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