australia-toys-games-retail-120935

MarketLine Industry Profile
Toys & Games Retail in Australia

February 2021
Reference Code: 0125-0778
Publication Date: February 2021
Primary NAICS: 451120
Secondary NAICS: N/A
WWW.MARKETLINE.COM
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Industry Profiles
1. Executive Summary
1.1. Market value

The Australian toys & games retail market grew by 8.7% in 2020 to reach a value of $1,259.4 million.
1.2. Market value forecast

In 2025, the Australian toys & games retail market is forecast to have a value of $1,276.2 million, an increase of 1.3%
since 2020.
1.3. Geography segmentation

Australia accounts for 3.3% of the Asia-Pacific toys & games retail market value.
1.4. Market rivalry

The COVID-19 pandemic has presented a variety of difficulties for retailers, including an increase in costs to adapt to
meet new safety and hygiene measures, as well lowered footfall – particularly for those retailers that have been forced
to temporarily close. Such a difficult operating environment has intensified competition in this market.
1.5. Competitive Landscape

The leading players in the Australian toys and games market include Wesfarmers, Woolworths Group, Amazon, and Toy
World. Wesfarmers, Woolworths Group, and Amazon sell a wide range of merchandise, from groceries to electronics
and lots in between, which gives them a competitive advantage. Toy World is the most vulnerable of the leading players
to fluctuations in the toys and games market. While the COVID-19 pandemic has brought its difficulties, for some of the
leading players in this market the outcome has been a growth in sales, particularly through e-commerce.

Industry Profiles
TABLE OF CONTENTS
1. Executive Summary 2
1.1. Market value ................................................................................................................................................2
1.2. Market value forecast ..................................................................................................................................2
1.3. Geography segmentation.............................................................................................................................2
1.4. Market rivalry...............................................................................................................................................2
1.5. Competitive Landscape ................................................................................................................................2
2. Market Overview 7
2.1. Market definition .........................................................................................................................................7
2.2. Market analysis ............................................................................................................................................7
3. Market Data 9
3.1. Market value ................................................................................................................................................9
4. Market Segmentation 10
4.1. Geography segmentation...........................................................................................................................10
5. Market Outlook 11
5.1. Market value forecast ................................................................................................................................11
6. Five Forces Analysis 12
6.1. Summary ....................................................................................................................................................12
6.2. Buyer power...............................................................................................................................................14
6.3. Supplier power ...........................................................................................................................................15
6.4. New entrants .............................................................................................................................................17
6.5. Threat of substitutes ..................................................................................................................................19
6.6. Degree of rivalry.........................................................................................................................................20
7. Competitive Landscape 22
7.1. Who are the leading players? ....................................................................................................................22
7.2. What strategies do the leading players follow?.........................................................................................22
7.3. What impact is COVID-19 having on the leading players? .........................................................................23

Industry Profiles
8. Company Profiles 24
8.1. Wesfarmers Limited...................................................................................................................................24
8.2. Woolworths Limited...................................................................................................................................27
8.3. Big W ..........................................................................................................................................................30
8.4. Amazon.com, Inc........................................................................................................................................31
9. Macroeconomic Indicators 35
9.1. Country data ..............................................................................................................................................35
Appendix 37
Methodology ...........................................................................................................................................................37
9.2. Industry associations..................................................................................................................................38
9.3. Related MarketLine research .....................................................................................................................38
About MarketLine....................................................................................................................................................39

Industry Profiles
LIST OF TABLES
Table 1: Australia toys & games retail market value: $ million, 2016–20(e) 9
Table 2: Australia toys & games retail market geography segmentation: $ million, 2020(e) 10
Table 3: Australia toys & games retail market value forecast: $ million, 2020–25 11
Table 5: Wesfarmers Limited: Key Employees 26
Table 7: Woolworths Limited: Key Employees 29
Table 10: Amazon.com, Inc.: Key Employees 33
Table 11: Amazon.com, Inc.: Key Employees Continued 34
Table 12: Australia size of population (million), 2016–20 35
Table 13: Australia gdp (constant 2005 prices, $ billion), 2016–20 35
Table 14: Australia gdp (current prices, $ billion), 2016–20 35
Table 15: Australia inflation, 2016–20 35
Table 16: Australia consumer price index (absolute), 2016–20 36
Table 17: Australia exchange rate, 2016–20 36

Industry Profiles
LIST OF FIGURES
Figure 1: Australia toys & games retail market value: $ million, 2016–20(e) 9
Figure 2: Australia toys & games retail market geography segmentation: % share, by value, 2020(e) 10
Figure 3: Australia toys & games retail market value forecast: $ million, 2020–25 11
Figure 4: Forces driving competition in the toys & games retail market in Australia, 2020 12
Figure 5: Drivers of buyer power in the toys & games retail market in Australia, 2020 14
Figure 6: Drivers of supplier power in the toys & games retail market in Australia, 2020 15
Figure 7: Factors influencing the likelihood of new entrants in the toys & games retail market in Australia, 2020 17
Figure 8: Factors influencing the threat of substitutes in the toys & games retail market in Australia, 2020 19
Figure 9: Drivers of degree of rivalry in the toys & games retail market in Australia, 2020 20

Industry Profiles
2. Market Overview
2.1. Market definition

The toys & games market includes retail sales of action figures, activity toys, dolls, games, infant and baby toys,
miniature models, plush toys, puzzles, ride-on model toys, and toy vehicles.
Any currency conversions used in the creation of this report have been calculated using constant 2020 annual average
exchange rates.
Forecast figures presented in this report are calculated using crisis scenarios for the retail market. The length of the
pandemic and restrictions introduced by various countries are still difficult to predict, though many governments had
introduced national lockdowns and temporarily banned the sale of products that are deemed "non-essential". The
length of the pandemic and restrictions imposed by governments around the world is not certain, therefore the impact
on this market is difficult to predict. The data used in this report has been modelled on the assumption of a crisis
scenario and has taken into consideration forecast impacts on national economies.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific,
Middle East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
2.2. Market analysis

Between 2016 and 2019, the Australian toys & games market had been growing moderately. The market saw strong
growth in 2020, a significant acceleration on the growth rates seen in the previous three years. However, in 2021 a
decline is expected as the effects of the COVID-19 pandemic take hold.
While the market has registered a moderate growth rate overall for the past five years, it has been constrained to an
extent by the growing prevalence of digital alternatives including games consoles, tablets, and mobile phone apps. In
2020, games software for games consoles, tablets, PCs, and mobile phones generated revenues of $1.5bn in Australia,
which is bigger than the size of the traditional toys & games market.
The Australian toys & games market had total revenues of $1,259.4m in 2020, representing a compound annual growth
rate (CAGR) of 3.6% between 2016 and 2020. In comparison, the Japanese market declined with a compound annual
rate of change (CARC) of -0.3%, and the Chinese market increased with a CAGR of 6.2%, over the same period, to reach
respective values of $5,529.4m and $21,057.5m in 2020.
Offline account for the largest proportion of sales in the Australian toys & games market in 2020, sales through this
channel generated $954.6m, equivalent to 75.8% of the market's overall value. Sales through the online generated
revenues of $304.7m in 2020, equating to 24.2% of the market's aggregate revenues.

