Jeffrey Capili Sarmiento

 TOYS AND GAMES IN THE PHILIPPINES Euromonitor International September 2016 I LIST OF CONTENTS AND TABLES Toys and Games in the Philippines - Industry Overview .............................................................. 1 Executive Summary ..................................................................................................................... 1 Both Traditional Toys and Games and Video Games Continue To Grow ................................. 1 Philippines Hosts Two Major Toy Conventions ......................................................................... 1 Mattel Inc Remains the Leading Toy Company in the Philippines ............................................ 1 Physical Stores Still Dominate Traditional Toys and Games .................................................... 1 Toys and Games Is Set To Maintain Growth Momentum ......................................................... 1 Key Trends and Developments .................................................................................................... 2 Rising Disposable Incomes Encourage Philippine Consumers To Spend ................................ 2 Mobile Games Creates Alternative Online Purchase Options .................................................. 2 Market Data .................................................................................................................................. 3 Table 1 Sales of Toys and Games by Category: Value- ........................... 3 Table 2 Sales of Toys and Games by Category: % Value Growth- .......... 3 Table 3 NBO Company Shares of Toys and Games: % Value- ............... 3 Table 4 LBN Brand Shares of Toys and Games: % Value- ...................... 4 Table 5 Distribution of Toys and Games by Format: % Value- ................. 5 Table 6 Forecast Sales of Toys and Games by Category: Value- ............ 5 Table 7 Forecast Sales of Toys and Games by Category: % Value Growth - .................................................................................................... 6 Sources ........................................................................................................................................ 6 Summary 1 Research Sources ........................................................................................ 6 Toys and Games in the Philippines - Company Profiles ............................................................... 7 International Toy World Inc in Toys and Games (philippines) ...................................................... 7 Strategic Direction .................................................................................................................... 7 Key Facts .................................................................................................................................. 7 Summary 2 International Toy World Inc: Key Facts ......................................................... 7 Company Background .............................................................................................................. 7 Internet Strategy ....................................................................................................................... 8 Competitive Positioning ............................................................................................................ 8 Summary 3 International Toy World Inc: Competitive Position 2015 ............................... 8 Laj Marketing Philippines Inc in Toys and Games (philippines) .................................................... 8 Strategic Direction .................................................................................................................... 8 Key Facts .................................................................................................................................. 9 Summary 4 LAJ Marketing Philippines Inc: Key Facts .................................................... 9 Competitive Positioning ............................................................................................................ 9 Traditional Toys and Games in the Philippines - Category analysis ........................................... 10 Headlines ................................................................................................................................... 10 Trends ........................................................................................................................................ 10 Competitive Landscape .............................................................................................................. 11 Prospects ................................................................................................................................... 11 Licencing .................................................................................................................................... 12 Category Data ............................................................................................................................ 13 Table 8 Sales of Traditional Toys and Games by Category: Value- ....... 13 II Table 9 Sales of Traditional Toys and Games by Category: % Value Growth - .................................................................................................. 13 Table 10 Sales of Traditional Toys and Games by Demographic: % Value - .................................................................................................. 14 Table 11 Sales of Traditional Toys and Games by Licenced vs Non-Licenced: % Value- .................................................................................... 14 Table 12 Sales of Traditional Toys and Games by Price: % Value- ......... 14 Table 13 Sales of Traditional Toys and Games by Electronic vs Non-Electronic: % Value- .................................................................................... 15 Table 14 NBO Company Shares of Traditional Toys and Games: % Value - .................................................................................................. 15 Table 15 LBN Brand Shares of Traditional Toys and Games: % Value- ........................................................................................................... 15 Table 16 Distribution of Traditional Toys and Games by Format: % Value- ........................................................................................................... 16 Table 17 Forecast Sales of Traditional Toys and Games by Category: Value - .................................................................................................. 17 Table 18 Forecast Sales of Traditional Toys and Games by Category: % Value Growth- ..................................................................................... 18 Table 19 Forecast Sales of Traditional Toys and Games by Licenced vs Non- Licenced- ................................................................................... 18 Video Games in the Philippines - Category analysis .................................................................. 19 Headlines ................................................................................................................................... 19 Trends ........................................................................................................................................ 19 Competitive Landscape .............................................................................................................. 20 Prospects ................................................................................................................................... 20 Category Data ............................................................................................................................ 21 Table 20 Sales of Video Games by Category: Value- .............................. 21 Table 21 Sales of Video Games by Category: % Value Growth- ............. 22 Table 22 Video Gaming Population: Number of People- .......................... 22 Table 23 Video Gaming Population: % Number of People- ...................... 23 Table 24 NBO Company Shares of Video Games: % Value- ................... 24 Table 25 LBN Brand Shares of Video Games: % Value- ......................... 