The “2021 Looking Forward Survey” asked toy industry members to share their hopes and concerns for 2021. We received 151 responses. Here are the results:
1. Are you experiencing price increases?
The answer was an emphatic “Yes.” 88% of respondents stated that they were getting hit with increases. I have spoken to many people, both in the U.S. and abroad, and price increases are on the rise. I am hearing that they are falling between 7% and 11% on average.
2. What reasons are given for the increases?
When asked the reason for the increases, 66% cited a rise in raw materials costs, 56% cited freight costs, 28% pointed to a rise in the value of the Chinese Renminbi versus the U.S. dollar, and 22.5% cited wages. I have not heard anyone speak to me about wage increases, but I have heard concerns regarding the Dollar and the Renminbi exchange rate. The concern expressed is that a change in the valuation of a currency affects the entire product rather than a single input.
3. On a scale of 1 to 10, how concerned are you about inflation?
The higher the number, the more concerned respondents were. 25% rated their concern as a 9 or 10. The number of people answering question number 1, “Are you experiencing price increases,” was 88%, so it seems that despite the price increases, respondents were not overly worried about inflation.
4. On a scale of 1 to 10, how much trouble are you having with the supply chain?
24% of those responding rated their troubles with the supply chain as falling between 9 and 10. I consider this to be a low percentage in light of the rise in containerized freight rates, which have doubled and tripled over the course of the year.
5. How do you expect to finish 2021?
Respondents are feeling good about 2021. 51% of responders expected their business to be up while another 24% expected to be even with last year. Only 25% expected their business to be off.
6. Do you plan on attending the Dallas Toy Fair in person?
18% said yes. Perhaps those responding are still not comfortable with travel and gathering in groups. Yet, despite only 12% of respondents to question number 7, “What concerns you most?” rating Coronavirus a concern, only 18% of respondents expect to attend the Dallas Toy Fair.her 24% expected to be even with last year. Only 25% expected their business to be off.
7. What concerns you most?
The number 1 concern with respondents was price increases (38%). The rest fell in the following order: The supply chain (24%), Raw Material Shortages (13%), Coronavirus (12%), and other 11%.