Toy sales slump sends producers hunting for new consumer groups

Christmas is one of the best times of year for the toy industry, but a decline in the children's toy market has manufacturers seeking new audiences and tactics.
Has your family already sent their Christmas wish list to Santa? What are this year's most popular toys and what do children really hope to find in Santa's sack?
Despite fierce competition, Pinwheel, a small toy shop on the edge of Kalarand, is in its eighth year of business. Its owner, who came to run the Tallinn-based store by way of Switzerland from Latvia, stocks a carefully curated selection of toys that differs greatly from what's typically found in larger stores.
"This season, what stands out is that parents are increasingly choosing screen-free toys and I'm really happy about that. But there are also themes that are popular every year — like unicorns, ballerinas, dinosaurs and space," said Kristina Namavire, owner of Pinwheel toy shop.
Over the years, Kristina has built a loyal customer base. However, when an influencer on TikTok, Instagram or Facebook praises one of her products, sales can skyrocket overnight. Major retail chains confirm the same trend.
"Kids follow social media very closely. If something becomes popular there, it spreads like wildfire — everyone wants it. Then you'll see lines at the door, with people waiting, even if it means standing in a queue," said Karolin Rohesalu, marketing manager for XS Toys.
For example, the Labubu toy craze last summer lasted just a month. Interestingly, the trend was initially driven not by kids, but by adults. This shift toward targeting older age groups is increasingly characteristic of the toy industry as a whole.
"Overall toy sales are slightly declining. The holiday season hasn't been too long yet, but some bestsellers have already emerged. For instance, Lego, which was relatively quiet for a few years, has launched new hit lines like the Formula 1 series, the Icons collection and the Botanical line — designed for both kids and even adults. On the more traditional side, Moomin mugs and Iittala ceramics remain highly valued by Estonians. Their sales always rise in December. People are looking for gifts that are more meaningful and valuable," said Kaimo Niitaru, head of procurement and assortment at Prisma.
At XS Toys, Lego remains popular, along with puzzle games, Gabby's Dollhouse toys, Pokémon cards and interactive toys.
"For example, we have these fun Bluemobiles — it's an egg that hatches into a butterfly. Kids love watching the colors change and hearing the sounds it makes. They can stroke it — it's soothing. And when it wakes up, the surprise moment is just magical," said Karolin Rohesalu.
While toy shops have to place their bulk orders nearly a year in advance, shoppers tend to leave their buying decisions to the last minute. According to Prisma's sales data, 20 percent of the month's total sales are made during the three days before Christmas, with December 23 consistently being the busiest shopping day.
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Editor: Marcus Turovski. Aleksander Krjukov