24 Table 26 NBO Company Shares of Video Games Hardware: % Value- ........................................................................................................... 25 Table 27 LBN Brand Shares of Video Games Hardware: % Value- ......... 25 Table 28 NBO Company Shares of Video Games Software: % Value- ........................................................................................................... 26 Table 29 LBN Brand Shares of Video Games Software: % Value- .......... 26 Table 30 Distribution of Video Games by Format: % Value- .................... 27 Table 31 Distribution of Video Games Hardware by Format: % Value- ........................................................................................................... 27 Table 32 Distribution of Video Games Software by Format: % Value- ..... 28 Table 33 Forecast Sales of Video Games by Category: Value- ............... 29 Table 34 Forecast Sales of Video Games by Category: % Value Growth- ........................................................................................................... 30 TOYS AND GAMES IN THE PHILIPPINES - INDUSTRY OVERVIEW EXECUTIVE SUMMARY Both Traditional Toys and Games and Video Games Continue To Grow Toys and games continued to grow in the Philippines, primarily due to the good economic performance which led to increased consumer spending. Traditional toys and games posted stable growth, attributed to growing demand for construction toys and licenced toys. Sales of video games also increased at a double-digit rate, largely driven by the strong performance of mobile games. Greater smartphone penetration and more “freemium” games made mobile games increasingly accessible to more of the population. Higher disposable incomes also led local consumers to spend more on leisure and entertainment items including toys and games. Philippines Hosts Two Major Toy Conventions In 2015, Philippines hosted two major toy conventions. The first was the annual TOYCON PH, founded in 2002. The TOYCON PH association was formed by toy collectors, hobby shop owners, community groups and clubs. It was the most popular toy event in the country and the next convention will be held in a much bigger venue as the number of attendees increased so much. The second major toy convention is the Asia Pop Comic Con, first held in 2015. It was set up by Universal events, a subsidiary of Al Ahli Holding Group (AAHG). This event not only focuses on toys but also on comics, animation, movies and music within pop culture. Mattel Inc Remains the Leading Toy Company in the Philippines Mattel Inc remained the top company for toys and games in the Philippines in 2015. Mattel is the only company with a double-digit sales share in the country. The LEGO Group was second and Hasbro Inc third. It is also worth noting that “others” accounted for the majority of value sales in toys and games. This is a good indicator of the strong diversity in the country. Physical Stores Still Dominate Traditional Toys and Games While internet retailing started to pick up in the Philippines thanks to giant online shopping investors such as Lazada.ph, bricks and mortar stores continued to dominate toys and games. Traditional toys and games, especially licenced ones, were primarily purchased from big box toy retailers such as Toy Kingdom and Toys “R” Us. Toy Kingdom had 24 branches at the end of the review period not including the stores inside SM Stores and SM Hypermarkets. Toys “R” Us, had 17 branches nationwide. Toys and Games Is Set To Maintain Growth Momentum With a positive forecast for the Philippine economy, consumer confidence is expected to grow and with it disposable income to spend on more discretionary goods – toys and games included. Licenced toys are also expected to grow in the country in line with the rest of Asia. In video games, mobile games is expected to have a high growth rate especially with increasing smartphone penetration. KEY TRENDS AND DEVELOPMENTS Rising Disposable Incomes Encourage Philippine Consumers To Spend The Philippine economy performed well in 2015 and with this good performance came an increased number of jobs from Business Process Outsourcing centres (BPOs), hotels, resorts, and restaurants. These jobs created an emerging middle class that has a new capacity to spend on leisure and entertainment. In addition, the good economic performance also provided a strong sense of consumer confidence due to the lower inflation rate thanks to falling global oil prices. This caused consumers in the Philippines to spend more on leisure and entertainment, which includes toys and games. Interestingly, there are strong ties between entertainment spending and toys and games since many films shown offer licenced toys. This was strongly leveraged by both the entertainment and toy industries creating a continuous stream of movies and toys that maintain the popularity of these licences for several years. Outlook The Philippine economy is expected to perform well in the forecast period and the emerging middle class will have stronger purchasing power by then. Their increased disposable income will allow them to purchase items beyond necessities such as food, household rent or maintenance and utilities. This will allow the emerging middle class to spend more on leisure and entertainment and with Filipinos’ strong appetite for movies, this will also allow more purchases of licenced toys. Mobile Games Creates Alternative Online Purchase Options Mobile games was the strongest force to reckon with in video games. What used to be dominated by static consoles and hand-held consoles is now primarily dominated by mobile games. Both Sony and Nintendo have in fact put the development of future consoles on hold with Sony stating that the “climate is not healthy” to develop a successor to its popular handheld PlayStation Vita. Nintendo, on the other hand, chose to remain quiet on its development of its future static console, the NX. The popularity of mobile games allowed small, independent companies such as Supercell with its famous and successful Clash of Clans to thrive. The freeto-play model proved profitable as Clash of Clans remained on top of the top grossing app list on both the Apple App Store and that of Android’s Google Play. But while smartphone and tablet penetration continued to rise in the Philippines, the majority of the lower class remain without bank accounts and thus have no access to credit or debit cards. But this did not stop Filipinos continuing to patronise and purchase from these games. Local telecoms such as Smart and Globe created means of mobile payment for these in-app purchases via mobile phone credits. Outlook With the rise of the middle classes in the Philippines, more and more Filipinos will gain access to banking and therefore credit and debit cards. This will allow smoother online transactions which will benefit toys and games. And with continuing smartphone and tablet penetration through low-priced brands such as Cherry Mobile, even more Filipinos will have access to these mobile games. The ability to pay for mobile games or in-app purchases though load credits will give lower-class and lower-income consumers easy access to mobile games and the relatively cheap price of mobile games compared to more traditional video games makes these products more appealing to the lower economic segment. MARKET DATA Table 1 Sales of Toys and Games by Category: Value- PHP million - Traditional Toys and 13,789.0 14,875.4 15,800.6 16,935.2 18,012.5 19,268.0 Games Video Games 3,055.2 3,564.2 4,439.9 5,304.0 7,085.4 8,872.3 Toys and Games 16,844.2 18,439.6 20,240.5 22,239.2 25,097.9 28,140.3 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 2 Sales of Toys and Games by Category: % Value Growth- % current value growth 2014/- CAGR 2010/15 Total Traditional Toys and Games- Video Games- Toys and Games- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 3 NBO Company Shares of Toys and Games: % Value- % retail value rsp Company- Mattel Inc- LEGO Group- Hasbro Inc- MGA Entertainment Inc- Tollytots Ltd- BANDAI NAMCO Group- Meijiaxin Toys Co Ltd- Hallmark Cards Inc- LeapFrog Enterprises Inc- Sony Philippines Inc- Blue Magic Inc- VTech Holdings Ltd- Supercell Oy - 4M Industrial- Development Ltd Microsoft Corp- Takara Tomy Co Ltd- Norscot Group Inc- Nintendo Co Ltd- Edu-Science (HK) Ltd- Red