FINDINGS

• Marketline estimates the market size of the toys market in Canada to be $2.625 billion.
• The size of the toy market in the ten provinces of Canada:
• Alberta: $386.77 million (14.73%)
• British Columbia: $423.91 million (16.15%)
• Manitoba: $86.52 million (3.3%)
• New Brunswick: $47.11 million (1.79%)
• Newfoundland and Labrador: $24.1 million (0.92%)
• Nova Scotia: $59.85 million (2.28%)
• Ontario: $947.27 million (36.09%)
• Prince Edward Island: $10.47 million (0.4%)
• Quebec: $551.93 million (21.03%)
• Saskatchewan: $79.30 million (3.02%)
• The United States toy market is worth $28 billion, and the global toy market is valued at $90.4 billion.
• According to the NPD Group, the Canadian toys market grew by 3% in 2017.
• IBIS World estimates the toy, doll, & game manufacturing--not retail sales--industry in Canada to be worth $235 million.
• The traditional toys market has been slowing in recent years. The consumer confidence took a hit after Toys "R" Us terminated operations, and other toy stores reduced their inventory leading to reduced sales.

RESEARCH STRATEGY

OVERVIEW OF THE CANADIAN TOY INDUSTRY

• The Canadian toy market is a $2625 million industry, with the major market share captured by Walmart (29.5%) and Toys "R" Us (25.3%). Other players in the industry, such as Chapters and Mastermind, have very nominal share.
• Toys "R" Us is a 100% Canadian owned and operated company, with more than 230 stores in Canada and 4,000 employees. The company has more than $1 billion a year in sales, and their Canadian stores have had a steady track record of sales gains and earnings of more than $100 million per year for the past nine years.
• Toys "R" Us is a toy brand for kids ages 0-14 years and above, according to their website. The company sells many categories of toys for both genders, including educational, gaming, and electronic toys, among others.
• Walmart's major market segment comes from the United States, rather than Canada. It also has retail consumers across various product lines, including toys and other segments. Therefore, Walmart consumer demographics may not accurately reflect Canadian toy consumer demographics.
• Based on the above findings on the Canadian toy industry, the most appropriate representative of the market specific to Canadian toy consumers are Toys "R" Us consumers.

CANADIAN TOY CONSUMER DEMOGRAPHICS

• Given that Toys "R" Us consumers should represent the typical Canadian consumer that purchases toys, the following demographics were extracted from a Toys "R" Us consumer demographic report and an NPD study.
• Age: Individuals aged between 35-44 years make up the major segment of consumers who are purchasing toys in Canada.
• Gender: According to NPD study, parents make the majority of toy purchasing decisions in Canada. Therefore, it is fair to assume that females and males, or both parents, have an equal proportion of the toy buying ratio when it comes to gender.
• Income level: Most Canadian consumers who purchase toys are in the income bracket of over $125 thousand.
• Education level: Consumers that purchase toys in Canada are mostly advanced degree holders.
• Marital Status: The average age of marriage in Canada is over 30 years. Based on the aforementioned consumer segment of 35-44 years, it is likely that the marital status of most consumers who buy toys in Canada is married.
• Have kids: Most consumers that purchase toys in Canada have kids.

RESEARCH STRATEGY: