CBI Product Factsheet: Stuffed Toys in the UK ‘Practical market insight into your product’ Exporters from developing countries (DCs) can profit from the stable UK market for stuffed toys with customers that are always on the lookout for unique and innovative products. DC exporters may tap into this opportunity by supplying products to the UK middle and high-end market that promote an experience (e.g. identity or story). Macro-economic indicators look positive in the UK, stimulating the UK demand for home articles in general. Although this factsheet focuses on the UK market, most of the information also applies to other mature European markets. A mature market is a market where a product’s life cycle has passed both the emergence and growth phases. Sales and earnings increase more slowly in mature markets than in emerging markets. Mature market consumers are more experienced through years of intense marketing efforts and expanding number of choices. Whereas any segment can be targeted, most opportunities are currently in the higher market segments. Design, hand-made products and branding are of utmost importance when targeting these segments. Mature European markets include Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom. Product Definition Product Stuffed toys Theme Celebration Sharing and showing Refer to CBI Trendmapping for more information on this theme. HS codes 9502.10.90 Representing only human beings whether or not clothed (excl. of plastic) PRODCOM codes 32 40 11 00 Dolls representing human creatures 9503.00.41 Stuffed toys representing animals or non-human creatures 32 40 12 00 Animals or non-human creatures 9503.41.00 Stuffed toys representing animals or non-human creatures 9503.90.37 Toys of textile materials, N.E.S. Stuffed toys are products made out of textile fabrics and stuffed with a soft material, designed or intended for use in play by children. Stuffed toys are made in many different forms, often resembling animals, human beings, legendary creatures, cartoon characters or inanimate objects. They are often used as comfort objects, for display or collecting and given as gifts, such as birthdays. Although stuffed toys are designed for children, the product does not have to be Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Stuffed Toys in the UK exclusively intended for playing purposes in order for it to be considered as a toy; it can have a decorative function as well. Stuffed toys are also known as plush toys, plushies, stuffed animals, and soft toys or cuddly toys. Product Specifications Product specifications Quality o o The function of stuffed toys is predominantly to play with, but they can also be used for decorative purposes, making it also interesting for adults to buy stuffed toys. The quality and finishing of the material is very important, especially for the mid-range and high-end market, as this largely determines the appearance of the product. The finishing of your products is of utmost importance. Materials o Common textiles used for stuffed toys are plain cloth and pile textiles such as plush or terrycloth. Common stuffing materials are synthetic fibre batting, cotton batting, straw, wood wool, plastic pellets or beans. Labelling o Labels for transport normally include information on the producer, consignee, composition of the product and the size of the product, number of pieces, box identification and total number of boxes, and net and gross weight. Most important information on the product or packing labels for stuffed toys is composition, size, origin and care labelling. For more information and illustrations of product labelling, please refer to Labelling of home textiles under Legal requirements. o Packaging o All products should be packed in agreement with the importer. This usually consists of plastic wrapping to protect the product from water, solar radiation and staining. Proper packaging minimises the risk of damage through fluctuations in humidity. Packaging dimensions and weight should make it easy to handle. Ideally, it should be possible to place packaging together on pallets meaning that they should be stackable and if possible of a convenient size. Source: Amazon.com, 2013 Segmentation Fashionable but basic (mid-low) Trendy (mid-high) Classic or high-end fashionable (high-end) Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Stuffed Toys in the UK Legislative requirements Product safety All home textile products, including stuffed toys, introduced to the EU market should be safe when used as intended. The EU has regulated product safety in the General Product Safety Directive, which applies to all consumer products marketed in the EU. The Liability Directive states that the EU importer is liable for the products put on the European market. The EU importer, however, can in principle pass on a claim to the producer/exporter. CE marking is the most important legal requirement for stuffed toys imports entering the EU. The CE marking ensures that the product is assessed before being introduced to the market and thus satisfies the legal requirements to be sold in the EU. It also means that the manufacturer has verified that the product complies with all relevant essential requirements of the applicable Directive: Directive 2009/48/EC on the safety of toys. Chemical substances The use of several chemicals is restricted in stuffed toys. Chemicals that are likely to be carcinogenic, that may change genetic information or may harm reproduction, socalled CMR (Carcinogenic, Mutagenic or toxic for Reproduction) substances, are no longer allowed in stuffed toys. For certain substances such as nickel, the