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Sales of toys & games through online channels have been on the rise for a while in Australia, reflecting a global trend in
consumer behavior. Internet penetration is high at 87% in 2019 according to the World Bank. This has been accelerated
in 2020 with lockdowns causing store closures and forcing demand online.
The performance of the market is forecast to decelerate, with an anticipated CAGR of 0.3% for the five-year period
2020 - 2025, which is expected to drive the market to a value of $1,276.2m by the end of 2025. Comparatively, the
Japanese and Chinese markets will grow with CAGRs of 4.6% and 9.9% respectively, over the same period, to reach
respective values of $6,922.9m and $33,797.8m in 2025.
Despite performing well in 2020, a strong decline is expected in 2021. The boost to the market will subside and the
economic effects of the pandemic and store closures will be felt. However, with a vaccine on the horizon there is hope
that the worst of the crisis will be over during 2021. A return to moderate growth is expected from 2022 onwards.

Industry Profiles
3. Market Data
3.1. Market value

The Australian toys & games retail market grew by 8.7% in 2020 to reach a value of $1,259.4 million.
The compound annual growth rate of the market in the period 2016–20 was 3.6%.
Table 1: Australia toys & games retail market value: $ million, 2016–20(e)
Year $ million A$ million € million % Growth

2016 1,095.2 1,590.3 960.6
2017 1,117.0 1,622.1 979.8 2.0
2018 1,138.2 1,652.8 998.4 1.9
2019 1,158.2 1,681.9 1,016.0 1.8
2020(e) 1,259.4 1,828.7 1,104.7 8.7
CAGR: 2016–20 3.6%

SOURCE: MARKETLINE MARKETLINE
Figure 1: Australia toys & games retail market value: $ million, 2016–20(e)

Industry Profiles
4. Market Segmentation
4.1. Geography segmentation

Australia accounts for 3.3% of the Asia-Pacific toys & games retail market value.
China accounts for a further 55.8% of the Asia-Pacific market.
Table 2: Australia toys & games retail market geography segmentation: $ million, 2020(e)
Geography 2020 %
China 21,057.5 55.8
Japan 5,529.4 14.7
India 2,513.4 6.7
South Korea 2,316.4 6.1
Australia 1,259.4 3.3
Rest Of Asia-pacific 5,030.0 13.3
Total 37,706.1 99.9%

Figure 2: Australia toys & games retail market geography segmentation: % share, by value, 2020(e)

Industry Profiles
5. Market Outlook
5.1. Market value forecast

In 2025, the Australian toys & games retail market is forecast to have a value of $1,276.2 million, an increase of 1.3%
since 2020.
The compound annual growth rate of the market in the period 2020–25 is predicted to be 0.3%.
Table 3: Australia toys & games retail market value forecast: $ million, 2020–25
Year $ million A$ million € million % Growth

2020 1,259.4 1,828.7 1,104.7 8.7%
2021 1,142.2 1,658.6 1,001.9 (9.3%)
2022 1,174.3 1,705.3 1,030.1 2.8%
2023 1,207.3 1,753.2 1,059.0 2.8%
2024 1,250.7 1,816.2 1,097.1 3.6%
2025 1,276.2 1,853.2 1,119.4 2.0%
CAGR: 2020–25 0.3%

Figure 3: Australia toys & games retail market value forecast: $ million, 2020–25

Industry Profiles
6. Five Forces Analysis

The toys & games retail market will be analyzed taking toys and games retailers as players. The key buyers will be taken
as individual end consumers, and toys and games manufacturers as the key suppliers.
6.1. Summary
Figure 4: Forces driving competition in the toys & games retail market in Australia, 2020
to temporarily close. Such a difficult operating environment has intensified competition in this market.
The buyers in this market are end-consumers. This significantly weakens buyer power; the loss of any one buyer’s
custom is unlikely to have a significant effect on a player’s revenues. Additionally, the standing of any individual
customer is diminished because of the sheer volume of potential customers. However, when taken as a collective, the
lack of switching costs and the tendency to switch between whoever provides the best deal increases buyer power,
particularly when it comes to popular toys.
The size of toy manufacturers ranges from smaller companies, specializing in specific toys and/or games, to large
corporations such as Hasbro and Mattel that produce and market a wide variety of products. These larger corporations
experience higher supplier power, as the loss of a contract with such a supplier could affect players’ revenues. A
significant feature of the large toy manufacturers in this market is their acquisition of brands. Acquiring a popular brand
can have a huge impact on supplier power, with manufacturers who acquire the most popular brands possessing
significant power.
Low cost switching for buyers and the relative ease of access to both buyers and suppliers makes market entry
relatively simple. However, there exists a high level of product differentiation, so newcomers may find it harder to
attract buyers away from existing incumbents. Additionally, the strength of incumbent brands may prove a difficult
entry barrier to overcome.
The most significant substitute to the toys and games market is digital alternatives including games consoles, tablets,
and mobile phone apps. These substitutes are becoming more prevalent in an increasingly digital age. Children now

Industry Profiles
have grown up surrounded by digital media. Consoles, PCs, tablets, and mobile phones are playing an ever growing part
in children's lives by providing games, education and entertainment.
Some market players, primarily specialized toy retailers, are highly dependent on revenues from toy and game sales.
These players experience increased rivalry, as players must be profitable within that particular market at all times.

Industry Profiles
6.2. Buyer power
Figure 5: Drivers of buyer power in the toys & games retail market in Australia, 2020
The buyers in this market are end-consumers. This significantly weakens buyer power; the loss of any one buyer’s
custom is unlikely to have a significant effect on a player’s revenues. Additionally, the standing of any individual
customer is diminished because of the sheer volume of potential customers.
Furthermore, the fact that there are many different types of toys for different ages, sexes and interests means the high
degree of differentiation found in the toys and games market works against buyer power, as toy shops can tailor their
offerings regardless of price knowing there is a market for their products.
However, when taken as a collective, the lack of switching costs and the tendency to switch between whoever provides
the best deal increases buyer power, particularly when it comes to popular toys. This is impeded somewhat by the issue
of price sensitivity, which becomes less of an issue when toys and games are purchased during the holiday season or for
special occasions such as birthdays. This is particularly prevalent for ‘must have’ toys which tend to change year to year.
However, generally price sensitivity is high in this market. Consumers have actually become increasingly price sensitive
given the rise of e-commerce and the ability to search online for the cheapest option. Online retail now accounts for
over 24% of sales in this market, with this trend towards e-commerce being accelerated by the COVID-19 pandemic.
Players can attempt to increase customers’ likelihood to return with loyalty schemes. For example, Toyworld offers its
Toyworld Club loyalty card. What’s more, online retailers may encourage consumers through fast delivery. For example,
consumers with Amazon Prime membership benefit from fast, free delivery on many items, which is likely to entice
such consumers to purchase toys & games from this retailer. Discouraging movement across retail outlets can reduce
consumer mobility which, in the long term, can weaken buyer power.
The likelihood of end consumers integrating backward and making their own toys is unlikely, although not impossible,
due to the popularity of arts and crafts hobbies and websites, such as Etsy and Pinterest. It is, however, impossible for
market players to forward integrate due to their position in the supply chain. Despite being inherently a part of
childhood, toys and games are not vital goods and this tends to increase buyer power somewhat as customers can
forego the products in times of financial adversity.
Overall, buyer power is assessed as moderate.