Box Toy Factory Ltd- Toys "R" Us Inc- PlayGo Toys Mfg Ltd- Electronic Arts Inc- Rovio Entertainment Ltd- Fashion Angels- Entreprises Inc Spin Master Ltd- Mabuhay Education- Centers Inc Activision Blizzard Inc- Tiny Love Ltd- Blizzard Entertainment- Inc Mega Brands Inc 3.0 3.1 3.0 - - Others- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 4 LBN Brand Shares of Toys and Games: % Value- % retail value rsp Brand (GBO) Company (NBO- Lego LEGO Group- Barbie Mattel Inc- MEGA Bloks Mattel Inc - - 3.0 2.6 Disney Princess Tollytots Ltd- (JAKKS Pacific Inc) Matchbox Mattel Inc- Disney Princess Mattel Inc- Hot Wheels Mattel Inc- MJX Meijiaxin Toys Co Ltd- Crayola Hallmark Cards Inc- Bratz MGA Entertainment Inc- Blue Magic Blue Magic Inc- Clash of Clans Supercell Oy- Green Science 4M Industrial- Development Ltd Little Tikes MGA Entertainment Inc- Moxie Girlz MGA Entertainment Inc- LeapFrog LeapFrog Enterprises Inc- Nerf Hasbro Inc- Cat (Toy State Norscot Group Inc- Industrial Ltd) Mobile Suit Gundam BANDAI NAMCO Group- Edu Science Edu-Science (HK) Ltd- Red Box Red Box Toy Factory Ltd- Magic: The Gathering Hasbro Inc- Play-Doh Hasbro Inc- Disney Princess VTech Holdings Ltd- Sony PlayStation Sony Philippines Inc- Vita (Sony Corp) PlayStation 4 (Sony Sony Philippines Inc - 0.1 0.3 0.4 Corp) Xbox One Microsoft Corp - 0.0 0.2 0.4 Star Wars Hasbro Inc- My Little Pony Hasbro Inc- Just Like Home Toys "R" Us Inc- (Private Label) Wii Nintendo Co Ltd 0.4 0.0 0.0 - MEGA Bloks Mega Brands Inc 3.1 3.0 - - Others Others- Total Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 5 Distribution of Toys and Games by Format: % Value- % retail value rsp - Store-Based Retailing- Grocery Retailers- -- Modern Grocery- Retailers --- Convenience Stores - - - - - - --- Discounters - - - - - - --- Forecourt Retailers - - - - - - --- Hypermarkets- --- Supermarkets- -- Traditional Grocery - - - - - - Retailers Mixed Retailers- -- Department Stores- -- Mass Merchandisers - - - - - - -- Variety Stores- -- Warehouse Clubs- Non-Grocery Specialists- -- Electronics and- Appliance Specialist Retailers -- Health and Beauty - - - - - - Specialist Retailers -- Home and Garden - - - - - - Specialist Retailers -- Leisure and Personal- Goods Specialist Retailers --- Sports goods stores - - - - - - --- Traditional Toys- and Games Stores --- Media Products Stores- --- Other Leisure and - - - - - - Personal Goods Specialist Retailers -- Other Non-Grocery - - - - - 0.0 Specialists Non-Store Retailing- Vending - - - - - - Homeshopping - - - - - - Internet Retailing- Direct Selling - - - - - - Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 6 Forecast Sales of Toys and Games by Category: Value- PHP million - Traditional Toys and 19,268.0 20,039.3 20,797.9 21,548.1 22,286.8 23,017.1 Games Video Games 8,872.3 10,665.3 12,561.7 14,467.7 16,494.6 18,499.4 Toys and Games 28,140.3 30,704.6 33,359.5 36,015.8 38,781.5 41,516.5 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 7 Forecast Sales of Toys and Games by Category: % Value Growth- % constant value growth 2015/- CAGR 2015/20 TOTAL Traditional Toys and Games- Video Games- Toys and Games- Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources SOURCES Sources used during the research included the following: Summary 1 Research Sources Official Sources Philippine Stock Exchange Trade Associations Collectibles UnLtd Association Cyberpresss/Philippine Daily Inquirer Game Developers Association of the Philippines Hot Toys PH Trade Press ABS-CBN Inquirer.net Manila Bulletin Manila Times Sun Star Philippines Source: Euromonitor International TOYS AND GAMES IN THE PHILIPPINES - COMPANY PROFILES INTERNATIONAL TOY WORLD INC IN TOYS AND GAMES (PHILIPPINES) Strategic Direction International Toy World continues its efforts to expand its reach in more cities around the Philippines and maintain its position as the largest toy retailer in the country. With the growth of the malls, department stores, supermarkets and hypermarkets of its mother company Shoemart (SM) Group of Companies, the company is expected to grow in line with Shoemart’s targeted expansion. To be able to leverage on the growing trend of online shopping, International Toy World is expected to improve its online store and to match the number of products available online with the products in its physical stores. With more choice and a better website, online purchasing is expected to rise, not only for the benefit of International Toy World; it is also expected to create ripples in toys and games overall. Key Facts Summary 2 International Toy World Inc: Key Facts Full name of company: International Toy World Inc www: www.toykingdom.ph Retailing channels of operation: Traditional toys and games stores Retailing brands: Toy Kingdom and Toy Kingdom Express Source: Euromonitor International from company reports, company research, trade press, trade sources Company Background International Toy World is a private company that was established in 1990 as an affiliate of the retailing giant Shoemart Group of Companies. It currently operates Toy Kingdom, one of the largest toy retailers in the Philippines and in the Asia-Pacific region. It also operates Toy Kingdom Express, a toy section located inside department stores, supermarkets and hypermarkets, as opposed to the regular Toy Kingdom that usually has its own boutique inside malls. Toy Kingdom Express is also more budget conscious and caters to the broader middle class. The first store of International Toy World was opened in 1991 in SM Megamall; that was soon followed by the opening of more stores around Metro Manila. It expanded further into other cities around the Philippines and reached more than 20 stores inside malls. The company, through Toy Kingdom Express, is also present inside 40 department stores and more than 50 supermarkets and hypermarkets across the country. Aside from malls and hypermarkets owned by SM, Toy Kingdom also has stores in malls such as Lucky Chinatown Mall, Fishermall and V-Mall, which are owned by other retailing companies. The core business of International Toy World is retailing of toys and games; it has no interest in other businesses. To build brand loyalty, International Toy World continues to hold in-store promotions, price cuts and sales around the country. It also ensures that the latest products, brands and licences are available in its stores. It also holds regular meet and greet events with several of its key characters such as Mickey Mouse and Friends. Internet Strategy  In 2015, International Toy World Inc no longer distributed products via its own online shopping site. Instead, it switched to Lazada marketplace. This helped the company to focus on its core store-based retailing business. At the same time, it can leverage on Lazada’s large customer base and nationwide delivery network. Competitive Positioning International Toy World Inc was the largest retailer in traditional toys and games stores in the Philippines, in terms of value sales in 2015. However, the gap with the second player, Robinsons Retail Group, which owns Toy “R” Us, narrowed. Toy “R” Us expanded its distribution network aggressively in recent years. In 2012, International Toy World Inc had 22 outlets, doubling the number of Toy “R” Us outlets. However, by the end of 2015, the number of Toy “R” Us outlets hit 25, more than that of Toy Kingdom (23). Toy Kingdom, the flagship retail brand of International Toy World Inc, targets mainly middle- and upper-class consumers. Toy Kingdom Express, on the other hand, focuses more on the middle- and lower-income households. As both retail brands carry branded products from big multinational toy manufacturers, the range and quality of their products are highly competitive. Customer loyalty is encouraged through SM Advantage, the loyalty card that is used for all stores operated under the SM Group of Companies. International Toy World has a wide range of offerings with all areas of toys and games served. To provide ease and convenience to its customers, its stores are organised into 14 different toy sections including arts and crafts, plush toys, games and puzzles, party accessories, cars and model vehicles and action figures. Summary 3 International Toy World Inc: Competitive Position 2015 Channel Value share Rank Traditional toys