tolerable limit values have been reduced and those heavy metals which are particularly toxic, for example lead or mercury, may no longer be intentionally used in toys. Packaging Packaging and packaging waste: EU packaging legislation restricts the use of certain heavy metals, among other requirements. Considerations for action Consider implementing a management system or code of conduct in order to show to your buyer that you have taken appropriate measures to assure product safety. See the CBI Buyer Requirements database for more information: EU legislation: product safety Make sure your products are safe, in order to avoid product liability claims for defective products. Make sure that the products you introduce to the market comply with the applicable requirements of CE marking and do not present a risk to the European consumers. As importers have final responsibility for products on the EU market, they will ask you for written assurance and may require permanent communication to make sure that contact with the manufacturer can always be established. Allergenic fragrances are either completely forbidden if they have strong allergenic potential, or must be labelled on the toy if they are potentially allergenic for some consumers Make sure that your stuffed toys do not contain any of the chemicals that are prohibited in the EU. Reduce the amount and diversity of your packing materials by: partitioning inside the cartons with the help of folded cardboard, matching inner boxes and outer cartons better and standardising the sizes of each, already considering packing and logistical requirements at the design stage of the products asking your buyer for alternatives Consider using biodegradable materials which may form a market opportunity or may even be required by your buyer. Wood packaging materials used for transport: The EU sets requirements for wood packaging materials (WPM) such as packing Avoid wooden crating and packaging materials. They are increasingly banned by importers due to their high cost of disposal, Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Stuffed Toys in the UK cases, boxes, crates, drums, pallets, box pallets and dunnage (wood used to wedge and support non-wood cargo). are often unsustainable and costly. Investigate and source alternative packing materials that are economical and sustainable. If you do need to export products wrapped with or supported by wood packaging materials during transport, you have to make sure that your WPM complies with requirements. Non-legislative requirements Social and environmental responsibility on the rise Consumers are increasingly aware of the social and environmental circumstances in production. As a consequence, requirements regarding sustainability and certification are increasingly important to buyers. Implementing a management system (e.g. ISO 14000 on environmental aspects or SA 8000 on social conditions), or using sustainably produced (e.g. organic or okotex certified) products may be a competitive advantage. Considerations for action Think about sustainable production methods, covering both social and environmental aspects. You can also consider certification (for example fair trade or organic) because it adds value to your products. This is useful when targeting the higher market segments. Keep in mind that implementing management systems can be expensive. Make a proper cost calculation before you start the certification process. Codes of conduct EU buyers may expect you to comply with their supplier codes of conduct, which are often based on the ILO labour standards. This can be the importer’s own code of conduct or a code of conduct as a part of an initiative in which the importer is participating (e.g. ETI or BSCI). The Ethical Trading Initiative (ETI) is an alliance of companies, trade unions and voluntary organisations that partner up to improve the working conditions of poor and vulnerable workers across the globe who make or grow consumer goods. European buyers are increasingly taking responsibility for improving the working conditions of the people who make the products they sell. Companies with a commitment to ethical trade can adopt a code of labour practice that they expect all their suppliers to work towards. These codes address issues such as wages, hours of work, health and safety and the right to join free trade unions. The Business Social Compliance Initiative (BSCI) has been developed by European retailers to improve social conditions in sourcing countries. Suppliers of BSCI participants are expected to comply with the BSCI Code of conduct. To prove compliance, your production process can be audited at the request of the importer. Once a company is audited, it will be included in a database which can be used by all BSCI participants. Since more and more European importers participate in BSCI, you can expect that complying with the BSCI code of conduct will be seen as a basic requirement. Because it can harm your position on the market if you are far from complying with this initiative, you are advised to anticipate by performing a self-assessment, which is available at the website of BSCI. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Stuffed Toys in the UK Trade and Macro-Economic Statistics Figure 1: Total UK production of stuffed toys versus the European average per country, 2007-2011, value in € million* Figure 2: Total UK consumption of stuffed toys versus the European average per country, 2007-2011, value in € million* 6,0 180 160 5,0 140 4,0 120 100 Europe Average 3,0 European Average 80 UK 2,0 UK 60 40 1,0 20 2007 2008 2009 2010 0 2011 *Excludes data on Switzerland and UK (2007) Source: Eurostat Prodcom (2013) 2007 2008 2009 Considerations for action 2011 *Excludes data on Switzerland Source: Eurostat Prodcom (2013) The market has shown growth during recent years Apparent demand for stuffed toys in the UK amounted to € 136 million in 2011, or 23% of total European demand. The UK market showed a dip in 2008-2009, but subsequently recovered. Overall, the UK apparent demand showed an average annual decrease of 1.2% during the 20072011 period. Due to positive forecasts for GDP (Gross Domestic Product), the mature UK market is likely to grow moderately in the coming years. Stuffed toys are mainly marketed within the lower and middle market segments of the UK market. Stuffed toys for the low-end market are characterised by volume supplies, allowing low prices and margins. Stuffed toys in the middle market are fashionable products (mid-low) or addedvalue products (mid-high). UK production represents 12% of total European production, and showed an average annual increase of 9.1% during 2008-2011. This increase was foremost realized in the latter year. UK is the third largest producer in Europe, behind Spain (48%) and Germany (15%), and focuses on the mid-high and high-end segments of the market. Over the next years, production is expected to increase as consumer confidence and GDP are rising. 2010 As described in CBI´s Market Channels and Segments for Home Textiles, the traditional middle market is polarising towards lower and higher ends. The mid-high segment is advised for DC exporters who offer addedvalue products, showing your skills and story. The mid-low market can be addressed with fashionable yet basic stuffed toys. In general, the segment in which your stuffed toys fit depends on the amount of work invested in the production, finishing and materials used. Consider offering specific marketing and logistics services to your customers, thus providing them with a convenient offer. In a highly competitive industry, European importers choose the most convenient and complete suppliers which keep their promises and deliver on time. Consider the middle market segment, which is expected to offer the most opportunities to smaller-sized DC producers of stuffed toys in particular, especially if you use natural fibres, for example bamboo. The lower end of the UK stuffed toys market is dominated by Chinese high-volume suppliers. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Stuffed Toys in the UK Figure 3: 0,0 Jan-08 -5,0 Consumer confidence indicator, UK versus EU27, January 2008-February 2013 Jan-09 Jan-10 Jan-11 Jan-12 Figure 4: GDP in the UK, % change on previous year, 20102014, including predictions for 2013 and 2014 2,5% Jan-13 2,0% -10,0 UK -15,0 UK 1,5% EU27 1,0% -20,0 -25,0 -30,0 EU 27 average 0,5% -35,0 0,0% -40,0 2010 Source: Eurostat (2013) 2011 2012 Source: Eurostat (2013) British consumer confidence surpassed the EU average during 2012 Consumer confidence and GDP expectancy are important indicators for the British home textiles market, including stuffed toys. British consumer confidence shows a similar development to the EU 27 consumer confidence (see Figure 3). On the whole, British consumers are slightly more optimistic than the average EU citizen, which may have a positive impact on consumption patterns for stuffed toys. British GDP is forecasted to increase again at a strong rate towards 2014. This suggests that consumption of home textile products, including stuffed toys, is likely to rise. The market for stuffed toys is sensitive to developments in income because these are mostly non-essential items of which purchases can be postponed. However, because the UK is a mature market, growth in consumption will be moderate. 2013 2014 Considerations for action Consider the UK as a potential export destination, also during times of economic adversity, because this mature market performs relatively well in comparison with others in Europe. Monitor consumer confidence and GDP, because when these turn positive, expenditure on stuffed toys is expected to increase. Figure 5: UK imports of stuffed toys, 2007-2012, value in € million 200 10 180 9 160 8 140 7 120 6 IntraEU/EFTA 100 80 DCs 60 China Indonesia Hong Kong Vietnam 5 Thailand 4 Germany 3 40 2 20 1 Sri Lanka Ireland 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 Source: Eurostat (2013) Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer 2011 2012 CBI Product Factsheet: Stuffed Toys in the UK DC supplies dominating trade The UK imported € 206 million worth of stuffed toys in 2012, of which 91% was sourced in DCs. Imports from DCs increased by 5.8% annually on average from 20082012. Imports are expected to increase because UK production cannot keep up with the growing market. DC exporters have dominated UK imports of stuffed toys during the 2008-2012 period. Moreover, Intra-European imports show a clear decrease in the same period, indicating that this trend is unlikely to change in the coming years. Figure 6: Total UK exports of stuffed toys, 2007-2012, value in € million 60 Considerations for action Unless you have a mechanised production system, focus on added-value and niche markets where you can distinguish yourself from competitors. Your promotion strategy will play a major role in distinguishing yourself: your identity and local character should be emphasized and be resonant in all your products. Invest in long-term relationships with your buyers, giving them less incentive to switch to a competitor. In this highly competitive market, buyer power is relatively strong. They want to market the stories behind the products. If you have a