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6.3. Supplier power
Figure 6: Drivers of supplier power in the toys & games retail market in Australia, 2020
The size of toy manufacturers ranges from smaller companies, specializing in specific toys and/or games, to large
corporations such as Hasbro and Mattel that produce and market a wide variety of products. These larger corporations
experience higher supplier power, as the loss of a contract with such a supplier could affect players’ revenues. They
tend to fuel demand for their toys through extensive marketing activities often resulting in the large companies
producing the ‘must have’ toys.
A significant feature of the large toy manufacturers in this market is their acquisition of brands. Acquiring a popular
brand can have a huge impact on supplier power, with manufacturers who acquire the most popular brands possessing
significant power. The larger manufacturers such as Mattel and Hasbro tend to have the licensing rights to popular
brands made famous by television, film or book, such as Marvel, DC, Star Wars or Transformers.
Hasbro has seen its power surge in recent times, leaving Mattel struggling somewhat. Hasbro managed to win a deal to
manufacture Disney Princess toys in 2014, taking the rights from Mattel. At the time, Mattel had valued its Disney
Princess business at $300m. Hasbro has continued to make key acquisitions. In 2018, the toy manufacturer entered a
$522m agreement to acquire Saban’s Power Rangers and a range of other entertainment brands including My Pet
Monster, Popples, and Treehouse Detectives. Furthermore, at the end of 2019, Hasbro completed its acquisition of
Entertainment One in a $4bn deal. Buying Entertainment One added children's cartoon franchises such as Peppa Pig
and PJ Masks, which generated $2.5bn in retail sales in 2018. As such, at present, Hasbro possesses significant supplier
power as major toy retailers would see their sales drop significantly without Hasbro products.
While toy retailers are reliant on the large toy manufacturers in this market, the situation is similar when reversed. The
likes of Hasbro and Mattel are reliant on the leading players for much of their revenues. This is evident in the impact
that the collapse of toy retailer Toys R Us has had on these suppliers. It is estimated that Hasbro generated around 9%
of its revenue from the retailer. Hasbro Inc. reported a 13% decline in sales during the 2018 holiday season, an
indication of how toy makers struggled following the liquidation of Toys “R” Us. Rival Mattel Inc. also reported a drop in
sales for 2018’s final quarter, down 5%. As such, supplier power is impeded to an extent in this respect.
Many retailers are unlikely to backward integrate into manufacturing toys and games. However this is not impossible,
with now defunct retailer Toys R Us being an example. Similarly, retailers Hamleys and The Entertainer manufacture
and sell a range of own-branded toys and games, while Walmart has a range of 1,000 toys that are exclusive to the
retailer. This backward integration significantly impacts supplier power, as does the low switching costs for retailers.

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However, suppliers are able to forward integrate, particularly through online sales, and this helps to negate this impact.
A successful example of forward integration includes the Lego stores.
Retailers are dependent on providing popular products and products of high quality and this, coupled with the high
level of product differentiation in the market, boosts supplier power. Government regulation is strict as toys must pass
certain safety tests in order to be sold. Products that have been deemed unsafe after sale are often recalled which can
impact heavily on not only retailers' revenues and brand reputation but also the suppliers. In March 2017, Kids II
recalled 680,000 rattles due to a potential choking hazard. In April 2019, the Consumer Protections Safety Commission
issued the recall of 36 Kids II rocking sleeper models, which affects 694,000 units sold. The move came just two weeks
after Fisher-Price recalled five million of its similar Rock 'n Play sleepers, which were linked to at least 32 baby deaths
over the last 10 years.
Supplier power in the toys and games market is assessed as moderate overall.

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6.4. New entrants
Figure 7: Factors influencing the likelihood of new entrants in the toys & games retail market in Australia, 2020
Low cost switching for buyers and the relative ease of access to both buyers and suppliers makes market entry
relatively simple. However, there exists a high level of product differentiation, so newcomers may find it harder to
attract buyers away from existing incumbents. Additionally, the strength of incumbent brands may prove a difficult
entry barrier to overcome.
Entry on a small scale is achievable – targeting niche markets (i.e. crafts or traditional wooden toys) or stocking the
latest tech-savvy toys for teens can be lucrative options. However, such strategies may prove difficult to compete
effectively with established brands and retailers of considerable size who benefit from economies of scale. Entering via
a cheaper price point is a viable option, particularly if done exclusively online due to lower fixed costs. However, an
additional capital outlay would be required to cover lower profit margins and loss leaders. Relatively high fixed costs in
the form of sales and storage space in shops, staff, and delivery costs can be obstacles to entry and fast expansion;
however, online operations generally tend to involve lower costs and can be an effective alternative strategy.
In recent years plastic toys have come under scrutiny as many countries are committing to reduce the amount of plastic
waste that they produce. An Ellen MacArthur Foundation report has claimed that, by 2050, there will be more plastic
waste in the sea than fish by weight. Plastic is one of the most widely used materials in the manufacture of toys and
games but unfortunately much of it eventually ends up at a landfill. Certain components in toys and games use
technical plastics like polyamide, polycarbonate or polymethyl methacrylate. These tend to have a short life span and
cannot usually be reused so are thrown away. With the production of toys and games being very plastic heavy,
increasingly strict regulation on its use could be detrimental to the market, especially for smaller companies that cannot
afford to pump money into research of biodegradable materials. Bioplastics, which are made wholly or in part from
organic matter rather than oil, could be one solution in the market and some toymakers are replacing their traditional
materials in order to become more environmentally friendly. One US based company, Green Dot Bioplastics, is actively
working with manufacturers of toys and games to introduce different biodegradable plastic alternatives into the
manufacturing stage of this market. This can, however, be costly especially for new entrants. In 2019, Hasbro began
using plant-based bio-polyethylene terephthalate (PET) to produce the packaging for its products, with the company
planning to phase out all plastic packaging by 2022.
One rising retail channel in recent years has been supermarket and hypermarket retailers, who, because of their bulk
buying power are able to capture an increasingly large section of the market that requires more budget items. Also
contributing to this rise is a shift in retail attitudes, which allows supermarkets to be considered by the consumer for
toys and games where previously the company would be mainly associated with food products. Consumers are now