and games 11.5% 1 stores Source: Euromonitor International from company reports, company research, trade press, trade sources, trade interviews LAJ MARKETING PHILIPPINES INC IN TOYS AND GAMES (PHILIPPINES) Strategic Direction  LAJ Marketing Philippines Inc is the exclusive distributor of Lego construction toys in the Philippines. In 2015, it opened the first official LEGO Certified Store in Manila. Going forward, the company plans to open new stores in other parts of the Philippines. The expansion is part of the company’s plan to foster brand equity of Lego, on top of its active participation in event sponsorship. Key Facts Summary 4 LAJ Marketing Philippines Inc: Key Facts Full name of company: LAJ Marketing Philippines Inc www: www.bricksphilippines.com Activities: Distributor of traditional toys and games products Source: Euromonitor International from company reports, company research, trade press, trade sources Competitive Positioning Lego is the key brand distributed by LAJ Marketing Philippines Inc. Its value share in construction toys reached 60% in 2015 and it had strong year-on-year growth in 2015 of 26%. Such impressive performance of the Lego brand could be attributed to the aggressive marketing activities of LAJ Marketing Philippines Inc in 2015. The opening of the first Lego Certified Store in May 2015 marked its commitment to bringing the full experience of Lego, of top of various product ranges, including exclusive sets, to local consumers. LAJ Marketing Philippines Inc also partnered with World Vision to organise the “Rebuild Classrooms Project” which aimed to help children in rural areas have access to learning facilities. Lego products are currently sold at a premium price, compared to other construction toys brands. It targets the middle to upper income families. Other brands distributed by LAJ Marketing Philippines such as University Games, Nuk, CubicFun and Clictime, also shared the same price positioning. TRADITIONAL TOYS AND GAMES IN THE PHILIPPINES - CATEGORY ANALYSIS HEADLINES Traditional toys and games posts current value growth of 7% at Ps19.3 billion in 2015 Construction posts the fastest growth of 15% in traditional toys and games in 2015 Mattel Inc remains the leading player with an 18% value share in 2015 Store-based retailing remains the dominant distribution channel Traditional toys and games is expected to post a 4% value CAGR in constant 2015 terms over the forecast period TRENDS Year-on-year growth of traditional toys and games in 2015 was 7% in current value terms, slightly faster than 2014. This increase in growth was primarily driven by the solid economic performance in 2015, which in turn increased consumer confidence and spending. In addition, the Philippine economy was particularly strong in the second half of the year which coincided with the peak sales for toys and games at Christmas. Construction toys had by far the fastest growth at 15% in current value terms in 2015. This was largely due to the popularity of Lego and its continued expansion into licenced content. In 2015, LEGO Group opened its first official store in the country, still under its local distributor, LAJ Marketing Philippines. This further improved the Lego brand as for the past few years Lego concept stores such as Build It sprouted up all over Metro Manila. There are also several Lego or Bricks communities in the country and many of them hold events and exhibits to showcase their work and encourage others to create using Lego. Infant (19-36 months), baby (0-18 months), and pre-school (3-4 year old) were the next fastest growing. It is understandable that these toys for younger children should be popular, given the 23.3 (per ‘000) birth rate. Screens continued to penetrate. Children often start using a mobile or tablet very early and learn to use them quicker and faster than the older generation. And unlike previously when video games devices were the only competition, at the end of the review period, mobile phones and tablets are predominantly used for games too. Children are often seen using them for such. Many manufacturers started integrating their toys with mobile apps or the internet; and the reverse is also true where mobile or video games licenced their brands to toy manufacturers. Minecraft is a great example. Being a block-building simulation game it was licenced to LEGO Group as a real-life brick building toy. Traditional toys products are often priced between Ps500 and Ps3000 and, although children’s allowances increased, these high price points show that children are not the primary target. The primary target for the price is the parent, guardian, or other adult. In Philippine toy shops, children are often accompanied by their parents and grandparents and they point out toys that they want their parents to buy for them. Lately, manufacturers also released sub-Ps300 toys, usually blind bags. Some of the brands that have these are LEGO Minifigures, Kreo, My Little Pony, Sponge Bob and Disney Tsum Tsum. Christmas is a celebrated holiday in the Philippines and this of course includes giving gifts to children. Not only parents but also godparents, grandparents and other relatives give gifts, making the Christmas season the peak of toy sales in the country. Almost all retail sales peak during December, but this is especially true for toys. Toy stores usually have long queues and are full in the run-up to Christmas. COMPETITIVE LANDSCAPE Mattel Inc. remained the leading player with an 18% value share of traditional toys and games in 2015. This was thanks to Mattel’s diverse toy portfolio which includes dolls and accessories, model vehicles, action figures and accessories, and even construction toys. Many of Mattel’s brands are very familiar to both children and their parents. LEGO Group was second with an 8% value share. While the gap between LEGO Group and Mattel Inc was considerable, LEGO Group’s performance was impressive given that the company concentrates on one category only – construction. And 2015 was an impressive year for the player, especially when it comes to licencing as it introduced some rather diverse licences such as the Frozen Ice Castle which not only won toy of the year but also performed very well in the country. Hasbro Inc was third with a 7% value share. Similar to Mattel, Hasbro has many toy brands in different categories. The LEGO Group had the highest growth of 26% in value sales for 2015. The success of the company with the licences it introduced, coupled with the rising purchasing power of consumers thanks to the good economy, meant more Filipinos could afford the brand and especially its more upscale sets. Also, in 2015 the first official Lego store was opened in the country. It is run by LAJ Marketing Corp, the official distributor of Lego in the Philippines. The store opening was met with much enthusiasm by children, their parents and Lego-enthusiasts. The Lego store carries not only the latest and most complete Lego sets but it also holds special events to promote the products. PROSPECTS Licenced toys will continue to perform well in the Philippines, especially since the film and TV industry have a solid line-up. There are movie releases planned until 2020 for the Star Wars franchise. DC and Marvel also have almost 20 movies lined up from 2016 to 2020. Toy conventions will continue to increase awareness and the premium nature of toys especially in the teenage and adult areas. TOYCON PH will have its biggest convention ever in 2016. The convention is being held at the SMX Convention Center since the old venue is unable to accommodate the number of attendees. The Asia Pop Comic Con will hold its second annual event in Manila. The rapid growth of mobile games continues to makes waves in toys and games as more and more parents become comfortable with children playing on mobile devices such as smartphones and tablets. Subsequently, traditional toys and games will have to compete with mobile games, albeit indirectly. Manufacturers of construction toys found a way to distinguish the products from other toys that provide immediate gratification. The belief that building with your hands stimulates brain development and creativity made both parents and children see the benefits of construction compared to other traditional toys and even video