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‘Soft, Squishy Toys’ Come Out Tops This Holiday Season Due To Shipping Squeeze
By Ell Ko, 18 Oct 2021
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Image via photo ID 184036374 © Svetlana Day | Dreamstime.com
It’s no mystery that, over the last couple of decades, a lion’s share of the toys sold in the US and around the world are made in China.
It hasn’t ever really been a problem to get the goods shipped to their destination countries, and this process is described by toymakers Basic Fun chief executive Jay Foreman as “set it and forget it.”
But this year isn’t the same as others, as the world still struggles to get back on its feet from the effects of the pandemic. Supply chain shortages have hit many industries from fizzy drinks to sneakers, and it may not come as a surprise that the toys sector has felt its effects, too.
This isn’t great timing—although it’s never really going to ever be for this sort of things—because more than a year of the pandemic has meant that customers are more likely to want to go all-out this season. A survey by PWC has indicated that customers may spend an average of US$1,447 on gifts this year thanks to extra savings. This is up 20% from last year.
However, ‘out of stock’ signs and empty shelves are almost certain to put a damper on the spending mood.
Shipping containers are among the things that we’re currently seeing a shortage of. Hence, the cost of a 40-foot container from Shanghai to Los Angeles spiked 238% this August, according to CNN. This saw the spot rate of booking a single container reach US$10,229.
But as the end of the year’s festive season draws closer, time has felt tighter than ever. Many decisions relating to holiday sales have to be made by September in order to be fulfiled in time. So, Foreman decided that the best thing to do for the company was to focus on selling “small, squishy toys” this year.
In terms of Basic Fun’s approach, this would mean a pivot away from its Tonka Trucks, and a priority given to smaller toys like Cutetitos, which are little stuffed animals wrapped in a blanket to resemble a burrito.
Essentially, scaling back on large-sized items in favor of being able to fit more of smaller-sized units into the same amount of space.
For example, US$150,000 worth of Mash’ems—soft collectibles depicting popular characters—and US$100,000 worth of Cutetitos can fit into the same container that would be able to take just US80,000 worth of Care Bears and US$40,000 worth of Tonka Trucks.
That’s not to say that these larger toys won’t be available come year end, but it’ll just mean that costs will have to be raised to facilitate them reaching US shores.
“It’s a simple case of how much sales volume fits in the container when containers are hard to come by,” Foreman tells CNN. “I’d rather sell fewer trucks and not have to raise the price exponentially because I’ll sell trucks again next year.”
Other solutions include retail giants like Walmart and Target chartering their own ships to ensure goods come in time. Of course there’s also the option of air freight, but that will come at greater cost to the consumers—and the environment.
[via Yahoo, Image via photo ID 184036374 © Svetlana Day | Dreamstime.com]
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