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able to shop for toys whilst buying their groceries and household items. This can be enticing especially as there is no
need for consumers to go to specialist retailers because they are able to do their entire shopping under one roof.
During the COVID-19 pandemic, which led to the temporary closure of non-essential businesses in 2020, supermarkets
& hypermarkets were allowed to remain open. As such, the importance of such retailers in this market strengthened.
The exit of Toys R Us from the market opens up possibilities for potential new entrants. The company was a leading
player in this market prior to its demise. However, while this will offer entry opportunities to an extent, it is likely that
many of the leading players will expand aggressively to take the share left by Toys R Us. In June 2019, Toys R Us
announced a partnership with Hobby Warehouse to open small-format Toys R Us stores in city centers in Australia and
to re-launch Toys R Us and Babies ‘R’ Us e-commerce sites in Australia and New Zealand.
Moreover, there are a number of stringent regulations and safety tests that toys must pass and this may act as a
deterrent to new entrants. For example in Australia manufacturers and distributors must comply with the Australian
Toy Standard (AS/NZ 8124), which deals with safety aspects related to mechanical and physical properties of toys.
Interactive toys are becoming increasingly popular and new entrants that can utilize the latest technologies are likely to
thrive. Toys that have an extra dimension on an app, for example, are doing well because they bridge the gap between
real life and toys. There is an increasing realization, however, that children are spending too much time on digital
devices so the sale of traditional toys and games can be boosted by parents trying to dissuade their children away from
these.
Advertising through social media, particularly on YouTube, is becoming increasingly popular and items such as Shopkins
and LOL Surprise Dolls are unlikely to have become a hit if it was not for these videos. One of the top toy review sites on
YouTube, ‘Ryan’s World’, has over 28 million subscribers as of January 2021.
The Australian market has grown moderately overall in recent years, which may attract new entrants. However, with
many countries re-entering lockdown in late 2020 and early 2021, potential new entrants are likely to be deterred.
Australian states and territories have different levels of restrictions to contain COVID-19. For example, Brisbane was in
lockdown until January 11, 2021.
Overall, the threat of new entrants is assessed as moderate.

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6.5. Threat of substitutes
Figure 8: Factors influencing the threat of substitutes in the toys & games retail market in Australia, 2020
The most significant substitute to the toys and games market is digital alternatives including games consoles, tablets,
and mobile phone apps. These substitutes are becoming more prevalent in an increasingly digital age. Children now
have grown up surrounded by digital media. Consoles, PCs, tablets, and mobile phones are playing an ever growing part
in children's lives by providing games, education and entertainment.
Despite not providing a cheaper alternative on the whole, digital and video games are becoming more popular to the
detriment of traditional toys and games, where customer loyalty is low with minimal switching costs. Smartphone
penetration rates are on the increase in Australia, growing from 57% in 2014 to 69% in 2019 (latest available
MarketLine data). In 2020, games software for games consoles, tablets, PCs, and mobile phones generated revenues of
$1.5bn in Australia, which is bigger than the size of the traditional toys & games market. This trend towards video
games and electronics will continue to take consumer spend away from traditional toys & games in the coming years as
technology and innovation continue to develop.
Another option is purchasing second-hand toys from charity shops and internet sites such as eBay or making toys from
scratch. These would likely be a lower cost option. However, children with more affluent parents still provide a stable
source of revenue for more traditional toys and games. Counterfeit toys can be a significant threat to the revenues of
manufacturers with seizures by customs not uncommon.
There is a growing trend towards giving experiences and days out as gifts rather than buying toys & games; however,
this is unlikely to become a complete substitute in this market.
The threat of substitutes is assessed as strong overall.

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6.6. Degree of rivalry
Figure 9: Drivers of degree of rivalry in the toys & games retail market in Australia, 2020
The toys and games market is fairly fragmented, with numerous players present, boosting competition within the
market. However, there are some large incumbents, such as Amazon, which operates globally and benefits from
economies of scale, allowing it to compete more intensely on price.
Some market players, primarily specialized toy retailers, are highly dependent on revenues from toy and game sales.
These players experience increased rivalry, as players must be profitable within that particular market at all times.
During the COVID-19 pandemic when non-essential retail has faced temporary closure, it is the specialized toy stores
that have suffered the most. One particular retailer that has fallen victim to this is Toys R Us. This retailer was the
leading player in this market but closed down all of its stores in Australia in 2018 following bankruptcy. The exit of Toys
R Us from the market eases competitive pressures on other retailers to an extent. However, the existing leading players
in this market are keen to seize the share of the market left behind by the demise of this retailer.
For retailers that do not wish to compete on price, focusing on customer experience can be a key strategy. For example,
Toysworld sees success through this strategy. The retailer offers an exciting and engaging experience for children,
resulting in consumers spending longer in the store.
The presence of Amazon in this market is hard to compete with. This retailer sees significant customer loyalty, largely
driven by its Amazon Prime offering, which it rolled out in Australia in 2018. The broad range of toys & games available
from the retail giant, along with its competitive pricing and delivery subscription makes for a formidable incumbent.
Department stores, supermarkets and retailers being less dependent than specialized stores due to the wide variety of
goods they stock, experience decreased rivalry as variations in the performance of one market are easier to cope with.
These players are also able to reduce their profit margins, competing largely on price, creating a significant threat to
specialized toy stores and further increasing rivalry.
Exit barriers are not a huge issue in this market due to the relative ease with which players can divest their assets, such
as retail units and fixtures and fittings, which can be used across a number of industries. The tendency for customers to
move between toys and games vendors coupled with low switching costs, also serves to increase competition. The
market is extremely seasonal with the biggest spikes in sales around Christmas. It is easy for customers to move from
one retailer to another based on price and this boosts the intensity of rivalry. The popularity of many toys and games is
short-lived or seasonal, which means the retail market is subject to rapid change, further boosting rivalry.

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to temporarily close. Retailers that have an established online presence and well-developed logistics network have
been best equipped to deal with these new pressures. Such a difficult operating environment has intensified
competition in this market. Toyworld does report its financial results; however, it is likely that this retailer will have
been the worst hit of the leading players in this market. As a specialist retailer with a network of bricks-and-mortar
stores, the pressures of the pandemic will have been difficult to emerge from unscathed.
Overall, the degree of rivalry is strong.

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7. Competitive Landscape
The leading players in the Australian toys and games market include Wesfarmers, Woolworths Group, Amazon, and Toy
World. Wesfarmers, Woolworths Group, and Amazon sell a wide range of merchandise, from groceries to electronics
and lots in between, which gives them a competitive advantage. Toy World is the most vulnerable of the leading players
to fluctuations in the toys and games market. While the COVID-19 pandemic has brought its difficulties, for some of the
leading players in this market the outcome has been a growth in sales, particularly through e-commerce.
7.1. Who are the leading players?

Wesfarmers Limited (Wesfarmers) is an Australian conglomerate. The firm operates Bunnings Group, as well as
department stores Kmart and Target. The firm operates online through bunnings.com.au, kmart.com.au and
target.com.au. Wesfarmers reported annual revenue of AUD30.8bn ($21.2bn) in the year-ended June 2020.
Woolworths Group is a major Australian company with extensive retail interests throughout Australia and New Zealand.
The firm sells food and groceries, toys and games, health and beauty, household and pet products. Its brand portfolio
includes Woolworths, Metros, Countdown, WooliesX, Dan Murphy’s, Summergate, Langtons, Cellarmasters, BIG W, and
BWS. It is the second largest company in Australia by revenue. The firm operates a multi-channel distribution channel
through brick and mortar stores, as well as online platforms woolworths.co.au and danmurphys.com.au. The company
reported sales of AUD63.7bn ($43.9bn) in the financial-year ended June 2020.
Amazon.com operates as a leading player in the Australian toys and games market. In the first nine months of 2020, the
e-commerce company’s net sales amounted to $193.1bn, with $50.9bn coming from its international segment (outside
of North America).
Toyworld is a brick and mortar Australian toy retailer and holds a strong position in the Australian market. The company
operates 128 stores across Australia and a further 24 in New Zealand. Toyworld mainly operates through physical
stores, which are operated by franchisees.
7.2. What strategies do the leading players follow?

