Rise in inflation eats up recovery in toy sales

one for lime and the other for sand Alicante toy manufacturersWith their next Christmas campaign, they will face more doubt than ever about the possible evolution of the business. The good news is that industry sales in the national market increased by about 7% they reached 352 million euros in the first eight months of the year and with it they would certainly regain all the lost volume. Pandemic.

But the bad news is that much of this development is just The increase in the prices of these products, the volume of units sold actually remained almost unchanged, increasing only 0.4%, given the need to pass on the cost increase that manufacturers incur. In other words, it is sold same number of toys, but more expensive.

This is reflected in the latest data provided by the consultant. NPD Groupshowing that, half price Toy sales rose from January to August 6.5%, 1.6% compared to the previous year. “The problems in shipping costs and the increase in raw materials, last yearmost manufacturers can no longer change their rateshowever uploaded this year from the very beginning,” says the NPD director in Spain, Fernando PerezHe is confident that this wider price range will allow him to close the year on a positive note, although the number of articles has remained stable.

An optimism not shared by everyone in the industry since businessmen they fear the rise in prices will deter buyers In the next few months, especially given the worsening economic situation ahead. “People have to pay more for electricity, gas, or food, and it makes sense that non-essential items will be damaged more quickly and if they turn out to be more expensive,” complains the manager of the Berjuan dolls manufacturer. Cesar Bernabeuthis ensures that they have no choice but to raise prices. costs increased at least 30%.

A toy store in the province of Alicante. Juani Ruz


“From cardboard to vinyl to make fabrics for dolls or clothes, everything exploded“The businessman insists, also pointing to the delay in supply by businesses as many still have stock from last year and prefer to wait to see how the situation will develop.

I’m looking forward to how the Christmas campaign, where approximately 70% of the sector’s sales are concerned, will develop, for now the data until August is fixed with the said 7% increase in turnover, albeit with differences in the national market. This is how it is called licensed toysi.e. certain linked ones movies success, series or video game According to the NPD Group, they are the biggest draws from the market, with an increase of 17% compared to 3% for the rest of the toys. Some data that coincides with the presence of titles like: Jurassic World: Domination, light year or new installment slaves, to cite a few examples. In this way, licensed products already cover almost a third of the market.

The highest increase was the sales by category. action figures, with brands like pokemonthey are popular Funko Pop or it’s all about the universe astonishmentrecorded an 8% increase. It is also improving the sales of collectibles (+17%), which were greatly affected by school closures and social restrictions during the pandemic and are now regaining their tone.

In contrast, sales dolls are those that offer the least favorable evolution by chaining. several months of decline -The decline was 8% in August- but the accumulated figure for the year is still maintained with a slight increase of 2%.

On the other hand, they emphasize from consulting that companies continue to bet on innovation and introducing innovations to the market. Thus, after improving sales by around 20% in the first months of the year, new launches already account for 16.6% of the market.

Another trend that has been consolidating is public ‘boy’, They’re called the segment that buys toys – mostly collectibles – young and adult segments that already make up a quarter of the market.

NPD Group is the reference consultancy in the toy industry, getting its data from reading the barcodes on the boxes of the main distribution chains in the market.

Grandparents buy gifts again

NPD’s Tous Consumer 360 report confirms the gradual return to normalcy in toy consumers’ habits. Therefore, the factors driving the market the most in the first half of the year include the start of birthday parties or holidays, or the recovery of purchases linked to back to school. Similarly, the group that increased their purchases the most was grandparents with 18%, compared to 6% recorded by parents and other relatives. It’s a trend related to greater measures that this group has embraced in the face of the pandemic and now that their grandchildren are enjoying again.

Source: Informacion

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