The Netherlands

(Editor's note: This is the third in a series of market reports from members of ITMA, the International Toy Magazine Association. Playthings is the U.S. member of the organization.)

This year had only just started, and we were looking back on a decline in turnover in 2004 of more than 10 percent. The celebrations around Sinterklaas, the Dutch word for Saint Nicholas, are a real Dutch tradition in Holland and for those who live in the region of Belgium where Dutch is the language. The tradition of Sinterklaas is celebrated on December 5, not only at home, but also at schools and sports clubs; almost everybody joins in.

This saint, we tell our children, comes every year three weeks prior to the December 5 “Sinterklaas day,” on his steamboat from Spain. In reality, the origin of the celebration of Sinterklaas is probably in Turkey. As for the saint himself—he died hundreds of years ago.

Sinterklaas, dressed in a long red opulent garb always brings loads of Zwarte Pieten, or Black Pete—called this because of the amount of chimney soot they collect on their faces as they climb down chimneys (so the story goes). The Zwarte Pieten are the helpers of Sinterklaas and are also colorfully dressed, similar to jesters in rich purple, red, green and gold. The Zwarte Pieten often have big sacks of special Sinterklaas cookies that they give away to all the children. Of courese, children are very happy with the arrival of Sinterklaas, who always comes with gifts.

Every year a different town in the Netherlands is chosen for the grand arrival of Sinterklaas. He is welcomed by the mayor, thousands of children and their parents. The grand arrival includes Sinterklaas riding throughout the town on his white horse. The entire day of Sinterklaas' official arrival is broadcast live on television. The following week, traveling by steamboat, Sinterklaas visits every town in the Netherlands, often with music provided by a band of musicians that accompanies Sinterklaas on a full tour of the town.

Kids learn special Sinterklaas songs at school, and they are sung frequently. On Sinterklaas Eve, there are festive family parties where relatives exchange gifts and surprises. The Dutch, unlike others, include adults as well as children in the fun, and therefore everyone, big and small, gets presents. The kids, of course, get more. Each gift, anonymously signed “from Sinterklaas,” comes with a clever rhyme that may point out a person's shortcomings in a humorous way. Everywhere in the shops you can get chocolate letters, and almost everyone finds among their gifts a chocolate letter that is the first letter of their name.

Sinterklaas aside, retailers in the Netherlands have so far had a bad year, so they are looking to the December month with both hope and fear. But with more and more presents becoming the focus of Christmas (although Sinterklaas still wins), Dutch retailers can hope for two major sales peaks in December. Just like in the rest of Europe, more than three-quarters of the annual sales of toy shops are made in the last two months of the year.

And as the Netherlands becomes more commercialized, which is considered unfortunate by many, other opportunities are being presented to retailers. Halloween, for instance, has become increasingly popular. And shop owners are trying very hard to get Valentine's Day on the calendar, too.

As for manufacturers, there are no more big toy producers in the Netherlands. Famous still, however, is the game and jigsaw puzzle manufacturer Jumbo (also known as Falcon in the U.K.), which celebrated its 150th anniversary in 2003. Also in business is SES, known for hobby materials. Almost all the rest of the industry buys, or has production facilities, in China and Thailand.

And it's not for nothing that the Dutch are famous for their trading mind! Did you know that because of the harbor in Rotterdam the Netherlands is the largest exporter of toys to other European countries?

Toys in the Netherlands are mostly being sold at toy speciality shops, most of which are smaller shops, often less than 200 square meters, and usually belonging to one of the four large chains. To these chains belong Toys2Play, Intertoys and Bart Smit, which are each part of the Blokker Group. Their main competitor is Top1Toys, but Toys “R” Us plays a leading role, too. Also, larger department stores increase their toy department in time for the December rush. Hypermarkets are unknown in the Netherlands, and supermarkets hardly sell any toys.