Toy market in Japan - statistics & facts
The toy industry in Japan is operating within a revolving market influenced by media trends, technological innovations, and popular culture. With a broad range of analog and electronic products, the market targets children and adults alike. However, within an aging society characterized by fertility decline and a shrinking population of children, brands are looking towards adolescents and adults to stimulate growth. Addressing fandoms’ high willingness to pay for and create collections of licensed merchandise, companies are increasingly focusing on toy series based on popular media franchises.
While children’s toys are a standard section at assorted and large-scale retailers, specialty retailers and time-limited pop-up stores targeting adult consumers in fandoms with character-focused goods are common in Japan. Apart from product purchases through general retail channels, the amusement industry is another method to acquire licensed toys. Exclusive goods like plush toys are commonly offered as prizes in game machines like the claw crane.
Another sales driver is limited releases of mostly small collectibles that target fandom collectors. From figurines sold through capsule toy vending machines (gacha) to character models with limited stocks, collectibles are boosting the demand in the adult population with dedicated fans, so-called otaku, being the core customer base.
Japanese toy businesses
The Japanese toy market is closely connected to the amusement and console gaming markets. Manufacturers frequently collaborate with brand developers of related segments through subsidiaries and licensing agreements. Industry leader Tomy Company, Ltd. is an example of a successful children’s toy manufacturer that expanded its portfolio with licensed goods by acquiring the merchandising rights for intellectual property - like Pokémon and Disney. Other brand developers, like Sanrio Co., Ltd., produce and distribute goods based on their intellectual properties without going through established manufacturers.While children’s toys are a standard section at assorted and large-scale retailers, specialty retailers and time-limited pop-up stores targeting adult consumers in fandoms with character-focused goods are common in Japan. Apart from product purchases through general retail channels, the amusement industry is another method to acquire licensed toys. Exclusive goods like plush toys are commonly offered as prizes in game machines like the claw crane.
Pop culture and toy releases
Popular culture is a significant driver of toy sales in Japan. Traditional toys are primarily based on simple designs with an educational function for young people. In comparison, modern toy designs are commonly influenced by the culture of cuteness (kawaii) and current media trends. The life cycles of licensed products are tied to the serialization of a manga series or the release of anime seasons, video games, and movies. Based on popular mascots and fictional characters, the character business market is contributing to the success of licensors and licensees, being in demand among children and adults.Another sales driver is limited releases of mostly small collectibles that target fandom collectors. From figurines sold through capsule toy vending machines (gacha) to character models with limited stocks, collectibles are boosting the demand in the adult population with dedicated fans, so-called otaku, being the core customer base.
