KITA News
  • Fast Growing Indonesian Toy Market, Need to Target Niche Markets of Kidult - High Tech
    2019-01-02 hit 1016

     

    Fast Growing Indonesian Toy Market, Need to Target Niche Markets of Kidult · High Tech

     

    - KITA analyzed Indonesian toy market Need to read market trends and diversify customers and products -  

     

    In order to advance into the fast-growing Indonesian toy market, Korean companies need to pay attention to kidult, high-tech, and interactive toys.

                                         

    According to a report titled ‘Trends in Indonesian toy market and Entry Strategy’ issued by the Institute for International Trade (President, Shin Seung-kwan) of the Korea International Trade Association, the Indonesian toy market grew at annual average of 7.4 percent over the past five years, and reached 478 million dollars last year. South Korea's exports of toys to Indonesia are growing dramatically with the increase of 25.8 percent year-on-year until October.

     

    The report states, "In Indonesia, girls consume more toys than boys, and the main consumer segment the 7-12 year olds but the segments of under 6 year olds and over 20 year olds are increasing." By type, blocks such as Lego and radio controlled toys, and the characters of movies and animations are popular. In recent years, awareness of products based on Korean characters such as Pororo and Tayo have also been rising.

     

    Indonesian parents prefer to purchase the products after check them offline in person in order to verify their child safety and toy fitness. Offline toy stores’ share is the highest at 48 percent of each distribution channel. However, recently, online sales have been increasing as it is easier to open an online store than offline stores and fixed costs are low. Therefore, the manufacturers and sellers who want to enter into the market are welcoming the trend.

      

     

    The report suggests, "In order to enter into the Indonesian toy market, Korean companies need to aim for niche markets such as ‘Kidult’, who are over the age of 20." It also stresses, "At present, the share of the market over 20 year olds is only 6.4 percent, but the average annual sales growth rate over the past five years was 8.8 percent, which is ahead of other age groups." In fact, limited-edition products and block toys such as Lego, and high-tech toys incorporated with information and communication technology (ICT) are gaining popularity among adult customers.

      

    The market of interactive toys that parents and children can interact is also noteworthy. Indonesian parents are interested in the products that contribute to the development of the child's brain beyond the simple fun parts of toys. They prefer interactive toys, such as the toys that respond or give tasks to children rather than children play with the toys one way. The market of toys that are connected with smart devices through dedicated apps or integrated with augmented reality (AR) technology is expected to expand gradually.

      

     

    Yoo Seung-jin, a researcher at the Institute for International Trade of the Korea International Trade Association, said, "Indonesian parents open their wallets for their children, and the toy market is expected to grow further thanks to the expansion of the middle class and the increase in the urbanization rate." He stressed, Korean companies need to quickly identify the changing trends in the market and diversify their target customers and product line.

     

     

    List
    Prev
    KITA Held 'Korea-Algeria Business Forum' in Algiers
    Next
    KITA Held '2019 Trade Environment Outlook and Countermeasure Strategy Seminar'
KITA
Family Site