The 2021 report shows much optimism with significant change on the horizon
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.
In terms of producing new innovations, two thirds of businesses will create more new products this year than last – as more consumers look for more personalisation and individuality in their consumption habits, there is a necessity to fill that demand.
Furthermore, 69% of toy companies believe they can make a difference in the sustainability sector.
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.
The most prominent issue facing those in the content industry is how fragmented the kids’ entertainment ecosystem has become because of streaming platforms’ rise to prominence. According to our survey, 68% of businesses see standing out in a saturated marketplace as their biggest concern moving into 2021.
Currently, content creators are emphasising digital platforms to engage their audience. 86% of businesses in the industry are planning on producing more content for social media, while 94% of them are looking to create more for YouTube.
Only a small minority of content producers feel that they are going to be exclusively focused on creating new IP this year (5%), minimising risk in a volatile market.
With the abundance of platforms and content in the digital space, it has become increasingly difficult for advertisers to cut through the noise. 89% of businesses we surveyed believe that the media landscape is more fragmented than ever before.
Although businesses do not find it hard to find a platform or location to advertise on, audience engagement is one of the key issues faced by advertisers today – according to our report, 46% said capturing audience attention was their biggest business issue when it comes to their advertising campaigns.
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.
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. Readers can register on the link provided.