On August 11, 2021, we began running our survey on toy industry inflation. One hundred and forty four of you responded and, by doing so, provided us with some hard numbers and a better understanding of how inflation is impacting our industry.
Here are the questions with your answers:
- What are you currently paying for a container from China to the U.S?
Price Range Percentage of Respondents
Less than $5,000 1%
$5000 to $7500 7%
$7600 to $10,000 5%
$10,100 to $12,500 8%
$12,600 to $15,000 14%
$15,100 to $20,000 42%
$20,100 to $25,000 20%
More than $25,000 3%
This response should give you an idea of whether what you are paying is in line with the industry. The range that brought the most responses (42%) was $15,100 to $25,000. If you are paying more than that number, you may want to shop some other shipping lines. If less, consider yourself fortunate.
2. What are you currently paying for a container from China to Europe?
Many of our readers work in Europe. So, we wanted to see how our European readers responded.
Price Range Percentage of Respondents
Less than $5,000 2%
$5000 to $7500 2%
$7600 to $10,000 8%
$10,100 to $12,500 15%
$12,600 to $15,000 29%
$15,100 to $20,000 25%
$20,100 to $25,000 15%
More than $25,000 4%
Responses were more spread out than from our American respondents. Still, 54% of respondents indicated they paid between $12,600 and $20,000 for a container.
3. If you are a toy company, are you taking price increases?
Yes 95%
No 5%
Without a doubt, toy companies are passing their price increases along. 95% of you are doing so. If you thought you were alone, you indeed were not.
4. If you are a toy company taking price increases, what are they averaging?
10 – 15% 60%
0 – 5% 22%
15 – 20% 10%
20 – 25% 5%
More 3%
The majority of respondents, 60%, are increasing prices in the 10 to 15% range. If you are working in the 0 to 5% range, you may want to rethink your pricing.
5. If you are a manufacturer taking price increases, how are your retail customers reacting?
They are accepting them 37%
They are accepting partial increases 32%
They are accepting price increases on some products but no on others 26%
They are rejecting them 5%
95% of those who responded indicated that their customers are at least partially accepting price increases. It appears that the retail industry understands the necessity and is accommodating. Still, there seems to be a great deal of negotiating taking place.
6. If you are a retailer, are you raising your prices?
Yes 80%
No 20%
Notably, 95% of toy companies are increasing their prices while only 80% of retailers. Some retailers are eating the price increases or refusing them.
7. If you are a retailer taking price increases, what are they averaging?
0 – 10% 45%
10 – 15% 39%
15 – 20% 7%
More 7%
20 – 25% 2%
84% of retailer respondents fell within the 0 to 15% range of price increases. 82% of toy companies did so, although they fell more into the higher, 10 to 15% range.
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How are these price increases affecting business? The following three questions were designed to answer that question.
8. Your revenues for the first six months of 2021 have been:
Up double digits 43%
Up single digits 26%
Even with 2020 11%
Down single digits 10%
Down double digits 10%
2021 is shaping up as another good year for the toy industry. 80% of respondents indicate that they were up or even with last year’s sales figures for the first half of the year.
9. How do you predict you will finish 2021?
Up double digits 39%
Up single digits 32%
Even with 2020 8%
Down single digits 13%
Down double digits 8%
Respondents are feeling just as well about the second half of the year. 79% expect to finish up or even with 2020.
10. How do you predict the toy industry will finish in 2021?
Up Single Digits 44%
Up Double Digits 23%
Even with 2020 16%
Down Single Digits 12%
Down Double Digits 5%
More respondents believe they will finish up in double digits than the industry as a whole. Optimism abounds.
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