games. Construction toys will continue to grow especially with Lego and MEGA Bloks licencing in movies, cartoons, and even video games (Mega Blok’s Halo series). Manufacturers are expected to follow LEGO’s example when it comes to its success in licenced toys. And with a bigger emerging middle class thanks to the country’s growing economy, Philippine consumers will increasingly be able to afford to spend more on toys and games. Coupled with the upcoming movie releases of Marvel, DC, and Star Wars, licenced toys are expected to increase sales in the country. Local distributors will most likely continue to bring in licenced toys as the purchasing power of Philippine consumers continues to grow. With increased consumer confidence, distributors will continue to tie up with local licensors to promote their toys as the movies roll out. Also, many of them will continue to become more active in the local toys and games marketplace as conventions and events for toys continue to sprout up in the country. LICENCING Star Wars was perhaps the biggest licenced property for 2015, with universal appeal ranging from children up to adults. Toys accounted for the largest amount of licenced merchandise but it also covered other areas such as apparel and footwear. One of the more popular Star Wars toys was the Funko Pop! collectibles which were very popular during the Christmas season. The Star Wars franchise will continue to set an example to both licensors and toy manufacturers of the power that a franchise can have to revive an industry and incite consumers to buy. Frozen remained popular, especially in dolls and accessories. The Disney Princess series continued to do well and Anna and Elsa were still among the children’s favourites. But Frozen went beyond the confines of dolls and dress-up and was a popular Lego toy as well. Marvel superheroes continued to do well since it has a lot of movies lined up. This sustained exposure in films ensures that the licence remains popular for a sustained period and not just at the time of a single film’s release. More than ever, children are exposed to a vast amount of media – television, movies and the internet. And with personal media devices such a tablets, children now are able to pick the content they watch. Television and movies influential for children, but online media such as videos on YouTube are increasingly popular. In the Philippines, the top YouTube channel is Kids’ Toys and it has surpassed the local TV network ABS-CBN in terms of number of subscribers. The channel mainly shows children opening toys (a child’s version of unboxing) and playing with them. Licenced toys and games definitely drove up retail value of sales, primarily because they tend to be priced higher than unlicenced ones. And now that the toy industry found Asia to be a lucrative source, access to licenced toys became easier. In fact, LEGO Group opened an official store in the Philippines in May 2015; it was met with enthusiasm by children, their parents and Lego enthusiasts. Licenced toys remained significantly more expensive than unlicenced toys in the Philippines. With cheap imports coming from nearby China, it is not unusual to see dolls, cars, or even generic construction toys priced much lower than licenced toys. A simple example would be LEGO Group products. An unlicenced Lego set would cost about Ps999.75, while Lego Star Wars can easily sell for more than Ps4,000. In contrast, generic blocks are priced at only Ps299.75 for a barrel of 105 pieces. So while parents purchase more licenced toys due to their increased purchasing power, it is not uncommon to find children’s toys to be a mixture of licenced, more expensive toys and unlicenced, cheap toys. Counterfeit products remained a problem for licenced toys, especially in provinces away from the city. This is particularly noted in plush and dolls and accessories where it is easy to get a hold of fake “Barbies” and “Disney” plush toys. Manufacturers are aware of the problem but there is little they can do to regulate it since the retail distribution of these toys tends to be via small stalls and bazaars, many of which do not carry official permits to sell. CATEGORY DATA Table 8 Sales of Traditional Toys and Games by Category: Value- PHP million 2010 2011 2012 2013 2014 2015 Action Figures and 1,600.0 1,760.0 1,768.8 1,862.1 1,968.2 2,090.2 Accessories Arts and Crafts 628.6 660.0 707.7 762.8 805.5 856.2 Baby (0-18 Months) 98.2 110.0 123.9 138.1 151.3 166.2 Construction 1,467.9 1,600.0 1,825.4 2,084.7 2,307.8 2,663.2 Dolls and Accessories 1,743.4 1,848.0 1,987.5 2,132.4 2,280.7 2,433.5 Dress-Up and Role Play 720.0 756.0 782.5 824.3 860.1 894.5 Games and Puzzles 941.5 998.0 1,078.5 1,178.3 1,246.0 1,323.2 Infant (19-36 Months) 300.0 330.0 362.8 402.5 439.7 481.4 Model Vehicles 1,142.9 1,280.0 1,292.8 1,368.9 1,452.6 1,551.4 Outdoor and Sports 314.7 327.2 342.2 356.3 375.9 397.3 Plush 1,826.4 1,936.0 1,987.3 2,078.9 2,150.2 2,208.3 Pre-School (3-4 Year Old) 573.9 660.0 705.0 780.2 840.8 909.7 Remote Control Toys 812.1 933.9 1,071.3 1,132.6 1,202.4 1,280.5 Ride-On Vehicles 333.1 359.7 392.2 428.6 451.2 473.8 Scientific/Educational 431.0 456.9 491.6 511.4 548.5 586.9 Other Traditional Toys 855.3 859.6 881.1 893.1 931.7 951.5 and Games Traditional Toys and 13,789.0 14,875.4 15,800.6 16,935.2 18,012.5 19,268.0 Games Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 9 Sales of Traditional Toys and Games by Category: % Value Growth- % current value growth 2014/- CAGR 2010/15 Total Action Figures and Accessories- Arts and Crafts- Baby (0-18 Months- Construction- Dolls and Accessories- Dress-Up and Role Play- Games and Puzzles- Infant (19-36 Months- Model Vehicles- Outdoor and Sports- Plush- Pre-School (3-4 Year Old- Remote Control Toys- Ride-On Vehicles- Scientific/Educational- Other Traditional Toys and Games- Traditional Toys and Games- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 10 Sales of Traditional Toys and Games by Demographic: % Value- % retail value rsp - Young Children- (Population Aged up to 6) Pre-Teens (Population- Aged 7-12) Teenagers (Population- Aged 13-19) Adults (Population Aged- Over 20) Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, trade interviews, trade sources Table 11 Sales of Traditional Toys and Games by Licenced vs Non-Licenced: % Value- % retail value rsp - Licenced- Non-Licenced- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 12 Sales of Traditional Toys and Games by Price: % Value- % retail value rsp - Pocket Money ( Under- PHP50 ) Low ( PHP50 to- PHP149.99 ) Mid ( PHP150 to- PHP999.99 ) Upper Mid ( PHP1000 to- PHP2999.99 ) High ( PHP3000 and- above ) Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 13 Sales of Traditional Toys and Games by Electronic vs Non-Electronic: % Value- % retail value rsp - Electronic- Non-Electronic- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 14 NBO Company Shares of Traditional Toys and Games: % Value- % retail value rsp Company- Mattel Inc- LEGO Group- Hasbro Inc- MGA Entertainment Inc- Tollytots Ltd- BANDAI NAMCO Group- Meijiaxin Toys Co Ltd- Hallmark Cards Inc- LeapFrog Enterprises Inc- Blue Magic Inc- VTech Holdings Ltd- 4M Industrial- Development Ltd Takara Tomy Co Ltd- Norscot Group Inc- Edu-Science (HK) Ltd- Red Box Toy Factory Ltd- Toys "R" Us Inc- PlayGo Toys Mfg Ltd- Rovio Entertainment Ltd- Fashion Angels- Entreprises Inc Spin Master Ltd- Mabuhay Education- Centers Inc Tiny Love Ltd- Takara Tomy Corp- Mega Brands Inc 3.8 4.0 4.0 - - RC2 Corp - - - - - Others- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 15 LBN Brand Shares of Traditional Toys and Games: % Value- % retail value rsp Brand (GBO) Company (NBO- Lego LEGO Group- Barbie Mattel Inc- MEGA Bloks Mattel Inc - - 4.1 3.8 Disney Princess Tollytots Ltd- (JAKKS Pacific Inc) Matchbox Mattel Inc- Disney Princess Mattel Inc- Hot Wheels Mattel Inc- MJX Meijiaxin Toys Co Ltd- Crayola Hallmark Cards Inc- Bratz MGA Entertainment Inc- Blue Magic Blue Magic Inc- Green Science 4M Industrial- Development Ltd Little Tikes MGA Entertainment Inc- Moxie Girlz MGA Entertainment Inc- LeapFrog LeapFrog Enterprises Inc- Nerf Hasbro Inc- Cat (Toy State Norscot Group Inc- Industrial Ltd) Mobile Suit Gundam BANDAI NAMCO Group- Edu Science Edu-Science (HK) Ltd- Red Box Red Box Toy Factory