Christmas is getting closer and closer – and with it the big question: What’s under the tree this year? Will some children be able to open fewer presents than usual?
The toy industry is actually quite crisis-resistant. But given the many uncertainties and the curbed desire to buy, they expect fewer sales this year. Many retailers are now hoping for the Christmas business, which is so important for the industry. Because no one expects that the children will have to go without their presents. However, parents and grandparents could opt for cheaper products this year.
The fact that many people in Germany are saving money is also felt by the toy industry – but according to market researchers, it is not able to do so as much as many other areas. According to a forecast by the Toy Trade Association (BVS), consumers will spend 4.5 billion euros on toys this year – around 4 percent less than last year. “With a view to Christmas, we are still entering the hot phase with optimism,” said managing director Steffen Kahnt on Tuesday in Nuremberg. “Children are saved last.”
Problems at 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 people buying less, but more attention is also being paid to the price, explained Joachim Stempfle from the market research institute Circana. High-priced toys are currently turning out to be slow sellers. Action and game figures, trading cards, board games, puzzles and plush items are particularly in demand.
According to Circana, many large toy manufacturers such as Lego, Mattel, Simba, Playmobil and Schleich are recording declining earnings this year – not just in Germany, but the toy market is tense worldwide. In a survey by the German Association of the Toy Industry (DSVI), more than half of the manufacturers stated that weakening demand and economic burdens would leave their mark on their balance sheets.
Two traditional German manufacturers recently announced bad news: The Playmobil parent company announced in the fall that it wanted to cut around 700 jobs worldwide. The Upper Franconian company Haba, 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.
Association President: “Industry is robust”
“The toy industry itself is not in crisis,” emphasized DSVI managing director Ulrich Brobeil. “The industry is robust and well positioned for the next few years.” There are 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 or toys contaminated with chemicals or plagiarism. The new EU toy regulation is a first step in the right direction. However, this cannot solve the problem alone.
Source: Stern
