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 $107.74 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 75.42 (USD)*
Table of Contents
[ Close ]| 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 |