Ltd- Magic: The Gathering Hasbro Inc- Play-Doh Hasbro Inc- Disney Princess VTech Holdings Ltd- Star Wars Hasbro Inc- My Little Pony Hasbro Inc- Just Like Home Toys "R" Us Inc- (Private Label) Furby Hasbro Inc- Thomas & Friends Takara Tomy Co Ltd- Fisher-Price Mattel Inc- Playgo PlayGo Toys Mfg Ltd- MEGA Bloks Mega Brands Inc 4.0 4.0 - - Others Others- Total Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 16 Distribution of Traditional Toys and Games by Format: % Value- % retail value rsp - Store-Based Retailing- - Grocery Retailers- -- Modern Grocery- Retailers --- Convenience Stores - - - - - - --- Discounters - - - - - - --- Forecourt Retailers - - - - - - --- Hypermarkets- --- Supermarkets- -- Traditional Grocery - - - - - - Retailers - Mixed Retailers 16.5 16.7 16.9 17.0 17.0 17.1 -- Department Stores 16.3 16.5 16.7 16.7 16.8 16.9 -- Mass Merchandisers - - - - - - -- Variety Stores 0.2 0.2 0.2 0.2 0.2 0.2 -- Warehouse Clubs - - - - - - - Non-Grocery Specialists 71.6 71.0 70.7 70.6 70.4 70.3 -- Electronics and - - - - - - Appliance Specialist Retailers -- Health and Beauty - - - - - - Specialist Retailers -- Home and Garden - - - - - - Specialist Retailers -- Leisure and Personal 71.6 71.0 70.7 70.6 70.4 70.3 Goods Specialist Retailers --- Sports goods stores - - - - - - --- Traditional Toys 70.9 70.3 70.0 69.9 69.8 69.7 and Games Stores --- Media Products Stores 0.6 0.7 0.7 0.6 0.6 0.6 --- Other Leisure and - - - - - - Personal Goods Specialist Retailers -- Other Non-Grocery - - - - - 0.0 Specialists Non-Store Retailing 0.1 0.1 0.1 0.1 0.1 0.1 - Vending - - - - - - - Homeshopping - - - - - - - Internet Retailing 0.1 0.1 0.1 0.1 0.1 0.1 - Direct Selling - - - - - - Total 100.0 100.0 100.0 100.0 100.0 100.0 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 17 Forecast Sales of Traditional Toys and Games by Category: Value- PHP million - 2019 2020 Action Figures and 2,090.2 2,136.2 2,181.1 2,224.7 2,267.0 2,307.8 Accessories Arts and Crafts- 961.8 987.7 Baby (0-18 Months- 222.4 238.6 Construction 2,663.2 2,908.3 3,172.9 3,458.5 3,762.8 4,090.2 Dolls and Accessories 2,433.5 2,521.1 2,609.4 2,698.1 2,787.1 2,876.3 Dress-Up and Role Play- 949.2 939.7 Games and Puzzles 1,323.2 1,362.9 1,390.2 1,411.0 1,425.1 1,432.3 Infant (19-36 Months- 613.6 650.4 Model Vehicles 1,551.4 1,597.9 1,644.3 1,690.3 1,736.0 1,781.1 Outdoor and Sports- 421.7 425.9 Plush 2,208.3 2,252.4 2,281.7 2,293.1 2,288.6 2,268.0 Pre-School (3-4 Year Old-,029.9 1,092.7 1,157.1 1,223.1 Remote Control Toys 1,280.5 1,361.2 1,444.2 1,530.9 1,619.7 1,710.4 Ride-On Vehicles- 505.8 512.9 Scientific/Educational- 660.5 677.1 Other Traditional Toys- 908.5 895.8 and Games Traditional Toys and 19,268.0 20,039.3 20,797.9 21,548.1 22,286.8 23,017.1 Games Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 18 Forecast Sales of Traditional Toys and Games by Category: % Value Growth- % constant value growth 2015/- CAGR 2015/20 TOTAL Action Figures and Accessories- Arts and Crafts- Baby (0-18 Months- Construction- Dolls and Accessories- Dress-Up and Role Play 3.0 1.0 5.0 Games and Puzzles 3.0 1.6 8.2 Infant (19-36 Months- Model Vehicles- Outdoor and Sports 1.8 1.4 7.2 Plush 2.0 0.5 2.7 Pre-School (3-4 Year Old- Remote Control Toys- Ride-On Vehicles 1.8 1.6 8.3 Scientific/Educational- Other Traditional Toys and Games -1.0 -1.2 -5.9 Traditional Toys and Games- Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 19 Forecast Sales of Traditional Toys and Games by Licenced vs Non-Licenced- % retail value rsp - Licenced- Non-Licenced- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources VIDEO GAMES IN THE PHILIPPINES - CATEGORY ANALYSIS HEADLINES Video games posts value growth of 25% to reach sales of Ps8.9 billion in 2015 Strong performance of mobile games is the key factor driving growth of video games Sony Philippines Inc is the leading player in video games with a 3% value share in 2015 Internet retailing is the main distribution channel for video games as mobile games clearly leads Video games is expected to record a value CAGR of 16% in constant 2015 terms in the forecast period TRENDS Mobile games now leads video games with an exceptional increase in retail value terms. The increased penetration rate of smartphones and tablets allowed a greater portion of the Philippine population to have access to games on mobile devices. Both static consoles and hand-held consoles saw a steep decline in sales, the latter recording a negative growth rate. Growth of video games was significantly higher thanks again to mobile games. Last year’s 76% growth rate was topped by 2015’s 82% growth. Mobile games continued to drive value sales, not just of video games but of total toys and games too. The most important driver for the growth of video games in 2015 was the exponential increase of smartphones and tablets. Smartphone volume sales rose by 35%, mostly from low-cost brands such as Cherry Mobile. Increased purchasing power and consumer confidence led many Filipinos to purchase their first smartphone. The increased awareness and “free access” to social media sites by local telecommunication companies made many Filipinos increasingly aware of games on mobile devices. Many give smartphones as gifts to their children or parents, and it is not uncommon for middle-class Filipinos to own more than one mobile device. Static consoles declined in terms of value sales in 2015, albeit remaining positive at 12% while hand-held consoles declined to post a negative 10%. The performance of the PlayStation 4 and Xbox One was quite good in terms of volume sales but Nintendo failed to release a new static console unit and with price rollbacks, retail sales still dropped. Retail prices for static consoles dropped in 2015. Unlike in 2014 when the new PlayStation 4 was priced at Ps24,999, it was Ps17,495 in 2015. The same is true for the Xbox One which was first priced at Ps28,500 for 2014, but dropped to Ps19,995 in 2015. Unlike the previous year, PlayStation and Xbox games enjoyed more growth for 2015. Even in terms of displayed games in video game stores, PlayStation and Xbox games continued to occupy a larger space. AR/VR headsets has yet to penetrate the Philippines except for Google’s I am Cardboard which was sold at mobile phone shops rather than video games shops. Sony PlayStation Vita suffered a decline in sales especially following last year’s announcement that it would no longer produce new content for the hand-held console. Nintendo had a slight increase in its sales with the introduction of the new Nintendo 3DS, but this was still not enough to boost hand-held consoles. Also, with the increased penetration rate of smartphones and the rapid decline in their prices, many parents preferred buying smartphones or tablets for their children to play on. This is also coupled with the fact that mobile games products are significantly cheaper and there are more things (such as watching videos or YouTube) that can keep children entertained with a smartphone or tablet. Video games and mobile games sales maintained rapid growth. With the current ability to purchase games online with consoles and mobile app stores, it became increasingly easy for gamers to purchase games online. Even Steam set its Philippine store prices to Philippine pesos. For console games and computer games, game sales still dominated retail value sales. But when it comes to mobile games, looking at top grossing charts, it is apparent that in-game purchases constituted the majority of retail sales. In 2015, the top grossing game was Clash of Clans, a free to play game; it remained the top grossing game almost throughout the year. While piracy and a “grey market” persisted in the country, increased purchasing power allowed more and more video game players to purchase legitimate games from reputable stores such as Datablitz and Game One. Many gamers also entered the workforce and therefore have an increased capacity to purchase “original” (Filipino slang for legitimate) video games. In fact, on the release date of popular video games software such as the NBA series, many gamers often reserve their copies in advance and get in-line as soon as the store opens to buy them. COMPETITIVE LANDSCAPE Video games in the Philippines remained fragmented in 2015. In video games software, the mainstay of the