Rising inflation impacting on the disposable incomes of customers.

Outlook

While the serious games sector in South Africa represents a small portion of the overall game development industry, the sector is steadily growing. In the medium-term, the serious games sector is expected to benefit from increasingly successful and sustainable studios and an active hobbyist community. However, the South African economy is not expected to improve significantly over the medium-term especially as increasing utility costs and high consumer debt/income ratio are expected to continue negatively affecting consumers’ disposable incomes. Although these factors are expected to have a negative impact on most retailing channels, sales of toys and games are expected to experience slight growth, which will mainly be driven by increased sales of video games.

The Manufacture and Retail Trade of Toys and Games Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $99.18 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.43 (USD)*

Table of Contents

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PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 7
4.1. Local 7
4.1.1. Corporate Actions 10
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 14
5. INFLUENCING FACTORS 15
5.1. Economic Environment 15
5.2. Rising Operating Costs 16
5.3. Safety Concerns and Counterfeit Products 16
5.4. Technology, Research and Development (R&D) and Innovation 17
5.5. Labour 19
5.6. Cyclicality 20
5.7. Environmental Concerns 20
6. COMPETITION 21
6.1. Barriers to Entry 22
7. SWOT ANALYSIS 22
8. OUTLOOK 23
9. INDUSTRY ASSOCIATIONS 23
10. REFERENCES 23
10.1. Publications 23
10.2. Websites 24
COMPANY PROFILES 25
AMIC TRADING (PTY) LTD 25
CHILDISH TRADING AND MANUFACTURING (PTY) LTD 28
ENSOLOR (PTY) LTD 30
FAIRY TALES BOUTIQUES CC 32
FORMULA D DESIGN CONSULTANCY CC 34
FUZZY LOGIC (PTY) LTD 36
GLOBAL TOYS CC 37
K MARCUS 39
MELBRO RETAIL (PTY) LTD 40
MYKATRADE 75 CC 42
NEW JUST FUN GROUP (PTY) LTD 43
NOMHLE-KHABO TRADING ENTERPRISE CC 45
PEGASUS TOYS CC 46
PRIMA TOY AND LEISURE TRADING (PTY) LTD 47
PRIMEDIA (PTY) LTD 49
SCIENTASTIC INVENTIONS CC 53
SEA MONSTER ENTERTAINMENT (PTY) LTD 55
SOLARPOP DISTRIBUTION (PTY) LTD 57
SOMERSET BABY HYPER (PTY) LTD 58
T LOMBARD 60
TOY KINGDOM HOLDINGS (PTY) LTD 61
W VENABLES 63