NPD Group: A History of Market Research and Industry Tracking
The NPD Group has established itself as a cornerstone of global market intelligence, providing critical data that helps businesses understand consumer behavior and retail trends. By leveraging a combination of retail tracking and consumer reporting, the organization has become a primary source of truth for several high-growth industries, most notably in consumer electronics and gaming.
Key Facts
- Core Services: Offers retail sales tracking, consumer panels, analytic solutions, and advisory services.
- Gaming Legacy: Began tracking the North American video game industry in 1995.
- Global Reach: Operates across major markets including the US, Canada, Japan, China, and various European nations.
- Major Acquisition: Acquired by private equity firm Hellman & Friedman in October 2021.
- Book Industry: Manages NPD Book in the U.S. after acquiring several Nielsen services in 2017.
Strategic Growth and Acquisitions
The expansion of the NPD Group was marked by several strategic acquisitions designed to deepen its expertise in technology and consumer electronics. In July 1999, NPD and GfK co-purchased Intelect ASW, a firm specializing in appliances, information technology, and consumer electronics.
This momentum continued into 2001, when NPD purchased the core business of PC Data, integrating its operations and 60 staff members into NPD Intelect. This integration led to the creation of two specialized subdivisions: NPDFunworld, launched in October 2001 to focus on the console game market, and NPDTechworld, launched in December 2001 to cover the software and technology sectors.
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Tracking the Video Game and Book Markets
NPD's influence on the video game industry began in 1995. During the 1990s, the Toy Retail Survey Tracking (TRST) system became the industry standard for sales figures. The TRST gathered data from 17 North American retail chains, representing approximately 63% of the American market. Notably, NPD provided this data without extrapolation, and clients were discouraged from republishing the raw figures.
Beyond gaming, NPD expanded its footprint in the publishing world. In January 2017, the company acquired several book industry research services from Nielsen, including BookScan, Pubtrack Digital, PubTrack Higher Education, PubTrack Christian, Books & Consumers, PubEasy, and PubNet. These now operate under the NPD Book practice area in the United States. Meanwhile, NIQ (formed from the divestiture of Nielsen Holdings' consumer intelligence business in 2021) continues to manage book services outside the U.S.
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Methodology and Global Operations
To ensure accuracy, NPD utilizes a multi-faceted data collection approach. This includes checkout tracking (monitoring sales directly from retailers and distributors) and consumer-reported purchasing behavior. Additionally, the VIP Voice service allows consumers to provide direct feedback through surveys regarding the products and services they use.
The organization maintains a vast international presence, serving industries in the United States, Canada, Mexico, Brazil, the United Kingdom, France, Germany, Italy, Spain, Sweden, the Netherlands, Belgium, Russia, Turkey, Japan, South Korea, China, Australia, and New Zealand.
| Category | Details |
|---|---|
| Primary Data Sources | Retailer checkout tracking, consumer panels, and VIP Voice surveys. |
| Key Specialized Branches | NPDFunworld (Gaming), NPDTechworld (Tech/Software), NPD Book (Publishing). |
| Major 2021 Event | Acquisition by Hellman & Friedman. |
| Historical Gaming Tool | Toy Retail Survey Tracking (TRST). |
Frequently Asked Questions
When did NPD start tracking video game sales?
NPD began tracking the North American video game industry in 1995.
What is the TRST system?
The Toy Retail Survey Tracking (TRST) was a system used in the 1990s to collect sales figures from 17 North American retail chains, covering 63% of the U.S. market.
How does NPD collect its market data?
NPD uses a combination of checkout tracking from distributors and retailers, consumer-reported purchasing behavior, and consumer panels via services like VIP Voice.
What happened to Nielsen's U.S. book research services?
In January 2017, NPD acquired services such as BookScan and Pubtrack Digital from Nielsen, integrating them into the NPD Book practice area in the U.S.
Who acquired the NPD Group in 2021?
The NPD Group entered into an agreement to be acquired by the private equity firm Hellman & Friedman in October 2021.