Toy Sales Supported by Staple Products in the Educational Category

「Among existing products, the Pythagoras construction toy series continued to generate strong sales. The series, centred on the Ball Coaster, continues to enjoy strong consumer support, and high-priced sets with richer contents are becoming increasingly popular. During the interim accounting period, the company launched the new “1歳のファミリーピタゴラス” (“Pythagoras Family for 1-Year-Olds”), designed around parent-child play, which contributed to sales. The company plans to further expand the series.」

「Infant, educational and construction toys 1,503,818 1,391,470 92.5」

「In domestic sales, the main sales driver was the Pythagoras Ball Coaster construction toy.」

「As noted above, upfront investment, mainly in research and development expenses for the “Curiosity Business,” is required, but sales of staple and new products in the existing businesses are supporting this investment. In particular, the strong performance of the Pythagoras construction toy series limited the decline in sales from the exited businesses to a certain extent.」

「During the interim accounting period, sales of the existing Pythagoras Series remained strong, limiting the decline in sales from the 2 businesses exited in the previous fiscal year, bicycles and dolls, to a certain extent.」

「Against this backdrop, first-quarter sales of the existing Pythagoras Series remained strong, limiting the decline in sales from the 2 businesses exited in the previous fiscal year, bicycles and dolls, to a certain extent.」

「In the “Pythagoras Series” infant and educational toy category, sales of Ball Coaster-type sets, which are beginning to attract consumers with a new form of play, grew and orders during the year-end shopping season reached the point of causing stockouts.」

「In the Pythagoras Series of infant educational toys, the company attracted new consumer segments with the Pythagoras Ball Coaster and Ball Coaster Sound launched in the previous fiscal year. As this category became a core business and supported domestic sales overall, the company kept the decline in domestic sales to approximately 20% year on year in the cumulative second-quarter period, despite a substantial sales decline in the play equipment and ride-on category following the end of the bicycle business.」

「Infant and educational toys 287,602 275,613 95.8」

「In domestic sales, the Pythagoras Series, led by the newly launched “ピタゴラスBASIC知育いっぱい！ボールコースターサウンド” (“Pythagoras BASIC Educational Ball Coaster Sound”), and the staple Anything Goes Series remained resilient. Sales of baby toys, some of which were repriced upward in the first half, and the previously sluggish “お米シリーズ” (“Rice Series”) also began to recover gradually.」

「The category remained steady, centred on the “ピタゴラス” (“Pythagoras”) Series. The company also launched new products such as “ダイナミックダイナソー” (“Dynamic Dinosaur”) and “ボールコースターサウンド” (“Ball Coaster Sound”), which offers both construction play and ball-rolling play, expanding the series.」

「During the first quarter, customer traffic after the New Year remained weaker than expected. The company launched new products, including “うちの子のダイスキを手づくり　五感シゲキット” (“Make Your Child’s Favourite Things: Five-Senses Stimulation Kit”), which allows play to be customised as the child grows, and “水と空気の４STEP知育マット” (“Water and Air 4-Step Educational Mat”), a new-concept mat designed to accommodate subtle changes in posture during the rolling-over stage.」

「The main growth driver was the construction-toy “ピタゴラスシリーズ” (“Pythagoras Series”). In particular, the new “ピタゴラスＢＡＳＩＣ ボールコースター” (“Pythagoras BASIC Ball Coaster”) became a hit product that drove the series. “やりたい放題ビッグ版” (“Anything Goes Big Edition”) and “知脳リモコン” (“Smart Learning Remote”) also made significant contributions.」

「Among our products, the “ピタゴラスシリーズ” (“Pythagoras Series”) remained strong, led by new products launched this year such as “知育いっぱいボールコースター” (“Educational Ball Coaster”). Products such as “いたずら１歳やりたい放題” (“Anything Goes for 1-Year-Olds”) are also attracting expectations from distributors as priority Christmas products and reliable offerings for parents.」

「The company maintained sales by updating long-loved staple play products in line with the times while preserving their appeal, including the launch of the refreshed “赤ちゃん新聞コラボ版” (“Baby Newspaper Collaboration Edition”), created in collaboration with a popular parenting app to mark the 15th anniversary of “赤ちゃん新聞” (“Baby Newspaper”).」

「The Pythagoras series continued to perform well in the current period, as it did in the previous fiscal year. In April, the Company launched 2 new products, 知育いっぱいボールコースター Standard and DX, adding the educational value of a ball-drop activity favored by children around age 1. The products got off to a good start.」