Players use a variety of strategies to thrive in this market and many retailers are entering the toy and games market to
gain market share. For example, one rising distribution channel has been supermarket and hypermarket retailers, who,
because of their bulk buying power, are able to capture an increasingly large section of the market that requires more
budget items. During the COVID-19 pandemic, which led to the temporary closure of non-essential businesses in 2020,
supermarkets and hypermarkets remained one form of retailer that were allowed to remain open. As such, the
importance of such retailers in this market strengthened.
Leading players offer low prices by virtue of their high sales volumes and economies of scale. The firms benefit from
scale economies in terms of purchasing, inventory management, and customer service. As a result, the firms are able
to undercut smaller online and brick and mortar retailers. This leads to many consumers opting to look for products in-
store before choosing to buy online later to save money, known as showrooming. Additionally, through more
comprehensive customer service, such as dealing with product returns, these firms hold an advantage over smaller
firms. Furthermore, they can engage in aggressive strategies based on their economies of scale, such as offering free
shipping and coupons for customer retention. The most successful example of a customer loyalty policy is Amazon
Prime, which offers numerous benefits, with express shipping being the most important. Amazon can offer one-day,
and same-day in some regions, as part of a Prime subscription, which has proved to be hugely successful amongst
consumers.
Amazon also makes full use of Black Friday and Cyber Monday events, using such days to push promotional items. The
company has also introduced Prime day, an annual shopping holiday exclusive to Prime subscribers. Deals can last up to
36 hours, as Amazon looks to attract more customers to its subscription-based service.

Industry Profiles
Woolworths operates its retail business under various banners. The company operates its supermarkets chain under
the Woolworths brand through a network of 1,052 stores in Australia; and under the name of Thomas Dux, a specialty
grocer, operating nine supermarkets in the country. The company's BIG W brand provides its customers with discount
prices, offering a range of general merchandise products such as women's, men's and children's clothing, shoes,
electronics, pet food, cleaning items, party goods, toys, games, and books.
Wesfarmers has been focusing on core operations of late, in what is a marked departure from how the company has
previously operated. In mid-November 2018, the company demerged from Coals, an Australian supermarket chain. The
firm also sold Homebase in the UK. Wesfarmers took a significant financial hit in failing to turn around the struggling
retailer, even after investing into the business. In trimming down the size of the company, senior management at
Wesfarmers has refocused investment on the core business.
7.3. What impact is COVID-19 having on the leading players?

The impact of COVID-19 on the toys and games market has largely been seen in the method of distribution. Specialist
retailers that largely rely on physical store sales will have suffered the most. Physical store closures mean that such
retailers will have suffered to a greater degree than online pureplay companies. While non-essential stores were forced
to temporarily close, supermarkets and hypermarkets were able to remain open, meaning sales through this channel
will have suffered to a lesser degree. Online retailers have benefited from a surge in demand. The strong online
presence of the leading players in this market have enabled them to remain competitive.
Amazon saw its net sales increase 37% to $96.1bn in the third quarter of 2020, compared with $70.0bn in the third
quarter of 2019. For the first nine months of 2020, net sales for the e-commerce giant reached $260.5bn, a growth of
almost 35% over the first nine months of 2019. The company’s sales have surged due to the sudden rise in demand
online, as lockdowns and fear of viral spread forced consumers to stay home and shop through online retailers. As
restrictions ease and footfall at non-essential stores grows, Amazon has the potential to see a slight slowing in growth.
However, the ongoing threat of the virus, combined with the shift in consumer preferences, enables the company to
remain in a healthy position.
Wesfarmers has also continued to see growth amid the pandemic, with the company reporting annual revenue of
AUD30.8bn ($21.2bn) in the year-ended June 2020. This was an increase of 10.5% on the previous year, with online
sales seeing a surge of 60%. In its 2020 annual report, the company noted that its recent focus on data and the digital
side of the business had enabled it to respond rapidly to the changes in consumer behavior brought about by the
pandemic.
Woolworths Group has also seen its sales grow. The company reported sales of AUD63.7bn ($43.9bn) in the financial-
year ended June 2020, an increase of 6.2% over FY2019. Meanwhile, online sales saw a growth of 39.1% over the same
period. The company developed a strategy to respond to the pandemic, including the establishment of a COVID
Planning and Response Squad, and the appointment of a Chief Medical Officer. The company has developed its
‘COVIDsafe’ response, which focuses on five pillars.
Toyworld does report its financial results; however, it is likely that this retailer will have been the worst hit of the
leading players in this market. As a specialist retailer with a network of brick and mortar stores, the pressures of the
pandemic will have been difficult to emerge from unscathed.

Industry Profiles
8. Company Profiles
8.1. Wesfarmers Limited
8.1.1. Company Overview
Wesfarmers Limited (Wesfarmers or 'the company') is engaged in industrial and retail activities. It offers home
improvement; apparel, general merchandise and office supplies; an Industrials division with businesses in chemicals,
energy and fertilisers and industrial safety products. The company markets its services to various industries include The
company serves across various industries such as food and beverage, construction, mining, facilities maintenance,
manufacturing, government, transport , retail, and utilities. It also has non-controlling interests in companies operating
in forest products, property, investment banking and private equity. Wesfarmers primarily operates in Australia, New
Zealand and the UK. The company is headquartered in Perth, Australia.
The company reported revenues of (Australian Dollars) AUD30,846 million for the fiscal year ended June 2020 (FY2020),
an increase of 10.5% over FY2019. In FY2020, the company’s operating margin was 8.9%, compared to an operating
margin of 10.7% in FY2019. In FY2020, the company recorded a net margin of 5.5%, compared to a net margin of 19.7%
in FY2019.
8.1.2. Key Facts
Table 4: Wesfarmers Limited: key facts
Head office: Level 14 Brookfield Place, 123 Street Georges Terrace, Perth, Western Australia,
Australia
Number of Employees: 105000
Website: www.wesfarmers.com.au
Financial year-end: June
Ticker: WES
Stock exchange: Australian Stock Exchange Ltd
SOURCE: COMPANY WEBSITE MARKETLINE
8.1.3. Business Description
Wesfarmers Limited (Wesfarmers or 'the company') operates diverse industries, including retailing, coal mining, energy,
chemicals and fertilizers, and industrial and safety in Australia. The group also conducts private equity and other
activities. Wesfarmers primarily operates in Australia, New Zealand and the UK.
Wesfarmers classifies its business operations into six reportable segments: Bunnings; Kmart Group; OfficeWorks;
WesCEF; WIS and Others.
Under Bunnings segment, the company retails home and garden improvement products, and building material. It also
offers its services to project builders and housing industry. In FY2020, the Bunnings segment reported revenue of
AUD14,999 million, which accounted for 48.6% of company’s total revenue. As of June 2020, it operated 274
Warehouses, 68 smaller format stores, 30 trade centres and 6 Adelaide Tools.
The company’s Kmart Group segment manages its business activities through Kmart; Target and Catch, Under Kmart it
offers apparel and general merchandise, including toys, leisure, entertainment, home and consumables. Under Target it
offers apparel, homewares and general merchandise, including accessories, electrical and toys. Under Catch it offers
branded products on a first-party basis and a third-party online marketplace. In FY2020, the segment reported revenue