category, the top eight players captured less than a 10% value share. Online games, in particular, was extremely fragmented with no one player standing out. In mobile games, Supercell Oy was number one with a 6% value share thanks to the success of Clash of Clans whose revenue grew by 66% in 2015. In computer games, Blizzard Entertainment Inc led sales with a 27% value share; meanwhile, in console games, Electronic Arts Inc took the first position with an 18% value share in 2015. In video games hardware, manufacturers faced great difficulties because of increasing penetration of mobile devices and rising popularity of mobile games and online games. Nintendo Co Ltd, which ranked third, suffered a sales decline of 6% in 2015. Its sales in both static and hand-held consoles decreased at double-digit rates. The company also put on hold its plan to develop the next generation static console, the NX. Sony Philippines Inc, the leading player with a 41% value share in video games hardware, could not overcome the challenge in hand-held consoles. Its value sales recorded a declining 10% in 2015. Unfavourable conditions caused Sony to abandon PlayStation Vita. On October 2015, Sony announced that it would not create a successor to the Vita since the “climate was not healthy”. However, Sony Philippines Inc managed to achieve positive value growth, of 3%, in video games and video games hardware during 2015 due to the strong performance of PlayStation 4 in static consoles. PROSPECTS Mobile games will continue to lead video games. As smartphone and tablet ownership continues to rise, so will the potential for mobile games. This created a lot of uncertainty and turbulence in the country, enough at any rate that giants such as Sony and Nintendo put their plans on hold until they see how things will unfold. While the penetration of smartphones and tablets is expected to continue increasing, the primary challenge will be how lower-income groups will purchase mobile games online. The majority of the lower class consumers in the country do not have bank accounts. Local telecoms such as Smart and Globe created ways to allow consumers without credit or debit cards to purchase on the Apple App Store and on Google Play. Local telecoms also started offering data “bundles” that have allotted data specifically for mobile games such as Clash of Clans, Candy Crush, etc. Toys-to-life gave video games new life. Its genius relies on combining the ability to unlock or discover new content or characters with the penchant of most gamers for collecting. So these new toys-to-life figures fulfil two purposes. But while it certainly revived video games, most gamers are excitedly looking forward to AR/VR headsets. If the three video games hardware giants: Sony, Microsoft, and Nintendo do not release new hardware in the forecast period, the prices of their current units are expected to decrease. Between 2014 and 2015, there were some price rollbacks and the same can be expected in coming years. Video games software is increasingly expected to go digital. Even video game stores such as Datablitz and Game One sell cards for Steam, Nintendo eShop, etc. however with the slow and expensive internet service in the Philippines, for large games some still prefer buying physical copies of games. The relatively low credit card penetration and bank access prevented many Filipinos from making online transactions. Interestingly, local telecoms such as Smart and Globe provided means for purchasing through the Apple App Store or Google Play using their mobile phone credits, allowing Filipinos to purchase mobile games online. CATEGORY DATA Table 20 Sales of Video Games by Category: Value- PHP million - Video Games Hardware 1,- Hand-held Consoles- Static Consoles- Gaming Accessories- -- Toys-to-Life - - - - - 20.6 -- AR/VR Headsets - - - - - - -- Other Gaming- Accessories Video Games Software 2,044.0 2,657.5 3,647.5 4,756.4 6,436.5 8,183.4 Video Games Software- (Physical) -- Computer Games- (Physical) -- Console Games- (Physical) Video Games Software 1,721.8 2,348.5 3,303.0 4,383.2 6,028.9 7,738.9 (Digital) -- Computer Games - - (Digital) -- Console Games - - - (Digital) -- Online Games 1,319.4 1,659.3 2,021.02,455.02,948.03,478.6 -- Mobile Games-,268.31,895.43,032.74,192.8 Video Games Software 2,044.0 2,657.5 3,647.54,756.46,436.58,183.4 by Platform -- Console Games- -- Computer Games- -- Online Games 1,319.4 1,659.3 2,021.0 2,455.0 2,948.0 3,478.6 -- Mobile Games-,268.3 1,895.4 3,032.7 4,192.8 Video Games Software 2,044.0 2,657.5 3,647.5 4,756.4 6,436.5 8,183.4 by Format -- Video Games Software- (Game Sales) -- Video Games Software 1,718.9 2,345.3 3,284.8 4,344.4 5,972.3 7,661.1 (In-Game Purchases) Video Games 3,055.2 3,564.2 4,439.9 5,304.0 7,085.4 8,872.3 Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 21 Sales of Video Games by Category: % Value Growth- % current value growth 2014/- CAGR 2010/15 Total Video Games Hardware 6.1 -7.4 -31.9 Hand-held Consoles - Static Consoles 11.6 -8.9 -37.4 Gaming Accessories 13.6 -10.0 -40.9 -- Toys-to-Life - - - -- AR/VR Headsets - - - -- Other Gaming Accessories -7.6 -13.6 -51.9 Video Games Software- Video Games Software (Physical- -- Computer Games (Physical- -- Console Games (Physical- Video Games Software (Digital- -- Computer Games (Digital) 42.7 - - -- Console Games (Digital) 37.1 - - -- Online Games- -- Mobile Games- Video Games Software by Platform- -- Console Games- -- Computer Games- -- Online Games- -- Mobile Games- Video Games Software by Format- -- Video Games Software (Game Sales- -- Video Games Software (In-Game- Purchases) Video Games- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 22 Video Gaming Population: Number of People- '000 - Video Gaming Total 23,806.3 25,574.0 27,372.528,578.629,827.731,086.7 Population Number of Young- Children (Population Aged Up to 6) playing video games Number of Young Boys- (Aged Up to 6) playing video games Number of Young Girls- (Aged Up to 6) playing video games Number of Pre-Teens 1,511.6 1,599.6 1,721.9 1,819.3 1,924.5 2,032.0 (Population Aged 7-12) playing video games Number of Pre-Teen 1,216.3 1,277.4 1,341.5 1,377.4 1,447.7 1,518.8 Boys (Aged 7-12) playing video games Number of Pre-Teen- Girls (Aged 7-12) playing video games Number of Teenagers 6,529.5 6,734.4 6,892.7 6,986.9 7,098.1 7,187.3 (Population Aged 13-19) playing video games Number of Teenage 3,952.8 4,070.3 4,183.3 4,239.4 4,318.4 4,377.6 Boys (Aged 13-19) playing video games Number of Teenage 2,576.7 2,664.1 2,709.4 2,747.5 2,779.7 2,809.6 Girls (Aged 13-19) playing video games Number of Adults 15,600.1 17,059.1 18,560.2 19,549.9 20,564.8 21,609.3 (Population Aged Over 20) playing video games Source: Euromonitor International from official statistics Table 23 Video Gaming Population: % Number of People- % - % of total population- playing video games % of Young Children- (Population Aged Up to 6) playing video games % of Young Boys (Aged- Up to 6) playing video games % of Young Girls- (Aged Up to 6) playing video games % of Pre-Teens- (Population Aged 7-12) playing video games % of Pre-Teen Boys- (Aged 7-12) playing video games % of Pre-Teen Girls- (Aged 7-12) playing video games % of Teenagers- (Population Aged 13-19) playing video games % of Teenage Boys- (Aged 13-19) playing video games % of Teenage Girls- (Aged 13-19) playing video games % of Adults- (Population Aged Over 20) playing video games Source: Euromonitor International from official statistics Table 24 NBO Company Shares of Video Games: % Value- % retail value rsp Company- Sony Philippines Inc- Supercell Oy - Microsoft Corp- Nintendo Co Ltd- Electronic Arts Inc- Activision Blizzard Inc- Blizzard Entertainment- Inc Square Enix Co Ltd- Atari Inc - - - - 0.3 BANDAI NAMCO Group- Others- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 25 LBN Brand Shares of Video Games: % Value- % retail value rsp Brand (GBO) Company (NBO- Clash of Clans Supercell Oy- Sony PlayStation Sony Philippines Inc- Vita (Sony Corp) PlayStation 4 (Sony Sony Philippines Inc - 0.3 0.9 1.3 Corp) Xbox One Microsoft Corp - 0.1 0.8 1.3 Wii U Nintendo Co Ltd- NBA Electronic Arts Inc- Xbox 360 Microsoft Corp- PlayStation 3 (Sony Sony Philippines Inc- Corp) Nintendo 3DS Nintendo Co Ltd- Call of Duty Activision Blizzard Inc- Final Fantasy Square