Toys Shortage, Reality or Rumor?

COVID has disrupted the entire supply chain, especially in the case of raw materials such as electronic components, mainly manufactured in China. This has had an impact on many sectors including the toy industry. Focus on Christmas like no other.

Fewer ships are moving, and manufacturers are facing a slowdown in the container business. The rotation of 48 to 72 hours has now become 15 days. A truth whose consequences cannot be denied. A paucity of containers means that some of the toys ordered are stranded in Asia. In addition, higher prices for plastics, cardboard, electronic components and transportation can affect the price of toys.

Stores are relaunching their attractions

This year, 82% of French people plan to buy their Christmas gifts in stores for at least one type of brand, whether in supermarkets (63% versus 51% in 2020), specialty stores (54%) or in the supermarket. Shops (48%). For these categories, the point of sale goes far beyond the web. 73% think about buying their gifts on the Internet (versus 68% in 2020), primarily to order on sites that don’t have a physical store, such as Amazon, Seadiscount or Zalando (68%). 74% expect free delivery costs, 69% expect free shipping and 62% easy returns in the event of an exchange or refund. The 24-hour delivery guarantee is still expected by 58% of French people, while Click and Collect, which allow online purchases and withdrawals in the store, have fallen slightly to 56% (versus 60% in 2020).

Decrease the effect of inflation on Christmas

To reduce their Christmas spending, 56% would buy cheaper gifts, 52% would eat more affordable and 51% would reduce the number of presents. 48% of French people also say they are willing to limit their trips or give gifts to fewer relatives because of the price of gasoline. For a third of those surveyed (32%), the price of gasoline may prompt them to see less of their family and loved ones at Christmas. This year, the French are looking to spend €282 on their Christmas gifts. Although up 17% from last year (€241), this budget remains 20% below pre-crisis levels (€342 in 2018). Outside of confinement, in-store spending increases. The French think they will spend €151 on it, or 77% more than in 2020. On average, those surveyed think they are spending €135 on the web, slightly less (- 15%) than last year.

“Playing French” Is Exported, Let’s Face It

According to the NPD, France’s games and toys generate 42% of its sales from exports, with significant market shares in our Belgian, Italian and Spanish neighbors, even though most business is recorded in the United States and England. This year, export sales grew by 5%, with our nearest neighbors such as Italy (+30%) or Spain (+17%) registering excellent progress, if any, as we play French beyond our borders.

Top 5 Properties in 2021 (Source: NPD Group – Data as on August 15, 2021)

  • pokemon
  • VTech Baby
  • harry potter
  • barbie
  • paw Patrol

Key Figures for the French Market

  • 5th largest market in the world, 2nd in Europe
  • Annual turnover of 3.6 billion euros in 2020 for 212 million toys sold.

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