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Toy market booming in Christmas period

Retail

Hungarians begin shopping for toys for Christmas in early November. This period produces 60-70% of the toy marketʼs full-year turnover, the director of toy distributor Formatex Kft. said in an interview with business daily Világgazdaság.

János Borhi, director of Formatex Kft., said that while normally the average basket value for shoppers is HUF 3,000-5,000, in the pre-Christmas period this grows to HUF 8,000-10,000 or even HUF 12,000 in online stores. Black Friday can generate revenues 30 times higher than an average November day, Borhi added.

Although sales in online stores are growing at a rapid pace, it is still important for children and families to see and touch a toy physically before buying it, the director said. About 35% of Formatex revenues are generated by sales in hypermarkets, and 33% in toy stores, he explained, adding that sales on the internet have a 14% share of Formatex revenues.

As for specific toys, Borhi said the most popular are construction sets and board games, with children looking mostly for products seen in TV ads or in video blogs. Families usually buy three or four board games per year, he added.

Research conducted by rival toy distributor Regio Játék  shows that every second Hungarian child gets a Christmas gift of a minimum of HUF 10,000. Eight out of ten families have difficulties covering expenses during Christmas, but despite this, 50% of full-year sales are made in the last quarter, Világgazdaság notes.

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