trade
Delivery bottlenecks for toys in Christmas sales
In Corona times, more puzzles are puzzled again. Photo: Harald Tittel / dpa
© dpa-infocom GmbH
The hunt for the Christmas presents is slowly beginning. The dealers’ warehouses are full. Nevertheless, not every wish could come true this year.
The toy industry is benefiting for the second year in a row from the increased desire to play during the Corona crisis. However, delivery bottlenecks could overshadow the important Christmas business.
Retailers could run out of supplies, especially for popular toys. Industry experts therefore recommend not to wait until the last minute to buy gifts.
Don’t wait until Christmas Eve to buy gifts
Ulrich Brobeil from the German Association of the Toy Industry (DSVI) explained on Monday in Nuremberg that increased demand is currently meeting with a scarcity of raw materials and limited transport capacities. Almost all manufacturers would feel the effects of this – and in the end, the retail trade too.
According to a survey by the Munich-based Ifo Institute, 77.8 percent of retailers in Germany complained about difficulties in delivering the goods they had ordered. There are therefore supply problems particularly with toys. “Consumers have to have a certain flexibility when it comes to Christmas presents,” commented Klaus Wohlrabe, who heads the Ifo surveys.
In view of this situation, many dealers have filled their warehouses better than ever before, said the managing director of the Federal Association of Toy Retailers (BVS), Steffen Kahnt. Nevertheless, there are also gaps on the shelves. “In view of the tense delivery situation, we are cautiously optimistic about the Christmas business,” he said.
According to BVS, toys were more in demand than ever in the second year of the corona pandemic. “In uncertain times, it was always the children who saved last,” said Kahnt. At the end of the year, according to the forecasts, consumers will have spent at least 3.8 billion euros on toys, another 4 percent more than in the previous record year of 2020.
According to calculations by the market research company npd Group, sales on the German toy market grew by 141 million euros from January to October, an increase of 8 percent compared to the previous year. Sales drivers were mainly construction kits, board games, puzzles and toys for toddlers and preschoolers. As a result of the lockdown, online trading grew strongly, as in many other industries – to a share of 58 percent.
According to a representative survey by the opinion research institute YouGov on behalf of the DSVI, 40 percent of those questioned said that games had helped them through the pandemic. 37 percent said that games will continue to be more important to them in the future.
Therefore, after a survey among the DSVI members, many companies are optimistic about the coming year despite all the problems. However, manufacturers expect a normalization in 2022 after the two exceptional years and thus less strong growth jumps.