There is huge market potential for selling educational or environmentally friendly toys
Mattel (Mattel), Hasbro (Hasbro) and Lego (Lego) three major manufacturers occupy 40% of the US toy market. The market segment has huge potential, and small players are favored by many private equity funds. Private equity investment companies active in the toy industry include Propel Equity Partners, Winona Capital, the Friend Group, and Topspin Partners. Hugo.com learned from the foreign media 'Justmens' report on April 9 that although global toy sales are on the rise due to the rapid increase in demand from middle-class consumers in China, India and other developing countries, the blessing However, Lester Research said that sales in the US market are expected to increase slightly from US$22.6 billion in 2014 to US$239 in 2018. It is reported that US toy manufacturers will seek to expand the market, and will focus on environmentally conscious consumer groups. Although global toy companies such as Mattel, Hasbro, and Lego occupy 40% of the US toy market, it is still important for small toy companies that sell educational or environmentally friendly toys. There is huge market potential. These companies are attracting investment and attracting private equity investment companies that are optimistic about their future prospects. Since 2012, Propel Equity Partners, a private equity investment company in Greenwich, Connecticut, has set out to build its own toy empire, acquiring at least 10 companies in the name of Alex Brands. These companies mainly fall into two categories. One is old-fashioned toys. , The other category is 'green' brands. Other private equity firms investing in this emerging field include Winona Capital, the Friend Group and Topspin Partners. Propel’s Alex Brands product line represents a trend that not only satisfies parents’ nostalgia for childhood toys, but is also environmentally conscious. This trend helps new toy companies weaken the mainstream power of toy manufacturers like Mattel and Hasbro. Recently, Alex Brands established a new headquarters in Fairfield, New Jersey, USA, and opened a new distribution center in Woodbridge. The goal of these small toy companies is to develop and grow, hoping to achieve sales of about 200 million U.S. dollars, so that they can be acquired by large companies or go public independently. In response to the growing consumer demand for educational toys, Amazon recently established a toy sales department specifically for toys and game products sold by small and medium-sized enterprises. Here, math and technology toys are highly regarded, and there are also many private brands, such as Milton Industries and Melissa u0026 Doug. Melissa u0026 Doug sold a majority of its shares to Berkshire Partners, a private equity investment group. Another innovative toy company, Green Toys Green Toys, uses recycled milk packaging boxes to make a variety of toys. Green Toys declined the invitation to enter Wal-Mart. Co-founder Robert von Goeben said that this is because the main target consumer of the brand is not a regular customer of Wal-Mart. In 2014, Green Toys received an investment from The Friend Group, a private equity investment company, and its sales increased by 30% that year. Green Toys' sales channels include online, toy stores, furniture store Pottery Barn, and organic supermarket Whole Foods Market.