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Annual Sales Volume of Toys for Children in Russia

In recent years, the sales volume gradually increased on the Russian toy market for kids. In 2018, over 190 billion Russian rubles worth of sales were recorded, indicating a growth rate of roughly 80 percent relative to 2015 levels. For 2023, the sales volume is expected to reach over 255 billion Russian rubles.
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Quoted from Statista "Annual sales volume of toys for children in Russia from 2014 to 2023*"

The development of traditional toys and games in Russia is fostered by record birth rates and an increase in the young population. As licensing has become more common in toys and games, branded products by international players have remained the most demanded. However, with the adoption of a strategy of development of children’s products at a governmental level, the situation is gradually changing in favour of local manufacturers.

The toys and games industry is sensitive to sociological, economic and legislative changes; however, one of the most important factors remains a favourable demographic situation. Thus, a rise in the birth rate offers significant growth opportunities for toys and games players. The baby boom, which started in Russia in 2007, continued to stimulate demand for various children’s goods, particularly toys and games.

Toy industry benefits from changing demographics
Evolving priorities and living standards in Russia will be reflected in the choice of toys and games. Branded and licenced products will gain higher attention, while low-quality no-name products will become less appealing. Increased interest in the educational component of the toy or game may become a key factor for local manufacturers, which have a strong methodical approach to development.

The growing penetration of broadband internet and more accessible TV channels will result in higher consumption of licenced toys and games. In addition, rising income levels will support other entertainment facilities and activities, such as theme/amusement parks, films and shows. These facilities and activities often promote particular films or cartoon characters, thereby raising awareness and pushing sales of licenced toys and games. Interactivity is expected to be another key focus area in the forecast period, as children become used to electronic devices and demand dynamic toys and games.

Licenced products continue expansion within Russian toys and games
According to a Disney Consumer Review, licenced children’s goods in Russia is expected to triple by 2022, with licenced toys and games leading the growth. However, growth rates will decline as greater saturation is reached.

More local licences will be introduced in Russian toys and games as Russian brand owners become more aware of licensing mechanisms. Fixiki, a locally developed licence which received the award for “Best Lisenced Product 2012”, was one of the most popular Russian licences in 2014. Created in Russia, the cartoon series narrates stories to children, explaining the joys of the technical world. Having expanded to 70 countries, the cartoon series will keep expanding to Southeast Asia in 2014, as Discovery Networks Asia-Pacific has acquired the broadcasting rights for at least 100 episodes.

Government supports the development of local children’s goods industry
Parents pay more attention to the quality and safety of toys and games, recognising marking and certification signs. Responding to the concerns of both manufacturers and consumers, the government has turned its attention to children’s goods, particularly toys and games, establishing a strategy for the development of children’s products up to 2020.

The strategy was initially proposed in 2013 by The National Association of Children’s Goods. Its adoption in 2013 meant distinguishing children’s goods as a separate industry. The strategy’s main aim is to increase the quality and safety of products and ensure affordable prices. The initiative is also intended to enhance small and medium enterprises, boost exports and stimulate research and development.

Governmental support of the industry is planned to be implemented in three stages, the first being from 2013 to 2015, the second from 2016 to 2018 and the third from 2019 to 2020. During these stages, the Russian industry of children’s goods will benefit from assistance in opening new companies, tax cuts and subsidies for local manufacturers and restriction of illegal and low-quality imports.

Design and quality are becoming key factors for Russian consumers
Russia has bright prospects of developing and designing its own brands. Alongside attention to the physical quality of toys and games, the psychological quality is also taken into consideration. Toys and games’ aesthetic appearance and the meaning of the stories behind them is becoming increasingly important to parents. Keeping toys and games visually pleasant requires a better and more thought-out design, which may become an industry trend in the forecast period.

Puzzle, construction toy and board game manufacturers will have the brightest prospects among local companies. These companies have gained a strong position within toys and games in Russia and have potential to expand internationally. Local manufacturers’ value shares of scientific/educational toys, which are highly demanded by Russian parents, are also set to grow. Wooden toys will also stay in demand, as the ecological aspect is becoming more important to Russian consumers.