Three-quarters of businesses are confident they can achieve their business targets in the coming year.
The Insights Family® have released their Kids and Family Industry Report 2021 which found much optimism for the year ahead. 75% of companies are confident they can achieve their business targets in the coming year and 38% say they will spend more on Research & Development this year.
But the industry is in flux, with 8 in 10 businesses feeling like they won’t be operating in the same way in 2 years’ time and any covid-recovery will take time, with 90% agreeing that they will be affected by a post-covid economic downturn.
Companies are also responding to societal needs, with 64% reporting their business decisions will be affected by a drive towards sustainability.
59% of responses cite uncertainty on the high street as their main concern in 2021 and as a result 47% agree that they are increasing the amount of retail partners they work with to mitigate the risk and broaden engagement with consumers. With a reduction in the resources available to them, companies are looking to maximise their ROI through data-driven decision making. Overall, 52% of businesses anticipate that they will spend more on research this year.
Companies have also changed their sales strategies. As e-commerce becomes an even more important cornerstone of sales in the internet age, many brands are opting for a direct-to-consumer approach. One-in-two companies anticipate that they will generate more revenue this year from D2C than in 2020. Nearly a quarter of toy companies have already adopted this sales model, while a further 29% are planning to within the next two years.
In a world where the creation of new IP has been limited, 65% of business they surveyed in the licensing industry are struggling to identify new IP to work with, and when they do, over a third feel it can be hard to understand an IP’s target audience.
Nick Richardson, Founder & CEO, The Insights Family® comments “Overall, the findings of the report have shown how the industry is starting to become not only more aware of the changes they need to make, but more confident in their ability to adjust their businesses.
That said, there is still a significant knowledge gap with only 6% of businesses stating that they have sufficient understanding of this generation of kids, parents, and families. This illustrates the importance of brands listening to kids and families’ voices when shaping their future strategies and executing their current plans”
The 2021 Kids and Family Industry Survey was running from Monday 18th January 2021 to Monday 22nd February 2021. The companies represented an array of industries pertaining to the kids and family ecosystem, including Toys and Games, Entertainment, Gaming, Education, and Licensing.
The Kids and Family Industry Report 2021 is now available to download for free at: get.theinsightsfamily.com/industryreport
The Insights Family® are also hosting a webinar on May 6th to discuss some of the opportunities and challenges arising from the report.