Industry Profiles
of AUD9,217 million for FY2020, which accounted for 29.9% of the company's revenue. As of June 2020, it operated
239 stores under Kmart Tyre and Auto banner and 283 stores under Target banner.
Under Officeworks segment, the company retails and supplies solutions and products for home, small-to-medium sized
education and businesses. In FY2020, the Officeworks segment reported revenue of AUD2,787 million, which
accounted for 9% of company’s total revenue. As of June 2020, the segment operated 167 Officeworks stores.
Under WesCEF segment, the company manufactures and markets chemicals for industries and mineral and mining
processing; broadacre and horticultural fertilizers. It also markets and distributes LNG and LPG for domestic and export
markets. WesCEF manufactures wood-plastic for screening and composite decking products. In FY2020, the segment
reported revenue of AUD2,085 million, which accounted for 6.8% of the company’s total revenue.
The company’s WIS segment manufactures, markets, supplies and distributes, industrial gases and equipment;
industrial safety products and services; workwear clothing in Australia and internationally. It also provides compliance
and risk management services. In FY2020, the WIS segment reported revenue of AUD1,745 million, which accounted
for 5.6% of company’s total revenue.
Other segment consists of food and staples retailing; forest products; property; investment banking and corporate
expenses.. In FY2020, the Other segment reported revenue of AUD13 million, which accounted for 0.1% of company’s
total revenue.
Geographically, the group classifies its operations into four segments, namely Australia, New Zealand, the UK and Other
Foreign Countries. In FY2020, Australia segment reported revenue of AUD28,688 million, which accounted for 93% of
the group's revenues, followed by New Zealand with AUD2,101 million (6.8%); the UK with AUD35 million (0.1%) and
Other Foreign Countries with AUD22 million (0.1%).

Industry Profiles
Table 5: Wesfarmers Limited: Key Employees
Name Job Title Board

Anthony Gianotti Chief Financial Officer Senior Management
Bill English Director Non Executive Board
Diane Smith-Gander Director Non Executive Board
Edward Bostock Managing Director Business Development Senior Management
Ian Bailey Managing Director Kmart Group Senior Management
Chief Executive Officer Wesfarmers
Ian Hansen Senior Management
Chemicals, Energy and Fertilisers
Jennifer A. Westacott Director Non Executive Board
Jenny Bryant Chief Human Resources Officer Senior Management
Maya vanden Driesen General Counsel Senior Management
Michael A. Chaney Chairman Non Executive Board
Michael Schneider Managing Director Bunnings Group Senior Management
Mike Roche Director Non Executive Board
Executive General Manager – Corporate
Naomi Flutter Senior Management
Affairs
Rob G. Scott Chief Executive Officer Executive Board
Rob G. Scott Managing Director Wesfarmers Industrials Executive Board
Sarah Hunter Managing Director Officeworks Senior Management
Sharon Warburton Director Non Executive Board
Managing Director Wesfarmers Industrial and
Tim Bult Senior Management
Safety
Vanessa M. Wallace Director Non Executive Board
Vicki Robinson General Manager Senior Management
Vicki Robinson Secretary Senior Management
SOURCE: COMPANY FILINGS MARKETLINE

Industry Profiles
8.2. Woolworths Limited
Woolworths Limited (Woolworths or 'the company') owns and operates retail stores that sell food, liquor and fuel in
Australia and New Zealand. The company also operates hotels including bars, dining, accommodation, venue hire and
gaming operations. Its brand portfolio includes Woolworths, Metros, Countdown, WooliesX, Dan Murphy’s,
Summergate, Langtons, Cellarmasters, BIG W, and BWS. The company also offers leisure and hospitality services
including accommodation, entertainment and gaming for its users and also delivers these products across various pick
up locations residing in these regions. Woolworths also offers financial products related to credit cards, gift cards and
insurance products. The company is headquartered in Bella Vista, Australia.
The company reported revenues of (Australian Dollars) AUD63,675 million for the fiscal year ended June 2020 (FY2020),
margin of 3.9% in FY2019. In FY2020, the company recorded a net margin of 1.8%, compared to a net margin of 4.5% in
FY2019.
8.2.2. Key Facts
Table 6: Woolworths Limited: key facts
Head office: 1 Woolworths Way , Sydney, New South Wales, Australia

Website: www.woolworthsgroup.com.au
Financial year-end: June
Ticker: WOW
Stock exchange: Australian Stock Exchange Ltd
Woolworths Limited (Woolworths or 'the company') is engaged in retailing food, liquor, and petroleum products, and
also in hotels business. As of June 2020, the company operated 3,357 stores and these stores serve an average of 29.1
million customers per week with more than 3,000 pick-up locations across the region.
The company operates through six segments: Australian Food; Endeavour Drinks Group; New Zealand Food; BIG W,
Hotels and Other.
The Australian Food segment is involved in the procurement of food and petroleum products for resale to customers
primarily in Australia. In FY2020, the segment operated 1,052 Woolworths Supermarkets, and five Thomas Dux stores.
In FY2020, the Australian Food segment reported revenues of AUD42,151 million, which accounted for 66.2% of the
company's revenue.
The Endeavour Drinks Group segment procures liquor products for resale primarily in Australia. In FY2020, the company
operated 1,610 liquor stores under the Dan Murphy’s and BWS brands and Summergate stores. Woolworths also
operates the Cellarmasters, Langtons and winemarket.com.au online website. In FY2020, the Endeavour Drinks Group
segment reported revenues of AUD9,275 million, which accounted for 14.6% of the company's revenue.
The New Zealand Food segment procures food and liquor products for resale to customers in New Zealand. In FY2020,
the company operated 182 Countdown Supermarkets. In FY2020, the New Zealand Food segment reported revenues of
AUD6,823 million, which accounted for 10.7% of the company's revenue.
BIGW segment procures discount general merchandise products for resale in Australia. In FY2020, the company
operated 179 BIGW stores. In FY2020, the BIGW segment reported revenues of AUD4,106 million, which accounted for
6.4% of the company's revenue.

Industry Profiles
The Hotels segment provides leisure and hospitality services, including accommodation, food and alcohol,
entertainment and gaming in Australia. The segment is comprised of 334 hotels including bars, dining, accommodation,
venue hire and gaming operations. In FY2020, the Hotels segment reported revenues of AUD1,320 million, which
accounted for 2.1% of the company's revenue.
Geographically, the company classifies its operations into two segments, namely Australia and New Zealand. In FY2020,
Australia segment accounted for 89.3% of the company's revenues, and New Zealand with 10.7%.