special production story to tell (for example: made by women’s groups, or fairly traded), make sure to actively approach potential buyers. Figure 7: Top 10 export destinations of UK stuffed toys, 2007-2012, value in € million 18 16 Ireland 14 France 50 40 Germany 12 Spain 10 Italy 30 20 8 Netherlands 6 Belgium UAE 4 Kuwait 10 2 0 Norway 0 2007 2008 2009 2010 Source: Eurostat (2013) 2011 2012 2007 2008 2009 2010 2011 2012 Source: Eurostat (2013) Stable (re-)exports of stuffed toys UK exports of stuffed toys remained stable between 2008 and 2012, amounting to € 49 million. The decrease in exports to Ireland is most notable in Figure 7, indicating that the role as trade hub for the region has been under pressure during the crisis years. Considerations for action The regional trade hub function of the UK has diminished in the last few years, probably as a result of the economic crisis. Nevertheless, in recent years, the UK seems to have a more important role in exports to the Middle East. Market Trends Focus on trendy, eco-friendly products and ‘collection items’ In mature markets such as the UK, ‘experience’ (e.g. a feeling or desire) has become a more important status-giver to consumers than luxury (e.g. exclusive fabrics) per se. This trend is reinforced by Considerations for action Consider your strategic options in range development and positioning. If your specialisation is producing a specific type of stuffed toy, consider marketing complete collections that fit in a specific theme. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Stuffed Toys in the UK the economic crisis, driving consumer spending away from going out towards spending a bit more on home products. The 'buy local’ trend is visible in all mature markets. ‘Buy British’ is a strong trend in the UK, as is apparent in food as well as home products, including stuffed toys. These products are increasingly produced locally, aiming for the mid-high and highend market. This can impact design efforts of UK brands and the replacement of imports by local products. Consumers want to have total control over their interiors and will decorate selectively. For stuffed toys, this occurs by ‘mixing and matching’ with other home products. Consider investing in product development or a partnership with a British producer or Designer. Co-creation of producers, retailers and marketers can increase your opportunities on the market. Know your market: the main distributers and brands, trade fairs and consumer needs, and apply your knowledge to drive innovation in production, market development, pricing strategies, investment in packaging and communication etcetera. Innovate by combining materials, and/or hand-made and mechanised processes, as this is the way to develop premium lines in a market that is predominantly mid-end. Offer choice – consumers want to develop their own, personal collections and need sufficient options to do so. Collecting has been another trend in stuffed toys. They are collected and will be used depending on the mood of the consumer or the occasion (e.g. Christmas). Consumers may collect various stuffed toys according to style or brand. The social and eco trend is also visible in the market for stuffed toys. Although there is no immediate price differentiation as a result of the green (environmental and social) alternative offered, and specific communication of the added value remains indirect, green options do find a ready market. Consider developing ‘green’ alternatives and communicate your added value well to the importer to ensure that the message comes across at retail level. Source the fair-trade importer/wholesalers in the UK and EU through the European and worldwide association of fair trade retailers, online and through trade fairs. Please refer to CBI Trend mapping for Home Decoration & Textiles for more information on general trends in home textiles, and the Celebration theme in specific. Market channels and segments Please refer to CBI Market Channels and Segments for Home Textiles, because stuffed toys channels and segments do not differ significantly from this general overview. The following considerations for action should be taken into account for the stuffed toys market: E-commerce is gaining importance. Consider targeting online retailers, in order to reach a broader range of customers. This means, however, supplying small batches / being prepared to pre-stock and offering more just-in-time supply concepts. Since e-commerce is expected to grow explosively in the coming years, this is a strategy for exporters with the possibility to scale up in a short span of time. In sourcing e-tailers, exporters can consider several options: brick-andmortar retailers adding e-commerce to their concept; wholesalers developing an on-line platform; e-tailers in other sectors moving into home textiles. You are advised to keep an eye on these developments. Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer CBI Product Factsheet: Stuffed Toys in the UK Market competitiveness Please refer to CBI Market Competitiveness for Home Textiles, because stuffed toys do not differ significantly from this general overview. Useful Sources Ambiente (Frankfurt, Germany) - http://www.ambiente.messefrankfurt.com Maison & Objet (Paris, France) - http://www.maison-objet.com Heimtextil (Frankfurt, Germany) - http://heimtextil.messefrankfurt.com Spielwarenmesse (Nuremberg, Germany) - http://www.spielwarenmesse.de This survey was compiled for CBI by ProFound – Advisers In Development, in collaboration with CBI sector expert Steve Pepper Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer
© Copyright 2024