Understanding Australia's Business and Consumer Environment: A Guide for Successful Business Down Under

Understanding Australia's Business and Consumer Environment

How will Australia's economy, business environment and consumer trends impact the success of your business? This e-book examines the fundamentals businesses must understand to successfully expand or operate in Australia.

Download Now >>

Heralded as the success story among advanced economies for weathering the global economic downturn of 2008-2009, Australia’s high income levels and steady growth offer good opportunities for consumer goods and services in a wide range of sectors.

Key Findings:

• At the height of the global slowdown, advanced economies as a whole contracted by 3.5% - contrasting with Australia’s 1.4% growth.
• Whereas incomes and consumer expenditure have stagnated across many advanced economies, Australia’s per capita disposable income and expenditure have expanded by 9.8% and 3.5% respectively in real terms since 2008.
• In 2012, Australia was ranked 15 out of 183 economies on the World Bank’s Ease of Doing Business Index, meaning it is the fifteenth easiest place in the world to start and operate a local firm.
• Australia has an educated population: 99.9% of adults (those aged 15+) were literate in 2011, but suffers from skills shortages.
• In 2011, the population aged 45-49 in Australia had the highest average gross income: A$77,810 (US$80,259).

Topics include:

• Ease of doing business rating
• Corruption index
• Literacy rate
• Future challenges
• Natural resources
• Media consumption
• Consumer trends
• More

Download Now >>

Despite Higher Demand for Toys, Global Toymakers yet to Convert Market Growth into Actual Sales in Emerging Markets

Analyst Insight by Utku Tansel, Head of Toys and Games Research, Euromonitor International

As it was highlighted in our new global briefing, "Corporate Strategies in Emerging Toy Markets," Latin America may be the talking point for Mattel, and LEGO is doing well in Eastern Europe; nevertheless, emerging markets, in particular Asia Pacific, have yet to reveal their true potential for multinational toy manufacturers.

Global toys growth is shifting towards emerging markets, and this trend is expected to continue

Emerging markets have become more important across all industries, and the shift is especially pronounced in traditional toys. Between 2006 and 2011, growth in developed countries averaged 1%, while emerging countries registered 13% average annual growth, driving the global toys sales.

More than Half of the Top 10 Most Heavily Licensed Traditional Toys and Games Markets are in Asia Pacific

Analyst Insight by Utku Tansel, Head of Toys and Games Research, Euromonitor International

As I explore in our new global briefing, Global Licensing Trends in Traditional Toys and Games, licensing is one of the key parameters affecting toys sales globally. More than half of the top 10 most heavily licensed traditional toys and games markets are in Asia Pacific, and in almost all these markets the proportion of 0-14 year-olds in the total population was below 20% in 2012, suggesting that the grown-up population also has a say in which licensed toys are purchased. As toy brands penetrate into other industries beyond toys and games at a faster pace, there are certainly great opportunities as well as risks. The only question is how to locate them.

Why Should Toy Manufacturers Focus More on Adults?

Analyst Insight by Utku Tansel, Head of Toys and Games Research, Euromonitor International

The number of over 65-year-olds rose by an annual average of 2.5% over 2000-2010 to account for 7.9% of the total population globally. By 2020, this group is forecast to account for just less than 10% of the global population. As underlying demographics points to adults, is it time for toys manufacturers to look at this segment more closely?

In Japan, to counteract the declining child population, Japanese toymakers have successfully expanded the age range of their target consumer. A large number of collectible action figures, candy toys and capsule (vending) toys are now aimed at adults, in particular targeting the impulse purchase market. In 2011, toys targeting over 20-year-olds accounted for more than 23% of all traditional toy sales in Japan. With more cash to spend, older generations are better able to indulge in hobbies and activities, such as collecting, which are on the rise in the country. Toy collecting hobbies have also been bolstered by the fact that the majority of the population in Japan lives in cities and therefore does not have much space to take part. With the current population trends in Japan, it is likely that more toys will emerge targeting adults. The 45-54-year old and over 65-year-old segments are forecast to be the only age groups to register increases during the next 10 years, and toymakers will scramble to draw them to their brands early.