Industry Profiles
Table 7: Woolworths Limited: Key Employees

Amanda Bardwell Managing Director WooliesX Senior Management
Andrew Hicks Chief Marketing Officer Senior Management
Bill Reid Chief Legal Officer Senior Management
Brad L. Banducci Chief Executive Officer Executive Board
Brad L. Banducci Director Executive Board
Brad L. Banducci Managing Director Executive Board
Caryn Katsikogianis Chief People Officer Senior Management
Head Government Relations and Industry
Christian Bennett Senior Management
Affairs
Colin Storrie Managing Director Senior Management
David P. Marr Chief Operating Officer Senior Management
David Walker Chief Risk Officer Senior Management
Gordon McKellar Cairns Chairman Executive Board
Guy Brent Managing Director Foodco and Metro Senior Management
Holly Kramer Director Non Executive Board
Jennifer Carr-Smith Director Non Executive Board
John Hunt Chief Information Officer Senior Management
Kathee Tesija Director Non Executive Board
Maxine Brenner Director Non Executive Board
Michael Ullmer Director Non Executive Board
Natalie Davis Managing Director Woolworths New Zealand Senior Management
Paul Graham Chief Supply Chain Officer Senior Management
Scott Perkins Director Non Executive Board
Siobhan McKenna Director Non Executive Board
Stephen Harrison Chief Financial Officer Senior Management
Steve Donohue Managing Director Endeavour Drinks Senior Management
Von Ingram Chief Customer Transformation Officer Senior Management

Industry Profiles
8.3. Big W
Big W, a subsidiary of Woolworths Ltd is a retailing company that retails consumer products. The company's products
include active wear, dresses, decors, landline phones, sunglasses, jackets, intimates, denims, vests, tops, coats, work
wear, t-shirts, and children’s wear. It also provides animated toys, tablets and accessories, bedding, books, CDs and
DVDs, strollers, action figures, play sets, novelty toys, dolls, table games, garden and outdoor furnishings, exercise
bikes, party essentials, camping accessories, party tableware and others. Big W offers services such as parcel pickup, in-
store lay by, photo labs, home delivery, returns, garden centers, pet centers and optometry store. The company
operates retails stores located across Australia. Big W is headquartered in Sydney, New South Wales, Australia.
8.3.2. Key Facts
Table 8: Big W: key facts
Head office: 1 Woolworths Way Bella Vista, New South Wales, Australia
Website: www.bigw.com.au
Financial year-end: April

Industry Profiles
8.4. Amazon.com, Inc.
Amazon.com, Inc. (Amazon or 'the company') is a retailer that offers its products through online and physical stores.
The company offers a range of merchandise, including books, apparel, home and garden tools, electronics, toys and
baby games, sports and outdoor products, automotive and industrial products and other general merchandise
products. It also provides services that includes web services, order fulfillment, publishing, advertising and co-branded
credit cards services. The company manufactures and sells electronic devices, including Kindle e-readers, Fire tablets,
Fire televisions (TVs) and Echo. Amazon markets its products through its website, www.amazon.com. Amazon also
operates through various international websites. It has business presence across North America, Europe and Asia-
Pacific. The company is headquartered in Seattle, Washington, the US.
The company reported revenues of (US Dollars) US$280,522 million for the fiscal year ended December 2019 (FY2019),
margin of 5.3% in FY2018. In FY2019, the company recorded a net margin of 4.1%, compared to a net margin of 4.3% in
FY2018. The company reported revenues of US$88,912 million for the second quarter ended June 2020, an increase of
17.8% over the previous quarter.
8.4.2. Key Facts
Table 9: Amazon.com, Inc.: key facts
Head office: 410 Terry Avenue North Seattle, Washington, United States
Website: www.amazon.com
Financial year-end: December
Ticker: AMZN
Stock exchange: NASDAQ
Amazon.com, Inc. (Amazon or 'the company') is an online retailer. The company offers a range of products and services
through its physical stores and e-commerce site, amazon.com. The company offers a range of merchandise, including
books, apparel, home and garden tools, toys and baby games, sports and outdoor products, automotive and industrial
products and other general merchandise products. It also sells electronic devices, such as Fire tablets, Kindle e-readers,
Echo devices and Fire TVs. Moreover, it offers a membership program called Amazon Prime, which provides customers
unlimited free shipping option on over 100 million items, access to unlimited streaming of thousands of movies and TV
episodes, and other benefits. The company also provides advertising services and order fulfillment services to its
consumers. The company operates through three business segments: North America, International and Amazon Web
Services (AWS).
The North America segment focuses on retail sales of consumer products (including from sellers) and handles
subscriptions through North America-focused online and physical stores. This segment also includes export sales
generated from the online stores. In FY2019, the North America segment reported revenue of US$170,773 million,
which accounted for 60.9% of the company's revenue.
The International segment includes the retail sales of consumer products (including from sellers) and subscriptions from
internationally focused online stores. This segment also includes export sales from international online stores (including
export sales from their respective sites to customers in the US, Canada and Mexico), but excludes export sales from
North American online stores. In FY2019, the International segment reported revenue of US$74,723 million, which
accounted for 26.6% of the company's revenue.

Industry Profiles
The Amazon Web Services (AWS) segment includes global sales of compute, storage, database, and other AWS service
offerings for start-ups, enterprises, government agencies, and academic institutions. In FY2019, the AWS segment
reported revenue of US$35,026 million , which accounted for 12.5% of the company's revenue.
Amazon serves four primary customer sets: consumers, sellers, developers and enterprises, and content creators. The
company also develops and produces media content. Amazon fulfills customer orders through its fulfillment centers
and delivery networks that it operates in North America and other foreign countries; co-sourced and outsourced
arrangements in certain countries; and digital delivery. Amazon serves sellers by offering programs that enable them to
sell their products on their websites and also on Amazon's websites. The company earns fixed fees, per-unit activity
fees and interest on such transactions. The company serves developers and enterprises through AWS, which provides a
broad set of global compute, storage, database, and other service offerings. Amazon serves content creators such as
authors and independent publishers through Kindle Direct Publishing, an online platform that allows independent
authors and publishers to select a royalty option and make their books available in the Kindle Store. The company also
offers its own publishing arm, Amazon Publishing. It also offers programs that allow authors, musicians, filmmakers,
application developers, and others to publish and sell content.
Geographically, the company classifies its operations into five regions: the US, Germany, Japan, the UK, and Rest of the
World. In FY2019, the US accounted for 69% of the company's revenue, followed by Germany (7.9%), the UK (6.3%),
Japan (5.7%), and Rest of the World (11.1%).

