Can small and micro toy manufacturers survive in the cracks?

Although many sellers have stated that the situation this year is terrible and that even during the peak season, the expected sales boom has not been achieved, under such circumstances, toy sales in the market have maintained a good momentum. It is understood that the US toy market has maintained a high double-digit growth rate.

According to the latest sales data of the U.S. toy market released by the NPD Group in early November, U.S. toy sales increased by 11% year-on-year in the third quarter, and the cumulative year-on-year growth from January to September was 17%.

However, we have to admit that under the epidemic environment, considering the production, transportation and sales, the big brand toy giants are maintaining a good growth momentum, while some small and micro toy manufacturers are facing an extremely difficult road to survival as the market space is constantly squeezed.

The supply chain and shipping logistics situation this year is extremely severe. The epidemic has interrupted production, delayed order delivery, and there is a shortage of containers. Shipping costs continue to rise. However, big brands like Mattel and Hasbro can rely on their strong capital strength to ensure production and charter flights or rent ships to transport goods in the chaotic logistics and transportation.

Some small and micro toy manufacturers can only survive in the cracks of production interruptions, delivery delays and poor port transportation conditions. In addition, the operating efficiency of the West Coast ports in the United States is low and storage fees are rising ... All these will squeeze the revenue and profits of small and micro toy manufacturers.

Although some small and micro toy merchants began preparing for the peak season in the summer, this year's logistics situation has continued to affect sellers' market judgment, and sellers are simply unable to accurately grasp market trends.

Some sellers said that they still have toys for sale this Christmas, but popular branded goods are hard to get. If they can't make it through this Christmas season, they may face the risk of bankruptcy. It is really difficult to survive this year!

Logistics chaos, production backlogs, and the survival of small and micro toy manufacturers