「The Pythagoras construction-toy series performed well across the entire line. New products such as ピタゴラスBASIC　知育いっぱいどうぶつえん, priced at ¥5,000 and including animal parts that connect magnetically, contributed to the expansion of the series by offering new forms of play not previously available.」

「As in the first half, the construction toy Pythagoras series continued to perform well in the third quarter, led by the popular gift product ひらめきのプレート, priced at ¥12,000, in anticipation of the Christmas selling season. In the current environment, demand for standard products has also been rising, and the Company’s core standard products, including やりたい放題ビッグ版リアル＋ priced at ¥5,300 and 知脳リモコン priced at ¥1,700, have attracted expectations after being selected by distributors for advance purchases ahead of the Christmas selling season.」

「The Pythagoras series of construction toys, for which demand as an indoor activity increased during the COVID-19 pandemic, attracted consumers and generated sales through new products added to its existing lineup, including Pythagoras BASIC Educational Animal Park at ¥5,000, Pythagoras WORLD Clock House at ¥6,000 and Pythagoras WORLD Crane Building at ¥6,000, all launched in May.」

「Existing Pythagoras series products increased sales through online channels, supported by demand for indoor activities during the period when people refrained from going out, or so-called stay-at-home demand. Meanwhile, products such as the Purely Japanese Rice Toy series, which has strong inbound demand, and the Non-Character Good Products series, for which consumers have many in-store options, struggled.」

「New products that fit the needs of parents identified through the latest childcare-environment research, including 知脳リモコン priced at ¥1,700, PIKAO-ピカオ‐ priced at ¥3,500, and スマート知育ジムウォーカー priced at ¥5,800, performed well and contributed to sales, supported by campaigns centered on social media. Existing products such as ピタゴラス, however, were affected by weakness in the year-end selling season for the toy market.」

「Orders for standard products, primarily in the infant and toddler category, recovered in October.」

「In the relatively stable construction-toy market, the category also relaunched 4 Pythagoras products simultaneously in June and began a brand refresh campaign. New packaging and content designed to make products easier to select according to children’s ages and abilities, together with new store displays featuring dedicated tables, are expanding.」

「In the early-learning toy category, the Company launched お水の知育, priced at ¥3,780 before tax, making water the central element of the toy. TV advertising was effective, and it became a strong seasonal standard product for the following fiscal year. The Company also launched おかねが貯まるハンバーガー屋さん, priced at ¥3,280 before tax, as an edutainment family game with unique added value.」

「In July, strong sales of new Pythagoras products also increased turnover of the standard products. New products in previously unexplored categories, including analog games and girls’ hobbies, were well received by distributors and increased order volumes.」

「Existing products such as やりたい放題BIG版, the Rice series and large multi-function early-learning products such as walkers were expected to perform well. In April of the quarter, the Company received urgent forward-stocking orders for the following month’s Golden Week promotions, and the infant and early-learning categories performed above the industry average.」

「The long-selling early-learning standard product いたずら１歳やりたい放題ビッグ版, priced at ¥4,800 before tax, was joined by the new book-format product いたずら１歳やりたい放題スマート本, also priced at ¥4,800 before tax, in a market containing many products with designs similar to the Company’s. Together, the two products increased the number of purchasers by more than 30%.」

「In the construction-toy segment, the Company aired TV commercials for the Pythagoras series’ first combination set of plates and blocks, 1歳の知育ピタゴラス, priced at ¥3,980 before tax, as an introductory product. The commercials were effective and are driving the series as a whole.」

「The established product やりたい放題BIG版 attracted attention for its innovative product concept when launched in 2003, and many competitors have since entered the market with similar designs, but it continues to maintain a top-tier market share. The new やりたい放題スマート本 has a new book-shaped design not offered by competitors, folds compactly, and includes new prank-play features; it has shown strong sales turnover since shortly after launch.」

「Against this backdrop, existing products in the infant and early-learning categories of the Company’s toy division, including the Pythagoras and Rice series, performed better than expected and supported sales.」

「During the difficult domestic sales environment in the third quarter, standard products in the early-learning category supported toy sales. In particular, products such as やりたい放題BIG版 were featured in flyers far more prominently than competing products as a means of stimulating consumption, resulting in an increase in shipments from the same period of the previous year that was unique to the current period.」