75% of brands are confident their new products will be a success this year, according to new research from The Insights Family.
The Insights Family has released its Kids & Family Industry Report 2021, which has 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.
However, the industry is in flux, with eight in 10 businesses feeling like they won’t be operating in the same way in two 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.
Meanwhile, 65% of businesses The Insights Family 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.
“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,” commented Nick Richardson, founder and ceo of The Insights Family. “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 18 January 2021 to Monday 22 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.