Toy industry feels reluctance to buy
The toy industry is actually quite crisis-resistant. However, in view of the many uncertainties and the slowdown in consumer spending, it is expecting lower sales this year. Many retailers are now hoping for Christmas sales, which are so important for the industry. After all, nobody expects children to have to do without their presents. However, parents and grandparents could opt for cheaper products this year.
The toy industry is also feeling the effects of the fact that many people in Germany are saving - but according to market researchers, it is not as affected as many other sectors. According to a forecast by the German Toy Trade Association (BVS), consumers will spend 4.5 billion euros on toys this year - around 4 percent less than last year. "Nevertheless, we are optimistic about the Christmas season," said Managing Director Steffen Kahnt in Nuremberg on Tuesday. "Children are the last to save."
Problems with Playmobil and Haba
According to a survey commissioned by the BVS, consumers spent an average of 148 euros per child on toys last Christmas. However, it is questionable whether this will be the case again this year. Not only are fewer toys being bought, but consumers are also paying more attention to the price, explained Joachim Stempfle from the market research institute Circana. High-priced toys are currently turning out to be shelf warmers. In contrast, action and play figures, trading cards, board games, puzzles and soft toys are particularly popular.
According to Circana, many major toy manufacturers such as Lego, Mattel, Simba, Playmobil and Schleich have recorded a decline in sales this year - not only in Germany, but also worldwide. In a survey conducted by the German Toy Industry Association (DSVI), more than half of the manufacturers stated that weakening demand and economic pressures will leave their mark on their balance sheets.
Two traditional German manufacturers recently announced some bad news: the Playmobil parent company announced in the fall that it would be cutting around 700 jobs worldwide. Haba, a company from Upper Franconia known for its wooden toys, had already announced the end of the Jako-o brand and large-scale job cuts in the summer and filed for insolvency shortly afterwards.
"The toy industry itself is not in crisis," emphasized DSVI Managing Director Ulrich Brobeil. "The industry is robust and well positioned for the coming years." It is individual company models that are currently being put to the test.
However, Brobeil sees a problem for the entire industry - and ultimately also for consumers - with direct imports from abroad via the internet. These could be unsafe toys contaminated with chemicals or counterfeit products. The new EU toy regulation is a first step in the right direction. However, this alone cannot solve the problem.
Given the current economic situation, some parents and grandparents might opt for more affordable toy options this year, reducing the spending on high-priced toys. Despite the overall negative trend in toy sales this year, Managing Director Steffen Kahnt remains optimistic about the Christmas season, believing that children are less likely to save.
Source: www.dpa.com