Industry Profiles
Table 10: Amazon.com, Inc.: Key Employees

Andrew R. Jassy Chief Executive Officer Amazon Web Services Senior Management
Brian T. Olsavsky Chief Financial Officer Senior Management
Brian T. Olsavsky Senior Vice President Senior Management
Global Head - Movies Marketing, Amazon
Christian Davin Senior Management
Studios
Daniel P. Huttenlocher Director Non Executive Board
David A. Zapolsky General Counsel Senior Management
David A. Zapolsky Secretary Senior Management
David A. Zapolsky Senior Vice President Senior Management
Indra K. Nooyi Director Non Executive Board
Indra Nooyi Director Non Executive Board
Jamie S. Gorelick Director Non Executive Board
Jeffrey A. Wilke Chief Executive Officer Worldwide Consumer Senior Management
Jeffrey M. Blackburn Senior Vice President Business Development Senior Management
Jeffrey P. Bezos Chairman Executive Board
Jeffrey P. Bezos Chief Executive Officer Executive Board
Jeffrey P. Bezos President Executive Board
John Boumphrey Head UK Operations Senior Management
Jonathan J. Rubinstein Director Non Executive Board
Judith A. McGrath Director Non Executive Board
Keith Alexander Director Non Executive Board
Mike Hopkins Head Video Entertainment Business Senior Management
Patricia Q. Stonesifer Director Non Executive Board
Rosalind G. Brewer Director Non Executive Board
Ruth Diaz Director Amazon Fashion, Europe Senior Management
Business Development Executive, EMEA-
Sahar Baghery Senior Management
Amazon Prime Video
Sally Singer Head Fashion Direction, Amazon Fashion Senior Management
Sameer Batra Director Mobile Business Development Senior Management
Saurabh Srivastava Head Amazon Fashion India Senior Management
Shelley L. Reynolds Controller Senior Management
Shelley L. Reynolds Principal Accounting Officer Senior Management

Industry Profiles
Table 11: Amazon.com, Inc.: Key Employees Continued

Shelley L. Reynolds Vice President Senior Management
Soumya Sriraman Head Prime Video Channels, US Senior Management
Thomas O. Ryder Director Non Executive Board
Wendell P. Weeks Director Non Executive Board

Industry Profiles
9. Macroeconomic Indicators
9.1. Country data
Table 12: Australia size of population (million), 2016–20
Year Population (million) % Growth

2016 23.6 1.1%
2017 23.8 1.0%
2018 24.0 1.0%
2019 24.3 1.0%
2020(e) 24.5 1.0%
Table 13: Australia gdp (constant 2005 prices, $ billion), 2016–20
Year Constant 2005 Prices, $ billion % Growth

2016 992.6 3.1%
2017 1,021.7 2.9%
2018 1,052.2 3.0%
2019 1,084.2 3.0%
2020(e) 1,117.8 3.1%
Table 14: Australia gdp (current prices, $ billion), 2016–20
Year Current Prices, $ billion % Growth

2016 1,643.9 5.8%
2017 1,733.0 5.4%
2018 1,827.4 5.4%
2019 1,928.5 5.5%
2020(e) 2,032.3 5.4%
Table 15: Australia inflation, 2016–20

Industry Profiles
Year Inflation Rate (%)

2016 2.6%
2017 2.6%
2018 2.5%
2019 2.5%
2020(e) 2.6%
Table 16: Australia consumer price index (absolute), 2016–20
Year Consumer Price Index (2005 = 100)

2016 134.1
2017 137.7
2018 141.1
2019 144.7
2020(e) 148.4
Table 17: Australia exchange rate, 2016–20
Year Exchange rate ($/A$) Exchange rate (€/A$)

2016 1.3456 1.4890
2017 1.3036 1.4743
2018 1.3397 1.5806
2019 1.4387 1.6108
2020 1.4521 1.6555

Industry Profiles
Appendix
Methodology
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles
and macroeconomic & demographic information, which enable our researchers to build an accurate market overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
- International data (official international sources)
- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
- Business information libraries and databases
Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry Profiles
9.2. Industry associations
9.2.1. Australian Toy Association
PO Box 74, North Melbourne, Victoria 3051, AUS

Tel.: 61 3 9320 2600
Fax: 61 3 9320 2622
www.austoy.com.au
9.2.2. International Council of Toy Industries
1115 Broadway, 4th Floor, New York NY 10010, USA

Tel.: 1 212 675 1141
www.toy-icti.org
9.3. Related MarketLine research
9.3.1. Industry Profile
Global Toys & Games Retail

Toys & Games Retail in Asia-Pacific
Toys & Games Retail in China
Toys & Games Retail in Japan

Industry Profiles
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MarketLine Industry Profile

Toys & Games Retail in Australia

Reference Code: 0125-0778

Publication Date: February 2021

Primary NAICS: 451120

Secondary NAICS: N/A

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

1.1. Market value

1.2. Market value forecast

1.3. Geography segmentation

1.4. Market rivalry

1.5. Competitive Landscape

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

1.1. Market value ................................................................................................................................................2

1.2. Market value forecast ..................................................................................................................................2

1.3. Geography segmentation.............................................................................................................................2

1.4. Market rivalry...............................................................................................................................................2

1.5. Competitive Landscape ................................................................................................................................2

2.1. Market definition .........................................................................................................................................7

2.2. Market analysis ............................................................................................................................................7

3.1. Market value ................................................................................................................................................9

4.1. Geography segmentation...........................................................................................................................10

5.1. Market value forecast ................................................................................................................................11

6. Five Forces Analysis 12

6.1. Summary ....................................................................................................................................................12

6.2. Buyer power...............................................................................................................................................14

6.3. Supplier power ...........................................................................................................................................15

6.4. New entrants .............................................................................................................................................17

6.5. Threat of substitutes ..................................................................................................................................19

6.6. Degree of rivalry.........................................................................................................................................20

7.1. Who are the leading players? ....................................................................................................................22

7.2. What strategies do the leading players follow?.........................................................................................22

7.3. What impact is COVID-19 having on the leading players? .........................................................................23

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8.1. Wesfarmers Limited...................................................................................................................................24

8.2. Woolworths Limited...................................................................................................................................27

8.3. Big W ..........................................................................................................................................................30

8.4. Amazon.com, Inc........................................................................................................................................31

9.1. Country data ..............................................................................................................................................35

9.2. Industry associations..................................................................................................................................38

9.3. Related MarketLine research .....................................................................................................................38

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Table 5: Wesfarmers Limited: Key Employees 26

Table 7: Woolworths Limited: Key Employees 29

Table 10: Amazon.com, Inc.: Key Employees 33

Table 11: Amazon.com, Inc.: Key Employees Continued 34

Table 12: Australia size of population (million), 2016–20 35

Table 13: Australia gdp (constant 2005 prices, $ billion), 2016–20 35

Table 14: Australia gdp (current prices, $ billion), 2016–20 35

Table 15: Australia inflation, 2016–20 35

Table 16: Australia consumer price index (absolute), 2016–20 36

Table 17: Australia exchange rate, 2016–20 36

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2.1. Market definition

2.2. Market analysis

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3.1. Market value

Year $ million A$ million € million % Growth

CAGR: 2016–20 3.6%

SOURCE: MARKETLINE MARKETLINE

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4.1. Geography segmentation