Enix Co Ltd- The Witcher (CD Atari Inc ---0.3 Projekt RED SA) World of Warcraft Blizzard Entertainment- (Activision Inc Blizzard Inc) Naruto Shippuden BANDAI NAMCO Group- amiibo Nintendo Co Ltd - - - 0.1 Wii Remote Nintendo Co Ltd- Tekken BANDAI NAMCO Group- The Sims Electronic Arts Inc- Diablo (Activision Blizzard Entertainment- Blizzard Inc) Inc Kinect Microsoft Corp- Starcraft Blizzard Entertainment- (Activision Inc Blizzard Inc) Sony PlayStation Sony Philippines Inc 1.3 0.4 0.1 - Portable (Sony Corp) Wii Nintendo Co Ltd 2.0 0.2 0.1 - PlayStation 2 (Sony Sony Philippines Inc 0.1 - - - Corp) Nintendo DS Nintendo Co Ltd 0.1 - - - Others Others- Total Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 26 NBO Company Shares of Video Games Hardware: % Value- % retail value rsp Company- Sony Philippines Inc- Microsoft Corp- Nintendo Co Ltd- Walt Disney Co, The - - - - 0.6 Activision Blizzard Inc - - - - 0.4 Others- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 27 LBN Brand Shares of Video Games Hardware: % Value- % retail value rsp Brand (GBO) Company (NBO- Sony PlayStation Sony Philippines Inc- Vita (Sony Corp) PlayStation 4 (Sony Sony Philippines Inc - Corp) Xbox One Microsoft Corp - Wii U Nintendo Co Ltd- Xbox 360 Microsoft Corp- PlayStation 3 (Sony Sony Philippines Inc- Corp) Nintendo 3DS Nintendo Co Ltd- amiibo Nintendo Co Ltd ---1.8 Wii Remote Nintendo Co Ltd- Kinect Microsoft Corp- Disney Infinity Walt Disney Co, The ---0.6 Skylanders Activision Blizzard Inc ---0.4 Sony PlayStation Sony Philippines Inc 7.23.71.6- Portable (Sony Corp) Wii Nintendo Co Ltd- - PlayStation 2 (Sony Sony Philippines Inc 0.6 - - - Corp) Nintendo DS Nintendo Co Ltd 0.4 - - - Others Others- Total Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 28 NBO Company Shares of Video Games Software: % Value- % retail value rsp Company- Supercell Oy - Electronic Arts Inc- Activision Blizzard Inc- Blizzard Entertainment- Inc Square Enix Co Ltd- Atari Inc - - - - 0.3 BANDAI NAMCO Group- Others- Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 29 LBN Brand Shares of Video Games Software: % Value- % retail value rsp Brand (GBO) Company (NBO- Clash of Clans Supercell Oy- NBA Electronic Arts Inc- Call of Duty Activision Blizzard Inc- Final Fantasy Square Enix Co Ltd- The Witcher (CD Atari Inc - - - 0.3 Projekt RED SA) World of Warcraft Blizzard Entertainment- (Activision Inc Blizzard Inc) Naruto Shippuden BANDAI NAMCO Group- Tekken BANDAI NAMCO Group- The Sims Electronic Arts Inc- Diablo (Activision Blizzard Entertainment- Blizzard Inc) Inc Starcraft Blizzard Entertainment- (Activision Inc Blizzard Inc) Others Others- Total Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 30 Distribution of Video Games by Format: % Value- % retail value rsp - Store-Based Retailing- Grocery Retailers - - - - - - -- Modern Grocery - - - - - - Retailers --- Convenience Stores - - - - - - --- Discounters - - - - - - --- Forecourt Retailers - - - - - - --- Hypermarkets - - - - - - --- Supermarkets - - - - - - -- Traditional Grocery - - - - - - Retailers Mixed Retailers- -- Department Stores - - - - - - -- Mass Merchandisers - - - - - - -- Variety Stores - - - - - - -- Warehouse Clubs- Non-Grocery Specialists- -- Electronics and- Appliance Specialist Retailers -- Health and Beauty - - - - - - Specialist Retailers -- Home and Garden - - - - - - Specialist Retailers -- Leisure and Personal- Goods Specialist Retailers --- Sports goods stores - - - - - - --- Traditional Toys- and Games Stores --- Media Products Stores- --- Other Leisure and - - - - - - Personal Goods Specialist Retailers -- Other Non-Grocery - - - - - 0.0 Specialists Non-Store Retailing- Vending - - - - - - Homeshopping - - - - - - Internet Retailing- Direct Selling - - - - - - Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 31 Distribution of Video Games Hardware by Format: % Value- % retail value rsp - Store-Based Retailing- Grocery Retailers - - - - - - -- Modern Grocery - - - - - - Retailers --- Convenience Stores - - - - - - --- Discounters - - - - - - --- Forecourt Retailers - - - - - - --- Hypermarkets - - - - - - --- Supermarkets - - - - - - -- Traditional Grocery - - - - - - Retailers Mixed Retailers- -- Department Stores - - - - - - -- Mass Merchandisers - - - - - - -- Variety Stores - - - - - - -- Warehouse Clubs- Non-Grocery Specialists- -- Electronics and- Appliance Specialist Retailers -- Health and Beauty - - - - - - Specialist Retailers -- Home and Garden - - - - - - Specialist Retailers -- Leisure and Personal- Goods Specialist Retailers --- Sports goods stores - - - - - - --- Traditional Toys- and Games Stores --- Media Products Stores- --- Other Leisure and - - - - - - Personal Goods Specialist Retailers -- Other Non-Grocery - - - - - - Specialists Non-Store Retailing- Vending - - - - - - Homeshopping - - - - - - Internet Retailing- Direct Selling - - - - - - Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 32 Distribution of Video Games Software by Format: % Value- % retail value rsp - Store-Based Retailing- Grocery Retailers - - - - - - -- Modern Grocery - - - - - - Retailers --- Convenience Stores - - - - - - --- Discounters - - - - - - --- Forecourt Retailers - - - - - - --- Hypermarkets - - - - - - --- Supermarkets - - - - - - -- Traditional Grocery - - - - - - Retailers Mixed Retailers- -- Department Stores - - - - - - -- Mass Merchandisers - - - - - - -- Variety Stores - - - - - - -- Warehouse Clubs- Non-Grocery Specialists- -- Electronics and - - - - - - Appliance Specialist Retailers -- Health and Beauty - - - - - - Specialist Retailers -- Home and Garden - - - - - - Specialist Retailers -- Leisure and Personal- Goods Specialist Retailers --- Sports goods stores - - - - - - --- Traditional Toys- and Games Stores --- Media Products Stores- --- Other Leisure and - - - - - - Personal Goods Specialist Retailers -- Other Non-Grocery - - - - - 0.0 Specialists Non-Store Retailing- Vending - - - - - - Homeshopping - - - - - - Internet Retailing- Direct Selling - - - - - - Total- Source: Euromonitor International from official statistics, trade associations, trade press, company research, store checks, trade interviews, trade sources Table 33 Forecast Sales of Video Games by Category: Value- PHP million - Video Games Hardware- Hand-held Consoles- Static Consoles- Gaming Accessories- -- Toys-to-Life- -- AR/VR Headsets - -- Other Gaming- Accessories Video Games Software 8,183.4 9,971.7 11,878.5 13,807.0 15,857.8 17,887.5 Video Games Software- (Physical) -- Computer Games- (Physical) -- Console Games- (Physical) Video Games Software 7,738.9 9,511.4 11,402.8 13,316.3 15,352.5 17,368.3 (Digital) -- Computer Games- (Digital) -- Console Games- (Digital) -- Online Games 3,478.6 3,983.0 4,500.8 5,040.9 5,595.4 6,155.0 -- Mobile Games 4,192.8 5,450.6 6,813.2 8,175.9 9,647.5 11,094.6 Video Games Software 8,183.4 9,971.7 11,878.5 13,807.0 15,857.8 17,887.5 by Platform -- Console Games- -- Computer Games- -- Online Games 3,478.6 3,983.0 4,500.8 5,040.9 5,595.4 6,155.0 -- Mobile Games 4,192.8 5,450.6 6,813.2 8,175.9 9,647.5 11,094.6 Video Games Software 8,183.4 9,971.7 11,878.5 13,807.0 15,857.8 17,887.5 by Format -- Video Games Software- (Game Sales) -- Video Games Software 7,661.1 9,421.0 11,298.9 13,199.8 15,224.3 17,229.7 (In-Game Purchases) Video Games 8,872.3 10,665.3 12,561.7 14,467.7 16,494.6 18,499.4 Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources Table 34 Forecast Sales of Video Games by Category: % Value Growth- % constant value growth 2015/- CAGR 2015/20 TOTAL Video Games Hardware 0.7 -2.3 -11.2 Hand-held Consoles -6.3 -5.2 -23.3 Static Consoles -0.4 -3.5 -16.2 Gaming Accessories- -- Toys-to-Life - -- AR/VR Headsets - - - -- Other Gaming Accessories- Video Games Software- Video Games Software (Physical- -- Computer Games (Physical- -- Console Games (Physical- Video Games Software (Digital- -- Computer Games (Digital- -- Console Games (Digital- -- Online Games- -- Mobile Games- Video Games Software by Platform- -- Console Games- -- Computer Games- -- Online Games- -- Mobile Games- Video Games Software by Format- -- Video Games Software (Game Sales- -- Video Games Software (In-Game- Purchases) Video Games- Source: Euromonitor International from trade associations, trade press, company research, trade interviews, trade sources