With the French Toy market now worth around 4.3b Euros, Yann Fresnel of Toy Influence gives Toy World readers an overview of 2023.

Yann Fresnel

Yann has 30 years of experience selling toys to European retailers and e-retailers. He has worked for Berchet (Smoby), Newell Brands, Berg Toys and SmarTrike. In May 2021, Yann started his toy sales consultancy, Toy Influence, which represents foreign toy firms in France. Yann also conducts direct sales and marketing with retailers / e-retailers. In this article, Yann bases his comments upon data from Circana, La Revue du Jouet, the French Toy Federation and his own observations and opinions.

Results show that the French Toy market was down -5.2% in 2023, and -8% in volume. This is a similar picture to that of the German and UK toy markets, which have both shown declines of around -5%.

The market has been consistently in decline across the year – it was tracking at -4% at the end of July and the end of September, ahead of the festive season – and Christmas sales were not sufficient to turn it around. Overall, the French Toy market is now worth 4.3b Euros (losing around 220 million Euros in 2023).

One of the factors behind the drop in sales is inflation, which has been strong – up +4.9% in 2023 after rising +5.2% in 2022. In the toy sector, inflation was lower due to a high number of price promotions. However, customers were selective and cautious and ultimately bought fewer toys overall.

In addition, the French birth rate has decreased considerably (-6.6% in 2023) at 678,000. This is the lowest number since World War II and contributes to an overall decline of nearly -20% in the last 13 years.

Just like the UK, the Outdoor Toy category in France was strongly impacted by the weather in 2023, particularly in spring, and also in July in the West/North area. Sales were also down over the whole Christmas period -6%, while December as a whole was -2%. The month historically accounts for 30% of sales (27% in 2022), but in 2023, consumers shopped very late (week 51 was +7% compared to 2022).

The best performing categories were Strategic Trading Cards (+10%), Interactive Plush (+23%), Cards (+13%), Building (+2%) and Pre-school Figurines (+13%). Electronic Junior, Plush and Games & Puzzles were also up in 2023. Kidults is a growing segment – this sector increased +7%, at 28% of global sales.

The best selling products in December 2023 were Furby, Rainbow High and Bitzee. Five of the products in the Top Ten are electronic, four from VTech and one from Canal Toys.

In early 2023, Smyths Toys rebranded all of the 41 stores it acquired from PicwicToys. Joue Club (300 shops) bought La Grande Récré (137 shops), keeping the two brands: Joue Club in the suburbs and La Grande Récré in town centres. All contracts with Total and Club Med have also been maintained.

King Jouet is taking back 70% of its business (Prenatal 30% plus three banks) and opening a special division with Prenatal for private labels and own label exclusives.

Casino Hypermakets and Supermarkets (313 shops) has been seeking a buyer in order to decrease the company’s debt. It now seems that Hypermarkets will be bought by Auchan and Supermarkets by Intermarche, which has already bought 119 Casino supermarkets.

In terms of distribution channels, the market share of Hypermarkets is still decreasing (-10%), as is Supermarkets (-9%). Non-food sections like toys are no longer a priority; instead, maintaining market share on groceries has become the main focus. However, Specialists are gaining market share and now represent more than 40% of the market. Toy chains are -3% and multi specialists +3%, helped by a focus on Kidult ranges.

Online sales decreased -5%, representing a second consecutive year of decline. Amazon remains the market leader.

Licensed product has enjoyed a good year once again, thanks to some strong box office releases. Licensed merchandise accounted for 26% of total toy sales. The top licences in France are Pokémon, Paw Patrol, Barbie, Marvel and Harry Potter. Barbie saw a boost in August, following the movie release, while Gabby’s Dolls House, Disney 100, Pokémon and Lilo & Stitch all performed well.

Trends in the French market include ‘Made in France’ products, which account for 14% of total sales. These products are being given more visibility at trade fairs, in media coverage and in Christmas catalogues. Kidult games now represent 28% of total toy sales, with adults buying these products regularly and at a higher price point.

Challenges remain for 2024, as consumer budgets will come under further pressure from higher energy prices and inflation, while business costs, such as containers (transport prices have doubled since November) and the expense of running retail premises, are still increasing.

To find out more about investing in France and entering direct to retail, see Yann on LinkedIn or contact him at +33 6 48 94 02 05 or yann@toyinfluence.com.