Increasing Penetration of Mobile Phones, Smart Phones and Tablets Stimulate Mobile Gaming Growth

In developed markets, PCs and laptops are taking a backseat as smartphone owners use this smaller, more convenient device to surf the internet everywhere they go. In emerging markets, the mobile phone has become a leapfrog technology. Thanks to the rising demand in mobile phones and incresing popularity of smart phones and tablets, mobile games was the fastest growing category in digital gaming and in overall video games recording 36% value growth globally in 2011.

Mattel, World’s Largest Toy Maker, Moves Part Production from China to Brazil and India – A New Beginning for All?

Analyst Insight by Utku Tansel, Head of Toys and Games Research, Euromonitor International

China is the biggest exporter of toys in the world; around 80% of world's toys are originating there. Click to Tweet!  Low labour costs and economic growth have allowed China to become the destination of choice for global toy businesses looking to offshore manufacturing while consumers have also benefitted from the resulting competition for production costs. So, Mattel's decision, which was announced on 19th February, to shift some of its production facilities from world’s manufacturing hub to Brazil and India came as surprise to many. Euromonitor was not one of them. Click to Tweet!

These were the very two countries investigated as potential and viable alternatives to China a year ago. Back in March 2012, Euromonitor International had explored the key parameters attached to China's global manufacturing output, analysed the main challenges and likely scenarios while studying the alternative hub destinations in emerging countries for toys production extensively in a series of three articles.

"Global Toy News" Backs Our Industry Coverage

Analyst Insight by Utku Tansel, Head of Toys and Games Research, Euromonitor International

Richard Gottlieb, one of the most influential and well-known names in the global toy industry, highlighted the importance of covering both traditional and video games when analysing the global toy industry, or rather, the global play industry.  If play is not considered a sector by toy industry players, Gottlieb points out, “…the lack of true competitive information will continue to have a negative impact on toy industry decision making." 

Concluding his post, “The toy industry is dead. Long live the play industry”, Gottlieb emphasizes “…toy companies are just one part of the greater play industry which consists of those who create video games, develop apps, manufacture tablets and create immersive digital worlds”.

However, tracking both traditional toys and games and video games may not be sufficient to make sound strategic decision making. In order to make an accurate assessment of the entire play industry, it is fundamental to analyse other key parameters affecting the industry. Trends in population, income, retailing and consumer electronics have a profound effect on toys and games sales. These trends shape the industry as a whole, and it's necessary to analyse them to get a more complete picture of the market.

We've put together a complimentary presentation demonstrating this point.
Download Now: Trends Affecting the Play Industry

Video Games Take New Directions in 2013

Analyst Insight by Matthew Hudak, Analyst - US, Euromonitor International

With the approach of new consoles at the end of this year, the older consoles will see their last batch of new games, and publishers are taking different routes to keep gamers interested in the current generation releases. In the last article we looked at the techniques direct sequels will be using to remain successful. In this article, we will look at how developers are introducing prequels and entirely re-envisioned storylines to make sure their prominent intellectual properties remain important to new and long-time gamers.

Video Game Sequels Rush to Beat the New Console Launches in 2013

Analyst Insight by Matthew Hudak, Research Analyst at Euromonitor International

With widely-held expectations that Microsoft and Sony will release next-gen consoles in 2013, the year will mark the beginning of the new console cycle. As such, most publishers are likely to take a more cautious approach to new IP, with new titles likely to be withheld for the next generation consoles. Much like 2012’s FIFA and Assassins Creed releases, the most anticipated new games of this year will, with some exceptions, be a continuation of an already successful franchise.

In the first of two articles, Euromonitor International explores the underlying problem long running franchises can face, as well as the strategies that developers will use to keep their direct sequels interesting. In the second article we will examine new methods, such as prequels and reboots, and new IPs for some of the other big releases of 2013. 

Microsoft Shows How to Make Video Game Consoles Profitable While It is Game Over for Atari

“With Kinect, Microsoft may have found something unexpected – a long forgotten arcane recipe of how to make the business of making video games consoles profitable. Ever since the company first ventured into console business with original Xbox in 2001, it had to count on other divisions to finance the loss making video games segment. They were not alone. Sonywas also routinely making losses with its PlayStation, and only Nintendo seemed to know how to turn a profit in this industry. Yet, the last two years of the current console cycle may have offered a hint for what’s been missing all along –gadgets!