Company: KMRK
Filing Date: 2025-03-25
Form Type: DRS/A
Source: 0001013762-25-001825
Chunk: 111

Company: K-TECH SOLUTIONS CO LTD
Filing Date: 2025-03-25
Form: DRS/A
Chunk 111
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 to a wider variety of products compared to traditional retail channels. Consumers can easily compare prices, read reviews, and discover niche products through various online platforms, thereby increasing overall competition in the market. 71 Reliable and Responsive Suppliers Most toy companies outsource manufacturing to overseas suppliers, particularly in developing countries where production costs are lower. Establishing strong relationships with reliable suppliers is crucial, but these partnerships often take years to develop. Companies must invest in building trust and open communication channels to ensure consistent product quality and timely production. R&D capabilities As consumer preferences become increasingly diverse and sophisticated, companies require robust research and development (R&D) capabilities to create appealing product designs and enhance product performance. Investing in R&D enables companies to innovate and differentiate their products effectively. This requires substantial capital and accumulated expertise, highlighting the importance of continuous improvement and adaptation to evolving consumer demands. Overview of Toys Product Market in North America According to the Toy Association, U.S. retail sales of toys generated US$28.0 billion in 2023, reflecting an 8% decline from the previous year. Despite this decrease, the toy market has grown by an impressive 26% since 2019, demonstrating its resilience and long -termpotential. Within North America, the U.S. accounted for nearly 74% of the revenue share in the toys and games sector, highlighting its dominant position. The market is projected to witness growth over the forecast period, driven by the increasing popularity of educational toys and STEM -focusedgames, which parents are choosing to provide their children with both entertainment and learning opportunities. Popular media and entertainment franchises, with licensed toys and games based on movies, TV shows, and video games, are becoming increasingly popular among consumers. This trend is anticipated to fuel regional market growth. Additionally, factors such as rising disposable incomes and a growing population of children aged 0 – 14 are expected to further drive market expansion. The rise of e -commerceplatforms has also made it easier for consumers to purchase toys, providing an additional boost to market growth. The market is segmented into various categories, including action figures, dolls, games and puzzles, and outdoor and sports toys. Among these segments, action figures are expected to experience the highest growth during the forecast period, largely due to the increasing popularity of superhero movies and TV shows, which continue to drive demand for these products. Moreover, the outdoor and sports toys segment is also expected to see significant growth during the forecast period, owing to growing awareness of the importance of physical activity among children. This segment includes products such